TradeZero PDT Rule (2024)

Does TradeZero have PDT rule? Pattern day trading requirements for accounts below $25,000. How many day trades does TradeZero U.S. and Bahamas allow?

The PDT Rule at TradeZero

If you're interested in day trading, TradeZero offers great tools for that. TradeZero is unique as it operates both in the US and abroad, giving day traders two options to choose from.

TradeZero Bahamas PDT Rule

TradeZero has an office in Nassau, Bahamas (found online at www.tradezero.co). Because it's based in the Caribbean, it doesn't fall under FINRA's jurisdiction, which is the main financial regulator in the US. Therefore, the strict day-trading (PDT) rules don't apply to accounts with this branch. You can day trade as much as you like with a TradeZero account in the Bahamas without worrying about the PDT rule.

However, TradeZero Bahamas requires a minimum of $1,000 in account equity if you plan to day trade.

Downsides of Offshore Accounts

Opening an account with TradeZero's Caribbean branch means it won't be regulated by FINRA or the SEC, which oversee US brokerage accounts. These accounts also lack SIPC insurance.

However, TradeZero does offer insurance (up to $250,000 per customer) through the Argenta Group. The broker-dealer is regulated by the Securities Commission of The Bahamas.

U.S. Broker For non-U.S. Traders

For traders not based in the US, a good alternative is a US-based company called . .

Get Firstrade For Free

Open Firstrade Account

TradeZero U.S. PDT Rule

If you prefer to avoid the risks of offshore brokers, consider opening an account with TradeZero's American branch (found at www.tradezero.us). This broker is based in New York, so it's regulated by FINRA and the SEC, and accounts are protected by SIPC.

The main downside of an account with TradeZero US is the PDT rule, which requires day-trading accounts to maintain at least $25,000. This is much higher than the $1,000 required by the Bahamas branch.

To avoid this requirement, make sure you:

1. Make fewer than four round-trip day trades in a rolling 5-day period; or

2. Use a cash account instead of a margin account; or

3. Ensure your day trading activity is less than 6% of your total trading activity.

Meeting any one of these criteria means you won't have to worry about maintaining $25,000 in your account.

does tradezero have pdt rule

Available Day-Trading Platforms at TradeZero

TradeZero offers the same trading platforms at both its branches. All platforms, including the mobile app, come with a feature to find shortable stocks. Their most advanced platform, ZeroPro, requires a monthly fee, but it's free for Caribbean customers who trade a lot.

Better Broker For U.S. Traders

For active US traders, a better choice might be . It offers virtual trading, a superior app, and more competitive prices than TradeZero. .

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Updated on 8/7/2024.

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