This Broker Stands Out in Canada For Trading US Stocks
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- Опубликовано: 23 июл 2024
- This video shows how Interactive Brokers is a good choice to trade US equities for traders living in Canada. It goes over the low and transparent fees related to trading stocks with IBKR, and explains some advantages compared with other brokerages. There are more things that go into choosing a broker, not all of which are covered in this video. It is the responsibility of each customer to do their due diligence; this video has partial information regarding these services and for the most complete information, reference their official web site.
US Stocks Pricing in Canada with IBKR: 🟢
www.InteractiveBrokers.ca/mkt...
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Timestamp
00:00:00 Introduction
00:01:05 Why trade US stocks?
00:01:46 Explaining the table on this page
00:03:19 $0 Commissions explained (Nothing is really free)
00:05:31 US stock fee with IBKR
00:08:03 CAD stock fee with IBKR
00:09:25 Inactivity fees
00:11:08 Retail stories about IBKR
#trading #interactivebrokers #tutorial
100% Right! I used to trade under TD warehouse, Paying 9,99$ per trade. I changed in 2020 to IBKR. GREAT VIDEO,
Really appreciate this video, and all your content I'm also a Canadian trader! All your videos have been very helpful so far!
Thank you for the kind words!
After IBKR removed account inactivity fees they became the top broker for Canadians period.
Thanks for sharing!
What should i select as base currency from canada? If i am trading us options.
Great video, as always. I belong to a U.S. daytrading group and am stunned to hear some of the fees they pay. Thank you IBKR!
Right on
A long time ago I had a trading account with my local bank. At the end of the day they were selling me USD to cover my purchases and buy me USD on my sales. Of course the bank screwed me big time with that. That's why, when I found IBKR, it was a no brainer, I instantly switched. IBKR manage your cash and trades positions differently. When and only when you convert currencies they apply the FX bid-ask price on the value of your transaction.
I am currently daytrading Options using IBKR TWS platform. Commissions are just great. Their options price charts are slow to show up but hot keys and buttons are very effective.
Forgot to mention I live in Canada
Thank you for sharing. I also agree they provide good services. I agree that the charts in TWS are bad and slow to load data. It is still fine for most users. This can also be overcome by using a 3rd party application that connects to the API but that is not easy for the average user.
I've been practicing with the IBKR paper trader and im Canadian, the thing Im afraid of is things like how many days it takes to settle not having the PDT rule here and anything else that might be unknown to a beginner trader using IBKR from Canada.
Do you have a video laying out specifics/hidden/unknown MUST-KNOW things that people should know if your a Canadian trading US stocks with IBKR? aside from the things you may have mentioned in this video
Sorry for the delayed response. One important thing is it depends on the account type being used. With a cash account, most trades take at least 1 day to settle. You can trade with unsettled funds but be cautious because if you buy a stock with unsettled funds, the broker may not let you sell it until those original funds have settled. You can confirm this with official information but currency and options trades typically settle the next day where stock trades might take T+2 to settle. In a margin account this does not happen. With margin accounts there is a greater flexibility for day trading and moving funds in and out with less limitations. In Canada there is no PDT rule so there is no concern about that.
Hello I intend to open an account with Interactive Broker soon, I will mainly buy and sell options. Is it in your opinion preferable to open a cash or margin account for this type of transaction given that the transactions will generate small profits?
I trade since 2 years on IBKR. But only stocks. I would like to learn more, so i thought gonna start with micro e-minis. Im watching videos, i try to learn as much as i can, but i have just start with it. My only question, that $5000-6000 is comfortably enough to trade 1-3 contracts micro e-mini s&p??
With stocks im pretty good, i only had 9 red days with small losses in 2021. But im affraid because of that war and whats coming, is better to focus on futures instead stocks..
Do a lot of testing in trade simulation mode when you are experimenting with a new product. Regarding the risk management, watch my video on position sizing for day trading.
Nice video. Can you do a video on whether it's better to do Norbit's Gambit to convert Canadian to US dollars or do the FX conversion instantly on IB, the second option charges 10% commission which is very high. Do you know if Ib allows Norbit Gambit
Hello, thanks. It is not necessary to convert currency in your account if it is a margin account. You can trade US stocks with Canadian dollars, the only thing is that you will be paying an interest on the negative USD balance. So if you plan to hold those stocks long term it might be better to just convert. The fee is definitely not 10% for a currency conversion, I don't know where you got that information from. It's typically a fixed fee of between USD $2 - 2.76. No IB does not have this feature where you can buy a USD denominated stock using CAD. However there might be products like this that exist that I am not aware of. You may want to do some research on that front.
Hi, and thanks for the clear explanation! Does Interactive Brokers add up all the trades for the tax year and send me a T slip for the accountant? Thanks!
They do provide those yes. Glad it helps.
Really Appriciated .
No problem!
About the Fx conv. fee, I never pay that as a Canadian: you can set your account with USD as the base currency. That way you can do the conversion only when you need to and when the USD:CAD is going your way. If you know what you're doing and have enough capital to make it worth your while you can even hedge against currency conversion using contracts. Over a economical year i litterally ended up having a P&L higher of a few percent doing that. Even to simply convert the CAD to the USD it is absolutely insane the fees that canadian banks are billing. hehe
Is there a webpage or video overview on how to navigate the USD:CAD conversion without being hurt with insane fees? Is Norbert's Gambit part of it?
@@timhorton6156 Not that i know of. IBKR pretty much convert it for you at spot price. I just put the - base currency - of my account set to USD, this way i don't have to do FX orders each time i order some stocks of contracts. It's also the only way i found to make IB reliably interface with most third party software.
IB has transparent fee for currency conversion it’s $2 USD plus a very small amount, the fee does not really vary (you can test in demo account) which makes IBKR maybe the lowest cost broker to exchange a large amount of cash. Only thing is you can’t really pull out those other currencies unless you have bank accounts in those countries. If you get paid in USD from business, Wise is a fine option to change USD to CAD or other, their fee is around 0.5% of the trade.
@@VerrilloTrading My account with IBKR is in CAD currency. Despite this, they show me my positions in the currency I used at time of trading. My monthly reports show me my transactions in their original currency, would it be CAD or USD. only summary is converted in CAD. For transfers and withdrawals, it is even simpler. I setup an Forex trading window in my IBKR account. So, when I want to convert currencies, I just initiate a Forex trade for the said amount. Forex trading being very liquid, the bid-ask spread is only 0.01 or so,
@@michellagrange5648 I'm from Canada and this is exactly what I did too. I deposited CAD and just converted a good portion of my deposit to USD, saved some CAD for the market data subscriptions and cushion.
thank you
Hi, appreciate the video. I have a question though. How does US stocks trading work, do i have to convert CAD to USD? OR every order that i place they will charge me that conversion fee??
Will appreciate your on anyone’s response who is canadian and trading US stocks on this platform. TIA.
Hello. In a margin account you do not need to convert currency to trade any assets. Your CAD currency will act as the necessary collateral and if you purchase US stock you will have a negative USD balance. You do not need to cover the negative balance unless you want to.
The biggest advantage of IB is currency exchange for only $2. No need to do Norberts gambit. And options trading without crazy fees.
Agreed!
But they charge hidden fees aka commissions while buying US stocks
@@gs9831Did not see any. I bought many US stocks through them, there is no any hidden fees.
I don't understand why everybody says IBKR is cheaper, not always. let me give you an example ,In 2024 Less than 300k USD share with Tiered type will cost $0.006 per share plus other fees based on IBKR website for Canadian , so if i buy 20k share of stock that will be 20000*0.006 + other fees= $120 plus fee
In Questrade that will cost $9.95 + ECN fee.
So, it will be cheaper to buy and sell on IBKR as long as number of share doesn't exceed 1650, please correct me if i am wrong
The way to reliably test this would be in their paper trading environment.
Good stuff, can you do how Canadians go about dealing with capital gain taxes?
Our channel generally doesn't discuss tax stuff but try Shihab Personal Finance he is very knowledgeable with the different tax treatments.
Been wondering do we need to have a minimum 25,000 USD in the account in order to do Day trade as a Canadian?
The answer is no, the Pattern Day Trade rule does not apply in Canada right now.
not to contradict anything. but with smart routing orders just dont fill, especially with market orders, which means you cant get out of shorts. the "desktop app" is so buggy that you can end up placing a short when you want to close a long position. with the inability to select the smart routing type in the desktop app. portfolio doesnt updates/refresh all the time do you cant even acces the position unless you reboot the app. there is no default direction setting, so if you want to placewhat i think is a direct order, you have to open advance order and set it there. every time you make a order. stop orders wont fill if you dont set this right as this is also a market order, which does not fills with smart routing. i dont have any options here in the eu for pennystocks not really at least should i give the tws a shot ..?
either way the basic smart routing is almost a market forwarding whilst you still pay fees.
its shady that such a large broker is just this bad, surely losing ppl money and i read several such accounts
It is clearly stated that the new IBKR Desktop app is still beta. Do not use beta testing applications for live trading. TWS is solid I would recommend it.
@@VerrilloTrading Hey thanks for the quick reply. i double checked and there is no indicating that it is still in beta, its even promoted as their flagship.
The app itself doesnt seems to be mentioning this at all. just the demo warns prolifically about it being a demo. I want to daytrade in OTC which is also why im"stuck" with iB as im in the eu and not using a lot of capital. TWS seems workable but i find myself spending days on studying the app instead of being able to focus on the market. and obviously it hurts the eyes a bit.
All this is frustrating as a novice.
from my understanding using tradeviewer has some caveats such as extra cost.and unable to set a sliding stoploss which is pretty big for me. Setting the brackets is a big feature i need in order to not mess up and lose big.
i can look in to the further details and specifics myself and i could probably find you answering this question somewhere, the question being: is the iB portal a option for me to look in to, yea or nay?
Other wise its getting certified in TWS or wait till the desktop is out of beta. i do think its a promising app but im puzzled ,why this behemoth of a company doesnt has this sorted out yet.
It seems like a choice. if their professional customers have their proprietary apps, its clearly feasible.
Ow the phone app is not an option neither because the settings are all blank/bugged not showing.
It would help if you shared other available options instead of focusing on one single broker.
Well the funny thing is, we do not know of any that can compete or we may have included them. Being a stock broker in Canada has a lot of paperwork associated with it from what we heard and it is clearly not worth it for any smaller firms to do business there. Futures trading is different and easier for US brokers to accept Canadian clients, not with stocks.
Is there any way to avoid the hidden commission fees while buying US stocks?
Which hidden fees are you referring to? Broker commissions are normal.
what is the best way to transfer USD into Interactive broker? I am Canadian and I already have it in USD
We're pretty sure the only way would be to have an account with a bank in the USA, and fund it via that bank. The issue with Canadian banks that allow you to hold USD funds, they don't allow you to send ACH or do very much of anything with those funds. We never found a reliable way to do what you are asking. This is something we need to look into further. If you find a way to do it reliably, please let us know.
@@VerrilloTrading thank you
@@VerrilloTrading I would suggest using Wise App it allows you to have a US Bank account
How to use interactive brokers for US residents?
It's pretty much similar.
Please also do a video on how IB charges for Market data, I believe it's $10 every month or every quarter, since this adds up if you invest and not trade is it better to stay with the other brokerages
Hello, there is a more recent video that covers this topic: ruclips.net/video/poBQVfdsxt8/видео.html You are not obligated to subscribe to market data in any account.
Ib a little pricey for penny stocks
Thanks for sharing.
Td is free for stock thankfully in usa
Thanks for sharing Captain
I mostly only trade with Interactive Broker's phone app. It is better than their platform.
Thanks for sharing, I have also found it pretty solid.
National bank charges $100 unless you have $20000 of stocks, cash, etf etc. with them.
What is the $100 fee for though?
@@VerrilloTrading Annual fee
Questrade charge MAX 9.95
That's a lot to todays standards.
@@VerrilloTrading No, I mean even if you buy 50000 shares or million ..Questrade charge MAX 9.95 and min 4.95 ..