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Brokers in British Columbia

  • #1
  • First Post: Dec 28, 2011 8:40pm Dec 28, 2011 8:40pm
Does anyone know of a reliable forex dealers that will allow British Columbia residents to open an account? I'm looking for a dealer that offers low spreads, reliable rates and decent charting. I'm currently using Oanda, but am less than impressed with them.

There are a few dealers listed on the BC Securities and Exchange Commission website, but none of them seem to offer what I am looking for.

If anyone has any suggestions they would be greatly appreciated.

Sean
  • #2
  • Dec 29, 2011 3:17am Dec 29, 2011 3:17am
Hey Sean. I'm trading on the BC coast. I trade with a 3rd world provider and although it's been going well, I know if I have to get my money out of there before the next wave of financial collapse gathers steam, banks fall and I can't get my money out. So I've been looking into local Canadian solutions.

Clearly one wants to trade in a way that one isn't paying capital gains tax. People talk about the pros and cons of different trading platforms, spreads and such, and while all that is important, if you're paying a capital gains tax at the end of it all, doesn't that eat into profits in a pretty major way? Like, you take all the risk, and the government takes half the profits? Sounds pretty bogus to me.

So as a BC trader like you, I've been looking at different trading options that are more local, and where my money is more secure if the economy goes deep into recession and banks start collapsing like in '08. Could happen again, after all. And I think it will.

So, it looks like Questrade is a good option. I say this although I haven't even called them yet to ask about spread, trading platforms etc. I like MT4 and don't believe they use it. But look into it, I could be wrong. But what I like about them -- and maybe there are other brokers out there who offer this, who knows -- is that they allow you to hook up your trading account to your Tax Free Savings Account. Remember that your TFSA is really a Tax Free INVESTMENT Account. You pay no capital gains on earnings from this acct.

After the new year when I'm eligible to deposit into my TFSA, I'm going to open an account with Questrade and try them out. I'd look into it, after all. The most important feature of your trading account is not to pay tax on earnings; so, it has to be run through your TFSA, and as far as I can see it appears that Questrade allows that, which makes them a good solution.
Channeling profits from the fractal universe.
  • #3
  • Dec 29, 2011 8:50am Dec 29, 2011 8:50am
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 leery about using them for my trading. Most of the reviews I read were related to the stock market, but still I assume their forex isn't much better. If you haven't used Oanda before they wouldn't be bad to try. I'm not a big fan of them, but everyone has a different experience.

What offshore broker do you use? At this point I'm willing to use a well rated offshore broker. The BCSEC really limits our options.
  • #4
  • Dec 29, 2011 9:35am Dec 29, 2011 9:35am
I really feel for you guys out in BC. I've no idea why the province of my birth decided to get into more finicky FX regulations. doesn't make sense.

Just as a side note here, I noted some one posting about taxes. Using a TFSA is a great short term solution to getting around some taxes but please consult an accountant in regard to what kind of taxes you'll pay on profits from FX. Me and my accountant were convinced that you could pay capital gains on FX trading profits but as it turns out, FX is taxed at regular income rates.
  • #5
  • Dec 29, 2011 9:58am Dec 29, 2011 9:58am
I believe that forex profits in Canada are considered capital gains and are therefore taxed at normal rates, however, since it is a capital gain only 50% of your gain will be taxed at the normal rate.
  • #6
  • Dec 29, 2011 11:13am Dec 29, 2011 11:13am
I know! Our government is extremely socialist and tends to meddle in our affairs quite a bit. ICBC is a prime example! They make a profit of $500 million a year and still insist on raising insurance rates. The BC government always meddles in our business.

The same goes for forex trading. Yes, it is high risk, but I don't need the BC government telling me how to invest or with who. Not to mention most of the brokers they allow us to trade with have awful customer service and are suspect at best.

Quoting Wacky Canuck
I really feel for you guys out in BC. I've no idea why the province of my birth decided to get into more finicky FX regulations. doesn't make sense.

Just as a side note here, I noted some one posting about taxes. Using a TFSA is a great short term solution to getting around some taxes but please consult an accountant in regard to what kind of taxes you'll pay on profits from FX. Me and my accountant were convinced that you could pay capital gains on FX trading profits but as it turns out, FX is taxed at regular income rates.
  • #7
  • Dec 29, 2011 2:30pm Dec 29, 2011 2:30pm
On the Questrade point...they are really a white label for FXCM. You cannot trade forex through your TFSA account. I asked and they said no.

As for capital gains etc, the best way to trade forex in canada is through a corporation. Create a numbered company and use that as the account owner with you or your trust as the beneficial owner. It will be considered a CCPC and taxed at 11% on the first $500,000 of profits annually. Note that this is profits so your expenses can be deducted off the top.

After that then just dividend the funds out to your trust and pass those through to yourself, your spouse/kids who are older then 18. In BC you can earn somewhere around $42,000 tax free if the CCPC dividend is your only source of income.
  • #8
  • Jan 1, 2012 7:46pm Jan 1, 2012 7:46pm
Great thread guys. I too am from BC and had the same issue regarding which broker I am allowed to trade with. I have opened a couple of accounts; they include MF Global, Oanda, GoMarkets, and Dukascopy.

I was trading quite a but with MF Global before I lost most of my money (not their fault though!!). But, this is a good example where even extra regulations and protection by the local BC gov't didn't protect us from this broker collapsing.

I opened the account with Oanda because BC gov't said its okay. Unfortunately, when I tried using the demo MT4 system it was horrendous. Pip spreads and time to execute a trade were not acceptable in my mind. So I never funded the account and will definitely stay away from them.

I opened an account with GoMarkets and funded the account...lost everything, again because of my lack of ability to make money, not their fault. I ran everything through my programmed EA and everything ran smooth. I will use then again in the near future.

Dukascopy is my dominant broker and I like the way they operate. Order execution is quick and spreads are reasonable. Rarely did I have an issue with lack of volume. It was only at the begging and ending of the weeks trading.

Hope this helps, and keep adding info on taxation, as it seems its a very confusing situation for us. For example, I thought for sure it would be taxed as Capital Gains, but apparently not according to Wacky Canuck.
  • #9
  • Jan 1, 2012 8:32pm Jan 1, 2012 8:32pm
I'm going to try Dukascopy. Oanda has rubbed me the wrong way with a few things. Huge spreads during news, bad customer service and the fact it seems as though their rates are a little off at times.

Is anyone in Victoria?





Quoting bigsteely101
Great thread guys. I too am from BC and had the same issue regarding which broker I am allowed to trade with. I have opened a couple of accounts; they include MF Global, Oanda, GoMarkets, and Dukascopy.

I was trading quite a but with MF Global before I lost most of my money (not their fault though!!). But, this is a good example where even extra regulations and protection by the local BC gov't didn't protect us from this broker collapsing.

I opened the account with Oanda because BC gov't said its okay. Unfortunately, when I tried using...
  • #10
  • Jan 3, 2012 5:23pm Jan 3, 2012 5:23pm
Forex gains are taxed as capital gains in Canada, just called the CRA and confirmed it. They also provided me with a reference to the Capital Gains booklet T4037 in Chapter 2 and in the section "Bonds, debentures, promissory notes, and other similar properties" under foreign exchange.

Anyone here that has or is using Dukascopy:
I am looking to open an account with them but only plan on depositing an amount of about 2500 which would mean that I would have to use the Dukascopy Europe division....their office is located in Latvia. Is anyone using this and if so does it seem legit and trustworthy for an overseas individual such as myself?

Thanks
  • #11
  • Jan 3, 2012 5:40pm Jan 3, 2012 5:40pm
So you can now open an account with FXCM in BC. It is through Friedberg Direct located in Toronto. I haven't looked into them too much, but if anyone has any experience with them please chime in.
  • #12
  • Edited May 15, 2017 1:22pm Jan 4, 2012 11:16pm | Edited May 15, 2017 1:22pm
HI:
{ personal information deleted by staff, per request }....I am using oanda......It has been ok to me......I am not able to give you more info than all the posts here,sorry.....so i just confirm what I think correct from the above posts...


1. Oanda is ok, slow around data release.......FXCM is no better than onada.
I used Questrade 2 years ago, slower than Oanda and their JAVA was very inconvinent.....


2....NEither TFSA nor RRSP inclued forex profits......

about Taxes,I am pretty sure Forex profit is treated as regular earned income............Creating a small corporation seems to be the only way
to reduce some taxes.........I am borrowing the tax planing book from public library.... Here is the title, "KPMG tax planning for you and your family".......Maybe the chapter 14 can help you on this topic.....
  • #13
  • May 26, 2017 2:48pm May 26, 2017 2:48pm
Quoting Wavesurfer
Hey Sean. I'm trading on the BC coast. I trade with a 3rd world provider and although it's been going well, I know if I have to get my money out of there before the next wave of financial collapse gathers steam, banks fall and I can't get my money out. So I've been looking into local Canadian solutions. Clearly one wants to trade in a way that one isn't paying capital gains tax. People talk about the pros and cons of different trading platforms, spreads and such, and while all that is important, if you're paying a capital gains tax at the end of...
hey man great post, hows your TFSA account with questrade going?
  • #14
  • May 26, 2017 2:49pm May 26, 2017 2:49pm
Quoting jobfans
HI: { personal information deleted by staff, per request }....I am using oanda......It has been ok to me......I am not able to give you more info than all the posts here,sorry.....so i just confirm what I think correct from the above posts... 1. Oanda is ok, slow around data release.......FXCM is no better than onada. I used Questrade 2 years ago, slower than Oanda and their JAVA was very inconvinent..... 2....NEither TFSA nor RRSP inclued forex profits...... about Taxes,I am pretty sure Forex profit is treated as regular earned income............Creating...
where does it say that there TFSA does not include forex earnings?
  • #15
  • Jun 3, 2017 6:10am Jun 3, 2017 6:10am
Quoting scarroll
So you can now open an account with FXCM in BC. It is through Friedberg Direct located in Toronto. I haven't looked into them too much, but if anyone has any experience with them please chime in.
Is fxcm still servicing as there was a rumor about it being booted out from america..!
  • #16
  • Last Post: Jun 5, 2017 3:47pm Jun 5, 2017 3:47pm
Quoting jollypk
{quote} Is fxcm still servicing as there was a rumor about it being booted out from america..!
Hi jollypik,

Canadians residents can open an account through Friedberg Direct which is powered by FXCM technology: www.fxcm.com/ca

Friedberg Direct is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF), so all accounts are protected by the CIPF for up to $1 million.

Jason
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