IRA day Trading

What are the rules for day trading in a IRA account?

 

NO MARGIN!
You have to let the securities settle to get back your FULL BP.

Try futures.

 

so if I use all my dollers to purchase a stock and sell in 2 min. I have to wait about 3 days before I can trade again?

 

There is no 3 day waiting period for daytrading in an IRA for stock purchases in an E-Trade IRA. The waiting period that you refer to (as treated by E-Trade) only pertains to the time you have to wait (i.e. settlement period) for funds withdrawal.

Check with your specific broker since each one has their own house rules for IRA trading. When I was with Brownco, I had to wait for the 3 day settlement period to reuse the funds.

 

You can not use Margin in an IRA, so explain how you can RE USE your buying power before settlement? This has nothing to with Pattern Day trading rules.

 

Yes you can use margin and day trade in an IRA account with IB
http://www.interactivebrokers.com/en/accounts/iraClasses.php?ib_entity=llc

 

Spunky-

I read the IB page and it says you "can never borrow" in an IRA account, but you can day trade and trade in multiple currencies.

 

This subject has been discussed here before http://www.elitetrader.com/vb/showthread.php?s=&postid=962226&highlight=IRA#post962226

 

Thanks for the input.

 

Can anyone please confirm if this is still true for IRA trading with Etrade, as of Dec 2006? My IRA is currently with TDAmerirade, and they do have this 3-day wait for settlement before the next trade can be place.

Thank you!