dnaj65000,
deadreader don't want to trade Canadian market, he want to use a Canadian broker as a workaround of the PDT when he access to the US market.
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Canadian Retail Brokers? No PDT rule?
- Thread starter deadreader
- Start date
dnaj65000,
deadreader don't want to trade Canadian market, he want to use a Canadian broker as a workaround of the PDT when he access to the US market.
Quote from North Pesos:
dnaj65000,
deadreader don't want to trade Canadian market, he want to use a Canadian broker as a workaround of the PDT when he access to the US market.
My bad. Then, sorry the PDT rule still applies because it's a SEC rule. Canadian 'retail' brokers wanting to trade the US markets has to follow the SEC rules.
Actually the usual margin given by Canadian brokers to their Canadian clients is 70% (as opposed to the PDT 75%); there is no $25K rule and overnite maintenance is released immediately when positions are closed for use during the same day.
However, Canadian brokers cannot broker (legally) to US residents in the US without having US licensing and if they get US licensing, the SEC rules re PDT would apply to the accounts of their US resident customers.
As well,the account opening procedure in Canada would require you to provide Canadian credentials, including Canadian bank reference and domestic address, etc.
You could, however, be "temporarily resident" in Canada ..... its borderline, but people do it.
However, Canadian brokers cannot broker (legally) to US residents in the US without having US licensing and if they get US licensing, the SEC rules re PDT would apply to the accounts of their US resident customers.
As well,the account opening procedure in Canada would require you to provide Canadian credentials, including Canadian bank reference and domestic address, etc.
You could, however, be "temporarily resident" in Canada ..... its borderline, but people do it.
Quote from dnaj65000:
My bad. Then, sorry the PDT rule still applies because it's a SEC rule. Canadian 'retail' brokers wanting to trade the US markets has to follow the SEC rules.
It is simple, no SEC rules for Canadians that trade the US market if they use a Canadian brokers in the above list or any bank brokers, this mean no PDT and the consequence is that no 25kU$ limit!
As a regulator have explain to me, PDT is a SEC rule for the US brokers, non-US brokers don't have to apply this rule, simple in theory!
The main problem is the leverage is very different from one broker to another, as an example my prefered broker IB Canada allow only 2:1 with PDT rule, with other native Canadian brokers you can reach 3:1 and even 4:1 without PDT! Amazing but true! Very different interpretation as you can see.