NexusFi: Find Your Edge


Home Menu

 





Interactive Brokers not allowing futures trading in IRAs


Discussion in Brokers

Updated
      Top Posters
    1. looks_one jackbravo with 12 posts (3 thanks)
    2. looks_two ge55 with 7 posts (2 thanks)
    3. looks_3 harvester with 5 posts (17 thanks)
    4. looks_4 ron99 with 3 posts (2 thanks)
      Best Posters
    1. looks_one pedalon with 8 thanks per post
    2. looks_two davespain with 4.5 thanks per post
    3. looks_3 harvester with 3.4 thanks per post
    4. looks_4 Big Mike with 1.7 thanks per post
    1. trending_up 27,171 views
    2. thumb_up 64 thanks given
    3. group 18 followers
    1. forum 59 posts
    2. attach_file 3 attachments




 
Search this Thread

Interactive Brokers not allowing futures trading in IRAs

  #41 (permalink)
 
SMCJB's Avatar
 SMCJB 
Houston TX
Legendary Market Wizard
 
Experience: Advanced
Platform: TT and Stellar
Broker: Advantage Futures
Trading: Primarily Energy but also a little Equities, Fixed Income, Metals and Crypto.
Frequency: Many times daily
Duration: Never
Posts: 5,041 since Dec 2013
Thanks Given: 4,375
Thanks Received: 10,192


geosing View Post
May be so; but would it be too much to ask for a bulletin and/or allow a trading day for traders to square open positions? Especially if they are not in any violation of margin requirements.

He meant they were forced to "180", "change course", "pretend it was a mistake".

Reply With Quote

Can you help answer these questions
from other members on NexusFi?
NT7 Indicator Script Troubleshooting - Camarilla Pivots
NinjaTrader
My NT8 Volume Profile Split by Asian/Euro/Open
NinjaTrader
Deepmoney LLM
Elite Quantitative GenAI/LLM
Online prop firm The Funded Trader (TFT) going under?
Traders Hideout
Exit Strategy
NinjaTrader
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Get funded firms 2023/2024 - Any recommendations or word …
59 thanks
Funded Trader platforms
37 thanks
NexusFi site changelog and issues/problem reporting
22 thanks
GFIs1 1 DAX trade per day journal
22 thanks
The Program
20 thanks
  #42 (permalink)
 
decarleytrading's Avatar
 decarleytrading   is a Vendor
 
Posts: 33 since Mar 2013
Thanks Given: 3
Thanks Received: 77

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.
Follow me on Twitter Reply With Quote
  #43 (permalink)
 
windriver13's Avatar
 windriver13 
Wyoming
 
Experience: Intermediate
Platform: Sierra
Broker: Edge Clear
Trading: Micros
Posts: 14 since Jan 2012
Thanks Given: 13
Thanks Received: 14


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?

Reply With Quote
Thanked by:
  #44 (permalink)
 
mattz's Avatar
 mattz   is a Vendor
 
Posts: 2,493 since Sep 2010
Thanks Given: 2,440
Thanks Received: 3,789

Guy, we have now 4 clearing firms to choose from to match your margins needs and IRA accounts.
We would be more than happy to assist you.

THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.

Matt

Trading futures and options involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results. You may lose more than your initial investment. All posts are opinions and do not claim to be facts. Please conduct your own due diligence. Use only Risk capital when trading Futures.
1 800 771 6748 local 561 367 8686 email [email protected]
Reply With Quote
  #45 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785

This IB page says,


Quoting 
Trading permissions in an IRA account
- Not allowed to trade futures (including single stock futures) and options on futures.

https://ibkb.interactivebrokers.com/article/188

Reply With Quote
Thanked by:
  #46 (permalink)
 
jackbravo's Avatar
 jackbravo 
SF, CA/USA
 
Experience: Beginner
Platform: SC
Broker: Stage 5
Trading: NQ...uh..ES actually
Posts: 1,337 since Jun 2014
Thanks Given: 4,362
Thanks Received: 2,400

So I just called them, and asked the Emini margin would be. They said around 9K for 1 contract in an IRA, so they're not tripling the exchange margin, but tripling their own margin.

Reply With Quote
  #47 (permalink)
 ron99 
Cleveland, OH
 
Experience: Advanced
Platform: QST
Broker: QST, DeCarley Trading, Gain
Trading: Options on Futures
Posts: 3,081 since Jul 2011
Thanks Given: 980
Thanks Received: 5,785

The SPAN minimum futures initial margin for ES for overnight is $5,060.

Reply With Quote
  #48 (permalink)
 
harvester's Avatar
 harvester 
Houston, Texas USA
 
Experience: Advanced
Platform: NinjaTrader, MultiCharts, TradeStation, NeuroShell, AmiBroker
Broker: Interactive Brokers, TradeStation, DTN/IQ
Trading: TF, EMD, NQ, CL
Posts: 30 since Mar 2011
Thanks Given: 12
Thanks Received: 91


jackbravo View Post
So I just called them, and asked the Emini margin would be. They said around 9K for 1 contract in an IRA, so they're not tripling the exchange margin, but tripling their own margin.

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...

-harvester

Reply With Quote
  #49 (permalink)
 
jackbravo's Avatar
 jackbravo 
SF, CA/USA
 
Experience: Beginner
Platform: SC
Broker: Stage 5
Trading: NQ...uh..ES actually
Posts: 1,337 since Jun 2014
Thanks Given: 4,362
Thanks Received: 2,400


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...

-harvester

man, their CS is so useless

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

Reply With Quote
  #50 (permalink)
 
ge55's Avatar
 ge55 
Atlanta, GA
 
Experience: Advanced
Platform: IB TWS
Trading: YM, Grains Futures
Posts: 15 since Dec 2011
Thanks Given: 4
Thanks Received: 6


IB is good as long as you don't need support from a live person - phone or chat. This morning I could not even access Account Management for making IRA contribution for 2014.

Re Margin:
3X Overnight Margin it is, even for intraday trades. Puts severe limits on the size you can trade intraday.

Reply With Quote




Last Updated on April 29, 2015


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts