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Present_School_8754 OP t1_jaal0t3 wrote

Reply to comment by No_Cardiologist8650 in Webull policy update regarding Pattern Day Trading. by Present_School_8754

I'm not worried about being flagged as a PDT. Just wanted to share with everyone a screenshot of the change being made.

A policy like this isn't something I support. I'll just wait until my current positions are concluded and swap brokerages. Any good recommendations I can look into?

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LordPontificus t1_jaasry3 wrote

This is part of FINRA regulatory notice 21-13, it applies to every broker dealer and clearing firm. https://www.finra.org/rules-guidance/notices/21-13

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Joghobs t1_jab3g8n wrote

Jesus fuck. The gov is going the opposite direction we wanted them to on this

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BossHogOne t1_jacaxdc wrote

Going in the opposite direction? This has been around for years. I can’t believe WeBull was letting people remove the flag every 90 days. A one time exception is the industry standard.

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logicallyillogical t1_jacvjbk wrote

No, it's actually better. If you scaled into a position, every buy and every sell is a trade. Now,

Example A: 

09:30 Buy 250 ABC 
09:31 Buy 250 ABC 
13:00 Sell 500 ABC 
The customer has executed one day trade. 

This is actually much better. Still is bullshit, but this is clarifying part of the PDT rule.

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BullyBumble t1_jad3n7j wrote

Your example was always just 1 daytrade

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logicallyillogical t1_jadfdou wrote

Not with Etrade, that would have been 2 trades. I got suspended for 90 days because of that bullshit.

I moved to a cash account last year anyways and it's much better for day trades.

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viperex t1_jack69p wrote

Here's my question: why do they make out PDT to be a bad thing? What are they trying to prevent?

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BeerPizzaGaming t1_jackx52 wrote

Highly leveraged bets which destabilize the markets. You know, the stuff the really big firms do daily that when they are margin called, they get bailed out by tax payers via different methods. Most directly and glaring example would have been in 2008.

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conlius t1_jado4mj wrote

Is that actually what they are trying to solve? Because PDT flag just forces you to keep more collateral in the account. In reality it seems they just don’t want people with small accounts day trading on margin.

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reercalium2 t1_jad2p1a wrote

Apparently it's something to do with unsettled funds

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LordPontificus t1_jadccgr wrote

Yes- if I had to guess it’s this. Believe it or not settlement risk is still a thing and we’re still on t+2. Day trading is inherently riskier and it adds stress to the settlement process so this was kind of a no brainer. It basically says you can day trade all you want but put up the money to prove you’re not a complete idiot. Makes sense

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Master-Reaction-2336 t1_jabmz0q wrote

No not butt hurt but I’m taking my 5k and switching brokerages, that’ll show them.

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Unknownirish t1_jac4s01 wrote

Fidelity. Heck, and I know I know every one hates them, Robinhood has been on their game lately. Lol

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No_Cardiologist8650 t1_jaame6m wrote

That makes sense. Yeah, I couldn’t tell you off the top of my head. Is Robinhood implementing the same thing?

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Del_Phoenix t1_jacp87n wrote

robinhood has always had only 1 lifetime reset.

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Present_School_8754 OP t1_jaevhjp wrote

Not true, I've been PDT flagged twice and have had it reset. (Primarily because I was swing trading 0 DTE spy options) Don't really regret the flags either because had I not flagged myself I would've nuked my acc by letting them expire.

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Present_School_8754 OP t1_jabqefh wrote

It's alright, I believe Robinhood being the scumbags they are will likely follow suit.

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Asleep-Actuator-7292 t1_jaayn6x wrote

I do believe Webull is the best system out there.

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