Day-trading/intraday trading in USA Nasdaq, NYSE answered

So I asked my CA about all the questions I had, so he simply answered if you’re not using margin you can day trade, the risk you take is up to you!

But yeah our Indian CA’s still lack knowledge on this!

USA stock market is different from the Indian market.
here you don’t require margin to day-trade there are two types of accounts in the USA
Cash account - you pay full price for stocks and no margin is included in this
Margin account - as you know what this is

Indians are only allowed to open a cash account

here’s what I think, Well RBI never mentioned anything related to not trading intraday in USA stock market.

They just mentioned to not get included in marginal based activities including options/derivatives.

If I’m bringing US dollars to India that’s a win in the end for India, proprietary desks allow day trade in US market using Cash account.

The confusion is and the problem is what if people are good at speculation or intraday but not buy and hold

It’s a grey area but not illegal.

I have webull currently for trading which I use for swing.
Applied for TD Ameritrade and waiting.

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You can look at Alpaca.markets as a potential broker too, and do zero commissions, algo-trading.

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They even lack knowledge related to Indian markets as well . It’s best to consult big size law firms and accountants on this matter.

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Although options are derivatives if one is paying the full premium shouldn’t it not count as margin trading?

DO you have any info on big law firms?

While you are looking at that, you should also read about PDT(pattern day trader) regulations in US, and see that to trade Intraday in US markets you need to maintain min account balance of $25k be it Margin or cash account.

PDT rule does not apply to cash accounts. It is applicable only for margin accounts.

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do your research cash account don’t need any minimum it is based on broker and PDT does not apply to cash account because it does not contain any margin while doing intraday or invest

why people are so much desperate to trade in US market ? they can also trade in India and make money ! what is the difference ?

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Thanks for the correction, I did check and it write.
But many US brokers like Robinhood and Alpaca don’t provide separate account facility, and just provide one margin account where they keep adjusting the multipliers.

Do let me know if my understating here is correct.

Do indians get margin account? Because leverage exposure is not allowed!

Does interactive broker provide global investment?

I have never used any US brokers. So I wouldn’t be able to answer how Robinhood and Alpaca handle margins.

Usually for a margin account, you need to maintain $25000 to avoid tripping the PDT rule. This rule is mandated by US regulatory body.

Also, the point to consider are:

  1. Taxes ( ie, are we supposed to pay taxes for both the countries)
  2. Can we link our Indian bank account with the broker.

Hello,

I have active accounts in webull and TD; both are cash accounts. I was in the process of converting TD CA to margin account and came across this page. While going through RBI LRS regulations, noticed it says all about remittance from India. In my case, am using the money I earned in US while I was working there. So do you guys think margin account is okay in this scenario? Just asking for your thoughts. I know nobody can say a confined Yes or No here; its a grey area.

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Hey @sumesh0710,
a) are you able to do intraday trade in US market, like buy and sell on the same day, short selling shares, like we can de here because I have been managing a US portfolio and wanted to open my trading account over there, had a conversation with interactive brokers, and they said that it’s not possible for me to short sell or buy and sell the shares on the same day, forget about the leverage.

b) Is there any way for me to open a margin account there with the option to short sell.

c) And TD Ameritrade is only open for china and us, as far as I know, how are you able to open an account with them?

I’ll appreciate your help. Thank you.

Hello, Yes you can open account with TD Ameritrade. Just go to the US site and apply. You would need to fax few documents along with the application. After few days you would get an email saying your account details are mailed by post. At this time you can call the customer service and they would share the login details. Whole process might take a week.

For webull, it’s much easier just install the app and apply through it, would get approved in 1 2 days.

For both i have opened cash account where you can’t short sell. For TD i applied later for margin account, will update here the result.

In either accounts you can do day trade, only in cash account you have unlimited day trades. In margin account if it’s below 25k, don’t do more than 3 day trades in 5 days.

Thanks
Sumesh

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Great! Thanks for the info. Please do update about the margin account.

Fyi.Margin account with TD is not approved.

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Do you know the reason for the margin account not being approved?