Free riding in an IRA account

[Shadetree42]

Does anyone know which brokers allow you to "free ride" -- that is, use proceeds from a sale of stock to buy another stock immidiately, as long as you hold the second investment for three or more days?

I know that IB does not allow this. You have to wait for trade to clear before executing a new trade. TD Ameritrade does allow it.

If anyone know for sure about other brokers, please post.

 

[comagnum]

Figures it's you looking for a free ride, after bashing Warren Buffets quote on using margin. LOL!

 

[stevegee58]

If you have a limited margin IRA you can sell some stock and buy another without waiting.

 

[ids]

IB does allow it. See https://ibkb.interactivebrokers.com/node/2187.

 

[albion]

I've done this in a IB taxable cash account. The IB free-riding rule would appear to apply to all cash accounts whether IRA or not, but might be best to check with customer service: http://ibkb.interactivebrokers.com/node/814

 

[river]

Shadetree42,

While recently attempting, without success, to find a broker offering limited margin for Coverdell accounts, I did find three brokers offering this feature for IRAs. IB, TD Ameritrade and Fidelity each offer limited margin to avoid T+3 settlement issues.

-river

 

[Shadetree42]

Figures it's you looking for a free ride, after bashing Warren Buffets quote on using margin. LOL!

Are you under the impression that Warren Buffett waits for his trades to settle before using the proceeds?