Hello everyone, I just want to open an account with interactive brokers. I know the minimum balanced required to open an account is $3000 ( I am under 25). I currently have $2000 to invest but I can borrow another $1000 for a short period of time. I was just wondering if I can open an account with $3000 (my $2000 + borrowed $1000) then after a week withdraw $1000 to pay back my loan and keep my account balance at $2000? I am planning to open a margin account that is why I am planning to keep the $2000. Can I open a account in IB with $2000 using this trick? thanks
From IB: In other words you can't trade with an account balance of $2000.00 or less with IB. Open an account with TD Ameritrade - no minimum to open, no minimum to trade. Check out their special offers on new accounts: https://www.tdameritrade.com/specialoffer.page
Undercapitalized and just going to lose all the money. Come back when you have 10,000$ minimum (and even that's not enough).
UPDATE: TD Ameritrade also requires a minimum of $2000.00 to trade a margin account. No big deal just open a cash account.
Also the thing with Ameritrade and such a small account is that commissions will kill you if you. Though you can get 60 days comissions free with them.
thanks, one of the reasons that I want to open an account with IB is their super cheap commission fees, due to my small account.
The fees is a moot point and will make no difference to your success, and considering your circumstances ($2000 budget) you can eliminate IB. What sort of trading are you interested in? If it's Options then $2000 is enough to start with a TD Ameritrade account. $9.99 + $0.75 fee per contract is a drop in the bucket when the volatility of options is factored in. Point to ponder - $9.99 adds: $0.10 to the quoted price of 1 contract. $0.05 to the quoted price of 2 contracts. $0.02 to the quoted price of 5 contracts. $0.01 to the quoted price of 10 contracts.