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Canadians trading as a business


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Canadians trading as a business

  #1 (permalink)
 Richie Z 
Vancouver, BC, Canada
 
Experience: Intermediate
Platform: NT
Broker: Ninja-Traders Technology
Trading: 6E, ZN, CL
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Hi there. I'm just outside of Vancouver, BC, and I'd like to open a thread where Canadians can talk about trading issues specific to Canadians--right now as i deal with my accountant and what can and can not be used as trading expenses, i'm interested in hearing from other's experiences dealing with RevCan as traders. Unfortunately Traders Accounting in USA does not deal with Canadian traders. My accountant says i cannot use trading room fees or charge trading courses against "the business"--any profits and losses are seen only as capital gains and losses. What about others? What is your experience?

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  #3 (permalink)
 
trendisyourfriend's Avatar
 trendisyourfriend 
Quebec Canada
Market Wizard
 
Experience: Intermediate
Platform: NinjaTrader
Broker: AMP/CQG
Trading: ES, NQ, YM
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daytrading in Canada is seen as any other business as far as i am concerned. That's how i operate. Any expenses related to my business is removed from my profit. The rest is taxable.

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  #4 (permalink)
 Richie Z 
Vancouver, BC, Canada
 
Experience: Intermediate
Platform: NT
Broker: Ninja-Traders Technology
Trading: 6E, ZN, CL
Posts: 41 since Aug 2011
Thanks Given: 115
Thanks Received: 18


trendisyourfriend View Post
daytrading in Canada is seen as any other business as far as i am concerned. That's how i operate. Any expenses related to my business is removed from my profit. The rest is taxable.

@trendisyourfriend
are you posting gains as capital gains or as business profit--perhaps that is the difference? i'm under the understanding that if speculator gains are submitted to revcan as capital gains/losses, the costs of charting services, trading courses, etc. are difficult to claim as expenses. how do you manage this?

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  #5 (permalink)
skeptomist
vancouver+BC/CANADA
 
Posts: 1 since Mar 2016
Thanks Given: 0
Thanks Received: 0

Hi all, my first post (hopefully of many) and a reply to an almost 4 year-old post (almost to the day lol)

Am looking to trade futures especially CL from Vancouver, BC but having trouble selecting broker/FCM

-IB do not like the platform/feed
-RJO Canada is very pricey
-AMP has best rates and good platform CQG+Multicharts .NET (no platform fees for life!?) but will not take BC client (only Alberta & Ontario)
-Advantage seems good though not as cheap as AMP and not quite sure they will support CQG+multicharts .NET (especially with no platform fees)

My best options seem to be:

- create Ontario/Alberta corp
- create US LLC e.g. Nevada/Wyoming

and try to signup with AMP

As I am newcomer to futures trading and this forum, most of above must be taken with huge chunks of salt, I would appreciate all/any feedback especially from Canadians who may have travelled a similar road (successfully...?)

Thanks in advance.

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  #6 (permalink)
 
trendisyourfriend's Avatar
 trendisyourfriend 
Quebec Canada
Market Wizard
 
Experience: Intermediate
Platform: NinjaTrader
Broker: AMP/CQG
Trading: ES, NQ, YM
Frequency: Daily
Duration: Minutes
Posts: 4,527 since Oct 2009
Thanks Given: 4,171
Thanks Received: 6,018


skeptomist View Post
Hi all, my first post (hopefully of many) and a reply to an almost 4 year-old post (almost to the day lol)

Am looking to trade futures especially CL from Vancouver, BC but having trouble selecting broker/FCM

-IB do not like the platform/feed
-RJO Canada is very pricey
-AMP has best rates and good platform CQG+Multicharts .NET (no platform fees for life!?) but will not take BC client (only Alberta & Ontario)
-Advantage seems good though not as cheap as AMP and not quite sure they will support CQG+multicharts .NET (especially with no platform fees)

My best options seem to be:

- create Ontario/Alberta corp
- create US LLC e.g. Nevada/Wyoming

and try to signup with AMP

As I am newcomer to futures trading and this forum, most of above must be taken with huge chunks of salt, I would appreciate all/any feedback especially from Canadians who may have travelled a similar road (successfully...?)

Thanks in advance.

If nothing works for you, i'd try to trade with topsteptrader as a funded trader. This is a viable solution for some Canadians.

For creating a US company you can check this site though i have no experience with them:
https://corpomax.com/eindex.php

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  #7 (permalink)
 stefan777 
The World
 
Trading: ES
Posts: 44 since Sep 2015
Thanks Given: 73
Thanks Received: 93

I would avoid incorporation until your are consistently profitable trading futures.
But in the long-run, it is the best choice for Canadian day traders.
I like the idea of a foreign corporation, however you will lose CIPF protection.


It's good that you are aware that it is treated as a business.

There's quite a few Canadian day traders out there reporting everything as capital gains/losses.
And a lot of people using the TFSA in the same way.

If you're trading daily and it's your primary source of income, the CRA says you have a business and your profit is taxed as ordinary income.

I wish the CRA would publish proper guidelines for active traders. Everything they wrote on the subject is over 20-30 years old.

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  #8 (permalink)
 Michaelktrader 
Vancouver BC/Canada
 
Experience: Advanced
Platform: Ninjatrader, Jigsaw
Trading: Futures
Posts: 7 since Sep 2015
Thanks Given: 1
Thanks Received: 1


skeptomist View Post
Hi all, my first post (hopefully of many) and a reply to an almost 4 year-old post (almost to the day lol)

Am looking to trade futures especially CL from Vancouver, BC but having trouble selecting broker/FCM

-IB do not like the platform/feed
-RJO Canada is very pricey
-AMP has best rates and good platform CQG+Multicharts .NET (no platform fees for life!?) but will not take BC client (only Alberta & Ontario)
-Advantage seems good though not as cheap as AMP and not quite sure they will support CQG+multicharts .NET (especially with no platform fees)

.

I have been through your struggle.
The best option for a broker I have found is Zumo. They also offer cqg data through Ninjatrader.
You need to contact them and talk with a sales rep.
I don't understand why BCSE makes it so difficult to trade futures in British Columbia.
Im a full time CL_F trader. Let me know if you want to chat.

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  #9 (permalink)
 
deaddog's Avatar
 deaddog 
Prince George BC Canada
Legendary Market Wizard
 
Experience: Advanced
Platform: National Bank Direct
Broker: NBD/BMO/Questrade
Trading: Stocks
Frequency: Every few days
Duration: Weeks
Posts: 1,283 since May 2013
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skeptomist View Post
Hi all, my first post (hopefully of many) and a reply to an almost 4 year-old post (almost to the day lol)

Am looking to trade futures especially CL from Vancouver, BC but having trouble selecting broker/FCM

-IB do not like the platform/feed
-RJO Canada is very pricey
-AMP has best rates and good platform CQG+Multicharts .NET (no platform fees for life!?) but will not take BC client (only Alberta & Ontario)
-Advantage seems good though not as cheap as AMP and not quite sure they will support CQG+multicharts .NET (especially with no platform fees)

My best options seem to be:

- create Ontario/Alberta corp
- create US LLC e.g. Nevada/Wyoming

and try to signup with AMP

As I am newcomer to futures trading and this forum, most of above must be taken with huge chunks of salt, I would appreciate all/any feedback especially from Canadians who may have travelled a similar road (successfully...?)

Thanks in advance.

I'm curious as to your aversion to IB.
I've been with them since they opened in Canada.
I have day traded the e-mini's and never had any problems.

"The days when I keep my gratitude higher than my expectations, I have really good days" RW Hubbard
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  #10 (permalink)
 
Blue Eagle's Avatar
 Blue Eagle 
vancouver British Columbia/Canada
Legendary Market Wizard
 
Experience: Intermediate
Platform: Ninja Trader
Trading: CL
Frequency: Daily
Duration: Minutes
Posts: 1,817 since Jan 2013
Thanks Given: 7,814
Thanks Received: 7,861


Hi all, I am curious what you guys who are trading daily use to keep track of your trades for accounting purposes? My accountant said it can be quite extensive as every trade needs to be recorded (purchase price and sell price) and exchange rate calculated on profits or loss daily. Even for 5-20 trades per day that sounds like it will eat up some time which is in short supply as I do this on the side after business and family responsibilities. Any experience of others would be appreciated.
Thanks

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