Pattern day trader at IB

Discussion in 'Retail Brokers' started by Nasdaq5048, May 22, 2006.

  1. The question i have is for an IB account, if it is flagged with a pattern day trader and with less than 25K in equity. It would be frozen for a period of time. Does that mean frozen for everything or just US Stocks? Can i still trade futures and foreign equities while the account is frozen?

    Thanks in advance for IB's customers who have experience or know something about it.
     
  2. futures and forex are not regulated by the SEC and the PDT rule does not apply

    the only requirement for futures is that u have at least 2k in the account
     
  3. I understand that. But my question is, once your account is suspended because you violated the PDT rule, are you suspended in a way that you cant trade futures and foreign stocks as well?
     
  4. no
     
  5. alanm

    alanm

    Just to be clear, being flagged as PDT and dropping below 25K is not grounds for suspension. You're simply limited to 3 day-trades in a 5-day period and 50% initial margin for US stocks/options until you bring the equity back up to $25K. Managing to violate the 3 DT limit (despite the built-in restrictions), I think, is how you get suspended, and you might even be able to get a one-time waiver if it's an accident.
     
  6. What is PDT rule and were can I read about it.
    Thanks You
     
  7. ddunbar

    ddunbar Guest