The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Mechanical Investing

URL:  http://boards.fool.com/jimzipcode-ib-also-they-call-it-a-cash-account-31136731.aspx

Subject:  Re: 3 Day Settlement Rule Date:  2/25/2014  2:42 PM
Author:  DragonTales Number:  248770 of 268676

JimZipCode
IB also. They call it a cash account, and there's no leverage, but you can sell and buy with the proceeds same day.


Jim's "cash account", is (I think) technically set up as a Margin Account for trading purposes. Mine's set up the same way. But I ran into a problem at IB for an IRA in my daughter's name, who is under 21. IB enforced the 3-day settlement on the latest round of monthly trades for her (the first that involved both buys and sells since transferring money from TDAmeritrade to reduce commissions). I called them, and they recommended the account be upgraded to a Margin Account, but when I went through the motions I was stopped with the reason of "you can't have a margin account at IB if you are less than 21 years old." I called again and asked about getting a waiver simply to not have to abide by their 3-day settlement rule for cash accounts, and the service rep said there'd be no chance of a waiver. I had no problems trading her portfolio at TDAmeritrade with unsettled cash....
Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us