Trading out of an IRA | Forex Factory

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Trading out of an IRA

  • #1
  • First Post: Jan 9, 2008 12:25am Jan 9, 2008 12:25am
Is anyone trading out of an IRA account?
If so I would like to learn more about how it is set up.

Thanks

Lou
  • #2
  • Jan 9, 2008 12:59am Jan 9, 2008 12:59am
I don't know their restrictions, but TradeStation allows it. Their website might be good place to start. I trade my IRA in a stock account, but there's restrictions regarding margin and daytrading. I don't know if they apply in Forex. I think there is some sort of legal sidestep. TradeStation allows it though, so you could certainly get some answers there.
  • #3
  • Jan 9, 2008 1:15am Jan 9, 2008 1:15am
Trading out of a 401K is another popular way to put money away. No taxes when you remove it at age 59 1/2.
  • #4
  • Jan 9, 2008 2:54am Jan 9, 2008 2:54am
Quoting WHTenn
Trading out of a 401K is another popular way to put money away. No taxes when you remove it at age 59 1/2.
Howdy,

I've heard you say this before in another thread. It is my understanding that the 401K is a tax deferred vehicle with distributions taxed at a reduced rate in retirement years. Perhaps you are referring to a Roth 401K..... but there are limitations on day trading so I don't know how a Forex account would qualify.

I would love to be proven wrong about this!!!

Could you point to any 401K resources germane to forex trading that I can review?

Thanx
HeavyJ -"Posterboy for Spellchecker!" "Will work for pips!"
  • #5
  • Jan 9, 2008 6:11pm Jan 9, 2008 6:11pm
Thanks Billflet, WHTenn and HeavyJ
  • #6
  • Edited 11:23pm Jan 9, 2008 10:03pm | Edited 11:23pm
EFX has an IRA trading account, don't know much about it other than a trust is set up for trading the IRA, here are the links.....
http://www.efxgroup.com/live-account.php
http://www.efxgroup.com/ira-account.php
http://efxgroup.com/f/IRAApp.pdf

I am not too impressed with the fees they appear to charge but it is the only way I am aware of the you can trade FX with your IRA.
Interactive brokers has an IRA trading account also but if you can figure it out your a lot smarter than I am.

ALSO I am not affiliated with EFX in any way, I don't even have an account with them, but trading an IRA did interest me.
Same Whore .... Different Dress
  • #7
  • Jan 10, 2008 9:35am Jan 10, 2008 9:35am
my account is with morgan stanley, but i only do long term stock/bond trading on my IRA. i have to actually call my broker to place an order (oldschool baby LOL) so its a bit sluggish and there are more fees that i am used to. i know Tradestation allows you to trade an IRA directly, but ive never set it up for fear i would start putting my "secure" savings at risk. would be great to hear what everyone else is doing
Relax and be happy.
  • #8
  • Jan 10, 2008 10:04am Jan 10, 2008 10:04am
Quoting merlin
my account is with morgan stanley, but i only do long term stock/bond trading on my IRA. i have to actually call my broker to place an order (oldschool baby LOL) so its a bit sluggish and there are more fees that i am used to. i know Tradestation allows you to trade an IRA directly, but ive never set it up for fear i would start putting my "secure" savings at risk. would be great to hear what everyone else is doing
My core IRA is with Fidelity. I'm allowed to trade stocks but not with margin. Though it's set up for stock trading, I only use it for mutual funds. A little higher fees with Fidelity, but I seldom access that account. I re-evalute it a few time each year.

For riskier short term trades I have a small IRA set up with Scottrade. I trade stocks with that one, but again no margin allowed. There are fewer fees with Scottrade and I like the trading platform better, but I don't trade that one much either. I don't like tinkering with my IRA.
  • #9
  • Jan 10, 2008 1:40pm Jan 10, 2008 1:40pm
I will have information in a few days that is related to 401K's, I.R.A.'s for forex traders and also updates on I.R.S. new Forex Tax Law changes from a Forex Tax Attorney. He is away for a few days and when he returns, he will share some very interesting info for us. I was told that we will be very pleased.
  • #10
  • Jan 10, 2008 1:46pm Jan 10, 2008 1:46pm
Quoting WHTenn
I will have information in a few days that is related to 401K's, I.R.A.'s for forex traders and also updates on I.R.S. new Forex Tax Law changes from a Forex Tax Attorney. He is away for a few days and when he returns, he will share some very interesting info for us. I was told that we will be very pleased.
i'm looking forward to that. I'm 24 and to think that I can trade my 401k for the next 30 years is mind boggling!!

New tax law for forex traders???? pleased?? oh mah gawd! i hope you're not teasing us
  • #11
  • Jan 10, 2008 2:57pm Jan 10, 2008 2:57pm
Quoting WHTenn
I will have information in a few days that is related to 401K's, I.R.A.'s for forex traders and also updates on I.R.S. new Forex Tax Law changes from a Forex Tax Attorney. He is away for a few days and when he returns, he will share some very interesting info for us. I was told that we will be very pleased.
WHTenn...... You da MAN
Same Whore .... Different Dress
  • #12
  • Jan 10, 2008 5:33pm Jan 10, 2008 5:33pm
Quoting WHTenn
I will have information in a few days that is related to 401K's, I.R.A.'s for forex traders and also updates on I.R.S. new Forex Tax Law changes from a Forex Tax Attorney. He is away for a few days and when he returns, he will share some very interesting info for us. I was told that we will be very pleased.
Hey Man! That sounds really interesting! Can't wait!

Regards,
HeavyJ -"Posterboy for Spellchecker!" "Will work for pips!"
  • #13
  • Jan 10, 2008 6:13pm Jan 10, 2008 6:13pm
Quoting WHTenn
I will have information in a few days that is related to 401K's, I.R.A.'s for forex traders and also updates on I.R.S. new Forex Tax Law changes from a Forex Tax Attorney. He is away for a few days and when he returns, he will share some very interesting info for us. I was told that we will be very pleased.
I hope you do and I hope we are...

Thanks.
  • #14
  • Jan 10, 2008 11:14pm Jan 10, 2008 11:14pm
Here is another message that was pm' ed to me:

In order to trade out of an IRA the firm you are trading with must either be whats called a custodian firm (which basically means that they are allowed to carry IRA accounts) or they must have a custodian firm that is willing to work with them.

Most forex firms are not custodian firms and because most people use their IRA's for long term investing instead of trading things like Forex, most custodian firms will not allow you to trade forex with your IRA. One that will however is Millennium Trust http://www.mtrustcompany.com/ .

What you are going to have to do is open an account with them and then they open an account on your behalf at the forex firm of your choosing which you can then trade a portion or all of your IRA funds out of.

I hope that helps.

-fxtrader1979
  • #15
  • Jan 11, 2008 2:55am Jan 11, 2008 2:55am
Quoting Lou
Here is another message that was pm' ed to me:

In order to trade out of an IRA the firm you are trading with must either be whats called a custodian firm (which basically means that they are allowed to carry IRA accounts) or they must have a custodian firm that is willing to work with them.

Most forex firms are not custodian firms and because most people use their IRA's for long term investing instead of trading things like Forex, most custodian firms will not allow you to trade forex with your IRA. One that will however is Millennium Trust http://www.mtrustcompany.com/ .

What you are going to have to do is open an account with them and then they open an account on your behalf at the forex firm of your choosing which you can then trade a portion or all of your IRA funds out of.

I hope that helps.

-fxtrader1979
Hello everyone!

Thanks for steering me in the right direction. I also did some research.

MB Trading also offers IRA accounts that you can utilize to trade forex. Their link is http://www.mbtrading.com/fx/newAccount.asp

They do state however that it can take from two to 8 weeks to set up one.

Hope that helps!

Take care!

Ash
Humble Lifetime Member
  • #16
  • Jan 14, 2008 9:36am Jan 14, 2008 9:36am
Quoting billflet
I'm allowed to trade stocks but not with margin.
trading on margin is too expensive anyway! ive yet to find a margin rate that is less than i can take an unsecured loan for.

btw, thanks for all the info shared here guys, i wasnt even aware you could trade commodities in an IRA. its one of those things i kinda have sitting around
Relax and be happy.
  • #17
  • Jan 14, 2008 2:12pm Jan 14, 2008 2:12pm
Quoting merlin
trading on margin is too expensive anyway! ive yet to find a margin rate that is less than i can take an unsecured loan for.

btw, thanks for all the info shared here guys, i wasnt even aware you could trade commodities in an IRA. its one of those things i kinda have sitting around
OK, it's been 20 years since I had a series 7, and probably 10 since I traded futures, but I'm thinking you can trade commodity options in an IRA but not futures, unless they've changed it. They do their best to save us from ourselves, haha.
  • #18
  • Jan 14, 2008 2:54pm Jan 14, 2008 2:54pm
Quoting merlin
trading on margin is too expensive anyway! ive yet to find a margin rate that is less than i can take an unsecured loan for.
Very true. I opened a margin account once and never used it. It was like a high interest credit card--21% or something like that.:surprised

Point is, you can trade or invest in almost anything with your IRA, but different rules apply.
  • #19
  • Edited 9:46pm Jan 15, 2008 9:19pm | Edited 9:46pm
Wrong numbers as johnedoe pointed out, disregard this space.
Never underestimate the powers of the Force.
  • #20
  • Jan 15, 2008 9:25pm Jan 15, 2008 9:25pm
I'm not sure where, you got your figures for tradional IRA contributions but here is what you can contribute.
$5,000 per year.
Additional $1000 catch-up contributions for those attaining the age of 50 before the end of the taxable year.
Same Whore .... Different Dress
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