Interactive Brokers Canada - Trading U.S. Funds subject to PDT Rule?

S

slappyJ

I am a Canadian citizen and I wish to open an account with Interactive Brokers Canada.

I will be funding this account with U.S. funds and will be trading U.S. Stocks.

Question: Will I be subjected to the Pattern Day Trading rule? I have heard mixed answers. Some say no you won't be affected. And some say yes, and you must have a balance of over 25K to trade.

Thanks,
slappyJ
 
slappyJ said:
I am a Canadian citizen and I wish to open an account with Interactive Brokers Canada.

I will be funding this account with U.S. funds and will be trading U.S. Stocks.

Question: Will I be subjected to the Pattern Day Trading rule? I have heard mixed answers. Some say no you won't be affected. And some say yes, and you must have a balance of over 25K to trade.

Thanks,
slappyJ
More...

Ask your broker, IB. In fact, ask to speak with Peter directly. I am sure you can find the answers there at IB.
 
This is the response I got from their live chat...

If you open a Reg T margin account, you will be subjected to PDT rule.
 
slappyJ said:
This is the response I got from their live chat...

If you open a Reg T margin account, you will be subjected to PDT rule.
More...

They were totally misinformed. You made it clear you're a Canadian residing in Canada? Trust me. Pdt doesn't apply.

Americans living in america trading with foreign brokers like sure trader (don't recommend) escape pdt. You're a foreigner in a foreign country. Trust me. Pdt doesn't apply
 
I've spoken to two IB reps on the phone and they both tell me the same thing...that I would be subject to the pdt rule. Are they not understanding my situation?

From my research some Canadian brokers do not enforce the pdt rule because they do the clearing/settling of the U.S. stocks themselves?

I read this post from another forum...

https://forums.bearbulltraders.com/...-ib-and-das-as-a-canadian-with-less-then-25k/

"Posted July 16, 2018
The IB page you read is outdated. I've seen it referenced in multiple discussions online. Another member even said IB customer support incorrectly quoted that information. They really need to update/remove it!

As a Canadian, you are not subject to PDT rules when trading US stocks. Here is the latest and correct FAQ page:

https://www.interactivebrokers.ca/en/?f=/en/general/education/faqs/canadaFAQs.php?ib_entity=ca

P.S. I've day been trading with less than $25k in my IB Canada account for 5 months now"

The FAQ on the IB page that he is referring to says the pdt rule doesn't affect IB Canada accounts. BUT, it doesn't say anything about trading U.S. stocks with American dollars or having a minimum of 25K.
 
slappyJ said:
I've spoken to two IB reps on the phone and they both tell me the same thing...that I would be subject to the pdt rule. Are they not understanding my situation?

From my research some Canadian brokers do not enforce the pdt rule because they do the clearing/settling of the U.S. stocks themselves?

I read this post from another forum...

https://forums.bearbulltraders.com/...-ib-and-das-as-a-canadian-with-less-then-25k/

"Posted July 16, 2018
The IB page you read is outdated. I've seen it referenced in multiple discussions online. Another member even said IB customer support incorrectly quoted that information. They really need to update/remove it!

As a Canadian, you are not subject to PDT rules when trading US stocks. Here is the latest and correct FAQ page:

https://www.interactivebrokers.ca/en/?f=/en/general/education/faqs/canadaFAQs.php?ib_entity=ca

P.S. I've day been trading with less than $25k in my IB Canada account for 5 months now"

The FAQ on the IB page that he is referring to says the pdt rule doesn't affect IB Canada accounts. BUT, it doesn't say anything about trading U.S. stocks with American dollars or having a minimum of 25K.
More...

It's a peril to trust what IB customer service says. Majority of them are badly informed, badly trained clueless idiots who are just there for a paycheque. There are only a few there that actually knows what they are doing and what they are talking about. If I were you, I would trust the people here on ET more. We are the traders who deal with this issue as part of our daily lives. If the people here on ET all told you PDT rule does not apply to you because you are Canadian, then that's what it is.
 
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Uk livng here, they put that rule on me still 20years ago, still pissing people off today, ruined my day trading stocks.

No solution, rule is to all US stocks traded globally.

Go Futures or Micro futures if you want to swing trade, no pdt rule.

Options is another option, you could swing trade stocks, not really day trade mind.

Can you not trade canandian stocks only via a Canadian broker?
 
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