Broker account
by bernhardm | August 1, 2012 10:51 am
Dear members!
Who can recommend me Candian (or American) broker?
Following requirments are binding:
Possibilty to open an account for an Austrian (non Canadian) via internet (plus transferring all necessary documents)
unlimited Internet access to the account
Easy money transferring (CAD, USD, EUR?)
Easy ordering (buy, sell, stop loss, limit…) of stocks in markets (exchanges) of USA and Canada[1]
Very important: (Facility of) Participation on SDPs and/or DRIPs for Foreigners (e.g. Enerplus)
Thank you for helping in advance
Martin
Endnotes:
- Canada: https://www.stockgumshoe.com/tag/canada/
Source URL: https://www.stockgumshoe.com/2012/08/microblog-broker-account/
Martin,
Interactive Brokeres is the real deal but reaching a real person requires patience.
I would reccomend having most of my money there with a smalller account at TD Ameritrade. Both have excellent margin rates if you have enough money.
Definitely Canada would be your better choice-US seems to have stiffer regulations for accounts for outsiders.
Canada: Your best discount brokers are:
Interactive Brokers: office also in UK and elsewhere; more for professional investor but commissions steeply discounted, you are on your own with little customer service
BMO Investorline: nice user interface, good customer service, 4th largest bank, decent commissions
TD Webbroker: more confusing interface than BMO, good customer service, same commissions as BMO, 2nd largest Bank
If your purpose to open account in Canada is to participate in New Issue financings in small mining companies, then you have to know a specific individual broker that has a good reputation at one of the smaller boutique firms: Haywood or Leede Financial in Vancouver have a couple of good brokers I know.
I believe accounts may only be opened with original signature on the forms which must be mailed back to the firm.
I have accounts at all the firms listed above and I was an Investment Adviser for 15 years in the past.
Thanks Ray for your intersting Infos! One of my objectives is indeed to participate in “IPOs” of smaller mining companies, the other one is to participate in Stock Dividend Porgramms or in DRIPs. It is very difficult (and cost intensiv – keyword double taxation) to arrange this in Austria for Canadian Stocks!
Martin
I think you should start off by opening an account with BMO Investorline – they are the best bank to deal with and their website interface is easy and a joy to use. Here is a link to their info about DRIPS: http://www.bmoinvestorline.com/FAQs/FAQ_DRIP.html#
I have 2 accounts at Interactive Brokers which I use for all my purchases of foreign stocks in the countrys’ currencies. Their exchange rates for currency are the best as they do forex as well as stocks, options, et al. They are also one of the largest clearing houses in the world. Their rates are a bit higher than Fidelity on large quantity purchases but the difference is insignificant compared to the executions I’ve gotton and the ability to trade in stocks virtually anywhere in the world. I also have an account at Fidelity which is a different type of situation. Their platform, Active Trader Plus, is quite good and updated on a regular basis. Their service is unbelievably competent and available 24 hours a day.
Meant to add, Martin, that about 45% of my portfolio is in Canadian stocks bought on the Toronto and Venture exchanges which is why I use IB. I would think IB is available almost everywhere but you should check and see if it is available in Austria.
Interactivebrokers.com is the web site.
Interactive Brokers does not allow DRIP investment plans.
Personally, I don’t like the idea of DRIPs in this type of market environment going forward for the next 10 years. It is similar in one respect to Dollar-Cost Averaging, however, I think a better way would be to by your (DRIP) stock through a discount broker whenever it is 2 Standard Deviations below the 20 day moving average. At least you can assure yourself that you will never be buying at the high (unlike a DRIP where you have no control). This strategy will work well when you have higher volatility; you could then also sell a portion whenever you are 2 Standard Deviations above the 20 day moving average. This is one way to outperform DRIPS and Dollar-Cost Averaging, which only work in long up-trending Bull Markets, but not so well in sideways or down markets.
Thanks Ray for your hints! I’ve got contact data from Macquarie Private Wealth Inc. Do you have any experiences or relationships with this company?
Yes, Macquarie is a very reputable firm, I know one of their mining analysts well in Vancouver. You should be in good hands with them.
Ray