Can you actually get a margin call in an IRA? My broker said I got a call because I overbought?

Question

I know you cant trade on margin in an IRA but Zecco's program continued to make purchases with my open orders instead of rejecting them knowing that I do not have sufficient funds. This resulted to liquidating a stock I own to meet the call and charging me $20 for it.

Answer 1

Yes.

You are responsible for your account.

Your action resulted in an over bought position, which you failed to fix in a timely manner, so the brokerage took action to protect itself.

It's all in the fine print.

Which you should have read.

(Lesson learned:  your broker is neither your friend nor your parent.  He is a cold-hearted businessman with one eye on the balance sheet and the other on the income statement)

Answer 2

These subject is under the FED' regulations. Probably your broker is just following the rules. You can ask it directly to the FED. It's normal when you overbuy you have to pay some extra taxes, but to be sure, just ask them and you'll get the right answer.

www.federalreserve.gov