Migration to IB Australia Pty Ltd: Margin Restrictions for Retail Accounts

[Nick Radge]

Just found this buried in the small print on IB Australia:

“Interactive Brokers Australia currently offers margin lending to all clients EXCEPT Self- managed Superannuation Fund account holders (“SMSF”). Click here for more information. For clients of Interactive Brokers Australia who are classified as retail, margin loans will be capped at AUD$25,000 (subject to change in IBKR Australia’s sole discretion). Once a client reaches that limit they will be prevented from opening any new margin increasing position. Closing or margin-reducing trades will be allowed.”

https://ibkr.info/article/3352

[Nick Radge]

Everyone should have got an email from IB Australia today saying you can now apply for margin through Account Admin

[TerryDunne]

Hi everyone,

I’d appreciate any information you have on where this currently sits – I have provided the documentation from my accountant that I’m a Sophisticated Investor (which is a joke, I could be a hip hop performer or a male model but qualify as long as I have $2.5m of assets) but I’m being advised that I can’t operate Reg T leverage. Is that correct?

Assuming that is the case, how are people operating and what leverage are you able to use? With no leverage, is there any point to MOC systems?

Thanks in advance,

Terry

[TerryDunne]

No need to reply – IB had not set up my account correctly.

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