Broker/Data: RCG, Crossland, Gain Capital, ADMIS, Dorman, many feeds and platforms.
Favorite Futures: options
Posts: 26 since Mar 2013
Thanks: 1 given,
Futures and options trading in an IRA without restrictions
Each brokerage firm is different in their policy regarding trading futures, and options on futures, in a retirement account.
We work with clients trading futures (and options on futures) in retirement accounts of all types and sizes and would be happy to assist any IB clients looking for a better "home". Those trading retirement accounts with us are treated as any other client, there are no restrictions on their trading, and we offer them exchange minimum margins (SPAN).
*There is substantial risk of loss in trading futures and options.
If you have any questions about the products or services provided by DeCarleyTrading, please send me a Private Message or use the futures.io "Ask Me Anything" thread.
According to mail from IB today: Effective April 15 - Margin requirements for Futures in IRA accounts will increase to 3x current. Also noted on IB site under Futures Margin " IRA accounts not afforded intraday margin rates". I assume that means you need 3 x $5750 Initial per contract on the ES?
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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...
Last edited by harvester; April 6th, 2015 at 02:56 PM.
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