IRA Daytrading

C

chictrader

Does anyone know of a retail firm that allows daytrading in an IRA? I know that margin and daytrading was always supposed to be a no no, but now I hear of people daytrading with special tax rules? Can anyone offer any insight?
 
Some firms are offering restricted margin to cover settlement delays, but the use of leverage is prohibited by the IRS. It's unclear whether very frequent trading is permissable.
 
You can daytrade in an IRA. All "daytrade" means is positions are closed on the same day as they're opened and they're not held overnight.

I've been doing it at IB with no problem and the IRS doesn't care either.

It's margin that's the sticking point, so you can't short stocks or have naked short options. That's it.
 
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