- What must I do to begin trading?
-
Why must I send a One Canadian Dollar Cheque to Interactive Brokers Canada, and is the Cheque credited to my account or refundable?
-
Why do I have to fill out a W8 if I am a Canadian citizen with an account at IB Canada, a Canadian company?
- Must I use the Deposit Notification Form each time I deposit funds?
- Can we trade the Canadian stock exchanges?
- How does the SEC day trading rule affect Canadians?
- For the SEC day trading rule, does the $25,000 need to be in Canadian Dollars or US Dollars?
- Once my account is funded in Canadian dollars, can I trade Globex and ACE?
-
How are my funds held, and how will they be used to pay for my settlement and margin obligations for my stock, equity options and futures trades?
- How long will it take for account approval?
-
Are the commissions quoted in US dollars or in Canadian dollars? Is there an exchange rate difference?
- Which office do I contact if I have a trade problem?
- Do you offer RRSP accounts?
- What jurisdiction's tax laws am I subject to?
What must I do to begin trading?
You must first complete all required tasks during the on-line registration and account application process, and you must also print and manually sign the Customer Agreement, Shareholder Instruction Form B & C and the Consent to Electronic Delivery, and mail the signed originals, along with a One Canadian Dollar Cheque to Interactive Brokers Canada.
TOP
Why must I send a One Canadian Dollar Cheque to Interactive Brokers Canada, and is the Cheque credited to my account or refundable?
In connection with governmental and regulatory anti-money laundering requirements, Interactive Brokers Canada is able to satisfy verification requirements for its customers if the One Canadian Dollar Cheque clears through the Canadian banking system. The cheque will not be credited to your account and it is non-refundable.
TOP
Why do I have to fill out a W8 if I am a Canadian citizen with an account at IB Canada, a Canadian company?
The reason you are required to complete and file a United States Internal Revenue Service (IRS) Form W-8 is because as an IB Canada customer, you have the ability to trade US products and thereby earn US-source income (e.g. interest and dividends). As such, the IRS requires that the IB Canada customers file a Form W-8 so that IB Canada can avoid withholding funds from your account for US taxes. If you do not file a Form W-8, we will be required to close your account.
TOP
Must I use the Deposit Notification Form each time I deposit funds?
Yes. You must use the Deposit Notification Form so that Interactive Brokers
Canada has advance notice that you are depositing funds, and to assist us in making sure that your funds are credited to your account. If you do not use the Deposit Notification Form, you may experience a delay in having the funds credited, and this may affect your ability to trade or it may result in a liquidation of positions in your account if your account has not been credited.
TOP
Can we trade the Canadian stock exchanges?
Yes.
TOP How does the SEC day trading rule affect Canadians?
Because your U.S. securities exchange trades are cleared in the US, the SEC Pattern Day Trading rules are applicable. In this regard, if you effect 3 stock or equity option "day trades" on a US securities exchange within a 5 day period, IB Canada will designate you as a "pattern day trader". The "pattern day trader" designation will require that you maintain a minimum of $25,000 (US dollars) to continue trading.
TOP
For the SEC day trading rule, does the $25,000 need to be in Canadian Dollars or US Dollars?
The funds may be in Canadian Dollars, so long as they are the equivalent of US$25,000, or more.
TOP
Once my account is funded in Canadian dollars, can I trade Globex and ACE?
Yes, if your account is approved to do so.
TOP
How are my funds held, and how will they be used to pay for my settlement and margin obligations for my stock, equity options and futures trades?
Your funds will be held by Interactive Brokers Canada in a bank account. Each night, after the close of trading that day, Interactive Brokers Canada will remove funds from this bank account to pay for your trade settlement and margin obligations that arise from that day's transactions, including changes in the market value of positions held in your account. In turn, your Daily Account Statement will reflect debits made to your account for your settlement and margin obligations. Of course, your Daily Account Statement will also reflect other debit items such as margin interest, commissions, and withdrawals; and, credits to your account, for example, for deposits, proceeds from sale transactions, interest, dividends, etc.
TOP
How long will it take for account approval?
Approval is swift after you have completed the necessary on-line account registration tasks and application tasks and sent the required signed documents (Customer Agreement, Shareholder Instruction Form B & C, Consent to Electronic Delivery) along with the One Dollar Canadian cheque to Interactive Brokers Canada.
TOP
Are the commissions quoted in US dollars or in Canadian dollars? Is there an exchange rate difference?
Commission are quoted in the currency of the exchange on which the trade took place. Exchange rates are subject to fluctuation.
TOP
Which office do I contact if I have a trade problem?
Please contact Interactive Brokers Canada by e-mail, or by telephone to the telephone number indicated on the Interactive Brokers Canada website.
TOP
Do you offer RRSP accounts?
No, and we do not expect to offer these accounts in the near future.
TOP
What jurisdiction's tax laws am I subject to?
You must consult with your independent tax advisor regarding the tax implications of your Interactive Brokers Canada account. Neither Interactive Brokers Canada nor its personnel are authorized to provide you with tax, investment or other advice.
TOP
