IB: The Party Is Over

But I would loose that margin on the day the SEC rules go into effect... the 28th of September... right? Or can I keep the marging but just not day-trade with it?
 
This is bizarre... so a new trader could get 4:1 margin and go long 8K. He holds it overnight so as not to become a "pattern day-trader". In the morning he wakes up with a stock that has been halted for trade and finds after a day or two that his account is worth zilch. He has lost his $2000.00 and the broker is on the hook for $6000.00. How is this supposed to protect the broker from losses?

 
twende:

We may not agree with IB regarding their interpretation of the new SEC margin rules/day trading rules, but IB is running a business. Sometimes a cautious approach and/or a wait and see posture is the prudent thing. (Kinda like watching the market.) IB has shown great concern for the small investor and has really contributed to leveling the playing field. I believe it is a bit shortsighted for us to be overly critical at this time. Let's give them a while and see how these new rules shake out.

BSAM
 
The most important thing you can do is to be on constant alert as for the solvency of these "firms". Schwab laying off 2400 today is just the beginning and not for just layoffs either as I have stated in earlier posts dozens of these "firms" will be going under in the next six months. When one of them puts you on suspension or closes you up for "pattern day trading" say "aw shucks your probably right just go ahead and send me my money, I think I'll do a little fishing". They are probably doing you a favor as if they do go under the Feds don't cut you a check in any five days baby, it takes YEARS to get your money.
 
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