Prospective Canadian traders out of luck!

Discussion in 'Retail Brokers' started by FanOfFridays, May 7, 2002.

  1. Prospective Canadian traders - if you have tears, prepare to shed them now :(

    So... I have done my research, tested my ideas, accumulated my risk capital, and now I'm ready to take the plunge and do some intermediate term equity and E-Mini trading. I researched the various direct access firms, picked a few candidates, and today I am making the phone calls to see which of them gets my business.

    It turns out that NONE of them will get my business, because they are no longer allowed to take Canadian accounts! Apparently the Canadian gov't. came through a while ago and levied some sort of fine against a few of the bigger houses, sending the message that US firms were not to take Canadian clients.

    Why am I posting this? I'm not sure - looking for an explanation or some alternatives. The big Canadian banks (the Big 5) are undoubtedly behind this - I remember hearing something a while back about how the Canadian regulators wanted US firms to open branch offices here, but I didn't know that things had come to this. Bright is the only firm with an office in Canada, but it's $600 US/month and I am not interested in tapping into that kind of leverage or doing that kind of trading - I am a beginner... IB and other direct access firms told me that they are working on it but not to hold my breath. Are there any alternatives for me? The average Canadian commission structure is insane compared to the US direct access firms - I suppose that since I won't be making that many trades per month, it might be feasible, but it's the _principle_ of the thing.

    I found these guys

    but this doesn't look like a realistic alternative to me. Will be searching for more today

    average commission here in Canada seems to be $25 CDN/trade for equiites, at least for those doing less than xxx trades/month
  2. Any US futures broker will take your account except IB.
  3. "Any US futures broker will take your account except IB"

    Aha! OK, I guess I assumed that all futures brokers would have the same story because the equities brokers were all so consistent, and IB said they couldn't trade anything for me. OK, I will start making the calls to the futures brokers. Thanks for the info.
  4. $200 for remotes which includes all your data feeds (and the $200 is rebated after you do only 200K shares per month.

  5. Open up an LLC in Nevada, that will solve your problem.
  6. dvcma



    Are you now registered to do business in all Canadian provinces in addition to BC?

  7. Ok - firms such as PointDirex and TerraNova still say no - I assume that it is because they are involved in both the equities and futures sides. I did find futures-only firms that will open an account for me.

    metooxx - I will look into your suggestion - don't quite understand it fully yet, but I presume that Nevada law will... ummm... what, not expose LLC's to liabilities claimed by Canadian regulators imposing fines?? Can't quite commit to opening that shop in Vegas, much as I would like to. :)
  8. Terra Nova will take that set-up.
  9. BC is fine for now, and we hoping for the rest soon. Some have moved to the US in the meantime (training and trading).

  10. dvcma


    I am one of those moving to the US to trade with you until Alberta registration is done.

    #10     May 7, 2002