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Interactive Brokers not allowing futures trading in IRAs
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Interactive Brokers not allowing futures trading in IRAs

  #41 (permalink)
Market Wizard
Houston, TX
 
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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".

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  #42 (permalink)
 Vendor: www.decarleytrading.com 
Las Vegas NV United States
 
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decarleytrading's Avatar
 
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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.
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  #43 (permalink)
Elite Member
Wyoming
 
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IB IRA Communication


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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  #44 (permalink)
Market Wizard
Boca Raton
 
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4 clearing firms

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

PM with any questions about optimusfutures (800) 771-6748 (561) 367 8686. THERE IS A SUBSTANTIAL RISK OF LOSS IN FUTURES TRADING.
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  #45 (permalink)
Market Wizard
Cleveland, OH
 
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This IB page says,


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

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

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  #46 (permalink)
One day...
SF, CA/USA
 
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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.

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  #47 (permalink)
Market Wizard
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The SPAN minimum futures initial margin for ES for overnight is $5,060.

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  #48 (permalink)
Elite Member
Houston, Texas USA
 
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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


Last edited by harvester; April 6th, 2015 at 03:56 PM.
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  #49 (permalink)
One day...
SF, CA/USA
 
Futures Experience: Beginner
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Broker/Data: Stage 5 Trading/Gain
Favorite Futures: CL, NQ, ES, EUR
 
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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...

-harvester

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 04:12 PM.
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  #50 (permalink)
Elite Member
Atlanta, GA
 
Futures Experience: Advanced
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geosing's Avatar
 
Posts: 12 since Dec 2011
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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.

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