Single Stock Futures In An IRA

Discussion in 'Retail Brokers' started by Norm, Sep 15, 2005.

  1. Norm

    Norm

    IB tells me that they do not allow the buying or selling of SSFs in an IRA.

    Does anyone know of a firm that does allow this?
     
  2. 9th Gate

    9th Gate

    Try Xpresstrade. Although they list North Star Trust as a possible custodian, you could try any of the following if Xpresstrade would accept them. Pay attention to the fees they are different for each firm. To open the account you have to go through a custodian who offers self directed investments in futures, all of these should because I got the list from a futures / FX broker.

    Have Fun.

    Entrust Administration www.entrustadmin.com
    New Accounts Dept
    800-392-9653 ext 248
    www.entrustbank.com


    Equity Trust Co. www.trustetc.com
    Contact: Client Service Specialists for Investments
    Speak with any available representative
    Main: 440-323-5491 select option 2

    Millennium Trust Company www.mtrustcompany.com
    Contact: Marnie Potsek
    630-368-5629
    mpotsek@mtrustcompany.com
    Contact: Vonceil Walker
    630-368-5657
    vwalker@mtrustcompany.com

    Fiserv Investment Support Service www.fiserviss.com
    Contact: For Existing IRA--Deb Yarbrough
    800-825-2501 select Option 2 then 7
    Deb.yarbrough@ltc.fiserv.com
    New accounts: 800-825-2501 anyone in Marketing, select option 8
     
  3. I'm not sure why IB told you that -- you certainly can do it, although to be honest I've never actually done it. I've traded futures in an IRA though.

    See:

    http://www.interactivebrokers.com/en/accounts/tradingPermissions.php

    Even before the new "margin" IRAs you could do this -- look under the cash column and you'll see SSFs are allowed.

    SSB
     
  4. Correct me if I am wrong, but regardless you have to open up a self directed IRA thru one of the Trust Companies. The one that IB directs its clients to has rather reasonable fees as a custodian and for other misc. matters. That is not the case with some of these other IRA custodian companies. Some will nickle and dime you for anything and everything. I imagine quite a few of them have gotten bloated off of the fees, especially since a self directed IRA will enable one to invest in residential real estate and we all know how many people have gotten into that game in the past 5 years.
     
  5. I was looking at this the other day ....

    Assuming one can short an SSF in IB IRA, what kind of margin will one get with an offsetting short put??

    This would seem to get around the restriction on selling calls in an IRA .

    Somehow I suspect the margin requirements are outrageous nonetheless.

    Anyone have a definitive answer??
     
  6. GTC

    GTC

    IB customer representative told me that absolutely no shortings are allowed in IB's IRA accounts.
     
  7. ids

    ids

    He meant stocks. Anybody can short futures.
     
  8. SSF can short, I confirm. But to 'cover' w/ a short put - the put requires full margin for the hypothetical purchase price. Where's the sense in that?

    Anyway, thank goodness for SSFs ...
     
  9. Trader13

    Trader13

    I think you are correct, but I would like to confirm my understanding on this topic.

    I know you can trade futures in an IB IRA account, but I read somewhere (on another discussion board) that IB handles margin for SSF's using the stock margin model, which is different from the performance bond margin used for conventional futures. Since you cannot use "stock margin" in an IRA account, you are effectively prohibited from trading SSF's in an IRA account, at least the way IB has set it up.

    Can someone from IB (def?) please confirm this for us?
     
  10. def

    def Sponsor

    I think you got it flipped. We treat them as commodities and you get 5:1 leverage. They can be traded in an IRA

    http://www.interactivebrokers.com/e...ts/singleStockFuturesMargin.php?ib_entity=llc
     
    #10     Jan 13, 2006