IB's IRA Margin Account

R

RedSun

Interactive Brokers offers the margin account for IRAs. There are certainly rules investors have to follow. Since I do not have such account and just wonder how it works.

I know I can't borrow $. How about day trading? Say I have $20k in cash. If I buy stock that is worth close to that amount, I think I should be able to sell the same day. I'm not sure if I can do any more trades the same day. I believe I can only do one trip on that day.

With the cash account, I may have to wait until the settlement day, which is T+3.

What else can you do with IRA margin account?
 
Quote from RedSun:

Interactive Brokers offers the margin account for IRAs. There are certainly rules investors have to follow. Since I do not have such account and just wonder how it works.

I know I can't borrow $. How about day trading? Say I have $20k in cash. If I buy stock that is worth close to that amount, I think I should be able to sell the same day. I'm not sure if I can do any more trades the same day. I believe I can only do one trip on that day.

With the cash account, I may have to wait until the settlement day, which is T+3.

What else can you do with IRA margin account?
More...

You can either make it

(1) a cash account and you are subject to T+3 settlement, but not subject to the pattern day trader rules

or(2) a margin account, and then you are not subject to T+3 settlement but are subject to pattern day trader rules if account is under $25k.

In any case, you can do futures in it, but not leveraged forex or stocks on margin.
 
Quote from comintel:

You can either make it

(1) a cash account and you are subject to T+3 settlement, but not subject to the pattern day trader rules

or(2) a margin account, and then you are not subject to T+3 settlement but are subject to pattern day trader rules if account is under $25k.

In any case, you can do futures in it, but not leveraged forex or stocks on margin.
More...

So for IRA margin account, there is no difference as the capital, $25K more or less?

So the account just follow PTD rules regardless of capital?
 
Quote from RedSun:

Interactive Brokers offers the margin account for IRAs. There are certainly rules investors have to follow. Since I do not have such account and just wonder how it works.

I know I can't borrow $. How about day trading? Say I have $20k in cash. If I buy stock that is worth close to that amount, I think I should be able to sell the same day. I'm not sure if I can do any more trades the same day. I believe I can only do one trip on that day.

With the cash account, I may have to wait until the settlement day, which is T+3.

What else can you do with IRA margin account?
More...

where did you get that idea from? last I check, IRA's do not get mrgin, and I have an IB IRA... so I know this for a fact... that i am able to trade futures and option spreads, does not mean that you are allowed margin.... otherwise, I would be using it to trade as well...

if you want to day trade, just have enough funds and be above $30K... but you would use cash no Reg-T... PDT rules would still apply, little to do with margin...
 
There is this new thing called Google!


Can I open an IRA margin account at IB?




Yes, an IRA margin account allows you to immediately trade on your proceeds rather than waiting for your proceeds to settle, trade assets in multiple currencies and trade limited option spread combinations. IRA margin accounts have certain restrictions compared to regular margin accounts and borrowing is never allowed in this account. You may also upgrade an IRA Cash Account in Account Management on the Trading Configuration page, available in the Trading Access menu. Refer to the Reg T IRA section under the Account Types tab of the Trading Configuration page and the US Stock and Index Options tab under the Margin page on IB’s website for more information. You may also upgrade an IRA Cash Account on the Trading Configuration page
 
Quote from startraitor:

There is this new thing called Google!


Can I open an IRA margin account at IB?




Yes, an IRA margin account allows you to immediately trade on your proceeds rather than waiting for your proceeds to settle, trade assets in multiple currencies and trade limited option spread combinations. IRA margin accounts have certain restrictions compared to regular margin accounts and borrowing is never allowed in this account. You may also upgrade an IRA Cash Account in Account Management on the Trading Configuration page, available in the Trading Access menu. Refer to the Reg T IRA section under the Account Types tab of the Trading Configuration page and the US Stock and Index Options tab under the Margin page on IB’s website for more information. You may also upgrade an IRA Cash Account on the Trading Configuration page
More...

It is obvious. Just read :)
 
Quote from startraitor:

IRA margin accounts have certain restrictions compared to regular margin accounts and borrowing is never allowed in this account.
More...

Contradictory? Doesn't "margin=borrowing"?
 
The IRA margin account is definitely the way to go if you want to do anything fancier than buying and holding long stocks.
I opened an IRA margin account so I could do option spreads.
 
Quote from Scataphagos:

Contradictory? Doesn't "margin=borrowing"?
More...

No. If I open a credit spread for instance, the max risk of the spread shows as using margin. The margin is taken from my buying power until the spread is closed.
 
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