Blog Article Summary: Investing in Canadian & US Companies With Interactive Brokers (IBKR)

Objective

A detailed, step-by-step guide for Canadians looking to invest in Canadian and US companies using a trustworthy and low-commission online broker, with an in-depth walkthrough of IBKR (Interactive Brokers).

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Why Interactive Brokers (IBKR)?

• Presence in Canada since 2000; over 2 million users worldwide.
• Known for lowest commission charges and low currency conversion fees.
• Chosen after comparing other platforms (bank brokerages, Wealthsimple, Questrade) and reading Reddit/online discussions.

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Steps to Open an IBKR Account

Preparation (Approx. 20 minutes)

• Have these ready:
  • Social Insurance Number (SIN)
  • Identity document (passport or driver’s license)
  • Proof of address
  • Phone (for verification)

Account Setup Process

1. Access IBKR Website
   • (Option: Use referral link to support the channel)
2. Start Application
   • Enter email, create username and password.
   • Select country (Canada).
3. Email Confirmation
   • Confirm via received email link.
4. Choose Account Types
   • TFSA, RRSP, and non-registered account options.
   • Select province, language, and start application.
5. Personal Information
   • Enter name, address, phone, DOB, marital status, SIN, employment and source of wealth.
   • Choose base currency (CAD) and set security questions.
6. Mobile Number Verification
   • Enter code sent to your phone.
7. Configure Trading Account
   • Select account type (Cash or Margin; use IBKR’s AI search tool for guidance).
   • Enter income, net worth, investment objectives, and trading experience.
   • Optionally opt-out of options trading.
8. Identity Verification
   • If prompted, complete using a phone and ID document via QR code and selfie.
9. Address Verification
   • Upload proof of address if requested.
10. Beneficiary Information
    • Enter beneficiary details.
11. Review & Sign Agreements
    • Digitally sign and submit.
12. Account Processing
    • Accounts created within a few business days.

Support: IBKR support is responsive—raise tickets for help or issues.

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Funding Your IBKR Accounts

1. Assign Aliases/Nicknames
   • Rename your accounts for easy identification (TFSA, RRSP, non-registered).
2. Deposit Funds
   • Use online bill pay from your bank (free).
   • Add payee using IBKR-provided name/account number.
   • Test with small amounts for each account to avoid transfer errors.
   • Funds may take 1–6 business days to appear.
3. Verify Deposits
   • Once confirmed, proceed with larger transfers as needed.

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Buying ETFs and Stocks Using IBKR

General Notes

• ETFs (Exchange Traded Funds) allow investing in multiple companies via one fund.
• Index ETFs track indexes (e.g., TSX 60, S&P500).
• Transactions possible in both Canadian (CAD) and US (USD) exchanges.

Demo Scenarios

1. Buy a Canadian Index ETF (On Toronto Stock Exchange)

   • Search by ETF symbol, ensure Canadian flag, click ‘Buy’.
   • Choose account (TFSA, RRSP, or non-registered).
   • Set quantity (shares or CAD amount).
   • Order type: Market (executes immediately) vs Limit (set a price cap).
   • Preview order to view commission (as low as $1 CAD), then submit.

2. Buy a US Index ETF Listed on a Canadian Exchange

   • Similar steps as above; can transact in CAD.

3. Buy a US ETF Listed on a US Exchange

   • Requires USD funding.
   • Convert CAD to USD:
     • Use IBKR’s “Trade → Convert Currency”.
     • Flat commission fee (e.g., ~$2.7 CAD), minimal exchange rate markup.
   • After conversion, search US ETF symbol (check US flag).
   • Buy in your desired account using USD.

4. Selling ETFs

   • Go to Portfolio, select ETF, click “Sell”.
   • Options similar to buying (market or limit orders).

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Using the IBKR Mobile App

• Log in with face ID.
• View all account holdings, easily select which account to display.
• Buy/sell ETFs directly from the app with same options as on desktop.
• Commission and previews available; easy fund movement and management.

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Reasons for Choosing IBKR Over Others

• Lowest commission for trades (as low as $1 CAD).
• Low & flat currency conversion fees (vs percentage fees with other brokers like Wealthsimple, Questrade, banks).
• Versatile account types (TFSA, RRSP, non-registered).
• No mandatory investment in high-fee mutual funds.
• Good user support and active online community.
• Advanced yet user-friendly platform and mobile app.

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Disclaimers & Tips

• The detailed process reflects personal experience, not investment advice.
• Always research account types, limits, and tax rules.
• Support the channel by using referral links if you find the guide useful.

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Key Takeaways

• IBKR is a great choice for Canadians wanting to invest in both domestic and US companies at low cost.
• The sign-up process is straightforward but detailed; patience and careful entry of information is required.
• Test small transfers and understand account types before funding and trading.
• IBKR’s low commissions and currency conversion fees can save significant money for cross-border investing.
• Both desktop and mobile platforms are efficient for ongoing investing and portfolio management.

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