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IB Friends & Family - International
- Thread starter MuscleHead
- Start date
Quote from MuscleHead:
I think you missed the jist of the questions -- and you're not the only one, so allow me to clarify:
I don't disagree with that.
The question was more about IB itself.
First, as someone with a Financial Advisor (FA) account with IB Canada, can I "invite" customers that reside in the States so that they would open a sub-account with IB USA? As far as I can tell, when I use the "Send Client Invitation" feature in IB's account management page, that leads customers to open an IB Canada account...
Second, are the IB trading systems linked across country -- so with the IB Trader Workstation logged in to my Canadian FA account, can I place trade in sub-accounts that are registered with IB USA?
You have to start with basic Canadian Securities Law.
Since the OSC kicked Southwest Securities out of Ontario around 2002...
It is clearly the law that an Ontario resident can only open an acount with a member of the IDA...
So all US firms must create a Canadian subsidiary (since about 2002).
Secondly...
** Internal terminology ** used by IB may have no meaning or status in terms of Canadian law...
And my understanding is that the IB term "Financial Advisor" or FA account...
Is just an internal way of labeling a "umbrella situation" when one person trades several accounts...
But it has no meaning in terms of Canadian securities regulations...
Just something dreamed up by a programmer. (That is my guess).
So follows...
An IB Canada US account holder cannot "cross the border"... and manage a IB USA acount...
Since it's illegal for you to even open an IB USA account.
The fact that the IB computer network is linked cross-border...
Has no bearing on the fact that IB Canada is 100% subject to Canadian securities regulations.
The way you have to do it...
Is hire a Law Firm to legally form a Limited Partnership... or some other structure...
Open an account in the name of the Partnership...
And trade the ** pooled funds ** of all your Partners in a IB Canada US account.
As long as they are "friends and family" and less than about 15-20 people...
No one will bother you.
Quote from crazy_trader:
How about tax filing? Does each clients file their own tax?
Generally...
One hires a law firm to form a ** flow through ** Limited Partnership or equivalent...
So one manages the pooled funds of all the Limited Partners.
The LP files a tax return... but pays no taxes.
All profits/losses flow through to the Limited Partners or equivalent...
And what each individual does with their tax situation is their business.
Also...
Terms like "client" and "customer" are legal terms...
That ** strongly imply ** that you are doing business with the public.
Unless you have proper, full registration...
I would very strongly advise not using such terms on your web site or whatever...
Because it constitutes "proof" that you are dealing with the public without proper registration.
Terms like "client" and "customer" are legal terms...
That ** strongly imply ** that you are doing business with the public.
Unless you have proper, full registration...
I would very strongly advise not using such terms on your web site or whatever...
Because it constitutes "proof" that you are dealing with the public without proper registration.
I don't know how you make the jump from "Canadian person can't open US Trading account" to "Canadian person can't control a US trading accont that belongs to a US person".Quote from HoundDogOne:
An IB Canada US account holder cannot "cross the border"... and manage a IB USA acount...
Since it's illegal for you to even open an IB USA account.
HoundDogOne, I appreciate your point of view, but I would still like to hear from Salvatore (Salvatore, pls take a look at my initial response to your post!)
Thanks!
I apologize for the delay. Sending an Inquiry Ticket will always get you the fastest response.
If registered in the US, whether Canadian or US, MAY manage US resident customers.
Ask to be transferred to the Proserve department when you call in. They specialize in advisor accounts.
If registered in the US, whether Canadian or US, MAY manage US resident customers.
Ask to be transferred to the Proserve department when you call in. They specialize in advisor accounts.
Quote from IB Salvatore:
I apologize for the delay. Sending an Inquiry Ticket will always get you the fastest response.
Hey Salvatore can I get you to help me out -- I did send an inquiry ticket to get a confirmation from IB, but the response I got seems to contradict what you mentioned in here. I can't tell if this is a misunderstanding between you and I on this thread or between me & IB in my ticket.
I sent you a private message with the inquiry ticket -- can you check it out pls.
Thanks!