Brokers can get screwed by allowing instant buying power for ACHs that are not settled. Two of my brokers allow $25k, or 50,000 in cash buying power by requesting a ACH from my money market. IBKR makes you wait five days so what is their problem? Make sure all ACHs are cleared, use cash status on Restricted. What else do they want?
Schwab and Etrade(Morgan Stanley) allowed trading, what did they not know IBKR did by preventing us from buying?
https://www.marketwatch.com/story/p...not-comfortable-11611876619?mod=mw_latestnews And IB's not happy because other discount brokers are breaking ranks and undercutting them. How about you join them, IB? You are supposed to be for the little guys. Well go join the brokers who cater to the little guys. How about that?
IB is definitely not for little guy. IB is so advanced for little guys and that's probably why it costs more. And no I don't work for them. People have a choice and if so why blame IB.
He is somehow right and wrong at the same time. First, who to blame for having a stock with 120%+ short interest to exist? Second, clearing houses can tighten their collateral requirements from members & request (For certain stocks & their options) higher collateral, which eventually gets passed to clients in the form of higher margin requirements (For long/short stock or short options). Just like how MMs increase IV, option premiums and/or Bid/Ask spreads when they perceive more risk & volatility.
IB are allowing trading again with 100% initial margin long, 300% for shorts. https://ibkr.info/node/3763
Just great, so benevolent of them. They can do whatever they want with the margin requirements but I will never trust a broker which limited buying with cash. What is their next move - stop you from withdrawing profits because you've made them trading companies above what Peterffy deem "fair value"? Can't believe I was such a proponent of IBKR.
WSB are moving to fidelity en masse. Free trades, no selling of order flow, no restrictions last week.