Open Bank Account in Canada or USA to Trade Forex and Future

S

Sonata95

Hi All,

I am from ASEAN country and having both account Interactive broker (UK) and Oanda MT4 (Australia), in my country normally I deposit USD to Oanda the fund via credit card but a few bank owner of credit card (HSBC, Citibank) do not allow my fund to Oanda, I normally use my visa local bank to fund. The deposit spent around 2-3% and withdrawn spent 2-3% into my local currency but I had gain if my local currency depreciate comparing to USD. I have no way to deposit my fund via bank wire due to restriction from my country. It is quite difficult for us to fund so that having bigger account.

I have IB account via a friend he is UK passport and he had IB account and created another account in his name for me. He have both PP (UK and my country) live in my country.

My wife (Canada student) and Kids moved to Alberta last year, I will soon come there (may be visitor visa or work permit). I want to continue trade with my Oanda Australia. A few step I will do, could you pls review and comment.

1) I open a Canada bank account and let say deposit 10K CAD
2) I open a Canada credit card based on 10K CAD deposit
3) Funding CAD to my Oanda account via credit card (is it possible?) or I do bank wire CAD to my Oanda account ( Australia)
4) Can I withdrawn CAD to my credit card? Why I do this because withdrawn money to credit card is almost free ( I know we only withdrawn money equal the money you fund via credit card).

If I deposit USD to Oanda account via my local credit card (spend 2-3%), I withdrawn USD from Oanda to my local credit card (spend 2-3%) and spending money in Canada via my local credit card (2-3%), total around 6 to 9%. It is quite expensive to do this way. Therefore, I would like to open a Canada bank account and Canada credit card.

Or any advise my situation to have best way to do forex trading when I am in Alberta ( I am still foreigner)

I currently have two trading strategy : long term is quite good result but I dont think I can trade with IB due to low leverage and mid term strategy ( holding position around 2 to 3 days) I think I can trade with IB but the result is not good.

Another question about the Canada tax for trading forex for foreigner?

Thanks a lot for your help

P/S: I only little bit concern because I do not do this before that transferring money to my foreign bank account. I can receive foreign currency in my local bank account I did a lot before but in the future I am not in my local country I want to bank wire via internet banking from/to my foreign bank account ( also help save transaction cost & exchnage rate). I think it is ok but I need your help to confirm
 
Your comments contains so many pointers to either illegal activities or at the very least activities that strongly violate all the agreements with companies you mentioned. What your friend via IB is doing is strictly violating their company policy. Then your idea to get a Canadian credit card as a tourist is total nonsense and impossible regardless with how much your fund a bank account you as tourist cannot even open in the first place. Can you please share which country you are a national of? It's crucially important for the advice you are getting. I am willing to chime in but if you are expecting to get loophole or grey zone advice then you will be out of luck. Also, have you considered another option : you pointing out that you are funding your Oanda account with a credit card strongly hints at the possibility that you are a net unprofitable trader. How about first creating a longer term positive record by paper trading and trading your small Oanda account without having to fund again and again. Only then should you concern yourself with funding a larger account or going with different brokers. I am just trying to be very honest in that I really don't like people who circumvent rules and regulations that in the end cost the rest of us money and efforts to clean up. I doubt you would even properly declare taxes had you any profits to show (which I am pretty certain you don't yet generate).

Can you share you nationality please?

Sonata95 said:
Hi All,

I am from ASEAN country and having both account Interactive broker (UK) and Oanda MT4 (Australia), in my country normally I deposit USD to Oanda the fund via credit card but a few bank owner of credit card (HSBC, Citibank) do not allow my fund to Oanda, I normally use my visa local bank to fund. The deposit spent around 2-3% and withdrawn spent 2-3% into my local currency but I had gain if my local currency depreciate comparing to USD. I have no way to deposit my fund via bank wire due to restriction from my country. It is quite difficult for us to fund so that having bigger account.

I have IB account via a friend he is UK passport and he had IB account and created another account in his name for me. He have both PP (UK and my country) live in my country.

My wife (Canada student) and Kids moved to Alberta last year, I will soon come there (may be visitor visa or work permit). I want to continue trade with my Oanda Australia. A few step I will do, could you pls review and comment.

1) I open a Canada bank account and let say deposit 10K CAD
2) I open a Canada credit card based on 10K CAD deposit
3) Funding CAD to my Oanda account via credit card (is it possible?) or I do bank wire CAD to my Oanda account ( Australia)
4) Can I withdrawn CAD to my credit card? Why I do this because withdrawn money to credit card is almost free ( I know we only withdrawn money equal the money you fund via credit card).

If I deposit USD to Oanda account via my local credit card (spend 2-3%), I withdrawn USD from Oanda to my local credit card (spend 2-3%) and spending money in Canada via my local credit card (2-3%), total around 6 to 9%. It is quite expensive to do this way. Therefore, I would like to open a Canada bank account and Canada credit card.

Or any advise my situation to have best way to do forex trading when I am in Alberta ( I am still foreigner)

I currently have two trading strategy : long term is quite good result but I dont think I can trade with IB due to low leverage and mid term strategy ( holding position around 2 to 3 days) I think I can trade with IB but the result is not good.

Another question about the Canada tax for trading forex for foreigner?

Thanks a lot for your help

P/S: I only little bit concern because I do not do this before that transferring money to my foreign bank account. I can receive foreign currency in my local bank account I did a lot before but in the future I am not in my local country I want to bank wire via internet banking from/to my foreign bank account ( also help save transaction cost & exchnage rate). I think it is ok but I need your help to confirm
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I want to list down one by one to review it is violate the rule or regulation or not:

1) open bank account in Canada: it is legal for an foreigner (tourist, student or woker) to open bank account in Canada. Using deposit money bank will allow he/ she to open Canada credit card. An visitor can stay in Canada up to 6 months they can extend another 6 months, so they need bank account and credit card to use)

2) Use Credit card fund/ withdrawn money account in Oanda: Oanda allow to fund/ withdrawn money via credit card (but withdrawn money up to funding via credit card) then they can withdrawn from bank wire

3) My friend open one more account in IB: I trade this account and get the loss/ gain. I have my own risk with my friend I dont know any legal issue here. The one thing, I put myself in high risk situation to trust my friend that is the reason I want to open my account with IB and fund it via my foreign bank account.

4) Tax declaration: my country tax free for oversea income, people in my country receive a lot of money from oversea and do not request to tax declaration. I dont know if I receive money in Canada I have any tax declaration in Canada ( Any different I am an visitor or worker)?

5) Why Funding by credit card mean unprofitable: I want to grow account and compound profit, dont understand your point.

6) Funding my account: retail broker almost allow to fund via credit card but IB fund via bank wire or EFT etc.. Due to control foreign currency my country only free to receive money but restrict to pay money to oversea but they are ok to use credit card.

What I do and try to do is legal and manage my risk and dont understand why you said it is not legal.

Welcome any comment and advise

Thanks a lot for your help
 
How do you establish a bank account without permanent residential address in Canada? What bank would that be with because most banks I know of do not allow to open account without proof of residential address

I did not comment on the legal aspects of the credit card use with Oanda and guess it is ok

You are definitely and 100% in violation of agreements with IB, or better, your friend is.

If you only funded your Oanda account once why would you bother about funding at all. Do it and be done with. Most who need to top up blown out accounts concern themselves with funding.

Why are you afraid to reveal your country of nationality? Which country allows inflows of funds but not outflows and why are outflows via credit card OK but other outflows via wire not? Would that not sound weird to you if someone else stated such case?

Sonata95 said:
I want to list down one by one to review it is violate the rule or regulation or not:

1) open bank account in Canada: it is legal for an foreigner (tourist, student or woker) to open bank account in Canada. Using deposit money bank will allow he/ she to open Canada credit card. An visitor can stay in Canada up to 6 months they can extend another 6 months, so they need bank account and credit card to use)

2) Use Credit card fund/ withdrawn money account in Oanda: Oanda allow to fund/ withdrawn money via credit card (but withdrawn money up to funding via credit card) then they can withdrawn from bank wire

3) My friend open one more account in IB: I trade this account and get the loss/ gain. I have my own risk with my friend I dont know any legal issue here. The one thing, I put myself in high risk situation to trust my friend that is the reason I want to open my account with IB and fund it via my foreign bank account.

4) Tax declaration: my country tax free for oversea income, people in my country receive a lot of money from oversea and do not request to tax declaration. I dont know if I receive money in Canada I have any tax declaration in Canada ( Any different I am an visitor or worker)?

5) Why Funding by credit card mean unprofitable: I want to grow account and compound profit, dont understand your point.

6) Funding my account: retail broker almost allow to fund via credit card but IB fund via bank wire or EFT etc.. Due to control foreign currency my country only free to receive money but restrict to pay money to oversea but they are ok to use credit card.

What I do and try to do is legal and manage my risk and dont understand why you said it is not legal.

Welcome any comment and advise

Thanks a lot for your help
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My wife is currently in Canada, I definitely have address in Canada, so I can open bank account. As I mentioned if I fund via my local credit card it is quite expensive funding and withdrawn. If I have a Canada credit card, I can fund and withdrawn CAD currency and avoid the exchange rate as our family will spend money in Canada. As my strategy generate better result and I want to fund more and also want to withdrawn more often, so choosing CAD deposit and withdrawn will be cost effectiveness.

As I said I am from ASEAN country and I think the nationality is not important but If you want to know I come from Vietnam. As all we know all developing country will be easy to allow money coming to the country but they want to control money going out to so that they can control exchange rate.

I also want to open account with IB, as you know if you trade bigger size IB will provide a cost effective compare to Oanda and IB provide more choice to trade eg: option what do not be provided by Oanda.

As my long term strategy prefer to trade Forex with high leverage ( from 50 to 100) and I know US and Canada people restrict to trade Forex, so I want to keep register my account from home country but use base currency in CAD. That is the reason I post to ask the question whether I can open bank account in Canada and do deposit and withdrawn from foreign bank account.
 
You do not have an address in Canada, your wife does. If you want to open a bank account in your name you will almost certainly be asked to provide a proof of address, which means, for example, a utility bill that has your (not your wife's) name on it and the address that you gave the bank and both name and address have to match. If you wife is a student then she can open a bank account in her name but you most likely cannot.

Having a credit card is an entirely different story than a bank account. To apply for a real credit card in the US and Canada you need to establish a credit history which you most likely do not have. You will at most get an ATM card or a card (forgot the name in the US/Canada) that directly takes out funds from the linked bank account (which you do not have in the first place as stated above). Even if you obtained such card many international transactions are not working with such card.

So, at most you can obtain a bank account and/or credit card in your wife's name but I am not sure how this is not grey zone or actually violates certain legal agreements. You can certainly not in legal ways use your wife's credit card for any transactions.

So, if your country limits the amount of outgoing funds why are you trying to circumvent such rules? Are you saying that is legal? Most certainly will your country allow funds to be wired out to students, studying abroad. I am actually willing to bet that there are no such limitations in place in Vietnam.

Maybe your whole intent has been confusing and you are not quite transparent what you REALLY want? Is it that you actually want to find a cheap way to transfer money from Vietname from local currency into your wife's bank account in Canada in Canadian dollars? That will always involve currency exchange rates and IB won't be able to help you with that. If you could find ways to cheaply convert dongs into HKD, USD, EUR, GBP, AUD for example then you could ask your wife to open an IB account in her name and she would also open a bank account that is denominated in above given major currency exchange rate. Then you would transfer dongs or above converted currencies into said bank account, opened by your wife. She would then instruct a wire transfer from her bank account outside Canada into her IB account. Once the funds are in the IB account she would do an online currency conversion into CAD and request an outgoing wire to have it wired into her Canadian bank account.

P.S the above only applies if IB still allows fx trading for Canadian clients. I am not sure that is the case, I only know that IB stopped servicing US clients for fx transactions.

Sonata95 said:
My wife is currently in Canada, I definitely have address in Canada, so I can open bank account. As I mentioned if I fund via my local credit card it is quite expensive funding and withdrawn. If I have a Canada credit card, I can fund and withdrawn CAD currency and avoid the exchange rate as our family will spend money in Canada. As my strategy generate better result and I want to fund more and also want to withdrawn more often, so choosing CAD deposit and withdrawn will be cost effectiveness.

As I said I am from ASEAN country and I think the nationality is not important but If you want to know I come from Vietnam. As all we know all developing country will be easy to allow money coming to the country but they want to control money going out to so that they can control exchange rate.

I also want to open account with IB, as you know if you trade bigger size IB will provide a cost effective compare to Oanda and IB provide more choice to trade eg: option what do not be provided by Oanda.

As my long term strategy prefer to trade Forex with high leverage ( from 50 to 100) and I know US and Canada people restrict to trade Forex, so I want to keep register my account from home country but use base currency in CAD. That is the reason I post to ask the question whether I can open bank account in Canada and do deposit and withdrawn from foreign bank account.
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What's wrong with opening a non resident account in Canada ? No need for a local adress than, and it is rather easy to open in lots of countries.
A quick Bing search shows it should be easy in Canada as well.

OP, you will have a hard time making money in the markets if your deposit and withrawal costs are in the tune of 3% each time with a credit card.
 
@Zzzz1 Ok 1st off, full stop right here. You don't live in Canada and are talking right bullshit. Step down mate.

@Sonata95 Yes all you have said above will work. The caveat is that it probably won't work for you. If a US citizen was to open up an account at a large bank in Canada, it would fly. You being from Vietnam works against you. That said, you can try. Just about every single bank here in Canada if you can open an account will issue a secured credit card.

I'd try TD 1st, they are the most liberal to foreign customers.

Keep in mind Oanda Canada has really bad margin requirements.
 
Thanks LuisKH, I know it is not difficult to open bank account in USA and Canada for visitor visa. I also know it is not easy to make money in Forex market. I spend in credit card CAD currency and withdrawn CAD currency I dont think it will charge 3% but if I use local credit card I incur a conversion exchange rate cost around 3%, so that is the reason I want to open CAD bank account & credit/ debit card.

ZZZZ1, may be my English not quite clear and you do not understand my point. I dont want use IB just convert my local currency to CAD. my wife student in Canada can open bank account, deposit money and based on deposit money to get credit card.
My country allow to transfer the money to my wife based on her tuition fee and living cost in Canada, she can transfer money to my bank account or I can send money to my foreign bank account in different way eg: someone in Canada want to send money to my home country I will do the deal with them and receive money in Canada and pay them in home country and deposit this money to my bank account.

I dont want to open IB account for my wife since Alberta may not allow Albertan or someone temporary resident to trade forex but I can trade forex since I still register my address in my home country and just vistor in Canada.
 
Mate, " If a US citizen was to open up an account at a large bank in Canada, it would fly. You being from Vietnam works against you."

That is BS on so many levels, what else can I say?

Are you aware of how strict current international anti-money laundering regulations are? That applies equally to Canadian banks. Try to open a bank account in Canada without any local/Canadian address. I am pretty sure it won't be possible because one would already fail the KYC interview (to which Canadian banks also subscribe). [Perhaps US citizens are exempted here but certainly won't a Frenchman or German walk into a Canadian bank and be able to open a bank account without any residential address].

Secondly, the "secured credit card" is EXACTLY what I mentioned. Just because I am not Canadian (though lived in Vancouver for several years) I am not qualified to talk about Canadian banking? What a joke.

jj90 said:
@Zzzz1 Ok 1st off, full stop right here. You don't live in Canada and are talking right bullshit. Step down mate.

@Sonata95 Yes all you have said above will work. The caveat is that it probably won't work for you. If a US citizen was to open up an account at a large bank in Canada, it would fly. You being from Vietnam works against you. That said, you can try. Just about every single bank here in Canada if you can open an account will issue a secured credit card.

I'd try TD 1st, they are the most liberal to foreign customers.

Keep in mind Oanda Canada has really bad margin requirements.
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