I often get emails from readers asking me about the brokers that I use and which ones that I recommend for beginners like them. My answer is always the same – if you have more than $25,000 starting cash then go with SpeedTrader and negotiate the commissions.
However, many new stock traders only have a few thousand dollars to start trading with. SpeedTrader is a reliable broker but you cannot day trade if you have funded your account with only a few thousand dollars. If you really must day trade (I prefer to swing trade for larger gains…see where I learned my strategy, click HERE) then it is not possible to use a U.S based broker if you have less than $25,000 in your account. I suggest you look at this alternative broker – SureTrader – this company is based over seas but uses US clearing firms to perform your trades. Because they are not based in the US, the Pattern Day Trading rule (PDT) does not apply and you are free to day trade as often as you like using a small account (>$500).
This can make a HUGE difference to the novice trader – being able to perform day trades can easily make a small account grow much faster and allow you to take advantage of small intra-day price movements that would be impossible using a U.S based broker.
Other advantages include a WHOPPING 6-1 intraday leverage and 2-1 overnight large on marginable securities as long as you fund your trading account with more than $500!
– Allows you to short sell!
– Great customer service – this use to be much worse but they have made improvements over the last few years. It is now quick and easy to setup a trading account with SureTrader.
– They give you a free practice account to paper trade so you don’t blow up your account!
So you might be wondering are they a dodgy overseas company? I know some people might think that SureTrader might be risky because it is not based in the USA but in reality many traders have large accounts with SureTrader, including Timothy Sykes who started at least one account with $50,000. If Tim trusts them – I trust them.
So what are you waiting for ? If you NEED to day trade like a crackhead then open a SureTrader account (click HERE) and start growing that account!