I've been trading with thinkorswim for a while, but their lack of products to trade is getting to me and I'd like to switch over to IB. I called up IB and asked about their requirements. A rather rude operator told me there's "absolutely no way" I can open an account if I'm under 21. (I'm 20). I thought this was only for margin accounts? Then again.. I guess I'd need margin to trade the products IB offers and TOS doesn't (ie. futures on commodities). Any insight, or if any IB staff is out there, any help and advice would be welcome.
http://www.interactivebrokers.com/en/accounts/individuals/ageRequirements.php?ib_entity=llc Means you can't open an IB universal account. Only thing you could trade with a cash account is options (purchse only, no un covered writes) and stocks w/o margin. Bonds too I suppose. But it seems that you want to know why you must be 21. I suppose it helps to have built up a credit history in order to trade on margin since you are borrowing funds to trade. Then there's the legal notion of the age of emanicaption and all that entails. IB is just protecting itself against noobs who might not know what they are doing and will have their parents arbitrate against them in the highly likely event of loss. Why not open a friends and family account?
Does this age requirement apply only to US residents? I ask because I am based in the UK but am a citizen of another EU country...
No, I believe it applies to everyone because the universal account allows one to trade in various base currencies.
Although my IIB does not deal in stocks, we do trade in futures, forex and otc markets. As long as you are of 'legal age' to enter a contract it should not be a problem. 18 is usually the magic number.
I think its a stupid rule, but whatever. The only reason I'll switch to IB is if I think I'll trade futures at some point. - nathan