Day Trading with Less than $25K | PDT Rule

The United States has something called the Pattern Day Trader (PDT) Rule which requires traders to have a minimum of $25,000 cash balance in your broker account in order to day trade more than 3 times in a 5 day period.  Since most day traders take 3-5 trades per day, they are considered Pattern Day Traders. 


It is our understanding that many of our members don't have $25k available to fund a trading account.  There are some offshore brokerages that do not enforce the PDT rule and allow day trading in a margin account with a $500 minimum balance.  Due to higher fees, it is not typically cost-effective to stay at such a brokerage forever, but it may offer a great option to trade while building an account.


Other options to build up a small account include starting with a cash account at a US brokerage. This article can be a helpful resource for exploring options for day trading with less than $25k: https://www.warriortrading.com/how-to-day-trade-without-25k/


Click here to read more on some of our favorite brokerages. 







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