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I don't think a US citizen would want to trade from Canada.
Commissions in Canada are significantly higher and trades are significantly
slower since (at least at the moment) each trade must be approved by a
registered representative (broker). There is a movement afoot to lessen the
training time required for licensing of registered representatives.
I keep my RRSPs (the equivalent of an IRA) with CT Securities (now or soon
to be a part of TD Waterhouse) and RBC Dominion Securities. I am charged
modest commissions by CT Securities (CDN $29. minimum for small internet
trades - an industry internet standard) and full service commissions by RBC
DS.
The Toronto Globe and Mail recently reported that Chas. Schwab is cheaper
and provides speedier execution on accounts with a minimum of CDN $20,000).
Personally, I don't know that to be a fact as I haven't investigated, but my
friends who have accounts with US brokerages pay far smaller commissions for
US trading than anything I am aware is available in Canada.
Execution of orders in Canada can be incredibly poor. Recently CT
Securities took 3 hours to process a very simple trade at the ask placed
over the internet (and only after I made numerous telephone calls through
the automated selection system, which requires the entering of 21 +/-
additional digits, only to get a busy signal, then by placing a further call
which found a back door to the trading desk, waited 45 minutes for the back
door to answer and then waited for the person who answered the telephone to
have a broker approve the trade). In the meanwhile, the stock had fallen
3.4% below my offer and then rallied 1.7% above.
RBC DS (but reportedly not its internet component known as Action Direct) is
quick and responsive - fills can be confirmed while one is on the
telephone - but one pays 2 to 3 times commission for the benefit of service.
As well, a US citizen wishing to trade from Canada should obtain advice from
a CA (Canada) or a CPA (USA) to determine the tax treatment which may be
attributed to the trading activity.
Finally, I don't think much turns upon the fact that New Brunswick (as well
as Nova Scotia and Prince Edward Island) are one hour ahead of EST (or that
Newfoundland is one and one-half hour ahead). I also deal with people in
Vancouver which is on PST (3 hours behind EST) and they are regularly at
their desks at the same GMT as brokers in Toronto or New York.
Regards,
Tony
-----Original Message-----
From: Prosper <brente@xxxxxxxxxxxx>
To: realtraders@xxxxxxxxxxxxxxx <realtraders@xxxxxxxxxxxxxxx>
Date: March 27, 2000 5:26 PM
Subject: [RT] Trading from Canada
>Can anyone fill me in on the pros AND cons about trading from anywhere in
>New Brunswick, Canada which is one hour ahead of EST if my map is right.
I'm
>a US citizen at present. Please reply privately if unsuitable for the
forum.
>Thanks.
>
>Prosper
>
>
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