I noticed that my broker allows futures in retirement accounts. Other than the tax benefits in an IRA or Roth, is there any benefit to trading in a retirement account vs a taxable account? There's no leverage when trading futures in an IRA, correct? Or from the perspective of trading in a retirement account, I can trade SPY and QQQ commission-free in my IRA, so what would be the benefit of trading MES or MNQ instead (and eating those futures transaction fees)?
We offer futures for IRAs using a self-directed IRA company. The margin requirement for the MES vs SPY is materially smaller and you can short. You can also trade longer hours.
What happens in an IRA if you’re on the wrong side of a gap up or down and end up owing the broker in excess of your equity? AFAIK you can’t personally guarantee a loan for an IRA.
Futures account do not really offer "Margin", they require a bond for risk. They refer to it as the margin requirement.
Right. I'm controlling a large notional with a small amount of capital. Are initial and maintenance margin for MES and MNQ the same in an IRA as they are in a regular/taxable account?
Yes, if you open with a self-directed IRA company like Midland IRA. https://www.midlandtrust.com/individual-investors/ Lightspeed Financial Services Group LLC. is not affiliated with this service providers. Data, information, and material (“content”) is provided for informational purposes only. This content neither is, nor should be construed as an offer, solicitation, or recommendation to buy or sell any securities. Any investment decisions made by the user through the use of such content is solely based on the user’s independent analysis taking into consideration your financial circumstances, investment objectives, and risk tolerance. Lightspeed Financial Services Group LLC does not endorse, offer nor recommend any of the services provided and any service used to execute any trading strategies are solely based on the independent analysis of the user.