# US brokers working with Canadians?



## nomad (Apr 7, 2010)

I wonder if anyone knows any US brokers who are willing to accept Canadian customers.

I lived in the US for a while, and had a 401K account there, which was rolled over into an IRA account with Vanguard. I then moved to Canada, and discovered that my account is "frozen" for new purchases because my account has a Canadian address.

I don't plan to cash out my IRA account due to tax consequences and because I'm nowhere near retirement. I would like, however, to be able to sell some of my existing funds, and buy others. I am currently unable to do so with Vanguard. So, are there any brokerages out there who can open a new IRA account for a Canadian without any trading restrictions?

Thanks!


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## HaroldCrump (Jun 10, 2009)

Even if there are US brokerages that allow Canadians to open trading accounts, I doubt that you will be allowed to open an IRA account.
Without employment income from the US (1040 or whatever it's called these days), I don't think you can have one.
I cashed out my 401K when I moved here....


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## MoneyGal (Apr 24, 2009)

Very, very, very difficult. I used to do some cross-border trading when I was a broker but most brokerages will not let you do this...and the rules vary by both state and province (i.e., both variables matter). 

In any case, you are going to have to find a U.S. broker to do this, because Canadians cannot handle any U.S. registered accounts. Try asking in the Bogleheads forum.


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## nomad (Apr 7, 2010)

Thanks Harold and MoneyGal. I'll try asking on Boglehead forums as well. I don't exactly need to open a new IRA account, just transfer my existing IRA without cashing out. I don't plan to contribute to it while in Canada.

It's surprising how painful this is.


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## MoneyGal (Apr 24, 2009)

The regulators designed it to be painful post 9/11.


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## badcaleb (Jun 8, 2009)

You should try Fidelity. However, since you no longer live there it will hard to open an IRA unless you still have a US address you can use.


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## alphatrader2000 (Aug 18, 2010)

nomad said:


> I wonder if anyone knows any US brokers who are willing to accept Canadian customers.
> 
> I lived in the US for a while, and had a 401K account there, which was rolled over into an IRA account with Vanguard. I then moved to Canada, and discovered that my account is "frozen" for new purchases because my account has a Canadian address.
> 
> ...


The rule is VERY CLEAR on this. No US Broker may open an account for Canadian residence and vice-versa. If by mistake a US broker opens an account for you, I suggest you keep it to yourself


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## nomad (Apr 7, 2010)

alphatrader2000 said:


> The rule is VERY CLEAR on this.


Do you have a link to the rule? I tried searching earlier but couldn't find it.


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## alphatrader2000 (Aug 18, 2010)

nomad said:


> Do you have a link to the rule? I tried searching earlier but couldn't find it.


Suggestion: Look for OSC rule where it states that a broker must be a registered to execute trade. 

FYI: Why the OSC rule matter with US? it is because both US and CAD regulators have an agreement in place.


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