IB - Margin Account vs Cash Account

There are 3 type of account in IB. I will just introduce you 2 types of account .

Cash Account
Margin Account

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Cash Account
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Minimum to open the account - US10k
Commision per trade - US1 buck

Able to perform unlimited day trade but depend on your account size. This mean you can only spend not more than your account size to day trade.

Example - you spend 3k for a trade and you make a profit of 500 bucks and you close the trade during that day. This mean you will get back 3.5k

Your account for that day only left 7k. The 3.5k will only cash into your account the next day. This mean you only left 7k to day trade.

You can’t be a Seller for cash account.

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Margin
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Minimum to open an account - 10k
Minimum fund to be in the account - 2k
Commision per trade - 1 buck

Unlimited day trade - 25k above (if not limited to 3 days trade out of 5 working day )

1 day trade = You buy and sell during the SAME DAY .
2 day trade = You buy and sell 2 times during the same day.

If you buy today sell the next day will NOT be consider as day trade.

Margin account allow you to be a buyer and seller.
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If you perform more than 30 trades in a month, the 10 bucks DATA subscription fee will be waive.
That all about it …