Unlimited Day Trades Under 25K

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Traders with an account balance under 25K are usually limited in the number of “day trades’ they can execute. Either by PDT rules which prevent more than 3 day trades in a rolling multi-day period, or by “settled cash” restrictions which only allow you to trade your entire account balance once per day and if you attempt to trade further than that, you receive a “GFV” (Good Faith Violation) and are subject to possible further restrictions.

We discovered a bit ago however that one broker has a loophole to this that allows for unlimited trading of your cash balance without a “GFV”. So essentially like a margin account with over 25K where you can enter and exit positions as often as you would like.

Here’s how it’s accomplished:

  1. Open a WeBull Cash Account - (Kryptek’s WeBull Referral Link) Make sure it’s a cash account and that margin is not enabled. Also apply for options trading and sign up for their “free” real time options quotes.
  2. Make a Deposit - Be sure to allow the funds to fully settle before you attempt to trade. Generally about a week. If you add more funds, stop trading until they settle as well.
  3. ONLY TRADE OPTIONS - This is of the utmost importance. You must only EVER trade options. If you intermingle shares and options, you’ll likely end up triggering a GFV which then disables this loophole as you get locked to only trading with settled funds for one year.

Why it works
Options settle “T+1” which means next day. The way WeBull handles settlement allows for you to avoid a GFV as long as all the funds needed are settled the following day, no matter how many times over you traded your unsettled cash. So as long as you’ve stuck to steps 1-3, after you’ve traded your settled cash, you can still trade through your unsettled cash without issue, infinitely.

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Thanks Conq!

Question for WeBull veterans:

  1. What if I already have a Margin account on it? Is it still OK to open a Cash account?
  2. I do see the option to open an IRA account, is that the same cash account you’re referring to?

Cheers.

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  1. You can open a cash account if you already have a margin account.
  2. No, an IRA and a cash account are not the same thing.
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Copy that. Mucho Thankso!

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Question…I’ve intermingled shares and options on my WB account. Can I delete my current account and start a new one, with the hopes of getting back unlimited options trading by following the 3 steps above?

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I’m actually not sure about this. I personally have two cash accounts with WeBull but saw someone else report they were prevented from doing so.

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I thought you had to have 2 different account types, one margin and one cash?

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No, you just need a cash account.

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So there is no way to trade shares unlimited times under 25k? (Go around 3 day trade rule)

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This entire post outlines a way to do that lol.

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Question

I am playing with a small account to make sure this works before getting a violation.

When I tried to BTO today with unsettled funds it told me I could make the purchase, but I’d have to hold the trade for 2 days to avoid a GFV. Does that mean my set up of the cash account did not work? Or is it warning people but allowing the trades to happen anyway?

I signed up for cash only, no margin, but they just uploaded a free stock to my account. I’ve never traded a share so I figured it wouldn’t be a problem.

Any advice? Thanks.

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quick question. Brand new cash account opened, no purchase or sale of stocks made. However, regarding the free stocks from referrals, the ones I received have a market value of around $100, if I sold those would they affect this loophole?

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If you sold them, you’d want to wait the full T+2 (3 days to be safe) before attempting to trade with this “glitch”.

@ItsWrachelNotRachel - To answer your question, you still receive a warning, but it’s an empty threat as long as you only trade options.

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If I’ve been holding shares in the cash account from a while ago, is it still possible for this “glitch” to work if I start only doing options and leaving those shares alone? Or if I sell out of the shares and wait for those to settle before attempting the “glitch”?

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Will you still receive the warning of a GFV?

I tried this and I am getting a warning when I buy after selling.
?

**** never mind…… this was answered a few posts up!****

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Doh! Sold the options and the funds are showing settled. So I guess I’ll get the GFV.

It was my first deposit and everything had settled.

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Does this work if you change your margin account to a cash account if you have previously traded shares?

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I can confirm this does not work if you traded shares at any point (even just selling the free ones they give you). I sold the free shares last week and I got my first GFV yesterday after starting the day with only settled funds.

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Thanks for the sacrifice. More green days for you now.

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I’ve been trying Ustocktrade recently and it’s another loophole for bypassing PDT (It’s P2P trading). They charge you $1 for entry and $1 for exit and I believe $1 a month. Also, incoming deposits settle the following day.

The following are the cons I’ve found:

  1. No options, shares only.
  2. Dog water interface compared to most brokers IMO
  3. Terrible market fills in my experience- bad for scalping.
  4. No “fullscreen” charts - you have to use a chart from another platform.
  5. No option for margin account (maybe a pro?)

You could use this as a secondary account if you run out of day trades on your main account. Let me know what you guys think.

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