No. of Recommendations: 2
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....

I suggest giving them a waiver, as in waving bye bye. And be sure to tell them why you're dumping them.

BTW, maybe they choose not to waive the 3 day rule for cash accounts. (It is strictly their choice because Reg T doesn't require it). Ask them instead to waive their restriction on margin accounts under age 21, given that you are a responsible adult with power of attorney to manage the account.

Elan
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