So I opened an account with IB, but I just discovered I can't short sell stocks because it's a cash account. I'm 18 with $3,000 (the minimum to open an account at IB). However, you must be 21 or older and have $10,000+ to open a margin account, the type of account that lets you short sell stocks. Is there any way I can still short sell stocks? One of the reasons I chose IB is because of their great availability of shares to short.
1) Will they let buy inverse-ETF's or trade options with defined risk? 2) If not, you have to maturely understand that you are too undercapitalized to trade from the short-side with your account as it is. 3) As an 18-year old, if your account were to go into a deficit, IB may not have as much legal recourse to recover losses from you at your age.
What a country! Old enough to fight arabs overseas but not old enough to short sell or to enjoy a cold beer. What a country.
It has nothing to do with AGE, it has to do with REG-T, and FINRA rules which say you need a minimum of 2000 dollars to short, Interactive brokers is just giving themselves a little padding on this rule. Besides which i highly doubt that anyone who only has 3000 to blow should even be shorting a stock to begin with.
does the age limit have something to do with personal liability for losses? the broker is taking on risk when they allow shorting, since losses are unlimited. get real.
It is illogical to be sure. It is backwards, at least in part. Just another example of U.S. insanity. If the policy was logical, you would not be old enough to fight Arabs or vote until at least the age of 25, if that!, but you certainly ought to be able to enjoy a beer or sell short by age 18.
Although I think Zecco is terrible, you can short with 2 grand using them as a broker. Just a thought.
2k is the minimum with any broker due to Reg-T and Finra rules. Interactive brokers are just giving themselves a comfort zone on the rule.
There are plenty of inverse ETFs these days, so get to doing some homework. Stay away from the ones with little volume and/or wide spreads. It is better than nothing if you don't change brokers to solve the problem.
losses are not unlimited. there are margin maintenance requirements. the stock will be bought in very quickly.