Does Ameritrade & Scottrade allow buy/sell on same day/same stock?

[Mad Girl Investor]

For purposes of day trading, does anyone know if ST and Ameritrade allows a buy and turn around sell in same day? Any extra fee's besides reg commission on each transaction?

Cant find this info on their site.
Thanks!

[mhertz]

with ameritrade you can buy and sell the same asset in the same day - no additional fees -- only the $10.99 p/transaction (or $21.98 round trip)

[nefrologocatracho]

You can do it with Scottrade. But Scottrade states that if you make 4 or more day trades in a week, you are labelled as a pattern day trader. In that case, you have to keep an account value of 25G and trades are $25 each. If you get labelled as a day trader you cannot go back either, unless you change companies. I would be suprised if Ameritrade doesn't have a similar rule.

[roy]

I have done this at Ameritrade. No extra fee or rules imposed by Ameritrade. But NASD has some regulations about this. This is what I found on Ameritrade site:

Any margin account that executes four or more day trades/round trips within a rolling five business days has shown a pattern of day trading. The account will be flagged as a pattern day trading account and subject to the National Association of Securities Dealers (NASD) Pattern Day Trading Rules. Day trade buying power is only displayed if your account has been flagged as a pattern day trader.

I think you have to maintain a specific amount (which I THINK is $25,000)in equity when that's the case.

Hope this helps.

[Mad Girl Investor]

Yes, it does help.

Im wondering if that rule applies only for margin account, and not cash transaction. Anyhow, I dont have margin and not want one for now...thanks everyone for your replies!

[TheBullPicker]

You always have to way for the money to be "settled" though, Right? So you can't sell, buy, sell, all with the same money. Am I right on this?

[mhertz]

depends on the broker -- i know ameritrade is basically instantaneous turnaround.

[Mad Girl Investor]

Ameritrade states on the site that they have the 3 day settlement rule for sale funds to "clear". They also say that for a fee of $50, I think, the 3 days can be waived to a shorter time, cant remember if its 1 day or not.