Is there an account minimum for IB?

[Ari S 0]

Ian there a $10,000 account minimum for IB? For Canadians or just Americans? I think I remember Andrew saying that there is no minimum for Canadians, or am I mistaken?

 

If there is a minimum, what Canadian brokers have a lower minimum and support Level II?

[Robert H 453]

IB has a $10,000 USD funding minimum for both Canadians and Americans. US residents need $25k worth of equity to avoid being flagged a Pattern Day Trader. Canadians are exempt from the PDT rules.

 

Questrade has L2 and no required minimum. Their platform--IQ Edge--isn't the greatest, but it supports basic hotkeys. I have my TFSA, RRSP, and a Margin account with Questrade. Commissions are relatively cheap compared to other Canadian brokers.

 

TD Canada Trust is another option. They have a popular platform called Think or Swim.

[Ari S 0]

Thanks so much, Robert H. I have a paper account with a Questrade and just signed up to try thinkorswim with TD, but probably won’t stick with them because Questrade’s fees are lower, though you’re right that their platform is not the best.

[vchandra11 8]

Hi Ari

 

How are you finding TD-TOS. I am trying out TD-TOS and TD-Advanced Platform. Will be great if we can exchange some notes. Thanks.

[Ari S 0]

Hi vchandra11, I really liked the slickness of the TD platform but I didn’t use it very long because I will stick with Questrade because of the lower fees. Im sure someone else has tried TD.

[Ari S 0]

In regards to finding a broker, if you go to aretheyregistered.ca and click the orange button you can enter any broker name in the search and it will show you their status and whether they are legit.

[WilliamH 66]

It is true that IB advertises it has a $10,000 account minimum. But I scaled in to my account (like scaling into trades :)), with sizes of $9,000 at a time to avoid getting flagged by the IRS,

and to my happy surprise, I was able to trade in IB/DAS live when only the first $9,000 was posted and verified.

[TJ 0]

"Questrade has L2 and no required minimum. Their platform–IQ Edge–isn’t the greatest, but it supports basic hotkeys. I have my TFSA, RRSP, and a Margin account with Questrade. Commissions are relatively cheap compared to other Canadian brokers."

 

Hi Robert

Do you day trade with the Questrade Margin account and use the IQ platform? I went through the options for FTSA,RRSP -> seems you can hold in USD and also day/swing trade, but TFSA and RRSP accounts have no Margins. Is that correct?

I couldn't quite figure out what the Margin was as they used percentages and not direct 2:1, 4:1 etc. Do you know?

Sorry for all the questions!

TJ

[Robert H 453]

TJ, I don't day trade in my Questrade accounts. You cannot short inside TFSA/RRSP, and there is no margin either.

 

To calculate margin from the maintenance excess percentages, just divide 1 over. For example, 25% maintenance = 1/0.25 = 4:1

 

My reply above was written before Andrew announced Capital Markets Elite Group. They accept Canadian clients and have very competitive commissions plus DAS!

[TJ 0]

Thanks so much Robert - much appreciated!

[Riley 0]

Hey Robert,

 

I am looking into interactive brokers as a Canadian resident. You mentioned above that Canadians were exempt from the PDT rule; however, when I look into the literature on IB site it states that even as a Canadian the account is subject to 25,000 USD minimum for day trading. Here is the link to that literature: https://www.interactivebrokers.com/de/general/education/faqs/canada.php?ib_entity=de (for some reason i can only reach this specific link via google and not through the IB site which has me questioning its validity)

 

So, I just wanted to ask if you or anyone you know has experience with interactive brokers as a Canadian and only having 10,000 USD in their account for day trading.

 

Thanks in advance

 

Riley

 

[Robert H 453]

Riley, that FAQ is outdated. Please see the current IB Canada FAQ for confirmation that PDT rule does not apply to Canadians.

How does the SEC day trading rule affect Canadians?

The day trading rule doesn't affect IB Canada accounts.

 

I personally funded my account with $10K USD initially and can vouch for this.

[Riley 0]

Perfect.

 

Thank you Robert

[bal 2]

After speaking to IB, I just want to add that TFSA, RRSP accounts won't give you the leverage - for Margin account funds have to be out of TFSA, RRSPs etc.

 

Also, its better to fund IB with CAD (without converting to USD first) as they give you better exchange rate than your own bank. Best method to fund is with "Online Bill Payment" option.

[Rhonda 0]

Can you give me a ex. as in "online bill payment option? How is it done?