US or Canada Interactive broker

[Isaac21 0]

I'm from Israel and currently trading on DAS simulator. Planning ahead to open an IB account.

Here in Israel we have an IB office which let you open an account with less than 25K, howver comissions are $0.05/share with a minimum of $2.5 per ticket which is too high for a small position strategy with a round of 5-7 tickets per trade. So, for this reason I was thinking to open the IB account in US.

What are the pros and cons of opening an IB account in Canada instead ?

Does IB Canada have the 25K regulation?

Thanks, Isaac

[Robert H 450]

IB Canada doesn't have the 25k PDT rule. However, they may restrict accounts to Canadian residents.

 

With less than $25k, IB US may enforce the PDT rules on you (assuming they let you open an account from Israel).

 

Your best bet is to contact IB directly for answers.

 

If you have $30k, consider SpeedTrader. It appears they accept clients from Israel according to their FAQ.

[Martin 1]

Hello Robert and bearbull members,

 

i was assuming that i wont be afffected by the PDT rule, since  I am Eurpoean. I openend my account with IB a while ago and yesterday was my first day live. Today my orders got rejected in DAS because of the PDT rule.  I reached out to DAS and IB and the answer was the same.

 

Answer from IB "... In order to not have this restriction, the equity in your account must be minimum USD 25'000 or equivalent.

This applies regardless of Nationality and Place of residence as it directly relates to the products being traded and the exchange."

 

I did not expect that!

 

Is anyone using IB outside the US without having the PDT rule?

 

Thanks!

 

Martin

 

 

[Robert H 450]

Sorry to hear that, Martin. Is you account with Interactive Brokers US or some sort of European subsidiary?

 

Andrew and myself are with IB Canada and the PDT rule does not apply. I can confirm this since my account is under $25k USD.

[Abiel 472]

I don´t think so Martin. I also asked IB USA (I´m in Mexico) and they told me PDT rule apply to me.

[Martin 1]

Now I am confused.

 

If PDT rule does not apply for canadians, why does it apply for mexicans and europeans?

 

There is a subsidiary in the UK with an office in Switzerland, but customer service sits in the US. The Website redirects me always to US customer service.

 

US customer service does not even answer me anymore.

 

 

[Martin 1]

IB live Chat just told me, Canadians are the only exception from PDT rule!?! It applies to all other countries.

 

I really thought PDT is only for people that live in the US...

 

 

[Robert H 450]

Yikes! Thanks for reporting back, Martin.

 

They should really let that be known before you open an account from abroad. Will you be looking for another broker then?

[Abiel 472]

IB live Chat just told me, Canadians are the only exception from PDT rule!?! It applies to all other countries.

 

Damn Canadians! LOL!!!

[Martin 1]

Another broker would be an option, but i want to keep DAS as my trading platform. CME would be an option, as mentioned in the chat several time. BBT members get a discount right? How much would be a ticket with small shares size (100-200)? Was it $2.95?

 

 

[Robert H 450]

Yes $2.95 per trade up to 1k shares. Please see the CMEG sticky for more info.

[Isaac21 0]

Robert, thank you for your answer

 

IL

[bal 2]

Abiel - Please don't tell Trump that Canadians are exempt from  this PDT rule ...