This may be a stupid question, but if I daytrade canadian stocks am I still subject to the PDT rule? What if I get a Canadian broker and trade US equities, Im based in the US.
canadian listed stocks do not have the PDT rule and I also would assume you are still subject to it as long as your trading american stocks even from canadian account.
So the restriction is on US equities as opposed to US brokers? Meaning can I use my american IB account to daytrade canadian stocks even with a balance below 25k and I won't get a margin call?
I think the restriction is country based. You probably can't trade canadian stocks with a US broker and bypass the PDT rule. I'm Canadian.I have or have had accounts with several Canadian brokers and no such rule applies here. I have an account with IB Canada and they apply the rule. Ithink it's because they are US based. Best thing is to ask your broker. Under 25K and you are probably under capitalized.
Through IB you could day trade canadian stocks with under 25k, I have. i believe the restriction is set up for trading on various exchanges in certain countries. By this i mean the US government has the rule for US exchanges and American markets.
I must admit that I haven't tried to trade Canadian stock with IB when under 25K. I do have an account with IB Canada and during one of my drawdown periods the account was locked because I had gotten under the 25K limit.(only by about $100) I was only trading US stocks. I have accounts with Tradefreedom & Questrade and they don't have any restrictions.
A follow up on this I contacted IB and they said there were no PDT restrictions on Canadian stocks I asked if the leverage was the same and they put me on hold for more than 5 mins at which time I hung up, does anyone know the answer? Is it still x4 intraday and x2 overnight? Also do they allow shorting Canadian stocks? What is the difference realy between Canadian and Us equities as far as tech analysis goes?