Comments on trading US equities as a Canadian with recent currency action?

C

Chagi

If you are a Canadian and looking to trade US equities, you basically have three options:

- Canadian dollar denominated account, with exchange into US dollars taking place each time you trade

- US dollar denominated account

- IB's Universal Account (I don't use IB, so I can't really comment on this one)

Has anyone else been finding that the appreciation of the Canadian dollar vs. US dollar has been hurting your trading somewhat? For example, I currently go with option #1 out of the above, and I've been skipping a number of potential trades because I was concerned that CND dollar appreciation would outstrip the potential gains from the trade (essentially we're talking about forex risk).

I also imagine that any Canadians holding US dollar denominated trading accounts have been hurting, as you would need a fairly good trading record just to even break even on your currency losses.

Any thoughts on this issue? I find that I've been sticking to Canadian equities as much as possible because of this.
 
Or you can move out of Canada to the US.

The capital taxes are horrendous in Canada, and the general attitude of the people there is very demoralizing for a trader. Ambition and personal responsibility seem to be four letter words in Canada.

BTW they don't call it "Ripoff Canada" for nothing.
 
Option 4:

US Dollar denominated account

plus

hedge FX exposure using FX futures or Bucketshop FX (spot and continuous rollover)


Quote from Chagi:

If you are a Canadian and looking to trade US equities, you basically have three options:

- Canadian dollar denominated account, with exchange into US dollars taking place each time you trade

- US dollar denominated account

- IB's Universal Account (I don't use IB, so I can't really comment on this one)

Has anyone else been finding that the appreciation of the Canadian dollar vs. US dollar has been hurting your trading somewhat? For example, I currently go with option #1 out of the above, and I've been skipping a number of potential trades because I was concerned that CND dollar appreciation would outstrip the potential gains from the trade (essentially we're talking about forex risk).

I also imagine that any Canadians holding US dollar denominated trading accounts have been hurting, as you would need a fairly good trading record just to even break even on your currency losses.

Any thoughts on this issue? I find that I've been sticking to Canadian equities as much as possible because of this.
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