While semantically it may be correct...
There's no "may" about it, Barb. Currently, there is no regulatory business detail that describes a broker-dealer as a "daytrading" firm.
...the apparent fact that all accounts at certain brokerages are coded automatically by SEC fiat as pattern daytrading account has that effect.
This is not, and will not, be the case. And I think that the effect you envision is "apparent" only to you.
There are no brokerages for whom all of their customers will be coded as daytrading accounts instantly, by regulatory decree...without an examination of the activity taking place in said accounts.
In fact, I would go as far as to guarantee that at every direct access firm, whether operating on an "office" basis or online, there will be some customers who practice exclusively swing trading or, yes, even investment (buy and hold) strategies. Those will - of course - not be treated as pattern daytrading accounts.
It is for this reason that the suggestion that firms will have all of their accounts classified in a certain manner by the SEC without an examination, at one level or another, of the activity taking place therein, is, yet again, laughable.
By your own admission, you're basing your above assertion - which you call an "apparent fact" - on something that someone who "might have" been a rep at one direct access firm said/posted.
That, dear Barb, is a (to borrow your phrase) pretty lame basis for such a sweeping hypothesis. :)
LPS5 |
