Author Topic: IBKR - Interactive Brokers  (Read 155240 times)

bizaro86

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Re: IBKR - Interactive Brokers
« Reply #490 on: November 07, 2018, 12:41:21 PM »
Thanks! I'm pretty sure any Frankfurt listing qualifies, as exchanges where only certain tiers are allowed (TSX Venture, Jamaica) have the allowed tiers in brackets in the list I linked above.
You think so? I'm not a Canadian, don't know anything about Canadian taxes, but would seem very logical to me that what counts is an official listing. Because you don't even have to go outside the US if you want to trade IBKR on something else than IEX itself. You can route your order to the NYSE, AMEX, BATS and a dozen other US exchanges/trading venues. Secondly, that would probably imply that you can just ignore the whole designated exchange rule, since especially in Frankfurt you can trade basically everything that is listed somewhere else in the world.

It has a symbol in Frankfurt, which seems to imply that there is some sort of listing? Even with no volume or reporting requirements it seems to meet the letter of the law.

I know a bit about Canadian taxes and nothing about the Frankfurt exchange. Happily, that is also the knowledge breakdown  of anyone who would audit this, so as long as they have that listing page I think it's fine.


writser

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Re: IBKR - Interactive Brokers
« Reply #491 on: November 07, 2018, 12:44:06 PM »
Maybe it's against the spirit of the law - but by the same spirit it should be possible to own a large cap US company like IBKR regardless of whether its primary listing is NYSE or IEX. And according to the letter of the law it is listed in Frankfurt .. I'd be inclined to hold the position but I'm no expert on Canada either.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

bizaro86

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Re: IBKR - Interactive Brokers
« Reply #492 on: November 07, 2018, 12:47:46 PM »
Maybe it's against the spirit of the law - but by the same spirit it should be possible to own a large cap US company like IBKR regardless of whether its primary listing is NYSE or IEX. And according to the letter of the law it is listed in Frankfurt .. I'd be inclined to hold the position but I'm no expert on Canada either.

Yeah, the rule is intended to prevent people from putting stock options in pre-IPO stuff in tax free vehicles, and to prevent fraudsters from getting people's retirement money.

Neither of these are an issue here, as you say IBKR is a big US public company, shouldn't be an issue.

If I can dance into a position that let's me keep it I will. In some ways I wish this happened before the big recent drop in IBKR shares, as I might have sold... at the current price I'm more likely to add than sell.


rb

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Re: IBKR - Interactive Brokers
« Reply #493 on: November 07, 2018, 01:19:25 PM »
Guys it's ok. You can actually hold a lot of stuff in your RRSP and TFSA. It's not that if it's not listed on a designated exchange you can't hold it. It's that if it's listed on a designated exchange you can.

bizaro86

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Re: IBKR - Interactive Brokers
« Reply #494 on: November 07, 2018, 02:44:22 PM »
I don't think IBKR meets any of the other qualifications for RRSP/TFSA inclusion. Many of the private investments you may be thinking of are actually done using a specific share class of a small publicly traded company.

Anyway, I found the specific wording from the CRA about this:

Quote
1.19 Many stock exchanges in the European Union (EU) operate two market segments, an official EU-regulated market and an unofficial market that is regulated by the exchange itself. The latter markets include the Alternative Investment Market (AIM) of the London Stock Exchange, Alternext operated by the various stock exchanges that comprise Euronext and the Open Market of the Frankfurt Stock Exchange. Only the official, EU-regulated markets qualify as a designated stock exchange provided the stock exchange is included on the Department of Finance list. The unofficial, exchange-regulated markets do not qualify as they are not recognized as an official market under European Union law, nor are they subject to stringent transparency requirements and investor protection regulations. It follows then that a listing on an unofficial, exchange-regulated market is not a basis for a registered plan trustee to confirm qualified investment status of a particular security.

Does anyone know how I'd figure out whether Interactive Brokers is on the open market or not?

https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-3-property-investments-savings-plans/series-3-property-investments-savings-plan-folio-10-registered-plans-individuals/income-tax-folio-s3-f10-c1-qualified-investments-rrsps-resps-rrifs-rdsps-tfsas.html

bizaro86

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Re: IBKR - Interactive Brokers
« Reply #495 on: November 07, 2018, 02:54:46 PM »
Hmm.. looks like it is on the open market, which is specifically excluded. I think I may need to sell these if IEX doesn't get registered by the end of the year. Maybe I can generate similar exposure with options in my non-registered account, as I flat out can't buy the same amount of shares. This is not great...

rb

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Re: IBKR - Interactive Brokers
« Reply #496 on: November 07, 2018, 03:29:47 PM »
If you want to go the options route, why not just buy calls in your RRSP? The calls should be trading on a designated exchange.

scorpioncapital

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Re: IBKR - Interactive Brokers
« Reply #497 on: November 08, 2018, 02:54:30 AM »
It seems both Revolut and IB are going to offer cards Mastercard in 2019.
These two will be the most competitive products for foreign transactions, withdrawals, etc...
And I believe it won't be reportable as foreign asset card because they will be Canadian cards yet you will get the same benefits for foreign use or living abroad.

flesh

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Re: IBKR - Interactive Brokers
« Reply #498 on: November 28, 2018, 11:06:57 AM »
Punch card trader! Nicely done! Sick write up!

It's always exciting seeing that what can be known is much greater than what is known.
Totally missed the I-broker NIM bit myself. Also, the analysis surrounding switching costs vs new clients in asia etc was quite nice.

https://valueinvestorsclub.com/idea/INTERACTIVE_BROKERS_GROUP/4701018140

Libs

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Re: IBKR - Interactive Brokers
« Reply #499 on: December 06, 2018, 09:16:42 AM »
Punch card trader! Nicely done! Sick write up!

It's always exciting seeing that what can be known is much greater than what is known.
Totally missed the I-broker NIM bit myself. Also, the analysis surrounding switching costs vs new clients in asia etc was quite nice.

https://valueinvestorsclub.com/idea/INTERACTIVE_BROKERS_GROUP/4701018140

Cliff notes? This VIC write-up is not available to non-members yet. Thanks!
My username is not a political statement.....and I'm too lazy to change it.