2

The Securities and Exchange Commission website says:

FINRA rules define a “pattern day trader” as any customer who executes four or more “day trades” within five business days, provided that the number of day trades represents more than six percent of the customer’s total trades in the margin account for that same five business day period.

I have several questions:

  • Does this rule apply to non-US citizens (or non-US residents)?

  • Does this rule apply if you are not trading from a margin account?

Basically, I just want to know if any non-US person can day trade US equities with a non-US broker if they have an account value of less than $25,000.

  • I guess, a totally non-US person simply wouldn't pay taxes to the US - so it wouldn't apply? Maybe it would apply in a withholding sense at US-based brokerages?? – Fattie Mar 3 '18 at 12:43
  • If you're a non-US resident trading US shares from another country these rules would not apply to you, your own country's rules would apply. – Victor Mar 3 '18 at 15:14
  • Pattern day trader is a FINRA rule and any broker doing business in the U.S. is subject to it. You can make 3 day trades per rolling 5 business days in a cash account as long as you have the cash to support each trade. More than that and PDT applies. – Bob Baerker Mar 4 '18 at 12:25
3

Does this rule apply to non-US citizens (or non-US residents)?

Yes, if you're trading at a broker regulated by FINRA.

Does this rule apply if you are not trading from a margin account?

No, it only applies to a margin account. It's virtually impossible to day trade in a non-margin account because of the other rules they're subject to such as restrictions on free riding and good faith violations.

| improve this answer | |

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.