Discussion in 'Retail Brokers' started by Bob111, Oct 17, 2003.

  1. Bob111


    Here is something new for me from IB-
    i trade my wife account and every time i call to ask something-they refuse to talk to me(people who work in "press zero" area.
    ok..fine, at same time-technical support stuff can tell you everything.. finally, we did open joint account and tranfer some money from my wife account to joint. after this transaction her account was below 25K and it was blocked, because it fall under pattern day trader category. wow..
    i did trade during this week, then yesterday after market close we just trasfer some money from one account to another. is this make her a daytrader? where can i read those rules and regulations? as far as i remember-there is no single word about this situation..
    looks like we have no choice, but close this account and open another one again? or wire money back and forth..oh..

    What do you think?
  2. Momento


    sorry to tell you that the PDT rule isn't IB's problem...
    It's with every broker out there...

    If you wanna daytrade, you need to maintain 25k+ in an account that's all.
  3. the more that i try to trade with ib, the more i feel like rosanne rosannadana.
  4. Quah


    Not sure what's so hard to understand - the account that you are trading needs to have $25K in it to avoid the PDT rules.

    What's so hard about that?
  5. Bob111


    yeah, but PDT rule did not say-if you do have 25K+ on your account and after market close you transfer some of this money to another account, rest of the money will be blocked for 90 days?
    just point me into it-and i will admit that i was wrong.
    and solution very simple-wire money back, wait for whatever days and send them back again? right? who need this crap? specially with bunch of errors poping up when you trying to make internal transfer?
  6. CalTrader

    CalTrader Guest

    If any company attempts to do this then they need to state in writing why they think they legally can do this ...... Here is what I would do if I was in this situation - which I would never get into by the way. Send them a certified letter demanding an explanation and stating that you will seek other remedies if the money is not released. Also, if they are attempting this then seek another broker.

    I would find it hard to believe that IB would act in this fashion given their Parent organization .....
  7. Quah


    Your money is being blocked (held) or is your trading blocked?
  8. Bob111


    by blocked money i mean that you cannot place any order from this account after we wire money from this account and total amount of money on this account now below 25K.

    as i said-if you place > 3 trades from 10K account and then you account blocked due PDT rules-i have no problem to understand it and agree on violation. but if you place >3 trades from 30K account, close all those trades ,then wire 25K somewhere else and rest of the money(5K) became blocked and you cannot trade this money-that part i cannot understand. if i trade >3 times from day, when my account was below 25K-i would buy that, but not the story that i mentioned above.
  9. CalTrader

    CalTrader Guest

    If your balance falls below 25 K or if you cant support a margin call on your account the broker can freeze your account according to the PDT rule or liquidate your positions.

    All brokers apply the same rules.
  10. cashola


    As soon as you trade 4 daytrades in ANY size account you are PDT'd. The computer counting does the count weather the account is over or under 25 K. The removal of funds just trips the lockup automatically as the account in that moment is associated with a sub 25K total. Sucks but true...
    #10     Oct 17, 2003