canada based brokers + IB question

Discussion in 'Retail Brokers' started by luisHK, Jul 12, 2012.

  1. luisHK

    luisHK

    Hi

    I found a bunch of equities brokers in Canda, some offering apparently half decent rates for the US market and good for the canadian markets, but none seems to offer futures. Any recommendation ?

    Besides does opening an account with IB Canada feel any safer than an account with IB USA ? I also have an accout with IB UK and it seems so much linked to IB US I'm afraid that I might end up with the worth of both world (UK and US) without feeling confident it brings any plus over opening straight an account with IB US (which I also have)
     
  2. vicirek

    vicirek

    IB Canada will be under different regulator and account insurance body so it would be somewhat separate from IB US or even UK. IB Canada is set as a separate entity because of that.

    Then you have tax issues.

    I do not know how you can have multiple country accounts with IB but if you are Canadian resident IB may not let you open IB US account or you will have to file extra paperwork for tax withholding etc.
     
  3. emg

    emg

    now, let me guess. small traders are known to open multiple accounts in one country. Seems a new trend is creating among small traders;


    small traders are opening multiple accounts in different countries:


    Canada, australia, france, germany, russia, nigeria, south africa, hong kong.




    P.S

    Banks will be making tons of money on wire fees and convert currency slippage. also, this maybe the best time for banks to maximize profit by churning small traders international wiring in and out. international wiring currency laws are very very weak. In fact, very little regulation and regulator to regulate wiring.

    Churn!
     
  4. luisHK

    luisHK

    I'm not a canadian resident, but somehow the money feels safer north of the border, hence I'm looking that way.

    Emg, you poor and bitter troll, I do business and hold bank accounts in more countries than I hold a brokerage account, plus I wonder if you have any idea of multicurrency funding opportunities through IB.
     
  5. luisHK

    luisHK

    BTW the possibility to keep wire fees low in several currencies is one of the reasons I prefer IB over other brokers, but I'm not confortable with the amount of money I parked with them, and the new PFG scandal doesn't help.
     
  6. Kirkx

    Kirkx

    Here are some facts about Canadian investment landscape.

    Brokerage accounts are protected up to 1 million dollars. The Canadian Investor Protection Fund (CIPF) provides protection to investors who are clients of firms regulated by IIROC (Investment Industry Regulatory
    Organization of Canada). More info below:

    http://www.iiroc.ca/

    http://www.cipf.ca/

    As far as I know, you need to be a Canadian resident to open a brokerage account.

    Futures trading is not very popular and those who trade futures usually use Interactive Brokers.

    Retail equity trading is mostly done with brokers affiliated with one of our five big banks (BMO, CIBC, RBC, Scotiabank and TD).

    Below is the list of some better brokers.

    CFDs:

    CMC Markets Canada
    http://www.cmcmarkets.ca/

    Futures:

    Interactive Brokers Canada
    http://www.interactivebrokers.ca/en/main.php

    RJ O'Brien Canada
    http://www.rjobrien.ca/

    Equities (Big 5 Banks):

    Scotia iTrade
    http://www.scotiaitrade.com

    TD Waterhouse Canada
    http://www.tdwaterhouse.ca/products-services/investing/index.jsp

    Equities (Independents):

    Jitney Trade
    http://www.jitneytrade.com/en/

    Virtual Brokers
    http://www.virtualbrokers.ca

    You can get more info at Canadian forums here:

    Discount Brokers
    http://www.financialwebring.org/forum/viewforum.php?f=39

    Taxes
    http://www.financialwebring.org/forum/viewforum.php?f=32
     
  7. You have one million dollars insurance on an account opened with IB Canada, or any Canadian broker who is a member of the national insurance fund.

    This insurance applies even to foreigners' accounts.

    However, IB Canada, and most other Canadian brokers, as a matter of their own policy, will not open an account for residents of countries that restrict or regulate foreign brokers.

    This applies to U.S. residents, since the U.S. imposes restrictions on foreign brokers seeking to serve its residents.

    I do not know if IB Canada will open an account for a HK resident but I doubt it, since IB has a HK branch and has likely agreed to operate solely within the HK regulatory scheme with respect to HK residents.
     
  8. luisHK

    luisHK

    Thanks both for your constructive replies.

    I'll have a closer look at Kirkx links and will definetely contact IB canada to see if it's possible to open with them.


    Comintel

    "since IB has a HK branch and has likely agreed to operate solely within the HK regulatory scheme with respect to HK residents"

    I'm not sure what relation IB's office has with HK regulatory scheme, as what they offer there are accounts with IB llc (ie US )

    http://www.interactivebrokers.com.hk/en/main.php

    At the bottom of the page there shows only IB llc US, IB UK and IB Canada, I don't think there is any IB Ltd HK company - which still doesn't mean IB Canada would accept HK residents.
     
  9. Kirkx

    Kirkx

    For the record, here is the latest update about accounts held at Canadian division of PFG:

    "In the case of Peregrine, it doesn’t look like the CIPF will be needed at all – the funds managed by Peregrine’s Canadian unit were well segregated from the failed U.S. parent, and another brokerage house, R.J. O’Brien & Associates Canada Inc., has already agreed to take all the Canadian accounts."

    m.theglobeandmail.com/globe-investo...rds-the-sequel/article4416537/?service=mobile
     
  10. Since they have a physical presence in HK that solicits HK customers,
    http://www.hktdc.com/sourcing/hk_company_directory.htm?locale=en&companyid=1X028AAW

    they would be subject to HK regulation.

    What company they open the accounts with would not change this.

    Would you think that an Asian broker could open an office in New York and solicit American accounts without being subject to U.S. regulation? No chance.

    I would be amazed if they would defy the HK authorities' regulations with respect to HK customers but by all means please post if I prove to be wrong on this.
     
    #10     Jul 15, 2012