In 1999 he cracked down on day-trading firms; an investigation at one firm showed that all but one customer lost money.

As a result, even small investors can trade within a stock's spread either by using computers in a day-trading firm or in their home.

Several day-trading firms say that even well-padded investors can expect to wait six months before they begin making money.

State securities regulators in Massachusetts and Texas have already brought several actions against day-trading firms.

Clients of the roughly 100 day-trading firms in the United States are typically required to put up at least $50,000 to open a trading account.

A major on-line broker is also bidding to acquire a day-trading firm, industry executives said.

And that is where day-trading firms come in.

The case was the sixth that Massachusetts regulators have filed against day-trading firms.

In addition, some customers do not pay back their loans - leaving other customers, rather then the day-trading firm, on the hook.

Too many day-trading firms have created a legal fiction that these rules do not apply to them.