Futures options in an IRA account

Discussion in 'Interactive Brokers' started by donnap, Dec 18, 2023.

  1. "in ira, no borrowing and no unlimited risk trades, that's the law." - Hardly true. Futures have unlimited risk, and yet they are allowed in IRAs.
    Lots of misinformation in public forums.

    Also, brokers typically have restrictions on FOPs and options in IRAs, but not in other self-directed qualified retirement accounts.
     
    #11     Mar 27, 2024
  2. ajacobson

    ajacobson

    Guess what. If your IRA trustee allows it, you can trade birdshit futures in your IRA. There is nothing in DOL rules or ERISA act that even mentions a strategy. There are rules about actually borrowing money in a qualified account. If your broker or trustee doesn't allow something, it's pretty much the same freedom your griping about. That's not a regulatory issue, but a Trustee issue. There are independent trustees, but you sound like you wouldn't pay for them.
    Let us all know how you do on birdshit futures option backspreads.
     
    #12     Mar 27, 2024
  3. You sound angry, and I cannot make sense of what you are trying to say.

    I pointed out a factual misinformation from you earlier post. That's all.
     
    #13     Mar 27, 2024
  4. ajacobson

    ajacobson

    No borrowed money and no unlimited risk. True, but I can structure a futures trade and limit the risk. All qualified accounts(retirement and some trusts) require a trustee
    There are brokers and trustees. Most of the trustees are part of the broker, but some allow you to use an independent trustee. Most that I know require you to employ an independent trustee to do futures. Many insist you use their in-house trustee and just ban certain instruments or strategies. The most arcane thing I've ever seen a trustee hold was an exchange membership.
    Can I structure a futures trade and limit risk? Depends on what my trustee allows.
    Is my broker allowed to restrict my access to a marketplace while at the same time allowing others? Sure, as you point out it's freedom. Can be simple or it can be too expensive to include retail. Ask your broker.
     
    #14     Mar 27, 2024
  5. Robert Morse

    Robert Morse Sponsor

    Is that listed on the CME or ICE? I'd like to trade those!!
     
    #15     Mar 28, 2024
  6. ajacobson

    ajacobson

    Guano futures. Sounded right up your alley.
     
    #16     Mar 28, 2024
  7. ajacobson

    ajacobson