I don't like using this answer, but "it depends" on the type of account you decide to open with which on-line broker.
Some brokers allow an account with $250, while others won't even allow an account to have less than $1,000.
If you are going to do "virtual trading", "paper trading" or pretend trading, you don't need any money at alls.
These accounts are usually used to test the rules for new strategies or to "tweak" or adjust new trading rules or existing trading rules.
To clear the air about day trading or "scalping" or being an "active trader": In the United States, its an S.E.C. rule: The account must have at all times $25,000 U.S. PLUS the amount of the first trade. As soon as the account is below that $25K, a different set of rules comes into play.
WITH LESS THAN $25,000 IN THE ACCOUNT:
The trader is permitted to do 3 intra-day trades - in and out of the same trade on the same day - in any continuously rolling 5-day period. This includes weekends and legal holidays.
AS SOON AS THE beginning of the 4th trade is done, the trader is labeled as a “pattern day trader” and the account may be frozen.
WITH $25,000 OR MORE IN THE ACCOUNT: On any given day, the trader can enter and exit as many trades as he/she wants.
The guidelines I provided are the VERY basic ones. Its up to you to make the decision which broker has the right kind of account at the fees and commissions you want to pay and can afford.
To get the right information which applies to you and your financial situation, call your broker or call several brokers.
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
Sources: My wonderful family!
My wonderful coaches and mentors!
TWO [2] of THE ABSOLUTE BEST, MOST wonderful trading groups in the world, which I am most proud to be a member of!
Trading stocks and options more than 2 years.
"THE University of Hard Knocks"
