Global Trading in Canadian Registered Accounts

[Liberty]

Opening a RRSP or TFSA at IB is the same as opening any other account. just make sure you check the right account type at the beginning.

 

You don't need to worry about having multiple accounts. IB offers an advisor account that allows you to have up to 5 accounts under it. You should open and advisor account the get in touch with IB and tell them to move your existing trading account under the advisor account. Then open up the registered accounts under the advisor accounts just like any other account. No need to worry about handling multiple accounts. When you log in with the advisor account in Trader Workstation you can trade in all sub account simultaneously.

 

Now there's one caveat.... if your trading account is pre mid-2013 before they added a number to the accounts then you can't move your account under the new advisor account. You'll have to open an advisor account, then open a new trading sub account under the advisor account then get in touch with IB and ask them to move your positions from the old account to the new account and then open your registered sub accounts under the advisor account.

 

Thanks, much appreciated!

 

What do you mean "add a number to the account"? Where can I see if my account has one?

I don't know if you can "see" it. At one point in 2013 around October they added a digit to the account number and account numbers went from having 6 digits to 7 digits. If your account pre-dates that it falls into the category I mentioned. I think its a technical thing on their side.

 

I created my IB Canada account in 2014, so I guess I should be ok on that front. Thanks.

[Liberty]

I just received this email from IB Canada:

 

RSP & TFSA Accounts Now Available

 

In response to the numerous requests we’ve received to offer tax advantaged accounts to our Canadian clients, Interactive Brokers is pleased to announce the availability of Retirement Savings Plan (RSP) and Tax-Free Savings Accounts (TFSA). Both accounts offer tax-free accumulation of earnings, with taxes on contributions and earnings deferred until withdrawal in the case of the RSP and no tax on withdrawals of post-tax contributions and earnings from the TFSA.

 

Opening an account is simple and can be initiated from your existing account by logging into Account Management and selecting the Manage Account, Add or Link Accounts, and then Create Linked Account menu options. Once linked, your new RSP and/or TFSA account will benefit from a shared user name, security device and market data subscriptions.

 

The minimum initial funding requirement for RSP accounts is USD 10,000 and TFSA accounts USD 5,000 (or CAD equivalent), which can be met via cash deposit and/or securities transfer with funding instructions made available within the application. In addition, RSP accounts are subject to a quarterly maintenance fee of CAD 12.50.

 

Should you have any questions or require assistance with account opening, please contact our Canadian Client Service Center at (877) 745-4222 Toll free or (514) 847-3499 Direct dial or review the following website link.

[cemadh]

We are an SEC registered (and FINRA regulated) Registered Investment Advisor (RIA) based in Georgia, USA. As far as I know, US RIA's cannot accept Canadian citizens as clients. Can anyone confirm that this has not changed? Thanks in advance.

[rb]

We are an SEC registered (and FINRA regulated) Registered Investment Advisor (RIA) based in Georgia, USA. As far as I know, US RIA's cannot accept Canadian citizens as clients. Can anyone confirm that this has not changed? Thanks in advance.

Correct. To solicit Canadian funds you must be approved by the Canadian provincial regulators.

[leftcoast]

This is too bad:

IBC does not accommodate asset swaps or transfers in kind (cash or securities) from a cash or margin account at IBC or elsewhere to an IBC RRSP or TFSA account at this time.

 

So to transfer my current RRSPs and TFSAs from another broker to IB, I'd need to liquidate all my positions, convert the proceeds to CAD$ (at the bank's larcenous exchange rate), transfer the cash to IB, and then re-build the same positions (hoping that none of them have moved up significantly in the meantime).

 

That's an expensive transfer. Makes more sense to just use IB for future new contributions and leave the existing assets where they are.

[rb]

This is too bad:

IBC does not accommodate asset swaps or transfers in kind (cash or securities) from a cash or margin account at IBC or elsewhere to an IBC RRSP or TFSA account at this time.

 

So to transfer my current RRSPs and TFSAs from another broker to IB, I'd need to liquidate all my positions, convert the proceeds to CAD$ (at the bank's larcenous exchange rate), transfer the cash to IB, and then re-build the same positions (hoping that none of them have moved up significantly in the meantime).

 

That's an expensive transfer. Makes more sense to just use IB for future new contributions and leave the existing assets where they are.

Wires should be instantaneous so price movement should be too big. I would give IB a call though, they may have some other thing you could do.

[leftcoast]

More in general, how does it work when you have multiple accounts like that at IB Canada. Are they somehow linked and managed together, or they all have completely separate logins/pass?

 

I have 2 non-registered accounts at IB. I am able to access both of them using the same login. There's a little drop down menu on the WebTrader and Acct Mgmt sites that allow you to switch between accounts.

 

I do not have an "Advisor Account."

[gokou3]

I read the IB Canada page about RSP account:

 

https://www.interactivebrokers.ca/en/index.php?f=13406

Customers with an RSP account will be responsible for an additional 12.50 CAD quarterly fee, on top of the regular monthly fee charged for non-RSP account.

 

On the other hand, IBC does seem to accommomdate asset in-kind transfer from a RSP account at another bank to IB:

 

Existing RSP account held with a third party broker can be transferred into IB using ATON.

 

[Liberty]

This is too bad:

IBC does not accommodate asset swaps or transfers in kind (cash or securities) from a cash or margin account at IBC or elsewhere to an IBC RRSP or TFSA account at this time.

 

So to transfer my current RRSPs and TFSAs from another broker to IB, I'd need to liquidate all my positions, convert the proceeds to CAD$ (at the bank's larcenous exchange rate), transfer the cash to IB, and then re-build the same positions (hoping that none of them have moved up significantly in the meantime).

 

That's an expensive transfer. Makes more sense to just use IB for future new contributions and leave the existing assets where they are.

 

Where did you see this? I was under the impression you could fund a registered account by a transfer in kind...

 

Update: just saw on the page linked at the end of the email. But the email says you can fund with securities transfer. Can anyone who actually did it confirm if it's possible to do and in kind transfer from an outside account?

[leftcoast]

On the other hand, IBC does seem to accommomdate asset in-kind transfer from a RSP account at another bank to IB:

Existing RSP account held with a third party broker can be transferred into IB using ATON.

 

Update: just saw on the page linked at the end of the email. But the email says you can fund with securities transfer. Can anyone who actually did it confirm if it's possible to do and in kind transfer from an outside account?

 

I misread the original quote. The key part (that I missed) is highlighted below:

IBC does not accommodate asset swaps or transfers in kind (cash or securities) from a cash or margin account at IBC or elsewhere to an IBC RRSP or TFSA account at this time.

 

So it doesn't say they won't take a transfer-in-kind from another RRSP account, just from non-registered accounts. And as gokou3 pointed out, they later say explicitly that you can fund your RRSP account with a transfer from an RSP at another broker.

 

My bad. Sorry!

 

BTW, Liberty, the way you link your existing IB account to your new accounts is by logging into Account Management and selecting the Manage Account --> Add or Link Accounts, and then Create Linked Account menu options. Once linked, your new RRSP/TFSA account will benefit from a shared user name, security device, and market data subscriptions.

[Liberty]

On the other hand, IBC does seem to accommomdate asset in-kind transfer from a RSP account at another bank to IB:

Existing RSP account held with a third party broker can be transferred into IB using ATON.

 

Update: just saw on the page linked at the end of the email. But the email says you can fund with securities transfer. Can anyone who actually did it confirm if it's possible to do and in kind transfer from an outside account?

 

I misread the original quote. The key part (that I missed) is highlighted below:

IBC does not accommodate asset swaps or transfers in kind (cash or securities) from a cash or margin account at IBC or elsewhere to an IBC RRSP or TFSA account at this time.

 

So it doesn't say they won't take a transfer-in-kind from another RRSP account, just from non-registered accounts. And as gokou3 pointed out, they later say explicitly that you can fund your RRSP account with a transfer from an RSP at another broker.

 

My bad. Sorry!

 

BTW, Liberty, the way you link your existing IB account to your new accounts is by logging into Account Management and selecting the Manage Account --> Add or Link Accounts, and then Create Linked Account menu options. Once linked, your new RRSP/TFSA account will benefit from a shared user name, security device, and market data subscriptions.

 

Thanks, that was confusing for a moment. And yes, I got the same email:

 

http://www.cornerofberkshireandfairfax.ca/forum/general-discussion/global-trading-in-canadian-registered-accounts/msg212743/#msg212743