I am looking to open an IRA account where I am able to select individual stocks to invest my money in. I also want the flexibility to buy and sell as I please in short or long time spands. Are there any companies that offer this type of investment tool?
2007-02-24 07:49:10 · 9 answers · asked by Justin W 1 in Business & Finance ➔ Investing
Absolutely. Mine's up 12% so far year-to-date. Flip them stocks. No SHORT TERM or LONG TERM Capital Gains!
2007-02-24 09:29:20 · answer #1 · answered by Third Son of Marianne 3 · 1⤊ 1⤋
I think all of the big brokerage companies will allow you to trade freely within an IRA, but the question is why would you want to? If you're going to do heavy trading, your retirement account isn't the place where you want to gamble. On the other hand, if you just simply want to self-direct your IRA, you are allowed to buy individual stocks.
Just a thought, though-keep your tax situation in mind. True, anything that happens within an IRA isn't taxable, but if you start getting losses in there, they're not deductible, either. My feeling on this is that you should put your biggest tax implication investments into IRAs-bonds, cds, TIPS, etc.-into the IRA, and let your more efficient investments be outside of the IRA.
2007-02-24 07:55:53 · answer #2 · answered by SuzeY 5 · 0⤊ 0⤋
Everyone is overlooking one very important detail: IRAs are cash accounts and it's virtually impossible to daytrade in a cash account without 1) violating the free riding rule, and 2) being deemed a pattern daytrader and being forced to maintain a minimum of $25k in a margin account.
The free riding rule prohibits selling a stock that you haven't paid for yet. For example, say you use all your capital to buy XYZ on Monday, then sell it later on Monday. You can go ahead and buy ABC on Tuesday, but if you then sell it on Tuesday, you are in violation of the free riding rule. You're not allowed to sell ABC until Thursday because that's when your Monday XYZ trade settles. IOW, with cash accounts you need to obey the 3-day settlement rule, and that makes daytrading very difficult.
The only way to daytrade with complete freedom is to open a non-IRA margin account with a minimum of $25k.
2007-02-24 12:01:28 · answer #3 · answered by LongArm 3 · 0⤊ 0⤋
Yes. Open an account with a stock broker. Mine are with T D Ameritrade. You can buy and sell what you please when you please. E Trade, Fidelity, and Scottrade also offer you that option.
I believe that there is an account minimum of $25,000 for day trading however. It is not a IRA requirement. It is a SEC requirement.
2007-02-24 07:58:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
( Well, mine is up more than 50% YTD, keep my fingers crossed though it is a risky business)
Bring this question to your future broker, you'll get the best answer from them (pan intended) With TD if you are an active trader with more than 30 trades per quarter, you get a low commission of $9.99 per trade and a direct 'hot' line 24/7. Mine is answered right after the first ring. Where you can get such a service. You think they like me? You bet they do. I am their milk cow, ha-ha.
2007-02-24 13:29:52 · answer #5 · answered by cho 2 · 0⤊ 0⤋
Yes, a self-directed IRA with a brokerage can do that.
But day trading in your retirement accounts is a monumentally bad idea.
2007-02-25 05:49:21 · answer #6 · answered by Quixotic 3 · 0⤊ 0⤋
yes however, you can't buy on margin or take the money out of the ira without being penalized
2007-02-24 07:54:42 · answer #7 · answered by osinamunatum 2 · 0⤊ 0⤋
Just do not forget that everytime you take money out you must pay the tax and possible penalty.
try smith barney in el segundo california
2007-02-24 07:54:16 · answer #8 · answered by charlotte q 2 · 0⤊ 0⤋
I use Scottrade. The IRS will allow you to contirbute 4,000 tax deductable dollar per year.
2007-02-24 12:11:50 · answer #9 · answered by Emory P 1 · 0⤊ 0⤋