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I was hit with a 90 day penalty on the cash account because I didn't wait 3 days for the sale of previous stocks to settle before purchasing new stocks.

Yes, that's the rules.

Just2trade avoids this by not letting you buy using non-settled funds.

Optionshouse lets you buy, but if you sell before settlement you get dinged with a "good faith" violation.

Etrade lets you buy, but with an extra warning screen about buying with unsettled funds. If you voilate, they won't let you place buy orders online for 90 days, you have to do a phone order (with the extra fee).

Brownco (R.I.P.) would not let you place any opening orders, only closing orders, for 90 days.

That's why it's best to have a margin account.
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