Minimum Balance to Maintain in IB?

[tyrant]

Is there a minimum account balance to be maintained at IB before the account is closed off? I undertand that $10 will be charged monthly for data if no trades were done. So, will IB charge every month until the account is below a certain threshold? I am thinking of taking a sabbatical for a while but would like to maintain the account. What's the best way?

Thanks

 

[LeeD]

I don't think there is a minimum amount. If the account falls below USD 2,000 all trades on margin will be prohibited (it's a regulation - nothing to do with IB).

IB may charge "inactivity" fee + data fee. So, the total will work out larger than $10 per month. Check IB Web-site or ask IB support (best used via chat) to be sure.

 

[futuman]

Quote from LeeD:

I don't think there is a minimum amount. If the account falls below USD 2,000 all trades on margin will be prohibited (it's a regulation - nothing to do with IB).

Bullshit. There's lots of brokers that let you trade on margin with 500 on your account. It's just that IB is overcautious.

 

[atticus]

Quote from tyrant:

Is there a minimum account balance to be maintained at IB before the account is closed off? I undertand that $10 will be charged monthly for data if no trades were done. So, will IB charge every month until the account is below a certain threshold? I am thinking of taking a sabbatical for a while but would like to maintain the account. What's the best way?

Thanks

They will close it if you deplete the account with maintenance fees, but you can reopen the same dormant account at a later date. All of these questions can be answered by IB via phone, chat or ticket.

 

[cstfx]

Quote from LeeD:

I don't think there is a minimum amount. If the account falls below USD 2,000 all trades on margin will be prohibited (it's a regulation - nothing to do with IB).

IB may charge "inactivity" fee + data fee. So, the total will work out larger than $10 per month. Check IB Web-site or ask IB support (best used via chat) to be sure.

IB charges a 10/mth data fee if you don't reach minimum commission levels and they charge 10/mth inactivity fee for an account just sitting there. So you total hit is 20/mth.

 

[futuman]

Quote from atticus:

They will close it if you deplete the account with maintenance fees, but you can reopen the same dormant account at a later date. .

Yes, but you need that 10k to do that, so it's the same as opening a new account.

 

[jeb9999]

Quote from futuman:

Bullshit. There's lots of brokers that let you trade on margin with 500 on your account. It's just that IB is overcautious.

Ever consider doing some research before posting nonsense?

"Margin Requirements

The Federal Reserve Board, FINRA, and securities exchanges, including the New York Stock Exchange (NYSE), regulate margin trading. Most brokerage firms also establish their own more stringent margin requirements. This Alert focuses on the requirements for purchases of marginable equity securities, which include stocks traded in the U.S. Different requirements apply to short sales, security futures, other types of securities, and certain foreign securities.

Minimum Margin

Before purchasing a security on margin, NASD Rule 2520 and NYSE Rule 431 require that you deposit $2000 or 100% of the purchase price—whichever is less—in your account. This is called "minimum margin." If you will be day trading, you are required to deposit $25,000. To learn more about day-trading margin requirements, please read Day Trading Margin Requirements: Know the Rules."

http://www.finra.org/investors/protectyourself/investoralerts/marginandborrowing/p005973

 

[LeeD]

jeb9999, right to the point!

$2,000 is a requirement for trading equities on margin. Perhaps, futuman means that IB unnecessarily extend the $2,000 minimum account balance onto futures and currency.

 

[atticus]

Quote from futuman:

Yes, but you need that 10k to do that, so it's the same as opening a new account.

lol wrong.

My brother had an account with $0.00 that he just put $500 in via ACH for quote access and it is open to trade. The account had been closed for a year. He had to reaffirm those suitability questions, but he ACH'd $500. He even bought a calendar spread with the $500.

IOW, you need at least $500 to sub to quotes, but that's it.

 

[ammo]

i think if you had originally opened an acct with the minimum,and you took out most of the cash,you can go back in for less because your past that open an accct with $x minimum point