IB bizarre or am I stupid

Discussion in 'Retail Brokers' started by Quiet1, May 13, 2002.

  1. Quiet1


    According to IB customer support I've just had SPY orders rejected becuase because I do not have over 25,000 of base currency (GBP) in my account. I had day-traded for about 2 months with them and my account balance has not changed significantly either way from its current and initial 20,000GBP.

    So a dollar-based account can trade with 25,000USD but I have to have over 36,000USD equivalent in my account to avoid the pattern day-trader rule...

    No prior notification of this arbitrary rule either. Anyone else heard of this?

  2. It may have to do with option positions -


    In my case, it was because option value is NOW (starting about 2 weeks ago) subtracted from net liq. This meant that I had to sell calls against my "bullets," and close or move other option positions.

    I hope this helps.
  3. Quiet1


    I wish that was the problem but I don't trade options.

    I have asked to be shown the rule which states that 25,000 of your base currency is needed to daytrade but I am continually referred to the $25,000 rule which does not appear to be relevant.

    I can only assume there is some other reason why I am not welcome at IB and any old excuse will do to get rid of my account.
  4. mccoyml


    the 25K rule has been around for a while, so they either missed you before or there is something else going on.
  5. jaan


    good luck with that. last week i too had to explain to a IB rep what a base currency is -- it took 5 messages back and forth before i succeeded. unless def will help you out, i don't think you'll get a relevant answer from IB.

    - jaan
  6. Yes, I wonder why you sometimes get strange answers from IB_Help. I guess they have to work very fast to get all emails done and avoid to spend a lot of time with something that is difficult for them to explain (for example margin requirements for options).