You are aware that IB-UK (all european accounts) won`t allow you to trade most US ETFs due to ESMA regulations? I won`t talk to IB about EU citizenship.
Thank you. That's why I am asking here and not calling IB. I was told a story about a guy who had his trading privileges lifted when he told IB customer service that he was calling from abroad.
Wow...that's the first time I've ever heard of a broker doing such just because someone called them from another country. Obviously there must be more to that story beyond the issue of making a phone call to them from another country. Yet, even if you heard such as a rumor, it would be enough to spook me from ever calling my broker from another country. Strangely, I've recently notice my banks in another country of the cell phone I'm using to call them...the bank will ask me more security questions even though they have my cell phone number in my contact file. Yet, when I call them from the same country...they still ask security questions but LESS in comparison to when I call when I'm abroad. wrbtrader
You may just need to wait until you return to Canada to make your phone calls to IB. Although I'm not with IB...I'm going to be more careful about whom I call from which country. Currently, I have phone calls from U.S., France and Canada forwarded to my Canada cell phone...I've never had an issue with any broker calling me...so far. Like I said before, I do not trade stocks and that may be a problem area for others in their communications with their brokers. wrbtrader
Thanks for the info... Where can I find more info about these restrictions outside of the ESMA site or something directly discussed about that specific topic even though I do not trade stocks but I do have long term investments ? I've never heard about such from my French broker nor from my U.S. broker. wrbtrader
I might have missed the issue at stake here but: there is no problem using a single IB account to wire money in and out of different countries or continents. IB is the cheapest way I know to exchange currency and as it offers local funding methods in each currency it uses and it is often a great way to wire money between oone's accounts. Foe instance one should be able to wire CAD from Canada to Euro in some European country and only suffer the cost of the eurcad transaction on IB platform, which is cheap. Wire transfers on both sides should cost nothing. Yet trying to open different accounts from different places adds more risks besides those already mentioned. IB might end up not recognizing the w8ben form in at least one of the accounts, which than gets hit by back up withholding tax. Ime IB doesn't t even bother to warn you the w8ben is no longer accepted, which can become very costly. Ime as well once the issue is fixed IB can reverse the tax, but the issue must be settled before. If u fill 2 application forms indicating different residencies it screams for problems.
U probably Haven heard it from ur French broker because u don't trade US etfs, i checked Spanish forums recently and this restriction is well known there, I doubt it s different in France. u could have a look on the French Boursorama check what they say. Besides there are a couple of threads about this on ET (typing from my phone, else I would have dug up the link) IBUK restricts non European etf trading even to European living outside Europe. As of now HK banks still let me buy HK ETFs but not IBUK. U can still hold existing positions with IB but not open new ones, it s not even clear whether you can sell only part of the existing ETFs positions, you can apply for professional status to get an exemption as well. I didn't bother, other members did, from memory with various degrees of success
Depending on the size and frequency of the transfer you may also generate an AML inquiry by the brokerage firm - it may not be a big deal and they may or may not reach out depending on the information on file.