Does anybody know of a reliable forex traders that will allow British Columbia residents to open an account? I am looking for a dealer that offers low spreads, reliable rates and decent charting. I am currently using Oanda, but am impressed with them.
There are a few traders listed on the BC Securities and Exchange Commission site, but none of them appear to provide what I am looking for.
If anybody has any suggestions they'd be greatly valued.
Sean
Hey Sean. I am trading on the BC coast. I exchange using a world provider and I know if I have to receive my money out of there before another wave of fiscal collapse gathers steam, although it's been going well, banks collapse and I can't get my money out. So I have been looking into solutions that are Canadian that are neighborhood.
Clearly one needs to exchange in a way that one isn't paying capital gains taxation. People talk about the pros and cons of various trading platforms, such and spreads, and while all that is important, if you are paying a capital gains tax at the end of it all, does not that eat into profits in a pretty major way? Just like, you take all of the risk, and also the government takes the profits? Sounds to me.
As a BC trader like you, I have been considering different trading options which are more neighborhood, and in which my money is much more secure if the market goes deep to recession and banks begin collapsing such as in '08. Could occur after all. And I think that it will.
So, it resembles Questrade is a fantastic option. I say this although I haven't even called them to ask about spread, trading platforms etc.. I don't think they use it and like MT4. But start looking to it, I might be wrong. But what I like about them -- and there are other brokers out there who offer is they permit you to hook up your trading account into your Tax Free Savings Account. Remember your TFSA is a Tax Free INVESTMENT Account. You pay no capital gains.
Following the new year when I am qualified to deposit into my TFSA, I'm going to open an account with Questrade and try them out. I would look to it, after all. The most essential characteristic of your trading account isn't to pay tax on earnings; so far as I could see it appears that Questrade lets that, which makes them a solution that is fantastic , so, it has to be conducted through your TFSA.
Hi Wavesurfer,
If you don't mind me asking, where at in BC are you? I'm in Victoria myself.
I've thought about Questrade, but after reading some reviews for them I'm kind of thinking about using them because of my own trading. Most were related to the stock market, but still I assume their forex isn't much better. In case you haven't used Oanda wouldn't be bad to attempt. Everybody has a different experience, although I'm not a huge fan of them.
What offshore broker do you use? At this point I'm eager to use a nicely rated offshore broker. The BCSEC limits our choices.
I really feel for you men out in BC. I've no idea why my birth's province decided to get into FX regulations. Doesn't make sense.
As a side note here, I noted some one posting about taxes. Employing a TFSA is a great short term solution to getting about some taxes but please consult an accountant in relation to what sort of taxes you will pay on profits from FX. My accountant were convinced that you could pay capital gains on FX trading profits but as it happens, FX is taxed at regular income rates.
I believe that forex profits in Canada are considered capital gains and are taxed at normal rates, however, as it's a capital profit only 50 percent of your profit will be taxed at the normal rate.
I understand! Our government is socialist and will meddle in our affairs rather a little. ICBC is a prime example! They make a profit of $500 million annually and still insist on increasing insurance rates. Our business is always meddled in by the BC government.
The exact same goes for Currency Market trading. Yes, it's high risk, but that I do not require the BC government telling me how to spend or with that. Not to mention the majority of the brokers they allow us to trade with have customer service and are suspect at best.
Originally Posted by ;
On the Questrade point.. .they are a white tag for FXCM. You can't exchange Foreign Exchange via your TFSA account. I asked and they said no.
As for capital gains etc, the best approach to trade Foreign Exchange in canada is via a corporation. Produce a company and use that as the account owner with you or your confidence as the owner. It'll be thought of a CCPC and taxed at 11% on the first $500,000 of profits annually. Be aware that that is profits so that your expenses could be deducted the top off.
Then just dividend the funds out to your trust and move those through to yourself, your spouse/kids that are older then 18. In BC that you can earn somewhere around $42,000 tax free if the CCPC dividend is the only source of income.
Good thread guys. I too am from BC and had exactly the same issue about which broker I am allowed to exchange with. I've opened a couple of accounts; they include MF International, Oanda, GoMarkets, and Dukascopy.
I had been trading a long time with MF International before I dropped most of my money (maybe not their fault though!!) . However, this is a good example where regulations and protection from the BC gov't didn't protect us from this broker collapsing.
I opened the account with Oanda because BC gov't stated its okay. When I tried using the MT4 system it had been horrendous. Pip spreads and time to execute a trade were not acceptable in my thoughts. So I never funded the account and will stay away from them.
I opened an account with GoMarkets and funded the account. . .lost everything, again due to my lack of ability. I ran everything through my programmed EA and everything ran smooth. I will use then in the not too distant future.
Dukascopy is my dominant broker and that I enjoy how that they operate. Order execution is fast and spreads are reasonable. Did I have an issue with insufficient volume. It was just in ending and the begging of the trading.
Hope this helps, and keep adding information on taxation, as it seems its a very perplexing situation for us. For instance, I thought for certain it would be taxed as Capital Profits, but apparently not based on Wacky Canuck.
I will try Dukascopy. Oanda has rubbed me the wrong way with a couple things. Spreads that are enormous during newscustomer service and the fact it appears like their rates are a little off occasionally.
Is anyone in Victoria?
Forex profits are taxed as capital gains in Canada called the CRA and confirmed it. They provided me with a reference to this Capital Gains booklet T4037 in Chapter 2 and in the section Bonds, debentures, promissory notes, and other similar properties.
Anyone here who has or is using Dukascopy:
I am looking to start an account with them just plan on depositing an amount of about 2500 that would indie that I would have to use the Dukascopy Europe branch....their office is loed in Latvia. Is anyone working with this and if so does it seem trustworthy and untrue ?
Thanks
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