Is Interactive's Daytrading Buying Power Less Than At Other Firms?

Discussion in 'Retail Brokers' started by cwb1014, Jan 21, 2006.

  1. cwb1014


    According to information on IB's website, Buying Power in a Standard Securities Day-Trading Margin Account is 4 x Available Funds, where Available Funds = Equity with Loan Value (cash value + stock value + bond value + non-US & Canada options value) minus Initial Margin.

    Maybe I'm missing something here, but this seems to come out to quite a bit less Buying Power than what NASD rules allow, which I believe is 4 x Maintenance Margin Excess, where Maintenance Margin Excess = Equity with Loan Value minus Maintenance Margin.

    Is Interactive actually offering less Buying Power than what's legally allowed? Don't most firms offer what's legally allowed?

    Any help that anyone can provide here would be greatly appreciated.

    Many thanks in advance.