Best Broker for IRAs

[rcanfiel]

Quote from Spunky:

Here is what IB states on there web site.

"US resident customers may open cash or margin Individual Retirement Accounts (IRA). IRA margin accounts may never borrow, but are afforded all the other benefits of a margin account such as the ability to day trade, and the ability to trade multiple currencies and multiple currency products"

Yes that includes futures. I do it everyday

Then IB is violating US law. You may find out that your IRA becomes invalidated along the way. This is not something IB is allowed to circumvent.

 

[damon_achey]

Quote from rcanfiel:

Then IB is violating US law. You may find out that your IRA becomes invalidated along the way. This is not something IB is allowed to circumvent.

The law states you can't have trades with undefined risk. So it's a margin account with some limitations (ie. no short selling). But otherwise it acts like a margin acount. TOS has the same deal. you can even short puts as as they're cash covered.

 

[GTC]

Quote from Spunky:
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Quote from GTC:

At IB, you cannot convert regular-401k to Rollover/Traditional IRA to Roth IRA or vice versa in case you need it.
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Yes you can convert regular 401k to rollover IRA. I have done it

I should clarify. At IB, you can do similar type of retirement account transfer. When I wanted to convert a rollover-IRA to a Roth-IRA, IB CSR told me that it just could not be done at IB and asked me to do it at another brokerage.

 

[Spunky]

Quote from GTC:

I should clarify. At IB, you can do similar type of retirement account transfer. When I wanted to convert a rollover-IRA to a Roth-IRA, IB CSR told me that it just could not be done at IB and asked me to do it at another brokerage.

This cannot be done at any broker. It's a federal regulation

 

[Opra]

Quote from RichardRimes:

are you sure about futures in an IRA? don't futures require a margin account? I believe IRA's can not be margin accounts...how do they get around it?

Been doing futures in IRA and Roth for 2 years...Call IB and visit its website

 

[RichardRimes]

Quote from Spunky:

Here is what IB states on there web site.

"US resident customers may open cash or margin Individual Retirement Accounts (IRA). IRA margin accounts may never borrow, but are afforded all the other benefits of a margin account such as the ability to day trade, and the ability to trade multiple currencies and multiple currency products"

Yes that includes futures. I do it everyday

thanks spunky,

 

[yip1997]

Quote from damon_achey:

The law states you can't have trades with undefined risk. So it's a margin account with some limitations (ie. no short selling). But otherwise it acts like a margin acount. TOS has the same deal. you can even short puts as as they're cash covered.

With IB, I can sell naked future put without enough cash to cover the possible loss. Is it a violation?

If due to a black swan event, my loss is more than my account balance, what will happen? Who is responsible for the loss, IB or myself? I can't fund the IRA account. What will happen?

 

[ids]

Futures margin is actually performance bond requirements. It does not involve money borrowing and it is legal to trade futures and futures options on IRA account. Your loss is your responsibility.

 

[GTC]

Quote from Spunky:
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Quote from GTC:

I should clarify. At IB, you can do similar type of retirement account transfer. When I wanted to convert a rollover-IRA to a Roth-IRA, IB CSR told me that it just could not be done at IB and asked me to do it at another brokerage.
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This cannot be done at any broker. It's a federal regulation

It can actually be done if you meet certain criteria. In 2010, it will be allowed even with less criteria according to the regulations. Almost all of my other brokers can do it.

 

[RichardRimes]

Quote from ids:

Futures margin is actually performance bond requirements. It does not involve money borrowing and it is legal to trade futures and futures options on IRA account. Your loss is your responsibility.

I would assume if you do have a loss and your account is liquidated and you haven't enough cash in the account to cover the performance bond thus requiring a cash infusion into the IRA...it could result in an IRS nightmare?