IB drops $10K account minimum

[ET180]

Makes sense ........... No need to alienate a big part of the trading community.

What if they don't want that part of the trading community? It's a platform designed for active traders. How many trades can you make when stuck with the pattern day trading limit? Also, I suspect that smaller accounts have a tendency to go to 0 faster than large accounts. So you get some guy that signs up, takes his $500 to $0 after a long option trade or two, and now the broker has to send that customer all kinds of prospectus, legal, proxy vote, tax, and other documentation even after he closes his account. They probably figured it's not worth the hassle.

Their platform sucks though. If they rebuild their platform I’d might be interested- but im not hoing to pay $200 month for DAS

I used to hate TWS, but now I actually really like it. It just took some time to get used to it. I used to like TD Ameritrade's mobile app better until TDA ruined it (at least for Android). TDA really screwed it up big time. Now I prefer IB's mobile app. Anyhow, I don't pay any data fees except for some $4 monthly charge for something and IB has a decent API. I don't know of any other broker that includes API access for free. And then for commissions / no assignment fee for options, can't beat IB.

 

[toc]

I wouldn't call anyone with less than $10k in an account a trader. Gambler or thrillseeker is more like it.

I expect the CS experience to get a whole lot worse now though.

After three months, these accounts if not generating enough commissions will be charged $10/month, hence more revenue for IB which they should divert to better customer service.

 

[SteveH]

What about starting an IRA? First year, you can at least establish the account then get over 10K in the 2nd contribution for the real-time quotes. Then, you have enough to trade 1 futures contract like the RTY or a few HHI mini contracts or 2 HSI minis (with 250-400 pt 1st hr ranges you can do quite well, even with small amounts

In the 1st year, one could sell a 5-6 month out ATM cash covered put in a stock below 5 for a 14% prem, do that 2x.

By the 3rd year, you could trade either a full HHI or maybe even an HSI futures contract and now you've got a veritable printing press.

Those days of tight money are far behind me, but there's lots of ways to start small and grow an IRA rather quickly.

 

[Howard]

10K isn't a problem to me, but their day trading margins (ES) are simply too high for me starting out. And no, I'm not looking to utilize $400 day trading margins either.

 

[_eug_]

I use IB... Dont mind the high margins. Mobile app is excellent. My biggest issue is that the continuous futures charts that they offer are only back adjusted. This makes charting completely worthless on monthly contracts like CL. I have no choice but to use a 3rd party charting package to see non back adjusted charts. I complained many times to the customer care but they wont bring this option.

 

[777]

anyone try robinhood? feels like it's a move to take that demographic

Pros do not fall for Robinhood's hustle:

They sell your orders and your fills suffer too much.

No free lunch from Robinhood.

 

[FX_Hedge]

Their platform sucks though. If they rebuild their platform I’d might be interested- but im not hoing to pay $200 month for DAS

Exactly why I don't use IB.

I can't believe they have not gone out and just bought a platform and add that last needed component. Go buy out one of them - NT, SC, or MC. That seems like a no brainer fix to get their platform to a proper level.

 

[ElectricSavant]

So you need 100K plus for live data?
ES

Sanders notes that customers who aren’t going to trade actively, or eventually maintain a balance of $100,000 or more, are unlikely to appreciate all IB has to offer. “We don’t want to mislead anybody,” he says. “If you’re only going to have $5,000 in your account, you’ll be very unhappy.” Small accounts do not qualify for real-time data either, so removing the minimum is a way to try the site without any stress – but it’s not the way to be happy as a long term customer.

Accounts with less than $100,000 in net liquidation value are subject to some monthly activity fees, however. The first three months are free, but after that, you must generate a minimum of $10 per month in commissions, or pay the difference as an activity fee. For instance, if you place a few trades and generate $3 in commissions during a month, you’ll be assessed a $7 activity fee if your balance is under $100,000. Other fees to watch for are data fees, especially if you subscribe to any international data feeds.

 

[HobbyTrading]

So you need 100K plus for live data?
ES

I don't think so. I think that it is a bit of unfortunate choice of words in that article which gives that impression.

 

[ElectricSavant]

So trade for $10.00/mo and IB is free... How much would a futures account need to be funded with? Does IB have free charts?
ES

I don't think so. I think that it is a bit of unfortunate choice of words in that article which gives that impression.