You can open an account with the canadian version of etrade, tdwaterhouse, or etc that clears in canada. You will be taxed in the united states under us/canada tax treaty. and since they clear in canada you wont be under pattern day trading rule. The reason is that canadian firms operate under ida and osc rules, not sec rules.
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Coughing up the $25k requirement for Pattern Day Trading
- Thread starter AeroKen83
- Start date
If it's that easy, why is NOBODY doing it.
Since you posted this, call TD or whatever other Canadian brokers accept US accounts, and find out if this is true.
Why would TD or E Trade allow this when they have US operations?
It is a clear violation of some SEC law
I just love when people talk out of their ass.
Since you posted this, call TD or whatever other Canadian brokers accept US accounts, and find out if this is true.
Why would TD or E Trade allow this when they have US operations?
It is a clear violation of some SEC law
I just love when people talk out of their ass.
UMM they do!!!! EBO!!!! the reason is that its not widely advertised.
http://www.tdwaterhouse.ca/documentation/index.jsp
Required Documentation
TD Waterhouse requires all new account applicants to provide appropriate documentation indicating the citizenship of the account holder to ensure that the appropriate tax-withholding rate can be applied. Review the documentation required to open an account below, along with a selection of downloadable forms for your convenience.
Identification Required to Open an Account
U.S. citizens must provide a signed Form W-9 and Waiver of Client Confidentiality to TD Waterhouse along with all other signed new account application documents.
Canadian and other non-U.S. citizens must provide a Social Insurance Number (SIN) and a copy of one of the following pieces of identification;
Valid Passport
Drivers License
Birth Certificate (if under 21)
National Identity Card
Government Issued Age of Majority card
If a SIN number is not provided, the documentation must be certified as true by TD Waterhouse or TD Canada Trust Branch personnel, or notarized by a lawyer.
Downloadable Forms for TD Waterhouse Clients
These documents are in PDF format and require Adobe Acrobat Reader.
W-8BEN - Certificate of Foreign Status of Beneficial Owner for United States Withholding Tax
Instructions for Form W-8BEN
W-8IMY - Certificate of Foreign Intermediary, Foreign Flow-Through Entity, Or Certain U.S. Branches for United States Tax Withholding
Instructions for Form W-8IMY
W-9 - Request for Taxpayer Identification Number and Certification
Instructions for Form W-9
Waiver of Client Confidentiality
Limitation on Benefit Statement
IRS Tax Reporting Change - New Internal Revenue Service (IRS) Regulatory Change for Tax Reporting on Registered Plan Accounts
If you have any questions about these forms or the required documentation, please contact TD Waterhouse.
http://www.tdwaterhouse.ca/documentation/index.jsp
Required Documentation
TD Waterhouse requires all new account applicants to provide appropriate documentation indicating the citizenship of the account holder to ensure that the appropriate tax-withholding rate can be applied. Review the documentation required to open an account below, along with a selection of downloadable forms for your convenience.
Identification Required to Open an Account
U.S. citizens must provide a signed Form W-9 and Waiver of Client Confidentiality to TD Waterhouse along with all other signed new account application documents.
Canadian and other non-U.S. citizens must provide a Social Insurance Number (SIN) and a copy of one of the following pieces of identification;
Valid Passport
Drivers License
Birth Certificate (if under 21)
National Identity Card
Government Issued Age of Majority card
If a SIN number is not provided, the documentation must be certified as true by TD Waterhouse or TD Canada Trust Branch personnel, or notarized by a lawyer.
Downloadable Forms for TD Waterhouse Clients
These documents are in PDF format and require Adobe Acrobat Reader.
W-8BEN - Certificate of Foreign Status of Beneficial Owner for United States Withholding Tax
Instructions for Form W-8BEN
W-8IMY - Certificate of Foreign Intermediary, Foreign Flow-Through Entity, Or Certain U.S. Branches for United States Tax Withholding
Instructions for Form W-8IMY
W-9 - Request for Taxpayer Identification Number and Certification
Instructions for Form W-9
Waiver of Client Confidentiality
Limitation on Benefit Statement
IRS Tax Reporting Change - New Internal Revenue Service (IRS) Regulatory Change for Tax Reporting on Registered Plan Accounts
If you have any questions about these forms or the required documentation, please contact TD Waterhouse.
Quote from Ebo:
If it's that easy, why is NOBODY doing it.
Since you posted this, call TD or whatever other Canadian brokers accept US accounts, and find out if this is true.
Why would TD or E Trade allow this?
It is a clear violation of some SEC law
I just love when people talk out of their ass.
the reason is also in the past canadian brokerages were notoriously have high commission prices. But recently brokerages like tdwaterhouse, etrade, tradefreedom, questtrade, have been slashing rates to comparable to us counterparts. Ala tdwaterhouse active trader 1cent per share+9.95 or questrade and tradefreedom 1 cent per share. When they use to charge 29.95 down from 35 6 years ago.
Quote from Ebo:
If it's that easy, why is NOBODY doing it.
Since you posted this, call TD or whatever other Canadian brokers accept US accounts, and find out if this is true.
Why would TD or E Trade allow this when they have US operations?
It is a clear violation of some SEC law
I just love when people talk out of their ass.
Quote from mahram:
You can open an account with the canadian version of etrade, tdwaterhouse, or etc that clears in canada. You will be taxed in the united states under us/canada tax treaty. and since they clear in canada you wont be under pattern day trading rule. The reason is that canadian firms operate under ida and osc rules, not sec rules.
have you called each of the brokerage co's to verify your statement.
i doubt it.
personally, i think the rule is a joke. if you can't trade with 5k how can you expect to trade with 25k? it makes very little sense to me. i am surprised that it has not been challenged and over turned.
best,
surfer
best,
surfer
Quote from zdreg:
what exactly is your point? people who can't trade should be allowed to trade with whatever they have?
sure, anyone should be allowed to trade in the markets. the government should not be concerned how someone uses or misuses their capital.
having 25k plus has no bearing on how a person trades with that capital. perhaps, you would prefer some type of psychological testing before one is allowed to trade.... this makes more sense than a dollar figure---if you desire governmental interference.
best,
surfer
Quote from optioncoach:
A casino does not have the risk if you put $1,000 on Roulette or Blackjack since as soon as you lose your last dolloar you are out. They already got your cash when you bought your chips.
Sell a stock short or go long and have it halt or gap on sudden news will eat up your $1,000 and the broker's capital. WHy should a broker put his money on the line if you only got $1,000....
The brokers could offer a margin account but not allow you to borrow unless you had $25,000 if they wanted to. You could still trade with the 3 day clearing with a few hundred bucks but not on margin. No risk to them unless you were a real "pro" as evidenced by your ability to raise the 25 large.