Who uses E-trade?

[T9D]

I don't know where else to go to post this.

I started investing in stocks recently. I bought and sold some stock in my e-trade account. But now it's been over two days and my money is still not available to buy more stocks. It's stuck in some sweep account or something. This is ridiculous to have to wait this long. I'd like to be able to buy and sell multiple times a day. Do I need to get a different account or something? I don't want to be stuck only able to make like 1 transaction a week.

I have the "complete" account right now" that I'm using. I also have a "Securities" account that I have not been using, would the securities account be better to use?

Thanks.

 

[T9D]

Bump.

There has to be a way to make more than one transaction every few days. How do day traders do it? My money is just useless for days on end now??

 

[SLU MD]

not sure, i'd call up etrade.

i use ameritrade and everything is instantaneous. Money is automatically there right after a sale and gone when i buy. Maybe transfer over to them?

 

[EPCrew]

I use Scottrade and after a sale, the funds are available for the next purchase. However, assuming that I do not have enough liquid funds in my account to cover that transaction, I am not allowed to sell off that last purchase until the first is fully settled. If i sell before that, the transaction is deemed a "free ride" and therefore a SEC violation.

http://en.wikipedia.org/wiki/Freeriding

 

[EPCrew]

However, if you have a margin account, this is all somewhat irrelevant. You'll be allowed to make the transaction but will be charged interest instead.

 

[thomsbrain]

You need to have a margin (credit) account to do this. Otherwise, you need to keep enough money in your sweep account to cover the next sale without selling anything else, or just get used to waiting a couple days. If you want to do day trading, you need a margin account, and you'd probably want one of their "power" accounts to lower the transaction cost.

 

[Miramonti]

Originally posted by: EPCrew
However, if you have a margin account, this is all somewhat irrelevant. You'll be allowed to make the transaction but will be charged interest instead.

Yep you need to apply for a margin account. I believe you only have to pay interest if your trading positions make use of the margin by exceeding the capital you have in your account. I have a margin account, make numerous trades every day, and get interest paid to me every month.

 

[T9D]

Ok thanks. I guess I'll open a margin account. I just didn't really want to take chances and be tempted to use the Margin loans. And dont want to pay interest. I just wanted to stick with cash. I'm playing around with about $30,000. Eventually I'll put over $100,000 in. So basically I'd have to buy $15,000 in stock and after I sold it I can buy $15,000 more right away as long as there is always $15,000 in back up? That seems kind of lame. But oh well.

 

[kthroyer]

I believe the money is available 3 days after the trade is executed

 

[Miramonti]

Originally posted by: v1001
Ok thanks. I guess I'll open a margin account. I just didn't really want to take chances and be tempted to use the Margin loans. And dont want to pay interest. I just wanted to stick with cash. I'm playing around with about $30,000. Eventually I'll put over $100,000 in. So basically I'd have to buy $15,000 in stock and after I sold it I can buy $15,000 more right away as long as there is always $15,000 in back up? That seems kind of lame. But oh well.

If you have $30k in a margin account, you can buy and hold positions worth up to $60k for as long as you want (paying interest on the extra $30k for positions held overnight), or buy and sell positions in the same day of up to $120k outstanding at any given time, and not pay any interest at all as long as they are liquidated the same day (I believe).

 

[Pliablemoose]

Yep, you'll need to upgrade it to a margin account, the application is under the Forms tab.

I need to do this too, I've just been lazy & waited for the trades to settle (3 business days).

I bought one share of BRK.A today, they won't even allow you to do it online, you have to call it in...

If you're an active trader (30+ trades in a quarter) they'll upgrade you to Power eTrade for free, don't pay for it, it's not worth it, just wait till you qualify for it for free.

Man, I was in & out of TWM & QID in a matter of 2 hours today with some conditional orders...

It was an ugly day today