You do not need all the stuff you mentioned. If you want leverage, trade futures. You can't short stocks, but you can certainly short stock index futures. The beauty is that you do not have wait for T+3. So the funds are more efficient. Also, faster to get lost in the market volatility....
yes, and clearly being able to google requires little thought.... how about this... why dont you research instead the IRS rules on IRA accounts and you will understand that what you are getting is not margin.
lmao... I didnt realize that I was doing something wrong by needing all that stuff that you say it isnt needed... oh, btw... there is such a thing as inverse ETF's as well... and not sure how shorting index fut will apply when trying to short only an equity that is not part of an index and that is trending down while the markets are going up... but, i guess you must have some logic behind that statement... (I just dont see it)... lastly... more efficient use of funds? hmmm... I hope you realize that those funds still have to undergo settlement to be really available... them letting you use them for trading is just part of how IB does their accounting which enables them to offer "margin" IRA's... again, the rules for what can be done or not on an IRA are governed by the IRS... brokerage houses take a subset of those rules and apply them as they see fit...
IB is correct in calling this a margin account. The reason is that under SEC rules, only a margin account can avoid T+3 settlement. So it *is*, and has to be, formally declared as a margin account on IB's books in order for them to be able to offer immediate settlement. It is tax rules, not SEC rules, that make it inadvisable to use leverage to buy stocks in a tax-deferred account. It is actually *not* illegal to do so, but there is a special tax (UBIT) if it is done, so for simplicity most brokers do not allow levered stock purchases because of the tax reporting nightmare it would create.
settlement is never avoided, it still takes place T+3... if not, try to take the cash out (well, that is hard on a IRA, but hopefully you get my point).... all that takes place is that you are allowed to trade the "free up" cash from the closing of the trade to open other trades... but settlement, still takes place T+3... yes, UBIT is the reason why I have to pay cash for any real estate purchases instead of being able to get a RE loan and buy more property and leverage within my IRA... the most annoying rule there is... but leave it to the IRS to milk every penny they can and limit you on what you can do with your own money to ensure your retirement... god knows SS wont be around for me or even my kids...