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Interactive Brokers not allowing futures trading in IRAs

  #49 (permalink)

Trading Experience: Beginner
Platform: SC
Broker/Data: Stage 5
Favorite Futures: ES, 6E, sometimes NQ, and occasionally CL
jackbravo's Avatar
Posts: 1,330 since Jun 2014
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harvester View Post
Just as a coincidence, I was also on the phone with IB Customer support this morning. In fact called them twice, to see if two different people would give the same facts. The answer that was given, is closer to what Windriver mentioned in his post (at least for now...). It's three times the posted overnight margin rate. Here are some examples of one contract margin requirements that IB and I calculated together over the phone:

TF - $5100 x 3 = $15,300
EMD - $8375 x 3 = $25,125
CL - $7778 x 3 = $23,334
NQ - $4500 x 3 = $13,500
ES - $5750 x 3 = $17,250

I very often trade TF and EMD together, and exclaimed to the customer service rep that I would now need a total of $40,425 margin to trade one contract of each! A sympathetic sounding voice on the other end said, "I'm afraid so, these are the new margin rules, which is better than not being able to trade futures in your IRA at all".

In closing however, my second IB representative re-read the statement noting that it stated: "will generally be to increase margin requirements on such products to 3 times that of the current requirement.". He said the meaning of this was to give some "wiggle room" for the risk team to maybe not be exactly three times at some point in the future. However on April 15 when this new policy is implemented, better plan on the full 3X. Ouch...


man, their CS is so useless

EDIT: I just called them again and looks like you're right, 3x the overnight margin.

Last edited by jackbravo; April 6th, 2015 at 03:12 PM.
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