i'm looking to open an account and trade remotely. i need to pay very low per 1000 commission for my strategy to work and it seems like the only firms that can offer me a commission lower than $.50 per 1000 are canadian firms. why are they able to do this while american firms can't make it work? also, what risks come into play if i, as an american, deposit money with a canadian firm? what legal recourse do i have if they try to screw me? how can i be sure i'll get my deposit back when i want it? help much appreciate.
Well nobody is really giving you a straight answer but I will give my opinion. I would ask to see where the company was inc. If it is offshore I would be a little wary as it would be very tough to get money back. If they are registered in Canada, Canada Law applies and you would ahve a better chance to get your money back should anything happen.
I have shopped a couple myself for different reasons but here is my opinion. Read up, on ET and other places how very difficult it is to get recourse and/or deposit back from US based firms even ones in your own locale. Now think about how much harder that will be with foreign firms. Just watch where you step in any country.
Some examples of canadian prop firms ? Does the 25K rule still appliess with a canadian prop firm when trading US stocks ?