Welcome to SEC Roundup, a bimonthly video collection by former Securities and Alternate Fee senior trial counsels Nick Morgan and Tom Zaccaro, founders of the nonprofit advocacy group Investor Selection Advocates Community.
On this episode, Zaccaro and Morgan are joined by Ross Cameron, the founding father of Warrior Buying and selling, some of the recognizable voices within the day buying and selling world, with almost 2 million YouTube subscribers.
Collectively, they deal with the long-standing — and long-criticized — Sample Day Buying and selling (PDT) Rule from FINRA, which requires U.S. merchants to maintain $25,000 of their accounts to make greater than three day trades in a five-day interval.
FINRA is shifting to reform the rule — reportedly decreasing the minimal account steadiness from $25,000 to $2,000 — and will likely be looking for approval from the SEC.
Ross shares his firsthand expertise navigating this rule all through his profession and explains why it could truly improve threat for brand new merchants. By unlocking 4 occasions leverage, the rule successfully encourages overexposure and high-stakes buying and selling — particularly for these simply beginning out. Worse but, it pushes aspiring merchants to make use of dangerous offshore brokers or borrow funds simply to fulfill the minimal threshold.
See the video for the dialogue.