After getting burned with PFGBest, I want my next broker to be located in Canada so at least I am protected by IIROC and/or CIPF. So other than IB Canada or RJOB Canada, does anybody have a good brokerage to recommend located in Canada?
You can setup an account with TD Waterhouse and thru them you can get an account with TD Waterhouse Think or Swim (TOS). It is somehow affiliated with TD Ameritrade which is owned by TD I believe. You can trade US equities, options, futures, etc. The money transfers are handled thru your TD account.
AdamGG
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TOS commissions are higher than IB however the data and software are free. The TOS platform includes charting and execution - lots of tools and customizable with extensive options support. You can monitor/trade futures, options, equities etc from one platform and save specific program setups.
If I remember correctly you also have to setup a margin account with TDWaterhouse Active Trader. A bit clunky but you get access to CDN and US equities etc (not futures). OK for maybe swing or longer trades but a bit pricey for day trading equities. ($7 RT)
If you trade lots of futures contracts then using a low commission US broker is probably in your interest or maybe IB - I don't know much about IB (they are discussed here somewhere).
You can get more info at TD Waterhouse | Investment and Wealth Management Services and search Think or Swim.
I have a couple of futures brokerage accounts in the US and I don't currently use my TOS account that much however I will be using it more in the future. The reason being to spread the risk around. One model that I will use only requires a couple of trades per day, the extra commission and higher margin are not a big factor.
For more active futures day trading my approach is to utilize the low margin requirements and low commissions at a couple of US brokers (AMP, Mirius, etc - take your pick). With $400-$500 margin (ES Futures) and I estimate potential drawdowns based on my risk model and keep that in margin account. Say at 1% risk model (per day), on say a 50K allocation thats a potential $500/day risk, set up for 10 days of full loss = $5k. So if you trade 5 cars (10K allocated per car) that would be margin $2500 plus risk $5000 = $7500 deposited in broker account.
The balance of your 50k allocation can be used to generate a return elsewhere (accessible).
In this day and age it is difficult to figure out who is solid. Diversity is one method to reduce risk. Its hard enough to win - not good if it then gets stolen.
Yeah, I was mistaken..... I think I corrected the issue in an earlier post... anyway, with TD-TOS you can paper trade US Futures but cannot trade live. They don't have any schedule where that might happen. I have since opened an account with IB - they have the best rates it appears and can fund/withdraw with ACH. Checked out R.J. O'Brien but too expensive. Also have a couple US Chicago based. I feel more comfortable spreading it around a bit.
I use IB for futures. Trading through NinjaTrader. Been very pleased with the setup for the past few years.
IB is great for stocks and options. Commissions are good for both.
I have a Mirus account for futures as well. Commissions and margins much better there for futures vs IB.
Only wish IB had RRSP or TFSA
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What issues do you experience with IB feed? I did not notice anything irregular other than the
occasional 3 second feed disruption. I use IB for many years and no matter what internet service
the feed brown out always happened abt once per 8 hour period.
Finding a US broker that will accept BC traders is a problem, never mind futures and forex. I would
be happy with just a futures broker willing to make an exception.
IB limits the amount of data that you can request in a 5 minute period. The platform as limitations for historical data request and rejects any further requests for 5 minutes. "Pacing Violation" is what the call it. My work around is that when I open NinjaTrader I have to have a workspace with very little in it and then slowly request data (opening market analyzers and charts) until I have enough data to get me going and then gradually request the remainder. I was told that the better option is to buy a separate data feed such as Kinetck.
They accept Ontario customers. Using them is pretty much a borderless issue for me; it's a little tricky wiring your 1st deposit, if it is in CAD and you want to keep your capital in CAD. (there's a intermediary bank involved in the wiring.) On Mirus, I think they accept Ontario customers.
My understanding is that Mirus only takes clients from Alberta, Ontario, and Nova Scotia through the Rosenthal Collins Group. If anyone knows differently please let me know.
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So out of the three (IB, Mirus and AMP), any major differences?
I am trying to get into futures and looking for a broker. Probably will be using NinjaTrader.
IB filters their price feed, so using volume ladders (GOM), wouldn't provide you the full picture. Amp has free CQG, which has it's historical data coming from the NT folks (their servers), hence it is quasi-CQG. They've been hiccupping a little much lately, but they say there's an API fix that should better things; I have seen no downtime that I am aware of, in the last few weeks. I think Zenfire is free via Amp as well; except for a $25/month inactivity fee. I don't know about Mirus datafeed costing or what options they offer, but both Mirus and Amp offer NT as a supported platform. (With IB, there are some further oddities I believe, when it comes to historical data via NT7)
Thanks for the info!
Are there any legal issues when you use US broker? I mean will the money be safe with them?
I've used Questrade for some time for stocks and options, never worried much because they are local.
There's certainly no Canadian based legal issues. In terms of safety ... hmmm ... none of them have any sort of principle protection I believe; Amp has issued a few statements on funds segregation and the fact that no in-house trading of any type occurs. Depending on your perspective, PFG had all sorts of "we are great" marketing too. Separately, there's a thread around here where all futures brokers were ranked by a 3rd party entity on various business aspects, and, Amp did reasonably well; not sure about others, although Mirus has a huge amount of respect too; check their respective threads.
>I use IB for futures. Trading through NinjaTrader. Been very pleased with the setup for the past few years.
>IB is great for stocks and options. Commissions are good for both.
>I have a Mirus account for futures as well. Commissions and margins much better there for futures vs IB.
>Only wish IB had RRSP or TFSA
I did have an account with AMP but had to transfer funds thru JPM in London (you know, where the laws are loose...), didn't feel too comfortable about that. Got an account for future/stock/option threading with IB and can transfer direct from my Canadian bank account... Commissions aren't too bad and haven't had any problems to date. I use N7 as execution thru IB with a Zenfire feed that I have with another broker. I don't use the IB feed and it works fine.
Customers of Mirus are currently able to open account through either of our clearing firms - Dorman Trading or Rosenthal Collins Group (RCG). Dorman accepts Canadian residents from Ontario, RCG accepts Canadian residents from Ontario and Alberta. You can find the application form for either firm on our site.
Never hesitate to reach out to one of our New Accounts or Customer Service Reps who can answer additional questions about what Mirus has to offer!info@mirusfutures.com 800-496-1683
If you have any questions about Mirus Futures please send me a Private Message.
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For your information Bob there are 10 provinces in Canada. The ten provinces are Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec, and Saskatchewan. I think RCG accepts Canadian residents from more than the limited list you provided.
I signed up to Mirus ( RCG clearing) a few years ago. From Newfoundland. Never had an issue.
I use both IB and Mirus. Mirus for futures and IB for stocks/options/ forex.
I do use IB as well for futures mostly if I forget to switch my account on Ninjatrader. Lol ( I have multi broker licence )
I haven't had a hitch with IB in abut 5 years. The ease of integration between IB and Ninjatrader is ideal for charting and execution. You can use the charting for free, but you need the licence for execution. WELL worth it though.
Transferring out money from IB to my bank account via EFT is usually about 24 to 48hours MAX which is great.
In regards to earlier comments regarding the high commissions of RJOBrien Canada: call them and you can negotiate your rate as long as you have some volume. If you are brand new to futures and want to stick with a company insured in Canada, IB would be the best choice. For those having issues with data and general charting delays with IB you can try closing your antivirus software while IB is open. Cleaning old JAVA files can help as well...
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Having been burnt my MFGlobal I don't feel safe with USA companies.
I feel better that IB has opened up a Cdn office now.
IB Canada has a feature where your funds are rolled-over internally from your futures to your stock account (same IB account number) at the end of the trade, and in this way you have protection from the (CIPF???) fund for stock accounts.
==========> But you have to activate this!! <================
I think the datafeed is fudged from IB and I have had them fill a trade above the HOD and below the LOD. When questioned they mumbled something about the datafeed that I see isn't the one that they use to verify bad fills and trade errors.
Also they trade against you (take the other side) when they want (called "internalization"_ instead of routing your trade to the exchange. I read this you always loss a tick.
I have a futures account with Stage5 (@Stage5 Anthony). They are based from Chicago but my funds are segregated and with BMO HARRIS BANK. Highly recommend them.
If your edge puts the odds in your favor, then every loss puts you that much closer to a win.
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(BTW MFGlobal said clients funds were segregated as well. It turns out that means segregated into "corzine's off-shore fund" Goddarns incorrectly claimed clients funds on deposit were the firm's assets and subject to their bankruptcy. The judge is a friend of the defense attorney.
Fool me once shame on you - fool me twice shame on me.)
This thread is a year old now. Are there any Canadian traders that can share their current experience with futures brokers? I do have an IB account and am considering linking that to Ninja Trader. I guessing by using a third party feed, I can get around issues with IB data.
Stage5trading.com
Talk to Anthony.
You can say Pavel from Canada referred you.
I have been a member for over a year now, amazing customer service.
I think he is a member on this forum too.
If your edge puts the odds in your favor, then every loss puts you that much closer to a win.
I just want to hear follow up. How did it go with s5? Currently there aren't many non Canadian brokers out there who will accept Canadian. I personally had few email exchanges with s5 and I was not easy with their fee pricing. I am still looking.
Deep discount trading, stage 5, interactive brokers, global futures, ningabrokerage for BC. Or set up an llc in the states for other brokers, tradeovate for example
I just confirmed discount trading do offer service to bc residence, i5 do offer but 2x commission compare to other broker, global I know the fact they offer services. Ninjatrader brokerage do not offer service to canadians instead refers you to global. I just need to find out commission from ib.
I am going through this also, and from what I have learned having an LLC in the states is not a good option. For example, it would be subject to an estate tax in the event of death, etc. I currently have a Delaware LLC and am dissolving it. I am starting a Canadian Corp (in BC) and will invest through that for tax purposes. I am anticipating difficulties opening futures accounts, but I have a lot of history and do a lot of volume. We'll see
If you are at the highest personal rate in Canada (combined provincial and federal of 52%) then if you make
$10,000 capital gains profit, 50% is Taxable Capital Gains (or $5,000) and tax payable on that is ($5,000*.52=) $2,600. (see Schedule 3).
The corporation will pay the corp rate (~40% depending on the province if provincially incorporated) on profits (*) and losses are contained within the corp. If your corporation pays 40% and that is (10,000*.40=) $4,000. Then should you withdraw dividends from the corporations - ie pay yourself) you will pay tax on this at a personal level. Taxes are paid twice.
Also to note CRA has a general anti-avoidance look-through for personal corporations such that if the purpose of the corporation was to reduce taxes it will "see through" the corporation and tax you as if the corp didn't exist.
You can telephone the CRA and ask questions anonymously.
e.g. If a personal corp is set-up for investing .... etc
(And no they do not give you an advance tax ruling but yes they are required to explain how the tax act would apply to a situation you describe. And you can ask for the sections they are referring to and then read about it in the CCH handbook on the tax act at your local library - which is what they use. However, what you propose is quite simple).
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(*) I am assuming the profits are income for the corporation. If you have another main source of income for the corporation and these are capital gains for the corporation then 50% of the above (I believe) I have not read up on corp taxation. BTW non of the above is "expert" opinion - just a heads up based on my understanding of the tax regs.
One of the few ways to defer taxes (for Cdns) is with an RSP (Cdn version of IRA).
Contributions are tax deductible in the year of contribution (+60 days meaning end of Feb). You pay taxes when you withdraw money in later years on what is withdrawn. A wide range of instruments are permissible but I believe futures and put options are excluded.
(hint hint Harper) nature....
