Americans to get past Pattern Day trading rule open an account with Canadian brokerag

Discussion in 'Professional Trading' started by mahram, Mar 16, 2006.

  1. americans i read that alot of you guys have problems starting out b/c of the pattern day trading rule. The way to get away from that problem is open an account with a canadian direct access brokerage or the canadian counterpart with main us operations, but clear throught a canadian clearing firm. Such as tdwaterhouse active trader or tradefreedom. Or the other direct access guys. And some people here didnt know that canadian brokerages do accept americans. Yes they do. And its vice versa, since almost all the canadian traders here know you can open an account with an american brokerage. You will taxed under your countries taxes so no worries.
    Required Documentation

    TD Waterhouse requires all new account applicants to provide appropriate documentation indicating the citizenship of the account holder to ensure that the appropriate tax-withholding rate can be applied. Review the documentation required to open an account below, along with a selection of downloadable forms for your convenience.

    Identification Required to Open an Account

    U.S. citizens must provide a signed Form W-9 and Waiver of Client Confidentiality to TD Waterhouse along with all other signed new account application documents.

    Canadian and other non-U.S. citizens must provide a Social Insurance Number (SIN) and a copy of one of the following pieces of identification;

    Valid Passport
    Drivers License
    Birth Certificate (if under 21)
    National Identity Card
    Government Issued Age of Majority card
    If a SIN number is not provided, the documentation must be certified as true by TD Waterhouse or TD Canada Trust Branch personnel, or notarized by a lawyer.

    Downloadable Forms for TD Waterhouse Clients

    These documents are in PDF format and require Adobe Acrobat Reader.

    W-8BEN - Certificate of Foreign Status of Beneficial Owner for United States Withholding Tax

    Instructions for Form W-8BEN

    W-8IMY - Certificate of Foreign Intermediary, Foreign Flow-Through Entity, Or Certain U.S. Branches for United States Tax Withholding

    Instructions for Form W-8IMY

    W-9 - Request for Taxpayer Identification Number and Certification

    Instructions for Form W-9

    Waiver of Client Confidentiality

    Limitation on Benefit Statement

    IRS Tax Reporting Change - New Internal Revenue Service (IRS) Regulatory Change for Tax Reporting on Registered Plan Accounts
    If you have any questions about these forms or the required documentation, please contact TD Waterhouse.
  2. Boib


    I have Canadian accounts with IB and TradeFreedom

    The day trading rule is enforced by IB in Canada.

    TradeFreedom doesn't require a 25K minimum but the cost of trading, $9.95 plus exchange fees can eat into your account if you're trading small.

    IBs commisions are about the same as TradeFreedoms exchange fees.
  3. The way around the problem is to leave those flaky stocks behind and trade futures. Unless it's a tax-deferred account, if you're trading frequently enough to have a problem with PDT then you would definitely benefit from the 60/40 tax advantages of futures. Great liquidity, great volatility, better transparency, no itemized tax reporting, and fewer regulatory headaches make futures seem like a no-brainer.

  4. fhl


    It's the fact that stocks are "flaky" that makes people think that it is all worthwhile. Count me as one of those people.
  5. Ib canada enforces the rule b/c they clear their stocks in united states. However tradefreedom, and questrade, tdwaterhouse active trader, and etc clear throught canadian clearning houses and they follow ida and osc rules :D