RandomWord wrote: ↑Mon Sep 16, 2019 11:25 amMy comment in that other thread was referring to a specific incident when they closed futures in people's IRAs. That didn't personally affect me, but it does sound bad the way they handled it. Still, that was only for IRAs, normal accounts weren't affected at all.rascott wrote: ↑Sun Sep 15, 2019 11:02 pmRandomWord wrote: ↑Sun Sep 15, 2019 10:50 pmI think you're misinterpreting the article. They didn't close him out because his futures account went negative, they closed him out because the maintenance margin (set by the exchange, not by IB) changed and he could no longer meet it, even with borrowing the maximum margin from his equities account. So, a straightforward margin call. I guess they could have been nicer and given him some extra time to deposit more money, but you shouldn't count on that, just like I wouldn't count on my bank to give me extra time to deposit cash if I bounce a check.rascott wrote: ↑Sun Sep 15, 2019 1:45 pmcomeinvest wrote: ↑Sun Sep 15, 2019 3:24 am
What you said is not true. IB provides customers several options for how to automatically sweep between the futures margin and the equities margin of the account. One of them is to minimize the cash deposit for the futures margin. The algorithm moves money in small increments whenever the maintenance margin is violated.
I'm going off of what others posted about here and also found this:
https://www.optionsbro.com/interactive- ... s-trading/
This article alone has crossed IB from my list.
Mostly it sounds like that writer got in trouble with some risky trading strategies like shorting oil futures and complicated options trades. I've never had that sort of problem in my experience of holding regular futures contracts at IB. They borrow just enough to meet the maintenance margin, and adjust accordingly each day. It's just like comeinvest said. They certainly don't close you out whenever your futures account has a negative cash balance, that would be terrible.
I was going off of comments here, including yours... does IB use instantaneous liquidation or no?
viewtopic.php?f=10&t=289144&p=4724263&h ... r#p4724263
Regardless, don't see what they offer me as someone just looking to hold Treasury futures, that isn't available elsewhere with better reviews.
They do use instantaneous liquidation if you hit the margin limit in your overall account (ie, you run out of money). I've never had that happen so I don't know what that's like, but I think every broker is going to liquidate you pretty quickly when you hit the margin limit.
The main advantage for me personally with IB is that they have much lower margin rates, so the money I'm borrowing as maintenance margin for the futures doesn't cost me as much. It's currently 3.64% for the lowest bracket at IB, compared to 8% at the tastyworks site that article recommends, so that's a pretty big difference! It's more important for e-minis than for treasury futures, because the maintenance requirements are higher. But sure, you don't have to use IB, the actual futures contracts are all run by CME regardless of which broker you use to buy them, so you can use any other broker and get mostly the same deal.
Thanks for the clarification....I might give them a test run. They seem to have some inactivity fees that are kind of annoying.... My setup will only be trades roughly once per quarter. Perhaps the cost savings elsewhere would make up for this.