"if traktrade is crediting your cash account immediately, I dare to say that they might be violating regulations." Def, when I evaluated other firms, I found several that had a less conservative approach to crediting cash accounts, even some of the biggest names out there. When I asked IB about it, I was told that your company decided to take the most conservative stance. Technically, I don't believe I can withdraw cash early - they are just replacing my buying power immediately. Frankly, although I had the occasional problem finding short inventory, the only reason I left IB was because of this crediting issue. As a rapid fire trader, it would cost me too much to wait for T+3.
Jan, that's fine and all firms need to interpret rules within their comfort zone. nevertheless, I think their treading a thin line with what they're doing as other firms have been fined for this. NASD's investigation focused on the past practice of permitting cash account clients to utilize the proceeds from the sale of securities that had not yet settled to purchase other securities before the actual receipt of proceeds from settlement of the sale, which is generally three business days later. Ameritrade's efforts to address this matter began shortly before the September 2002 closing of the merger with Datek Online Holdings Corp., the parent of Datek and iClearing. The Company completed the modifications to its systems and procedures in May 2003. The full text is below: http://biz.yahoo.com/bw/040311/115387_1.html
The only problem I have with IB and Shorting is that when you enter a stock symbol the system does not automatically check for Short supply and dispay it on the screen like other brokers do. I don't think in this computer age we should have to find the list and then check to see if the symbol is on the list. This is 2004 not 1984.
Quote from jrweiner: It has been reported that if IB no longer can short the stock (e.g. someone holding it long sells), the stock will be immediately purchased in your account. No phone call, no three days to straighten it out, just a "ding" sound telling you that something has happened. Can someone confirm that this has actually happened to them at IB? If I remember correctly, someone made this claim, but then never actually confirmed that it happened when we started to question it. It is not consistent with my experience in the UAL squeeze last year, where I was given 3 days notice to cover.
Another example of IB not being able to provide me with ZOLT shares to borrow today 5/10/04. I just checked my Fidelity account and I'm able to short shares with them. This is what is most annoying with IB. I love everything else.