FINRA has provided brokerage firms the ability to remove the PDT flag from a customer’s account within 180 days. If an account was erroneously flagged, and the customer’s intent is not to day trade in his/her account, DriveWealth has the ability to remove this flag. Once the PDT flag is removed, the customer will then be allowed three day trades every five business days. If an account gets re-flagged as a PDT account within 180 days after the reset, the customer then has the following options:
A. Deposit funds to bring the account’s equity up to DriveWealth’s minimum of $25,000
B. Wait the required 90 day period before any new positions can be initiated
C. Request that an account that is designated as a PDT account be reset
FINRA and the NYSE define a Pattern Day Trader (PDT) as one who effects 4 or more day trades (same day purchase and sale of a given equity security) within a five-day period, and NYSE and FINRA rules place certain restrictions on those who are deemed to be pattern day traders. If a DriveWealth account effects three (3) day trades involving stocks or equity options within any five (5) day period, DriveWealth will require that such account satisfy the minimum equity requirement of $25,000 before DriveWealth will accept the next order to open a new position. Once the account has effected a fourth day trade (in such 5 day period), DriveWealth will deem the account to be a PDT account.
Pattern Day Trading regulations allow a broker to remove the PDT designation if the client acknowledges that she/he does not intend to engage in day trading strategies, and requests that the PDT designation be removed. If you wish to have the PDT designation for your account removed, provide DriveWealth with the following information in an email to DriveWealth Customer Service at firstname.lastname@example.org:
Provide the following acknowledgements:
I do not intend to engage in a day trading strategy in my DriveWealth account.
I hereby request that DriveWealth no longer designate my account as a "Pattern Day Trading" account under NYSE and FINRA rules.
I understand that if, following this acknowledgement I engage in Pattern Day Trading, my account will be designated as a Pattern Day Trading" account, and DriveWealth will apply all applicable PDT rules to my account.
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