Freetrade - CAUTION

[XenaLives]

Freetrade is a nice idea, but the implementation sucks.

Of course cheap commissions and little customer service should attract daytraders, but their software is totally screwed up on calculating daytrading buying power.

If you sell stocks during the day, you can not daytrade within regular margin parameters without triggering a daytrading call.

Example: I had $2700 in DTBP at beginning of day. I sold enough other stocks to buy 400 shrs of SEPR, thinking I would hold half and sell half for a day trade.

I sold my half and did not get back any DTBP. They told me to sell more. I sold another 100 and only got back part of my DTBP. Therefore: to get all of my DTBP back I have to sell all 400 shares - this would put me in a DTBP call because I traded more than the $2700 I started the day with.

There is no way for me to win here.