Trading Canadian stocks / options after moving to the US?

[boris_can]

I trade Canadian stocks and options, but my brokerage tells me that if I move to the US (for work, likely on a TN), I'll have to close my non-registered accounts and create investing accounts with their US brokerage. Which is fine EXCEPT for the fact that I've learned that apparently US brokerages don't let their clients trade stocks/options that trade on Canadian exchanges (no one's been able to tell me why, though).
I want to know if there's a way to keep trading Canadian products while living in the US. (I know that some Canadian companies have US listings or ADRs, but not all of them do.) If I created a Canadian corporation (and had my investment account under its name rather than as an individual), might that work? Not sure whether I'd be an 'employee' or simply owner of the company through which I trade, but hoping there's a creation solution here. Also, might anyone know exactly WHY Americans are prohibited from trading Canadian products? I can't get an answer as to whether it's a specific law or merely brokerage policy.

[nelsona]

As you pointed out, it is not that US residents are not allowed to trade in Cdn stocks (there are many Cdn companies listed in the US exchanges), but rather it is Cdn brokers that are not licensed (in the various states) to deal with US residents. A very few are, and they would probably be able to help you. Pacifica is one.

As to why US brokerages won't deal in the Cdn market, that is likely simply an economic decision made by each firm that it simply isn't worth the effort to set up trading in a country's market that represents such a small market space.

[boris_can]

nelsona wrote:
> As to why US brokerages won't deal in the Cdn market, that is likely simply
> an economic decision made by each firm that it simply isn't worth the
> effort to set up trading in a country's market that represents such a small
> market space.

Thanks for this reply. I've been unable to get a firm answer on this part above: some brokerages I've asked have said it's just their policy, while others have said that it's actually a specific SEC prohibition on US persons trading instruments on foreign exchanges. But they've been unable to point me to the regulation in question, so I truly don't know. (It's been suggested to me that there's an exception for "Qualified Institutional Buyers", but that requires a $100M fund which, needless to say, I do not have.)

[Tuchesco]

Navigating the complexities of trading across borders can be tricky, especially with different regulations and brokerage policies. Setting up a Canadian corporation for trading might offer a potential solution, though it's essential to ensure it aligns with both Canadian and US laws. As for why some US brokerages restrict trading Canadian products, it might relate to compliance issues or differing market regulations between the countries, but getting a clear answer seems challenging.

[Tuchesco]

Tuchesco wrote:
> Navigating the complexities of trading across borders can be tricky,
> especially with different regulations and brokerage policies. Setting up a
> Canadian corporation for trading might offer a potential solution, though
> it's essential to ensure it aligns with both Canadian and US laws. As for
> why some US brokerages restrict trading Canadian products, it might relate
> to compliance issues or differing market regulations between the countries,
> but getting a clear answer seems challenging.
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