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Does IB pay daily interest on funds for a Reg T margin account? Their description mentions securities and commodities accounts... also is this interest paid on a daily basis? http://individuals.interactivebrokers.com/en/accounts/fees/interest.php?ib_entity=llc "Whereas many brokers pay...

Hey, don't blame me. IB's description gives it a different name... take it up with them. And no, with IB you have a choice: loan or conversion. And yes, there is a difference.

Yes and there are several ways of during this: 1. Margin Loan colladeralized by the base currency (to purchase a security in a foreign currency) 2. Foregoing the Margin Loan and converting funds directly into the needed currency. 3. Trading Fx on margin for the sake of trading fx...

False. IB states that one can create a margin loan when converting currencies to buy equitites OR one can convert them direction (full cash). This choise has nothing to do with order size (ie. larger or smaller than balance.)

It's not necessarily that simple nor is this outlined clearly by IB. With most fx brokers you still need a margin loan (i.e. pay interest differentials) even if your order size is less than or equal to your account balance. This is very different than simply converting one currency to another...

But an individual's funds are still concentrated in one bank... how does this help the individual trader diversify?

The rule is fine, but do all brokers follow the rules?

The wiring info you get from IB has Citibank as the fund's bank. No other bank is specified. Also, there is no other indication that accounts are insured or segregated (not syaing that aren't but there is nothing to affirm it either).

So, insurance wouldn't cover this?

That was my understanding as well. Thank you. It seems a lot of people complain about IB, nut quite sure why. If you've been in business this long you must be doing something right.

I have heard (could just be a rumor) that unless you specify that you want your funds segrated from IB's working funds, it will not happen automatically. It seems you have to specify this. If your funds are indeed mingled with IB's are they still insured? Could somebody verify this?

I understand if you don't want to share this info, but what is your income level? As far as I know you have to specify this right in the beginning of the singup process... I'm surprised that they didn't tell you that you didn't quality for a Reg T Margin account right in the beginning

how so?

In this case if think it's less a matter of ETFs vs Stocks, but rather the difference between volatile and less volatile markets. SKF certainly does respect long-term MAs (150, 165, 200) http://stockcharts.com/h-sc/ui?s=SKF&p=D&b=3&g=0&id=p28825147897

SKF is looking jummy right about now. :) http://stockcharts.com/h-sc/ui?s=SKF&p=D&b=3&g=0&id=p28825147897 Very volatile though. In fact, it's rare to see a combination of such high liquidity and long-term volitility. We are talking penny stock level here. Any other ETFs like this?

ah yes, thanks. ;)

Why not just short an ETF that tracks the financial sector.... can't think of the name now, it's very volatile.

Not if the U.S. consumer has anything to say about it...

Certainly true that CL is a much wilder beast these days than YM/ES. In fact, I'm not sure that many traders are doing that well in this market--especially if they are leveraged. A slip of the tongue by Olmert and good night... I have day traded stocks that have taken a few minutes to unload...

...and why.