Interactive Brokers doesn’t allow me to sign up for options trading because I’m not 21 yet, but they do allow stock trading. I’m 19. Is it legal for them to do that? Where is the law that says it’s legal? What basis do they have for denying me trading options with them due being less than 21. 18 is the legal adult age in US.
I’m almost 20 and have 1.5 years investing in options. I just used a different broker Ameritrade.
I don’t know the specific laws that but imagine that it is similar to car rental companies and the liability issues surrounding their decision not to rent to young adults. Even though you are an adult, your years of investing experience as an adult are going to be below the level where they are comfortable with the risk associated with turning options on for your account. You can really destroy capital exceedingly quickly with options if used in an aggressive way. You’ll probably find the most luck asking them to first turn your account on for covered calls only, and then after some time passes with that turned on ask them again for full options privileges. Good luck!
I don’t know the specific laws that but imagine that it is similar to car rental companies and the liability issues surrounding their decision not to rent to young adults. Even though you are an adult, your years of investing experience as an adult are going to be below the level where they are comfortable with the risk associated with turning options on for your account. You can really destroy capital exceedingly quickly with options if used in an aggressive way. You’ll probably find the most luck asking them to first turn your account on for covered calls only, and then after some time passes with that turned on ask them again for full options privileges. Good luck!
References :