Fidelity says I need $25,000 to buy a stock
Summary of User Problem and Solutions:
- The user, UNFAZEDinvestments, is facing a requirement of $25,000 to buy a stock due to being classified as a Pattern Day Trader (PDT).
- To resolve this, the user must ensure their account maintains the minimum equity of $25,000 to avoid restrictions on buying power.
- If the account falls below the $25,000 requirement, the user will need to make trades using cash buying power.
- The PDT classification is permanent, but the user may request a one-time removal in certain cases.
- Maintaining the minimum balance of $25,000 has no negative implications for the user’s trading activities.
Here’s the full thread
It says I need 25,000$ to buy a stock because I have a day trading account. How do I fix that?
Hi @UNFAZEDinvestments., happy to help today.
Customers classified as Pattern Day Traders (PDT) must maintain minimum account equity of $25,000. Accounts classified as PDT that fall below the required $25,000 start-of-day account value are placed in a minimum equity day trade call and must place trades in type cash using cash buying power. Failing to meet the minimum equity requirement may result in the account having reduced or restricted buying power.
Learn more here: https://www.fidelity.com/learning-center/trading-investing/trading/day-trading-margin
Once your account is classified as PDT, that designation is permanent, although you may request a one-time removal in some instances. It’s important to note that if you maintain the minimum account equity of $25,000, there are no negative effects of the PDT designation.
Please let us know if anything else comes up we can assist with! 🟢