No. of Recommendations: 0
Right, so wouldn't a same day sell x buy y be a free ride? I just know that I have a margin account, and of course I do this without worrying about it. My brokerage charged me a margin fee once, and the rep couldn't explain it, so he refunded it. But, I believe that it was a fee for the 3 day settlement period margin on y before the brokerage got their money from x. With a cash account, that would have been considered a free ride, I think.

This all too technical for me. I know there is some minimal risk to margin accounts, but, like the perceived risks on ETFs, it seems fair enough to me since it allows me to conduct my account the way I want to. If I had serious long-term money in a dividend paying stock, I might consider a separate cash account for the reasons you bring up. But, I don't foresee that happening in this lifetime. :o) I'm not so sure the tax difference on $500 worth of dividends would be worth all the hassle.

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