2 stock margin accounts with IB?

Discussion in 'Retail Brokers' started by newestmember, Oct 17, 2003.

  1. Can I have one stock margin account for daytrading, and another account for swingtrading? That way, when I'm in the mood for daytrading, I can do an internal transfer to the daytrading account, and when I want to take a longer-term position, I can transfer the money back to the other account.

    I ask this because my account size is 27K, and sometimes when I swingtrade I'll sit on a large paper-loss (5K, for example) while I wait things out. However, if I use a daytrading account to swingtrade, as soon as 2K is lost and the account falls below 25K, my account will be locked and I won't be able to average-down on my position.
  2. I get a headache thinking about the question. You can have multiple accounts...I don't know about moving money around like that...for that purpose....

    but....not that you asked but aren't 20% drawdowns pretty high for a short term trader? just trying to learn here.
  3. You can have multiple accounts. I don't know how fast you can transfer money though. May take 24 hours, but I am not sure.
  4. Bob111


  5. Last year I had a 23% draw-down on an open-position in OPWV (average price of 60 cents and the stock went to 44 cents, afterwhich I rode it to $1.20) ... But yes, it's a painful way to invest, but sometimes it happens. Been doing this 5 years and I make about 100% on 25K each year. Nothing to brag about though, there's a lot of people who've turned 25K in 2.5Million!

    Anyhow, I would like two separate accounts, because I heard IB's internal funds transfer is instant, and I could daytrade some days and swingtrade other times when I have to go out of town......

    Do IB's compliance rules allow this?
  6. Will IB allow the same person to have one daytrading margin account, in which he is tagged PDT, and one swing-trading account in which he is not PDT?
  7. Bob111


    wtf are you talking about? one acc 30K and another 5K?
    read post about my problem
  8. Im going to do an internal transfer from the PDT account (the daytrading one) to the non-pdt account ---

    When I have the time to daytrade I would like to daytrade ...

    When I have to go out of town and want to do a swingtrade (without fear of being locked-out by the -25K rule) I would like to use my swingtrading account.....
  9. Looking for further light and knowledge from an IB rep, if possible....
  10. You are not likely to get one because ... you already know that you can in fact open two accounts and that the PDT rule will be enforced on each account independently.

    Thus, you seem to be asking IB to confirm or deny whether your convoluted 'plan' will work. It is impossible to know in advance, despite your brief description, what you are going to be doing with your funds. It will only take one screw up or erroneous assumption on your part to get an account locked up due to PDT. I can hear it now "IB, you SAID IT WOULD WORK!" Nobody is interested in handing you this invitation to whine.

    There is enough background information on PDT both on this BB and on the IB boards. So do your homework and then retain full responsibility for your actions.
    #10     Oct 20, 2003