Good point, and thanks for pointing it out. I checked with Optionhouse and they say T+3 is in force for an IRA, but as long as you aren't daytrading you can call in and they will bypass it. For the most part I won't be daytrading the account, so they may work, and someone answered the phone pretty quick. I would just automatically go with IB, but have had accounts with them in the past , and Customer Service was definitely a sideline. I'm hitting the point where I need to make the call, so if you have positives for going IB please post, or feel free to pm(DEF feel free to pm also). Otherwise based on past experiences I'm looking elsewhere. I'm fairly savvy with the trading/investor end of life at this point, and I really have a zero tolerance for some of the b.s. I've dealt with IB in the past which is why I'm looking elsewhere. I won't editorialize(sp) beyond that, but I don't need an arguement when I'm calling with a problem. Similiar reason why I would never consider Tradestation, but TS falls into the never again category as opposed to IB which overall is more a professional firm.
I would suggest go with your inclination and try OptionHouse. You can always switch later - it is very easy.
I have an IRA with IB. I did not make it an "IRA margin account", because I have less than $25K in it and I daytrade enough (albeit only a few hundred dollars at a time) that I would be deemed a PDT. I can't open spreads and can't trade futures - perhaps the "IRA margin account" is required for that. My 401(k) provider doesn't offer wire or ACH when rolling over to an IRA, so we had to handle the rollover via a check mailed to me and then to IB, which meant a 7 business day funds hold at IB.
Correction to previous: http://ibkb.interactivebrokers.com/node/188 says an IRA cash-type account can open option spreads if "exercise style is European and long leg expires simultaneously or after short leg". I was trying to open option spreads in American-style options. IRTE. It also says IRA cash-type accounts can trade futures, but when I tried to add Globex market data a few weeks ago, the web site said I had to change to a margin account.
You just need to change it to an "IRA margin account". You just have to check a box in account administration to do this. A day later you will be able to do all those things. There are *no* disadvantages to this. It dos *not* mean that you can trade stocks on margin - you cannot do that and it does not allow you to do that. The name is basically misleading and wrong. It is just an IB internal name for permission levels. It does not in any way change the tax status of the account. In other words, the limitations that you are encountering are self-imposed for no reason by not checking that box. Admittedly it is mis-named. I have traded all sorts of spreads in my IRA account, and futures.
The one disadvantage is that for IRA margin-type accounts, IB says they will implement PDT rules. That's a biggie for me as my account is a little over $30k and a bad day can conceivably bring it under $25k, and then I can't open new positions until it gets above $25k again (or 90 days). Since my 401(k) provider won't do wires or ACH, it takes around 3 weeks to add funds.
Hmm. If PDT rules do apply to IRA cash-style accounts - and I'm not sure why they would, given that the NASD PDT rules were concerned with customers having an adequate margin cushion - they're not being enforced. After I opened my cash account at IB with ~ $10K, I regularly traded more than 4 round trips a day, and was never restricted. My non-IRA, small margin account at IB observes PDT rules as expected - after 3 daytrades over 5 days, I can't open positions.
OK you were right - I was wring. The FINRA site says they apply to margin traders. I never knew that before! So that is a perfectly valid reason then for leaving it a cash account!
OptionHouse does use the T+3 rule, but say they are able to waive it if you call in and ask. Not necesarilly the greatest scenario, but there seem to be tradeoffs with everyone.