Can you daytrade in an 401k/IRA account

Discussion in 'Trading' started by Adobian, Dec 9, 2008.

  1. Adobian


    My employer set up a 401K account for me with Schwab. I found out today that Schwab could not change this account to Margin account for daytrading. I asked if rolling over to IRA account will help and they said no. No margin account for 401K or IRA.

    Is this the same for all brokerage firms?
  2. wenzi


    Is your question about day trading or margin ?
  3. Surdo


    NO broker allows trading on margin in IRA/401K accounts.

    How would you replenish the funds on a margin call higher than the maximum allowed IRA annual contribution?

    Multiple daily buying/selling in a CASH account would be free riding!
  4. Adobian


    In order to daytrade, you need a margin account.
    I daytraded once and they restricted my account for 90 days with "trading only settled fund". That means after I sell, I have to wait 3 days to have the fund available to buy something again.
  5. Surdo


    You just answered your own question, what is the point of this thread?
  6. Adobian


    Occasionally, we got jerks like this.
  7. Surdo


    I took the time to respond intelligently to you, so LMB's you ingrate.
  8. JackR


    You may day trade in an IRA account. I know IB offers this capability and believe TOS does as well.

    From IB's Web Site:
    US resident customers may open cash or margin Individual Retirement Accounts (IRA). IRA margin accounts may never borrow, but are afforded all the other benefits of a margin account such as the ability to day trade, and the ability to trade multiple currencies and multiple currency products....

    Emphasis added.

  9. tradersboredom

    tradersboredom Guest

    daytrading stocks in 401k is a waste of time and commissions.
    401k should be for investing long term

    daytrade futures instead.

  10. FUTURES may be daytraded in your IRA (not 401K) account.

    You contact a broker, and they will have you go through a trust company - only way to do it un USA. ( is the biggest and in my opinion, the best. They only hold back $500, instead of a large % of your money like several other trust companies do).
    #10     Dec 9, 2008