Interactive Brokers - Buying Power for Canadians

[Thomas 13]

Can other Canadian residents confirm the buying power they receive from Interactive Brokers for US stocks?

I am in SIM now via BBT life-time membership and I am now exploring opening a live account. I've read that IB provides 4:1 buying power but when I looked at their site, it appears this is only 2:1 for Canadian residents for US stocks.

Can other Canadian traders please comment on their US stock buying power with IB?

From IB Site: https://www.interactivebrokers.com/en/index.php?f=26658&hm=ca&ex=us&rgt=1&rsk=0&pm=0&rst=080804080401

Canadian residents -- 50% margin requirements compared to US residents -- 25% margin requirements

---> My understanding is --> Cash amount in account / margin requirement = buying power

Canadian residents: $25,000 in account / 50% margin requirement = $50,000 buying power

US residents: $25,000 in account / 25% margin requirement = $100,000 buying power

@Brian Pez @Andrew Aziz or other Canadian resident forum admins, can you please comment on what your BP ratio you have with IB?

Just making sure I understand this before I proceed. Thanks!

[Justin 264]

Hey Thomas,

First, welcome!

Second - it's 3.33:1 for Canadians.

[Justin 264]

Oh, and if you're going to use DAS, make sure you contact them after your funds are available to update your account so it reflects 3.3333.... Because your BP will default to showing 4:1.

[Thomas 13]

awesome, thank you for clarifying, Justin, and thanks for the welcome!

I guess I don't understand where the 50% margin requirements is applied in the table they have on their site.

I will be going with DAS so I can go from SIM to live without any changes to how I trade. The buying power difference isn't as exciting as 4;1, but certainly better than what I thought is was (2:1).

So as a Canadian resident,  a $25K account gets me $83,333 buying power.