Remote Prop Trading in Canada

Hitnruntrader · Dec 21, 2003

Quote from lescor:

I know people who've done it. Having a US address may or may not be necessary, depending on which firm you are dealing with. From all the research I've done, taxes are not an issue, file and pay only in Canada. Set up the account in your own name, most prop firms won't accept a corporate account. You can write your NASD exams at any Sylvan Learning Centre.

The canadian brokers have pressured the US brokerage industry not to accept canadian accounts because they have such a lock on the industry and are owned by the big banks, who are tight with the feds. The difference in rates and services is so huge that the draw for any semi-serious trader is powerful. But it's not illegal for the trader. The firms are hesitant because they don't want any potential hassle from regulators who want them to register in Canada.

It's hilarious to read the 'trading with the enemy' clauses from most US brokers. You may set up an account if you are from any country in the world except Iraq, North Korea, Lebanon or CANADA.

But make some phone calls, because if you can make it work, it's worth it. No harm in inquiring and filling out some paperwork.

Excellent Post

jeffgus · Dec 21, 2003

I have done many hours of research on this topic and can offer a few solution for the semi and professional trader. PM me is needed. J-

coon · Mar 31, 2004

Anyone have any advice for a pro trader looking to get a good deal on commisions, e.g. under $1 per 1000 shares

Thanks

Coon

kean · Mar 31, 2004

I am currently trading remote with a U.S. firm. This is my third year and my second firm. PM me and I can tell you the ins and outs. U.S. firms offer far better technology and rates for daytraders.

axehawk · Apr 1, 2004

Quote from coon:

Anyone have any advice for a pro trader looking to get a good deal on commisions, e.g. under $1 per 1000 shares

Thanks

Coon

If you can find a deal under $1 per 1000, then please post your findings here.

Thanks.

Don Bright · Apr 1, 2004

Quote from axehawk:

If you can find a deal under $1 per 1000, then please post your findings here.

Thanks.

I hear ya, Axe...! If anyone knows where I can pay $1.00 per thousand let Me know as well.

Serious again: We have 2 locations and many remotes in British Columbia, and would love nothing more than to expand across Canada. Believe me, it's not for our lack of trying...expense... asking and paying for help...enlisting Goldmand Sachs assistance..

I really just quite understand...and also, I'm really doubting that Any other U.S. firm is doing anything throughout the Provinces either. In fact I know of several firms that got "booted out" of Canada over the last few years (even BC)...that is a risk that we won't take, we have worked extremely hard over the last 14 years to keep our record clean.

Anyway, I hope that some resolution will be forthcoming.

Don

TorontoTrader2 · Apr 2, 2004

I have traded at Questrade.com as prop (although I used my own money).
Rates can be below $1. Don't want to post my deal here as it will be removed by forum admin. but check with them.
They are in Canada (as am I )

Don Bright · Apr 2, 2004

Quote from TorontoTrader2:

I have traded at Questrade.com as prop (although I used my own money).
Rates can be below $1. Don't want to post my deal here as it will be removed by forum admin. but check with them.
They are in Canada (as am I )

(Note to administrator's: Please keep his response up, if he chooses to respond). (Not that I have any real choice in the matter)...

I went to the website a while back (and again today), and they have no mention of licensed/prop trading (that I could find anyway). Retail trading at $1 per thousand is certainly doable with a ticket charge (10,000 shares at Scottrade for example).

By the time you add ECN fees, clearing, execution, etc., however, I doubt that anyone could run a business for long at that price (not even SLK or GS will price in those increments....and self clearing is not an option until you do 10's of billions of shares annually).

I'm curious more than anything else....not a "competition" issue at all...

Don

TorontoTrader2 · Apr 2, 2004

Interesting Don. I have always read your posts on here with interest.
This is in Canada and most prop and retail discount brokers clear using Penson - penson.ca
My prop deal was not covered by CIPF (like the SIPC).
Got to keep ECN rebates and gave up 10% of upside.
Is this good compared to the US? If I could guarantee more volume
I would have got lower rates.

Don Bright · Apr 2, 2004

Quote from TorontoTrader2:

Interesting Don. I have always read your posts on here with interest.
This is in Canada and most prop and retail discount brokers clear using Penson - penson.ca
My prop deal was not covered by CIPF (like the SIPC).
Got to keep ECN rebates and gave up 10% of upside.
Is this good compared to the US? If I could guarantee more volume
I would have got lower rates.

Sure, your deal sounds fine...we offer both approached to the ECN rebate (don't count on those to be around for much longer, BTW)....our guys can pay an "all in" (no ECN add liquidity or pay for taking liquidity) or the lower rate with the add's and take aways.

We clear quite a number of guys with Penson as well....They are good people...I know their rates....

Most important thing is to make enough money to "buy your freedeom" - don't pay that 10% "tax" (split) forever...it could very well add up to a bunch!! I hope it does for your sake!!

Don