Comments on trading US equities as a Canadian with recent currency action?

Discussion in 'Trading' started by Chagi, Apr 30, 2006.

  1. Chagi


    If you are a Canadian and looking to trade US equities, you basically have three options:

    - Canadian dollar denominated account, with exchange into US dollars taking place each time you trade

    - US dollar denominated account

    - IB's Universal Account (I don't use IB, so I can't really comment on this one)

    Has anyone else been finding that the appreciation of the Canadian dollar vs. US dollar has been hurting your trading somewhat? For example, I currently go with option #1 out of the above, and I've been skipping a number of potential trades because I was concerned that CND dollar appreciation would outstrip the potential gains from the trade (essentially we're talking about forex risk).

    I also imagine that any Canadians holding US dollar denominated trading accounts have been hurting, as you would need a fairly good trading record just to even break even on your currency losses.

    Any thoughts on this issue? I find that I've been sticking to Canadian equities as much as possible because of this.
  2. My trades are short term so I leave it in CAD and let profits stay in USD too. So a bitof both in 1 account.
  3. ajau


    Or you can move out of Canada to the US.

    The capital taxes are horrendous in Canada, and the general attitude of the people there is very demoralizing for a trader. Ambition and personal responsibility seem to be four letter words in Canada.

    BTW they don't call it "Ripoff Canada" for nothing.
  4. m22au


    Option 4:

    US Dollar denominated account


    hedge FX exposure using FX futures or Bucketshop FX (spot and continuous rollover)