Not true at least at Etrade. I dont have a margin account since my balance is less than $25,000. If it was above that I could day trade OTC's. But, I can buy OTC's and if I don't sell them until the next day it is not considered a day trade, no settlement period. If I do, Etrade flags it and I cannot do more then 3 day trades in a week, then they restrict your account. Key is get your account balance greater than $25000 and you can dayt rade everyday, at least at Etrade. Plus Etrade lets you buy almost any OTC stock