Pattern Day Trading Rules for non-US Citizens with IB

[Jamie 0]

Hi All, 

I am based in the UK and with IB-UK as my broker. 

I started trading live today and I got hit with the pattern day trading restriction rules that apply to US citizens. I messaged IB and they told me that they apply to IB-UK customers too. 

Have I been given incorrect information in the past (that this rule shouldn't apply to me)? Or has IB now decided to apply this rule to non-US customers? 

If i have got this wrong, can anyone suggest an alternative broker that would work well for a $10,000 USD account size and beginner trader? I will be moving to Canada in a few months, if that is important information to know!

thanks,

Jay

[Robert H 453]

Hi Jay,

Other IB customers from Europe and Mexico have reported that the PDT rule applies to them. Check this post out:

IB Canada does not apply the PDT rule. I am a customer and can confirm this.

[Jamie 0]

Hi Robert, 

Thanks for reply. Any idea why it applies to those outside of the US? I am not in a conundrum as to whether increase my funding or switch brokers. Both are a huge hassle. 

[RTrader 20]

I think any broker based in the US has to comply with the PDT. That is cool to hear that in Canada though, it does not apply for IB. Interesting... I assume you need to be able to prove you are a Canadian citizen, and not just live there or something on a tourist visa. But, you could also look into trading futures instead of stocks. On May 6th micro index products are coming out. They have low leverage and low margin requirements to trade the SP500 (ES), Nasdaq (NQ), Dow (YM), and Russell (TF) indexes. Futures have no PDT rule, and you can always go long or short. There are many benefits that I could go on and on

Otherwise CMEG is the best stock broker option from what I hear.