Min. account size for IRA/futures

TimtheEnchanter

TimtheEnchanter

My main activity is with ThinkandSwim but their commissions for micro futures are too much. I have spent 1000 USD on commission just in a few weeks, kicking the tires and playing/learning the software. I mainly trade spreads but with micros, I am willing to take a bet/hedge my long positions if need be. Thus I am looking at a smaller IRA account at IB. Do I need to put up 25K or less is adequate in an IRA? TDAmeritrade only lets me trade futures with 25K. I am mostly in options and long market plus a lot of cash at TDAmeritrade.
 
That's a fact, Jack! Alternatively, I can put up non-IRA money at IB...a 2-3k for spreads should be enough. Actually, for hedging, inverse ETF's are plenty to play with - no commission.

https://www.interactivebrokers.com/en/index.php?f=26662
"Futures margin trading in an Individual Retirement Account (IRA) is subject to substantially higher margin requirements than in a non-IRA margin account. Margin rates in an IRA margin account may meet or exceed twice the overnight futures margin requirement imposed in a non-IRA margin account."


But WHY?
 
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HomelyWizzard said:
My main activity is with ThinkandSwim but their commissions for micro futures are too much. I have spent 1000 USD on commission just in a few weeks, kicking the tires and playing/learning the software. I mainly trade spreads but with micros, I am willing to take a bet/hedge my long positions if need be. Thus I am looking at a smaller IRA account at IB. Do I need to put up 25K or less is adequate in an IRA? TDAmeritrade only lets me trade futures with 25K. I am mostly in options and long market plus a lot of cash at TDAmeritrade.
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Learn the language.
 
HomelyWizzard said:
https://www.interactivebrokers.com/en/index.php?f=26662
"Futures margin trading in an Individual Retirement Account (IRA) is subject to substantially higher margin requirements than in a non-IRA margin account. Margin rates in an IRA margin account may meet or exceed twice the overnight futures margin requirement imposed in a non-IRA margin account."

But WHY?
More...


The best answer I've seen is here:

J.P. said:
A portion of this is because it looks bad when a large broker goes after some unfortunate guy who just blew through his entire retirement account for even more money. But mostly it's because some like to impersonate other people's mothers thinking they are protecting them. And even though they'll proffer other rationalizations, they think they know what's best for them. You can see this same thought process in other places: jurisdictions that don't allow sales of alcohol on Sundays, a bill to allow blackjack at Florida racinos but with a $5 maximum bet, not allowing Internet sales of lottery tickets, denying abortions to women unless they wait some period of time first, etc. All from those righteous folks that know better than you what's best for you. And that's why some firms restrict futures trading in retirement accounts and others don't.
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