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Global Trading in Canadian Registered Accounts


rb
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I hold my sons RDSP at TD Waterhouse, which does indeed have access to global markets.  However the commisions are obscene.  I purchased 1600 shares of Lancashire directly in London last year, and the cost was $225, with a healthy forex clip.  However I do intend to hold LRE indefinitely.

 

This was before I found out that I can hold a pink sheet security in a registered account if the underlying security trades on a CRA approved market.  The Munger quote about being too late smart definitely applies to me here ;)

 

-CM

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CM, Thanks for your reply. I'm still hoping there's a broker out there that will settle for less than my right arm and my first born. Between fee, F/X, and stamp duty transaction costs are pretty steep.

 

What you said about holding pink slips for securities that trade on a CRA approved market is really interesting though. Do you know where I can find more detail on that?

 

Thanks,

rb

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Liberty, I was really glad when I found out that IB recently started offering RSP and TFSA accounts. They're one of the brokers I use and I have nothing but great things to say about them.

 

Disappointment set in soon after when they clarified that they will only offer CAD and USD product in those accounts. So no global stuff.

 

rb

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I just found out that Interactive Brokers Canada now has RSP and TFSA accounts.

 

Do they allow U.S. dollars to be held inside registered accounts like RBC?

 

They do allow CAD and USD to be held inside registered accounts, but no other currencies. So you limited to investing on Canadian and US markets in those accounts. Also their standard $10 minimum fees per month applies for accounts below $100k.

 

rb

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I just found out that Interactive Brokers Canada now has RSP and TFSA accounts.

 

Do they allow U.S. dollars to be held inside registered accounts like RBC?

 

They do allow CAD and USD to be held inside registered accounts, but no other currencies. So you limited to investing on Canadian and US markets in those accounts. Also their standard $10 minimum fees per month applies for accounts below $100k.

 

rb

 

https://www.interactivebrokers.ca/en/index.php?f=11792

IB only allows funding of RSP and TFSA accounts in Canadian Dollars.

 

So I can only fund the account in $CDN. But U.S. trades can settle in $U.S. inside the RSP/TFSA?

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I just found out that Interactive Brokers Canada now has RSP and TFSA accounts.

 

Do they allow U.S. dollars to be held inside registered accounts like RBC?

 

They do allow CAD and USD to be held inside registered accounts, but no other currencies. So you limited to investing on Canadian and US markets in those accounts. Also their standard $10 minimum fees per month applies for accounts below $100k.

 

rb

 

https://www.interactivebrokers.ca/en/index.php?f=11792

IB only allows funding of RSP and TFSA accounts in Canadian Dollars.

 

So I can only fund the account in $CDN. But U.S. trades can settle in $U.S. inside the RSP/TFSA?

Yes, but you can hold USD in the accounts and trades settle in the trade ccy. So once you fund you FX CAD to USD and you're good to go. Their FX fees are negligible. Nothing like RBC.

 

rb

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What you said about holding pink slips for securities that trade on a CRA approved market is really interesting though. Do you know where I can find more detail on that?

 

http://business.financialpost.com/2013/06/22/are-you-sure-you-can-invest-that-in-your-tfsa/?__lsa=2d85-2c1b

 

Fannie Mae, which used to be traded on both the New York Stock Exchange and the Chicago Stock Exchange, was delisted in June 2010 began trading on the OTC Bulletin Board, which is not a designated exchange; however, because it also listed on the Stuttgart Stock Exchange in Germany, it appears its shares do qualify for investment by TFSAs, regardless of which exchange the shares are purchased through.

 

I recently moved some LCSHF which is listed OTC into my TFSA at Scotia I-Trade without any problems.

 

-CM

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What you said about holding pink slips for securities that trade on a CRA approved market is really interesting though. Do you know where I can find more detail on that?

 

http://business.financialpost.com/2013/06/22/are-you-sure-you-can-invest-that-in-your-tfsa/?__lsa=2d85-2c1b

 

Fannie Mae, which used to be traded on both the New York Stock Exchange and the Chicago Stock Exchange, was delisted in June 2010 began trading on the OTC Bulletin Board, which is not a designated exchange; however, because it also listed on the Stuttgart Stock Exchange in Germany, it appears its shares do qualify for investment by TFSAs, regardless of which exchange the shares are purchased through.

 

I recently moved some LCSHF which is listed OTC into my TFSA at Scotia I-Trade without any problems.

 

-CM

 

How does dividend tax work for the OTC ? 30% withholding?

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I just found out that Interactive Brokers Canada now has RSP and TFSA accounts.

 

Do they allow U.S. dollars to be held inside registered accounts like RBC?

 

They do allow CAD and USD to be held inside registered accounts, but no other currencies. So you limited to investing on Canadian and US markets in those accounts. Also their standard $10 minimum fees per month applies for accounts below $100k.

 

rb

 

https://www.interactivebrokers.ca/en/index.php?f=11792

IB only allows funding of RSP and TFSA accounts in Canadian Dollars.

 

So I can only fund the account in $CDN. But U.S. trades can settle in $U.S. inside the RSP/TFSA?

Yes, but you can hold USD in the accounts and trades settle in the trade ccy. So once you fund you FX CAD to USD and you're good to go. Their FX fees are negligible. Nothing like RBC.

 

rb

 

Thank you, this answers one of the questions I had.

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I just found out that Interactive Brokers Canada now has RSP and TFSA accounts.

 

Do they allow U.S. dollars to be held inside registered accounts like RBC?

 

They do allow CAD and USD to be held inside registered accounts, but no other currencies. So you limited to investing on Canadian and US markets in those accounts. Also their standard $10 minimum fees per month applies for accounts below $100k.

 

rb

 

Interesting. Can the minimum $10/month fee for small accounts be covered by trading in other accounts? IE 3 total accounts (non-reg, RRSP, TFSA) spending a total of $30/month across the accounts? My TFSA is pretty inactive, and I'd prefer not to pay a minimum commission on it. Do you know whether market data subscriptions count against the minimum?

 

 

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I just found out that Interactive Brokers Canada now has RSP and TFSA accounts.

 

Do they allow U.S. dollars to be held inside registered accounts like RBC?

 

They do allow CAD and USD to be held inside registered accounts, but no other currencies. So you limited to investing on Canadian and US markets in those accounts. Also their standard $10 minimum fees per month applies for accounts below $100k.

 

rb

 

Interesting. Can the minimum $10/month fee for small accounts be covered by trading in other accounts? IE 3 total accounts (non-reg, RRSP, TFSA) spending a total of $30/month across the accounts? My TFSA is pretty inactive, and I'd prefer not to pay a minimum commission on it. Do you know whether market data subscriptions count against the minimum?

No kidding. I'd rather not pay then either, but I may cave. Right now the registered are with Questrade and those morons are so incompetent that I think I may rather pay 120 per account just so I don't have to deal with them. I'm doing the cost benefit analysis against a nervous breakdown.

 

Anyway, IB doesn't count pooled commission across the accounts for minimums. Each account has $10 minimum in fees. Market data subscriptions do not count against minimum. But they waive US mkt data fees when you do $30 in commissions and I think that's pooled across accounts. Not really 100% sure though because I trade so little that very seldom I test that.

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For those who have opened RRSP/TFSA accounts at IB Canada:

 

If you haven't opened these accounts at the same time as a regular, unregistered account, can you tell me what the process was? (in other words, you have a regular account first, and later want to open these registered accounts)

 

I see applications forms on the site, but I'm not sure if there's a way to open the accounts (RSP, TFSA) in a way that is linked to my current account, or if I have to fill out two independent forms and I'll end up with 3 mostly separate accounts.

 

More in general, how does it work when you have multiple accounts like that at IB Canada. Are they somehow linked and managed together, or they all have completely separate logins/pass?

 

Thank you in advance.

 

(thanks rb for pointing out that I mistakenly posted this in the wrong thread -- oops)

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Opening a RRSP or TFSA at IB is the same as opening any other account. just make sure you check the right account type at the beginning.

 

You don't need to worry about having multiple accounts. IB offers an advisor account that allows you to have up to 5 accounts under it. You should open and advisor account the get in touch with IB and tell them to move your existing trading account under the advisor account. Then open up the registered accounts under the advisor accounts just like any other account. No need to worry about handling multiple accounts. When you log in with the advisor account in Trader Workstation you can trade in all sub account simultaneously.

 

Now there's one caveat.... if your trading account is pre mid-2013 before they added a number to the accounts then you can't move your account under the new advisor account. You'll have to open an advisor account, then open a new trading sub account under the advisor account then get in touch with IB and ask them to move your positions from the old account to the new account and then open your registered sub accounts under the advisor account.

 

 

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Now there's one caveat.... if your trading account is pre mid-2013 before they added a number to the accounts then you can't move your account under the new advisor account. You'll have to open an advisor account, then open a new trading sub account under the advisor account then get in touch with IB and ask them to move your positions from the old account to the new account and then open your registered sub accounts under the advisor account.

 

That’s a weird limitation.  I guess I’m lucky that my advisor account was pre-2013 as well.

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Opening a RRSP or TFSA at IB is the same as opening any other account. just make sure you check the right account type at the beginning.

 

You don't need to worry about having multiple accounts. IB offers an advisor account that allows you to have up to 5 accounts under it. You should open and advisor account the get in touch with IB and tell them to move your existing trading account under the advisor account. Then open up the registered accounts under the advisor accounts just like any other account. No need to worry about handling multiple accounts. When you log in with the advisor account in Trader Workstation you can trade in all sub account simultaneously.

 

Now there's one caveat.... if your trading account is pre mid-2013 before they added a number to the accounts then you can't move your account under the new advisor account. You'll have to open an advisor account, then open a new trading sub account under the advisor account then get in touch with IB and ask them to move your positions from the old account to the new account and then open your registered sub accounts under the advisor account.

 

Thanks, much appreciated!

 

What do you mean "add a number to the account"? Where can I see if my account has one?

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Now there's one caveat.... if your trading account is pre mid-2013 before they added a number to the accounts then you can't move your account under the new advisor account. You'll have to open an advisor account, then open a new trading sub account under the advisor account then get in touch with IB and ask them to move your positions from the old account to the new account and then open your registered sub accounts under the advisor account.

 

That’s a weird limitation.  I guess I’m lucky that my advisor account was pre-2013 as well.

There's no luck really and it's not a limitation either because there are work-arounds. I think it's a technical thing on their end.

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Opening a RRSP or TFSA at IB is the same as opening any other account. just make sure you check the right account type at the beginning.

 

You don't need to worry about having multiple accounts. IB offers an advisor account that allows you to have up to 5 accounts under it. You should open and advisor account the get in touch with IB and tell them to move your existing trading account under the advisor account. Then open up the registered accounts under the advisor accounts just like any other account. No need to worry about handling multiple accounts. When you log in with the advisor account in Trader Workstation you can trade in all sub account simultaneously.

 

Now there's one caveat.... if your trading account is pre mid-2013 before they added a number to the accounts then you can't move your account under the new advisor account. You'll have to open an advisor account, then open a new trading sub account under the advisor account then get in touch with IB and ask them to move your positions from the old account to the new account and then open your registered sub accounts under the advisor account.

 

Thanks, much appreciated!

 

What do you mean "add a number to the account"? Where can I see if my account has one?

I don't know if you can "see" it. At one point in 2013 around October they added a digit to the account number and account numbers went from having 6 digits to 7 digits. If your account pre-dates that it falls into the category I mentioned. I think its a technical thing on their side.

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