Buying Mutual Funds with Portfolio Margin at IB

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Antihero1776

Does anyone have experience buying Mutual Funds with Portfolio Margin at Interactive Brokers?

I am not talking about REG-T.

What could of buying power were you able to get?

Example, if I buy $100k worth of a mutual fund, would I be able to buy $300k more?

Thanks!
 
Don't know about IB, but the broker may not allow certain mutual funds to be margined... some may not allow certain mutual funds to be margined until owned for 30 days.

What with end-of-day fills and some with "short term trading fees"... and with the plethora of ETFs available today, why bother with mutual funds at all?

If ETFs had been invented back in the 1920s when mutual funds began, I doubt we would have a mutual fund industry at all today.
 
Quote from Scataphagos:


What with end-of-day fills and some with "short term trading fees"... and with the plethora of ETFs available today, why bother with mutual funds at all?

If ETFs had been invented back in the 1920s when mutual funds began, I doubt we would have a mutual fund industry at all today.
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Well said.

The vast majority of funds do not beat the overall markets and ones that do this year have no correlation of being able to repeat that in following year(s).

But the mutual fund/insurance/annuities/etc business is a monster business.
 
Excellent Points! But I feel more comfortable using mutual funds. Still is there anyone who can answer my original question?

Original Question:
"Does anyone have experience buying Mutual Funds with Portfolio Margin at Interactive Brokers?

I am not talking about REG-T.

What could of buying power were you able to get?

Example, if I buy $100k worth of a mutual fund, would I be able to buy $300k more?

Thanks!"
 
My experience with portfolio margining with stocks was that it cut my buying power substantially. I expect it would be the same for mutual funds. You can experiment by logging into PMDEMO (pw=demouser), opening simulated positions, then checking balance.
 
If you buy a mutual fund with IB, and hold it for 30 days, after that 30 day period you can purchase 75% more.

Say I buy a mutual fund for $10,000. After 30 days, I'll be able to buy an additional $7,500
 
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