Interactive Brokers Forex Review - 2020 Spreads To Platforms
Currency Futures (Canadian dollar D6) - How do I go about hedging by Exposure to USD
Hi there, My base currency is Canadian and I hold some USD exposure right now due to investments. I am new to using Interactive Brokers and futures trading. To my understanding it is possible to mantain a hedge using the cash-settled large and mini Currency Futures Contract and occasionally adjust depending on your USD exposure. https://www.cmegroup.com/trading/fx/g10/canadian-dollar.html Per https://www.retailinvestor.org/hedge.html#risk "It is too expensive to hedge." The cost to buy a $100,000 futures contract good for a year, is about $5. Pittance. Yes you must provide collateral but that is not a cost. You will also find that buried somewhere in whatever method you chose, is a cost/benefit equal to the difference in interest rates between the countries. Since Canada and US rates are so close you can cancel out any cost by using limit orders that let normal market volatility make up the difference. The fund managers who say hedging is expensive are referring to using options. This method IS expensive. Options are a one-sided bet on the direction of FX, expiring within a specific time span. They are not hedges. The cash funding of open futures contracts come from the daily settlements. If your position gains $1,000 in value one day, there will be $1,000 put into your account. More importantly, if your position loses $1,000, it will be taken from your account. If there is not sufficient cash your broker will consider it borrowed and charge you interest. You must realize that because this is a hedge, you are not 'losing' that cash. For every dollar you might lose in the futures account, the offsetting investment in the foreign security will have gained the same amount. Agreed, you cannot liquidate that cash daily, but the value is there." 1) Anybody have any experience in this in how to consider which month of futures contract to purchase, (near month or 1 year from now if I want one year of) I believe futures contract automatically roll-forward to the next month. The Price Curve seems to curve down, and is in some sort of backwardation? So farther away in time cost more due to priced in uncertainty - and also more thinly traded? 2) Collateral is required so I assume is some sort of Margin that is required to maintain the contract, 3) What are the calculations to determine how much to hedge out. Say I have $100k USD? Is it just Looking at say $100k USD x the Future Price Rate (of CAD/USD) or the current Spot Forex Exchange Rate? I.e. $100k USD / 0.74500s (Aug '20) = $134k CAD ~ So 1 $100k CAD Contract and 3-4 $10k CAD mini contracts? 4) Any resources to learn about this? Thanks in advance
Hi all, I'm newer to trading stocks and I really love the TradingView interface. I'm in Canada and there are few options here for brokerages. I was wondering if anyone has been able to find a brokerage with stocks (not forex) that works on TradingView? I've been trying papertrading with Interactive Brokers and have found it really frustrating. Any insight/recommendations would be really, really appreciated! Thank you
I have recently turned 18 and have long been interest in trading currency on forex, I am trying to set up an account with Interactive Brokers and when I put in my networth which is currently less than 20000 USD since I am 18. I however have like $5000 to play around with keep in mind I have been practicing with demo accounts for a couple years so I am not just jumping into this. But when I try to create an account it says I must have a liquid net worth greater than 20000, so does it matter if I lie about how much money I have? Like will they verify it? P.S I live in Canada
Personal Experience: Change brokerage from RBC&TD to interactive broker
I just want to share my personal experience change brokerage from RBC&TD to interactive broker since late 2019. I found interactive broker much better than TD/RBC for my US equity investment. I invest predominantly in US stocks, including Canadian companies dual listed in NYSE/NASDAQ. Some of the big Pros:
Very low commission compared to RBC/TD. 1USD for fixed pricing, 0.35 for tired pricing.
Participation in pre-market and after-market. This help me to fill my aggressive limit order.
USD/CAD forex is 2USD, even cheaper than Nombert Gambit.
Fractional shares allow me to invest in Google/Amazon/Tesla in a more reasonable pace.(buy 500 dollars for four times vs buy 2000 at one time)
They have several platforms which is very confusing. TWS is most powerful but look ugly on Mac. Client portal is nice looking but function-lacking. I actually found IBKR IOS to be powerful but also nice looking, so end up mostly use IBKR IOS.
Be careful using EFT deposit. There is a 60 business day holding period if withdrawal to a different bank.
One might need to spend some time research on their fee structure, deposit/withdrawal procedure.
I have ignored IB for years due to it being an American brokerage and do not have physical locations. Finally tried it and now think it is the best for US equity investment in Canada. Hopefully if we move more investment to online brokerage such as Questrade/IB/Wealthsimple, eventually will shake the big 5 and force them to lower their ridiculous commission.(It is still nice to have one of the big 5 for some portfolio.)
Hi again PFC. I'll soon be moving to Canada for the first time as a permanent resident and want to get my worldwide income (read: taxes) in order before I move, and have a few doubts. FYI, as a newcomer, any income I have before landing is tax free.
I have an Interactive Brokers account with USD holdings in ETF index funds. Should I withdraw that amount before coming to Canada and then transfer to a new account there? If not, after I land, will I be charged tax when I transfer over, likely to Questrade?
I have a few fixed deposits (similar, if not the same as GIC's) in India where I won't need to pay any tax on upon maturity. Some mature in 1, 2, and 5 years).
a). Am I correct to think my initial capital won't be taxed later and only the interest on the FD's? b). My dilemma is whether to break these now, lose the interest I could accrue, and convert the money now to CAD. In a couple of years the Indian rupee is likely to get worse against the CAD so I'd lose out on forex conversion and then tax. Would that be more or less than tax I may have to pay?
I'll be selling some property and/or getting the money I invested (+ interest) back, hopefully soon. Do I need to pay tax on property sales in a foreign country, even if I purchased before I moved to Canada?
If anyone has ideas or sources on how to figure out / calculate the best options, I'd be indebted. Thanks.
Interactive Brokers is a low fee forex broker with 8 entities from Canada to Australia and regulation including FCA, ASIC and FINRA offering the advanced TWS forex trading platform, a range of CFDs from cryptocurrency to ETFs backed by a score of 7.8/10 from 32 Interactive Brokers reviews. Forex Brokers in Canada. Over the last years, the Canadian Forex Brokers that are legitimate trading service providers in Canada extends their offerings, while the regulation and authorization of the trading companies established through IIROC – Investment Industry Regulatory Organization of Canada.. Among the allured trading opportunities, the main concern is a safe trading environment and ... Forex layout: Within TWS, FXTrader is the main terminal for trading forex, which provides traders access to 92 CFDs on forex or 105 cash forex pairs offered by Interactive Brokers. When adding forex pairs to a watch list, users can choose from both spot forex cash rates and forex CFDs from either the IDEALPRO or SMART venue. Interactive Brokers (IB )’s comprehensive offering makes it easy to access over 100 market centers in 24 different countries that trade stocks, forex, futures, options, ETFs, bonds and CFDs. This Interactive Brokers Canada review looks at your entire package including trading fees, your webtrader platform, mobile applications, customer service and more. Minimum deposit amount Once […] Interactive Brokers Canada Inc. is an execution-only dealer and does not provide investment advice or recommendations regarding the purchase or sale of any securities or derivatives. Registered Office: 1800 McGill College Avenue, Suite 2106, Montreal, Quebec, H3A 3J6, Canada. Website: www.interactivebrokers.ca. Interactive Brokers U.K. Limited Interactive Brokers Canada Inc. is an execution-only dealer and does not provide investment advice or recommendations regarding the purchase or sale of any securities or derivatives. Registered Office: 1800 McGill College Avenue, Suite 2106, Montreal, Quebec, H3A 3J6, Canada. Website: www.interactivebrokers.ca. Interactive Brokers U.K. Limited The best forex brokers in Canada should be under regulation. It should offer account options, platform choice, trading conditions, and beginner friendliness. Regulation. Regulators make sure that brokers have a good trading environment and anti-money laundering processes, all the while operating strict auditing oversight and ensuring client fund protection. Brokers that are under regulation by ...
Interactive Brokers Platform Tutorial for Day Trading 2020 ...
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