Replies to post #4655 on Zeev's Turnips Patch-No Politics (ZEEV)

[johnnieb]

it's not only the 25,000 equity you have to watch; the marging requirements are tighter as i found to my cost a few weeks ago when i received a margin call which would not have been made if i had not been classified as a day trader; when i remonstrated with the broker they said the rules were so artificial they joked in the brokerage that you could day trade with impunity if you did so only on mondays, wednesdays and fridays

effect of not complying with the call is to restrict your account to cash cover for three months...

best

j

[kron7777]

That is correct for regular account which you can upgrade to margin account.
For IRAs - more than 4 daytrades in 5 business days - account is closed. As I understand from other posts , not all the brokerages inforce this rules (and it is understandable).