Misleading marketing practices? Every broker should allow doing that in a Cash account unless it's been put on a 90-day restriction, where purchases can only be made using settled funds. For Cash accounts in good standing, every broker should allow the use of unsettled funds to make a purchase of other stock, but if you sell that second stock before T+3 from the funding transaction it's a freeride that triggers a 90-day restriction the first time and closure of the account the second time. IB misled me on the phone by telling me that they have a "special exemption" that allows freeriding in IRAs. If they gave me false information, then they are doing fraudulent marketing and i'm glad that i cancelled a transfer into a new IRA account with them.