Are there any retail futures brokers that offer trading of CME bitcoin futures in an IRA account?
Retail futures broker that offers trading of CME bitcoin futures in an IRA?
- Thread starter iceprincess
- Start date
MattZ
Sponsor
We offer IRA Futures accounts for our customers through Midland. https://optimusfutures.com/Futures-IRA.php
Since this is an IRA, you must be very careful with specifically with Bitcoin. These are instruments that are open on the weekend, while Futures are closed. Also, as far as I know, the smaller contract on the CBOE will not be listed anymore. https://www.bloomberg.com/news/arti...on-t-look-so-bright-as-cboe-reviews-contracts
Since this is an IRA, you must be very careful with specifically with Bitcoin. These are instruments that are open on the weekend, while Futures are closed. Also, as far as I know, the smaller contract on the CBOE will not be listed anymore. https://www.bloomberg.com/news/arti...on-t-look-so-bright-as-cboe-reviews-contracts
Interactive Brokers (IB) said they offer trading of CME bitcoin futures in IRA accounts. Their margin requirement for trading futures in an IRA is 3x the normal margin. One thing I like about IB is that they sweep any money not needed for margin requirements from the futures account to the brokerage account where it has SIPC protection. Any other futures brokers out there that would offer a similar sweep feature to get some SIPC protection?
FYI, I wrote to GoFutures.com and they replied that they allow trading of CME bitcoin futures in an IRA account. Per contract initial margin $8,120, maintenance margin $7,382. Any other futures brokers that allow trading of CME bitcoin futures in an IRA account?
correction to the info from Interactive Brokers (IB). They do NOT currently allow trading of CME Bitcoin Futures in an IRA account. See
https://ibkr.info/article/3049
https://ibkr.info/article/3049
MattZ
Sponsor
Was this for day trading margins? Keep in mind that CBOE no longer offers Bitcoins, and the CME margins are very high. The numbers above do not seem to synch with industry.
I think you are correct, that's probably for a regular taxable account. GoFutures.com said they use a custodian https://www.mtrustcompany.com/ . I'm still trying to get confirmation that they do, in fact, trade CME Bitcoin Futures in an IRA account. If so, I'll confirm the margin requirements which are probably much higher than $8K per contract.
Trade Station said they'll trade CME Bitcoin Futures in an IRA account but you need to go through a custodian that allows alternative IRA investments such as midland. See
https://www.midlandira.com/
Custodial fees quoted of $345 the first year and $245 for subsequent years.
TradeStation's margin requirements are 70% of the futures contract settlement price or currently about $16,713 per contract. See
https://www.tradestation.com/pricing/futures-margin-requirements/
I'd like to find a futures broker that is also the custodian but I may not be able to find that. And if you wait for a Bitcoin ETF to buy in your IRA brokerage account, you may be "Waiting for Godot".
https://www.midlandira.com/
Custodial fees quoted of $345 the first year and $245 for subsequent years.
TradeStation's margin requirements are 70% of the futures contract settlement price or currently about $16,713 per contract. See
https://www.tradestation.com/pricing/futures-margin-requirements/
I'd like to find a futures broker that is also the custodian but I may not be able to find that. And if you wait for a Bitcoin ETF to buy in your IRA brokerage account, you may be "Waiting for Godot".
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MattZ
Sponsor
I personally like Midalnd IRA. They have been very fast and efficient.
As for your Bitcoins futures trading: What you should find out are what margins necessary, and consider whether your account size can withstand the fluctuations in that account. If you plan on "investing", keep in mind that bitcoins are trading on the weekend, and futures are not.
As for your Bitcoins futures trading: What you should find out are what margins necessary, and consider whether your account size can withstand the fluctuations in that account. If you plan on "investing", keep in mind that bitcoins are trading on the weekend, and futures are not.