You must first complete all required tasks during the on-line registration
and account application process, and you must also print and manually sign
the Customer Agreement, Shareholder Instruction Form B & C and the Consent
to Electronic Delivery, and mail the signed originals, along with a One Canadian
Dollar Cheque to Interactive Brokers Canada.
Why must I send
a One Canadian Dollar Cheque to Interactive Brokers Canada, and
is the Cheque credited to my account or refundable?
In connection with governmental and regulatory anti-money laundering requirements,
Interactive Brokers Canada is able to satisfy verification requirements for
its customers if the One Canadian Dollar Cheque clears through the Canadian
banking system. The cheque will not be credited to your account and it is
non-refundable.
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Why do I have to fill out a W8 if I am a Canadian
citizen with an account at IB Canada, a Canadian company?
The reason you are required to complete and file a United States Internal
Revenue Service (IRS) Form W-8 is because as an IB Canada customer, you have
the ability to trade US products and thereby earn US-source income (e.g.
interest and dividends). As such, the IRS requires that the IB Canada customers
file a Form W-8 so that IB Canada can avoid withholding funds from your account
for US taxes. If you do not file a Form W-8, we will be required to close
your account.
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Must I use the Deposit Notification
Form each time I deposit funds?
Yes. You must use the Deposit Notification Form so that Interactive Brokers
Canada has advance notice that you are depositing funds, and to assist us
in making sure that your funds are credited to your account. If you do not
use the Deposit Notification Form, you may experience a delay in having the
funds credited, and this may affect your ability to trade or it may result
in a liquidation of positions in your account if your account has not been
credited.
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Can we trade the Canadian stock exchanges?
Yes.
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How does the SEC day trading rule affect
Canadians?
Because your U.S. securities exchange trades are cleared in the US, the SEC
Pattern Day Trading rules are applicable. In this regard, if you effect 3
stock or equity option "day trades" on a US securities exchange
within a 5 day period, IB Canada will designate you as a "pattern day
trader". The "pattern day trader" designation will require
that you maintain a minimum of $25,000 (US dollars) to continue trading.
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For the SEC day trading rule, does the $25,000
need to be in Canadian Dollars or US Dollars?
The funds may be in Canadian Dollars, so long as they are the equivalent
of US$25,000, or more.
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Once my account is funded in Canadian
dollars, can I trade Globex and ACE?
Yes, if your account is approved to do so.
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How are my funds held, and how will they be
used to pay for my settlement and margin obligations for my stock, equity
options and futures trades?
Your funds will be held by Interactive Brokers Canada in a bank account.
Each night, after the close of trading that day, Interactive Brokers Canada
will remove funds from this bank account to pay for your trade settlement
and margin obligations that arise from that day's transactions, including
changes in the market value of positions held in your account. In turn, your
Daily Account Statement will reflect debits made to your account for your
settlement and margin obligations. Of course, your Daily Account Statement
will also reflect other debit items such as margin interest, commissions,
and withdrawals; and, credits to your account, for example, for deposits,
proceeds from sale transactions, interest, dividends, etc.
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How long will it take for account
approval?
Approval is swift after you have completed the necessary on-line account
registration tasks and application tasks and sent the required signed documents
(Customer Agreement, Shareholder Instruction Form B & C, Consent to Electronic
Delivery) along with the One Dollar Canadian cheque to Interactive Brokers
Canada.
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Are the commissions quoted in US dollars
or in Canadian dollars? Is there an exchange rate difference?
Commission are quoted in the currency of the exchange on which the trade
took place. Exchange rates are subject to fluctuation.
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Which office do I contact if I have
a trade problem?
Please contact Interactive Brokers Canada by e-mail, or by telephone to the
telephone number indicated on the Interactive Brokers Canada website.
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Do you offer RRSP accounts?
No, and we do not expect to offer these accounts in the near future.
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What jurisdiction's tax laws am I subject
to?
You must consult with your independent tax advisor regarding the tax implications
of your Interactive Brokers Canada account. Neither Interactive Brokers Canada
nor its personnel are authorized to provide you with tax, investment or other
advice.
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