OK fellows, here is the scenario. I am collecting unemployment since having lost my job in the fall. I was using fidelity with A T margin account, but switched to IB so I can save commission money and get (hopefully) faster executions. So I completed the account, sent the money (lost two weeks time from closing old account) and went to trade today and it would only let me do it in cash. So I poke around and find there's a button in account management to go to margin account. So I do that, and I have been denied! I put 28,500 in there. There's no mention of anything else required. I've been a pattern day trader for two years. Do other brokers require you to also have a JOB while your trading? I meet the fed requirements. Anyway... I'm very scared now. Have other retail firms required/checked your income before being allowed to open a Margin account? What if this IS my job now? I'm very concerned I have just been put out of business!! And there sure aren't any jobs to be had anywhere right now.
Could not you make stuff up? I am sure either Scottrade, OptionsXpress, Schwab or some other broker will give you a margin account.
They had a little drop-down.. Previously I had chosen less than 40K filling out my application. (heck.. nobody really knows what they will make that year in trading) So when I when to "apply" for margin it said I didn't meet the income requirements, so I bumped it to over 40. It took several hours to get a deny, so I assume not completely automated. At any rate, for sure I can't keep just trying brokers. I need to know for sure. It will probably take another 2 weeks to get another account going. I'll already have been out of business for a month. I can't keep doing this.
I think you can get a margin account at some other broker. IB is rather strict with many of their policies for risk management purposes (which many of us think is the right approach).
I have called several brokers, nobody will actually talk about your needs and if you will pass. All they can say is "apply." MB trading did send an email that 50K total in some liquid form is required.
I had the same experience with IB, them not letting me trade on margin. Mine wasn't an instantaneous decision either, so I don't think it is automated. Luckily I hadn't funded the account before I got the notice. I've since opened up a margin account elsewhere without a problem.
Velocity Futures has a rep for getting your money and account set up REALLY fast. You might be trading within several days. They also have a good reputation.
This is the truth. Advantage, openecry were gave me all kinds of bs when opening an account. But with velocity, they are fast! Thinkorswim and velocity are 2 firms that have super streamlined no BS account application systems.
I had absolutely no problems setting up an account at Advantage. They couriered me a FedEx envelope so that I could send them the signed docs I needed to submit (at their cost, obviously). The process was way faster than opening my IB account. The support at Advantage was also excellent, with phones answered within 3 rings, every time.