I recommended IB to another who wanted to start trading based upon products offered, commissions, and account minimums. It was pointed out to me that IB now requires a 10k minimum to open an account. I said no, it's 5k. It was even backed up by def in a thread a while ago. But he pointed it out to me and there it is on their webpage. http://individuals.interactivebrokers.com/en/accounts/fees/minimumDeposits.php?ib_entity=llc But when I access the account application forms, it lists the minimum as 5k: https://www.interactivebrokers.com/Universal/servlet/formWelcome?p=100&atype=IT Is this a typo on the first link or was the second link not updated yet?
You could open the account with $10,000 then withdraw $5,000. You get one free withdraw per month and the rates for a 2nd withdraw are very low.
Interesting strategy......this is like McDonald's going "upscale" and telling customers: no orders under $10 permitted. Could backfire.
A new client of mine also pointed out this new $10k initial funding requirement. I checked, and it's apparently true. So, it was $2k, then bumped to $5k and now it's $10k. Reminds me of the intraday margin problems earlier this year. "In order to open a new account you must deposit USD 10,000 (or USD equivalent). " Quote taken from this link, as of today: http://individuals.interactivebrokers.com/en/accounts/fees/minimumDeposits.php?ib_entity=llc FS
... I looked into opening an new trading account at IB, and upon doing some reading about margins and opening account minimums, I gasped in disbelief when I read.... "you must deposit $10,000 USD or equivalent", however, upon re-reading everything, I focused on something else there.... first, here is a direct copy/paste from the IB site About their new "required minimum" to open an account: In order to open a new account you must deposit USD 10,000 (or USD equivalent). Students (age 21 or under) must deposit USD 3,000 (or USD equivalent). As per US regulations, in order to trade in a margin account you must have at least USD 2,000 (or USD equivalent). Because of contribution limits, IRA accounts will only be required to deposit USD 4,000 in order to open a new account. In addition, US Regulators require USD 25,000 (or USD equivalent) to Day Trade stocks and options. ,,, IRA money market trading accounts require only a $4,000 USD {or equivalent} to open, I immediately started my education on IRA accounts, there are 2 types, and the main difference between the 2 is: a regular IRA account, under USA Tax law, subject to a 10% early withdraw tax penalty {unless you are over the age of 59.5 years}, a Roth-IRA account has no early withdraw tax penalties, ..the main issue is, you can open an account at IB for $4,000 USD {or equivalent}, it just might get a little complex at tax time next year for you, however, once one increases the size of their IRA account sufficiently, one can then open a regular trading account at the $10,000 USD minimum by transfering funds..... if one so chooses, ...hope this helps, `
First 10K earn zero interest. They just want to maximize their profit. Just imagine, 10k earn about $500 a year interest for IB. That is about $42/month for IB. Smart!
The advice you are giving regarding converting an IRA back to a regular account is beyond horrible. This is a great example of why getting or taking advice from internet forums can be a "train wreck".
Umm.. actually this is incorrect. A Roth IRA also has early withdrawal penalties of 10%, except if the money is used for buying a first house or qualified educational expenses. The big difference between the two is that with a traditional IRA the earnings are tax DEFERRED until withdrawal, whereas with a Roth IRA earnings are tax FREE upon withdrawal (at age 59 1/2). There are other subtle differences, but that is it in a nutshell. Also note, that with a Roth IRA the money has to remain in place for at least five years.