Frequent Trading Restrictions for Mutual Funds on IB?

Cyrix · Oct 16, 2016

I sold my vanguard fund and IB didn't allow me to purchase it again.

What are frequent trading restrictions for mutual funds on IB?
When can I buy the fund back?

Another question is: if I sell a mutual fund within 30 days of buying it, will there be a penalty?

Thanks.

Scataphagos · Oct 16, 2016

Cyrix said:
I sold my vanguard fund and IB didn't allow me to purchase it again.

What are frequent trading restrictions for mutual funds on IB?
When can I buy the fund back?

Another question is: if I sell a mutual fund within 30 days of buying it, will there be a penalty?

Thanks.

The mutual funds have their own parameters for "frequent trading". Many of the brokerage firms piggy-back upon that to score "excessive and unwarranted, early redeption punishment fees".

You can trade ProFunds mutual funds daily without restrictions. As for the others, you have to jump through hoops.

Cyrix · Nov 5, 2016

Scataphagos said:
The mutual funds have their own parameters for "frequent trading". Many of the brokerage firms piggy-back upon that to score "excessive and unwarranted, early redeption punishment fees".

You can trade ProFunds mutual funds daily without restrictions. As for the others, you have to jump through hoops.

IB customer services told that all mutual funds subject to a 60 day restriction after being sold.
Can you give me an example of Profund that does not such restriction?
Thanks.

Scataphagos · Nov 6, 2016

Cyrix said:
IB customer services told that all mutual funds subject to a 60 day restriction after being sold.
Can you give me an example of Profund that does not such restriction?
Thanks.

All of them as a general rule. I say "as a general rule" because perhaps they have an exotic or two with restrictions (?). Go to their website. "...All ProFunds are subject to active investor risk. There are no restrictions on the size and frequency of trades and no transaction fees. The frequent exchanges our policies permit can decrease performance, increase expenses and cause investors to incur tax consequences. .."

The "no restrictions" is if you have your money at Profunds. Whatever 60-day restriction imposed by IB is their policy.... not Profunds. (Perhaps the restriction is to discourage you from owning mutual funds so that you will trade other vehicles which generate more commish for IB ??)

www.profunds.com