Any restrictions to buying, selling, buying same share within month, week, day?

After reading through some online broker APIs, my understanding is that, in the U.S. for example, there are some legal implications around trading the same share multiple times within some period of time.

I have searched around for information about how that works on Freetrade but so far, have not found anything definitive on the subject.

I have no interest in jumping on the day trading rollercoaster, however there are times where re-buying a stock after a price adjustment would be attractive.

If someone could point me to any relevant documentation regarding how this works across the different account types (ISA, GIA etc.) I’d appreciate it.

I don’t see why there would be. I’ve bought some shares and sold off some - a bit OCD about round/“nice” numbers - in the same day. I don’t believe I’ve then bought those same things again on the same day. Frequent trading happens when you remove fees from the equation. If there was any legal issue at all with buying and selling an instrument frequently, I’d expect it to be made crystal clear in the app.

There are no restrictions, but there can be implications for how you calculate your capital gains taxes if you buy and sell the same stock within a short time.

Shares and Capital Gains Tax (Self Assessment helpsheet HS284) - GOV.UK.


It’s my understanding (although not guaranteed) that Freetrade are not bound by the usual US “Pattern Day Trading” rules as they operate an “omnibus” account behind the scenes. This aggregates all FT US trades into 1 holding account regardless of which underlying customer traded. Therefore there is no way to apply PDT rules as the end custodian can not isolate each individual client. Although clearly there are solutions to this if required.

People like Stake operate on different model whereby each client effectively has a DriveWealth account and trade activity can be monitored and PDT rules applied.

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