We found 11 online brokers that are appropriate for Trading Pattern Day Trader.
Pattern day traders also known as a PDT is a trader or investor who follows the rules and conducts over 5 trades over a span of five working days using a margin account. It should be noted that the number of day trades must be more than 6% of the total trading activity on the margin account during the above-mentioned five-day window. When this requirement is met, the trader's account will be marked as PDT by the broker where this trader is trading or investing with. This PDT designation actually places certain restrictions on further trading in order to prevent investors from over-trading.
Different types of securities can be traded by day pattern traders, including stock options and short sales. As long as this trade occurs on the same day, each type of trade will be taken into account in the appointment. There are five days where the traders would respond to the margin calls. The restriction maximum output is twice until the fulfilment of the call is completed.
The cash limited account status for 90 days will be imposed if the trader fails to address the issue after five business days have passed or until the issue is resolved.
To be considered a day trader, a trader or investor must use an account that is regulated by the financial industry regulatory authority (FINRA) in the United States. They must also meet the requirements of executing more than four trading days on that margin account within a five day period, either in foreign currency or stocks.
As the traders and investors use the particular leverage or use the margin account, the open position will take place together with the particular deposit. At the same time, the traders will also attain the full trading valuation.
That's why trading on margin can increase your profits. However, it can also increase your chances of losing.
If within five days, a trade that a trader executes is less than four days, this trader is still considered a day trader, but not a day pattern trader. Keep in mind that these trades must also account for more than 6% of the total trades on the trader's account.
In trading, there is an exception to the Pattern Day Trader (PDT) account setup. This exception occurs when long and short positions that have been held overnight are sold before buying a new one with the same security the following day.
Distinct from standard day traders whose daily number of trades are usually completed in a time frame, the Pattern Day Trader (PDT) fixing is determined by the financial industry regulatory authority (FINRA).
They are similar in that both groups of traders have a mandatory minimum asset that must be deposited is their margin account. However, they differ in the aspect that a day pattern trader must have a minimum of 25.000 USD in his account. This amount does not have to be cash but can be a combination of cash and eligible securities. It should be noted that day pattern traders will be prohibited from making further day trades if the equity in the account falls below 25.000 USD, until the balance is returned.
Of course, the Pattern Day Trader (PDT) rule which requires all PDT to have a minimum of 25.000 USD in a combination of cash and eligible securities in their brokerage account was created by FINRA to reduce the risk of PDTs. This Pattern Day Trader Rule will lock down a PDT account whose cash equity value in his account falls below 25.000 USD. This will result in the PDT being unable to complete any trading days, until the account's equity value returns above the 25.000 USD point.
Although FINRA has set this rule as an industry standard, individual brokerage firms have a stricter interpretation of it. These individual brokerage firms can allow their investors to identify themselves as day traders.
For example, a trader becomes a day trader with 30.000 USD in assets in his margin account. Thereafter, he can qualify to buy shares worth 120.000 USD, compared to an average margin account holder who can only buy 60.000 worth of shares. If the stock increases by 1% on the day, as a day pattern trader, he could make a profit of around 1.200 USD which is equivalent to a gain of four percent.
Compare this with the estimated profit of a standard account of 500 USD or a profit of 2% on a margin account. The potential for a higher return on investment certainly makes the practice of day trading very attractive to high net worth individuals. However, you should keep in mind that, as with other investments that have high potential returns, the potential for significantly large losses is also equally probable.
We've collected thousands of datapoints and written a guide to help you find the best Pattern Day Trader for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best pattern day trader below. You can go straight to the broker list here.
There are a number of important factors to consider when picking an online Pattern Day Trader trading brokerage.
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
We compare these features to make it easier for you to make a more informed choice.
Here are the top Pattern Day Trader.
Compare Pattern Day Trader min deposits, regulation, headquarters, benefits, funding methods and fees side by side.
All brokers below are pattern day trader. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more pattern day trader that accept pattern day trader clients
Broker |
eToro
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IC Markets
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XTB
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FP Markets
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Trading212
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Plus500
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Pepperstone
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EasyMarkets
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XM
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FXPrimus
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SpreadEx
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Regulation | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID), Australian Securities and Investments Commission (ASIC) | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), FCA number FRN 522157, Cyprus Securities and Exchange Commission (CySEC), CySEC Licence Number: 169/12, Comisión Nacional del Mercado de Valores, Komisja Nadzoru Finansowego, Belize International Financial Services Commission (IFSC) under license number IFSC/60/413/TS/19, Polish Securities and Exchange Commission (KPWiG) | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) | Financial Conduct Authority (FCA), Financial Supervision Commission (FSC) | Plus500UK Ltd authorized & regulated by the FCA (#509909), Plus500CY Ltd authorized & regulated by CySEC (#250/14), Plus500AU Pty Ltd (ACN 153301681), ASIC in Australia AFSL #417727, FMA in New Zealand, FSP #486026 and Authorised Financial Services Provider in South Africa FSP #47546 | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | International Financial Services Commission (IFSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Cyprus Securities and Exchange Commission (CySEC), Markets In Financial Instruments Directive (MiFID) | Financial Conduct Authority (FCA) |
Min Deposit | 200 | 200 | No minimum deposit | 100 | 1 | 100 | 200 | 100 | 5 | 100 | 1 |
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Used By | 17,000,000+ | 60,000+ | 250,000+ | 10,000+ | 14,000,000+ | 15,500+ | 10,000+ | 142,500+ | 70,000+ | 10,000+ | 10,000+ |
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Platforms | Web Trader, Tablet & Mobile apps | MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps | MT4, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps |
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Up with spreadex |
Risk Warning | 71% of retail investor accounts lose money when trading CFDs with this provider. | Losses can exceed deposits | 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | Losses can exceed deposits | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 76.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money | Your capital is at risk | Your capital is at risk | Losses can exceed deposits | Losses can exceed deposits |
Demo |
eToro Demo |
IC Markets Demo |
XTB Demo |
FP Markets Demo |
Trading 212 Demo |
Plus500 Demo |
Pepperstone Demo |
easyMarkets Demo |
XM Demo |
FXPrimus Demo |
SpreadEx Demo |
Excluded Countries | IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, KZ, GD, FJ, BB, BM, BS, AG, AI, AW, LB, SV, US, PY, HN, GT, PR, NI, VG, AN, | AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA | US, IN, PK, BD, NG , ID, BE | US, JP, NZ | US | MY, BE, US, CA, CN, ID, PH, TG, NG, DO, MA, ZW, PR, TZ, TN, UG, BW, AO, AE | BR, KR, IR, IQ, SY, JP, US | US | US, CA, IL, KR, IR, MM, CU, SD, SY | AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. | US, TR |
You can compare Pattern Day Trader ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
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We have listed top Pattern day trader below.