Please note that SureTrader is closing effective November 4th 2019 and that this review will not be accurate. Please see your other options moving forward in our best brokerage firms page.
PDT rule. Under said rule, a day trader must maintain a minimum equity of $25,000 if day trading four or more times within five business days (5-day rolling period) with a margin account. Your current options for 2020 are listed over at our Online Brokers with No PDT rule post.
In other words, you must limit your trading activity to 3 intraday trades per week. Especially if you want to avail yourself of a margin account (i.e., account with leverage). What are your options if you're American and want to become a self-directed investor?
How about an active trader? Grow your less than $25,000 capital without limits as to when and how often you can buy or sell equities.
You could limit your intraday trading activities to no more than three trades a week. You could also trade using a cash account without any leverage until you grow it enough to meet the $25,000 requirement.
If you're looking at our SureTrader Review today, it’s probably because you’ve heard that with them, you can trade with leverage without the limits of the PDT rule. If that’s the case, the good news is that it‘s true.
Or, if that’s not the case and you’re only reading this short blog because the title ‘when only offshore will do’ piqued your curiosity, then let’s first take a look at “What is SureTrader?” In the process of reading this SureTrader Review, you'll discover why you can bypass the PDT rule.
They are an online broker. Swiss America Securities, Ltd. is the actual name of the company but their website is suretrader.com. The allow investors to trade stocks and options with a 6:1 leverage while not being subject to the pattern day trading rules on their account because, you got it; they are offshore (in the Bahamas to be exact). Check out a list of the top trading companies.
This SureTrader Review discusses the commision and fees. The Desktop platform called SureTrader Pro is not free starting at $49 per month. However, SureTrader Web-Based Trading is. The SureTrader Mobile app (for both iPhone or Android) is included if you are paying for the Pro platform (learn how to invest in stocks).
You should expect to pay a more for doing business with an offshore broker. SureTrader’s commissions and fees are outlined on their website. SureTrader hidden fees are not really hidden.
However, there are more fees to consider than your regular US based broker. As a result, you'll have to read a few pages to get the lowdown. How much do they cost to use is relative to what you get out of it. If the charges spook you, there are other options similar to SureTrader. You could research like CMEG.
If you're interested in opening a SureTrader account as a U.S. individual, you’ll have to provide additional paperwork because SureTrader is FATCA compliant. Which means that U.S. individuals and companies must fill out a W-9. If you're not a U.S. individual, you will have to fill out a W-8BEN form.
If you’re new to trading and haven’t heard of them it's because non-U.S. Broker-Dealers cannot solicit U.S. residents directly or indirectly as clients. However, there are no rules against Americans requesting a trading account with an offshore broker like them. Many new traders with limited funds to invest do.
Let’s say for example that you have $5,000 at your disposal to start your trading adventure. Trust me; if you’re not trained properly, or careful, it will be an adventure. Make sure to research other Suretrader Review articles.
If you know what you’re doing it's a lot easier to make money with the 6 to 1 leverage. Let’s keep in mind that it’s also a lot faster to lose it if you’re not prepared. Particularly if you are shorting aggressively as there are no limits to losses when shorting a stock goes against you.
In the US you cannot short stocks with a cash account anyway. On bearish days in a bearish market, opportunities to short may abound.
SureTrader policy is a 6:1 intra-day and 2:1 overnight leverage on margin-able securities above $3 with a $500 account minimum. This means that the stock must be priced above $3 and must also be eligible by SureTrader to be purchased or sold with leverage.
They offer trade equities (including pink sheets), options and ETFs. In summary, can a US citizen use SureTrader? Yes. Do they have PDT rules? No.
If you’re a newbie trader and you are ready to get your feet wet, join the Bullish Bears community. With Bullish Bears daily watchlists, you can learn and practice different strategies that will help to make SureTrader the best possible experience.
Regardless of the software or brokers, you are using, our goal is helping people find their best trading strategies to improve their finances (watch us do trading live each day in our trading rooms).
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