Investor Help (NO Ihub questions)

[cintrix]

So do I need a minimum of 25k to not have the 3 day restriction?

No you don't. If you convert your account to a margin account you will no longer have the three day restriction, but you will have the daytrading restriction if you have a balance of under 25k. If your balance is under 25k you have to be careful not to do more than three day trades within a five day period - the fourth roundtrip will trigger a pattern daytrader and you will have a problem. Best scenario is to have a 25k balance in a margin account. If you can't do that be careful how many daytrades you do.

Also if I do purchase with unsettled funds and sell before the settlement date with a margin account am I borrowing money from the broker? So does that mean I would have to pay interest for that loan?
No. Unless you actually go into margin and you see a negative balance - if that is the case then you pay interest. But if you are trading with your own cash - even if it is unsettled - they don't charge you interest. They just use your margin as collateral just in case the trade doesn't clear for some reason.