IB: No Trading permission, Account Requirements

T

tikipoki

I just opened an account at IB a few days ago, all went well, set the markets I wanted to trade, and went on :)

The Netherlands-Futures & Options [x]

Had that one, however, now im only 'allowed' to trade the futures and futures options, NOT the stock options (even though they are listed in the 'products & exchanges' table and I _do_ get quotes for them)

when I try to send through an order, I get an error: "No Trading permission, Account Requirements"

anyone from IB can explain me how I can fix this?

cheers,

Tiki
 
You may have to 'sign' some more forms. To make sure, login to account management and look in ... something like 'trading permissions' to see if there are some forms you still need to fill out.
 
Where are you from? If you are a U.S. legal resident you cannot trade non-US stock options. You can trade non-US futures and options on futures.

Thsi is because of the position the SEC ataff takes regarding offer of non-US stock options.

The CFTC rules (on the futrues side) are more lenient.

If you have any further questions, feel free to email me.

DB
General Counsel, IB
 
Quote from DMB:

Where are you from? If you are a U.S. legal resident you cannot trade non-US stock options. You can trade non-US futures and options on futures.

Thsi is because of the position the SEC ataff takes regarding offer of non-US stock options.

The CFTC rules (on the futrues side) are more lenient.

If you have any further questions, feel free to email me.

DB
General Counsel, IB
More...

DMB im from the Netherlands :p

Tiki
 
Warning - IB legal team continues to post nonsense and misinformation.

This is straight from the SEC website:

"Question:
Can I trade foreign equity options?
Your Answer: Answer last updated: 10-04-02

While there may not be any legal impediment for your trading foreign equity options, there are practical restrictions. First, your brokerage firm may have internal restrictions that make it difficult, if not impossible, for such trading. Second, foreign trading can be very expensive as compared to trading in the U.S. For more information, please read our brochure on International Investing. "

Moreover, how had you concluded the poster was an American resident? (I have good information that IB has more than a few non-US clients.)

Even your last statement, "You can trade non-US futures and options on futures." Is less than accurate. The CFTC most certainly does restrict which overseas derivatives contracts US residents can trade.

You are performing a disservice and should be embarrassed.


Quote from DMB:

Where are you from? If you are a U.S. legal resident you cannot trade non-US stock options. You can trade non-US futures and options on futures.

Thsi is because of the position the SEC ataff takes regarding offer of non-US stock options.

The CFTC rules (on the futrues side) are more lenient.

If you have any further questions, feel free to email me.

DB
General Counsel, IB
More...
 
Go into your account management> trading permissions > and tick the corresponding box for the market you're seeking to obtain the permission to trade. I'm not from IB, but that's what I had to do when I was given a similar error message.
 
Quote from tikipoki:

I just opened an account at IB a few days ago, all went well, set the markets I wanted to trade, and went on :)

The Netherlands-Futures & Options [x]

Had that one, however, now im only 'allowed' to trade the futures and futures options, NOT the stock options (even though they are listed in the 'products & exchanges' table and I _do_ get quotes for them)

when I try to send through an order, I get an error: "No Trading permission, Account Requirements"

anyone from IB can explain me how I can fix this?

cheers,

Tiki
More...

The IB product pages state that we only offer equity index futures and equity INDEX options. We do not offer the cash markets yet (hopefully soon).
 
Quote from BlueHorseshoe:

Warning - IB legal team continues to post nonsense and misinformation.

This is straight from the SEC website:

"Question:
Can I trade foreign equity options?
Your Answer: Answer last updated: 10-04-02

While there may not be any legal impediment for your trading foreign equity options, there are practical restrictions. First, your brokerage firm may have internal restrictions that make it difficult, if not impossible, for such trading. Second, foreign trading can be very expensive as compared to trading in the U.S. For more information, please read our brochure on International Investing. "

Moreover, how had you concluded the poster was an American resident? (I have good information that IB has more than a few non-US clients.)

Even your last statement, "You can trade non-US futures and options on futures." Is less than accurate. The CFTC most certainly does restrict which overseas derivatives contracts US residents can trade.

You are performing a disservice and should be embarrassed.
More...

Blue: i pointed out the EXACT quote from the Web site to our legal/compliance group over a year ago. They specifically folllowed up and were advised that the answer is clearly “NO” unless they are a Qualified Institutional Buyer (generally over $100,000,000 in assets).

They could not explain the statement on the SEC FAQ except to say that it may not be illegal for a US customer to buy one if they could find a foreign broker who would do it, but it would be a problem for a US broker to offer them to US customers.

Are you aware of any US brokerage firm offering non US equity options to US retail customers?
---

I agree the rule doesn't make sense considering US customers can trade foreign futures but given our legal advice, US brokers can not offer them.
 
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