Will Interactive Brokers give me a margin account?

Discussion in 'Retail Brokers' started by elitetroop, Jun 25, 2012.

  1. I am 20 now and I am a student. I opened a cash account with 3828 dollars. I must wait 3 days after I sell my shares. This makes me annoying and has destroyed my strategy. And since I have no job now, this is all I have.

    Will they open my margin account when I reach 21 and with only 3600 dollars in it?
    Thank you!
  2. $10,000 minimum to open account, no trading if account is less than $2,000.
  3. ABCTG


    Also depending on how often you trade, you might fall under the Pattern Day Trading rules.

    "Pattern Day Trader: someone who effects 4 or more Day Trades within a 5 business day period. A trader who executes more than 4 day trades in this time is deemed to be exhibiting a ‘pattern’ of day trading and is thereafter subject to the PDT restrictions. "

    "In order to day trade, the account must have at least 25,000 USD in Net Liquidation Value, where Net Liquidation Value includes cash, stocks, options, and futures P+L. "

    You can find more information on the IB website here.


  4. which is a reason that the original poster may be better off WITHOUT a margin account.

    The pattern day trader rules do not apply in a cash account.
  5. sounds like you should try pop. the firms are getting so competitive that some are offering fractions of a fraction of a penny for commissions and all the leverage you can eat.
  6. Bob111


    you probably mean prop trading firm?
    for those who like pop-

  7. Open a futures account now at any of the name brand retail future brokers, like Amp, Mirus, Velocity. or any of the others.

    Interactive Brokers has terrible data, so you will need to buy a second data feed. Their software is also terrible, you will likely want to use something else. Some have under $1k account mins.

    Xtrader is free at Velocity.
  8. Since you have under 25k, you should consider a prop firm if you want to day trade stocks. Futures and even FOREX are alternatives to get around the PDT rule.
  9. d08


    I wholeheartedly agree.
  10. You are right but not 100%. Cash account has its own annoying rule. Let's say you have 10K and buy 10K of stock X and sell it at 11000 and then one hour later you buy 10K of the same stock and sell after one hour. This way, you have violated trade settling rule. The first trade was fine but the cash for the first trade will settle after 3 business days but the broker lends you money for the second trade and before paying the broker's money you cannot sell the shares !!!. You have to wait for 3 days so your money from first trade becomes available and pay broker's money and then sell your shares !!. Much worse than pattern daytrader rule.
    #10     Jun 25, 2012