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Strategies & Market Trends : DAYTRADING Fundamentals

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To: Teresa Lo who wrote (1156)	6/20/1999 12:09:00 PM
From: keith massey	Read Replies (1) of 18137

For several years I have been hearing about the axing of the "know your client rule" in Canada. Canadian firms are losing traders to US firms that offer faster service. I personal have a US broker account for the odd time that I do play the NASDAQ. I don't use a US broker for Canadian trades because I have found them to be slower than Canadian brokers and in many cases they charge you a fee for exchanging money on each trade which adds up fast. I agree that Canadian broker pale in comparison to their US counterparts. The only thing that keep many traders in Canada is their RRSP accounts. I personally have half my trading money in this account. By law, I am not allowed to have any more than 20% foreign content which forces me to trade mostly Canadian stocks in this account. If I withdraw the money from this account I will automatically lose 50% on taxes. Stuck between a rock and a hard place. The "know your client rule" force firms to have extra staff to check each order which just adds to their overhead. I'm not holding my breath but hopefully we see some changes in the next year. Personal I find the Canadian market a fairer playing field compared to the NASDAQ. I personally use two online discount brokers in Canada (Schwab and Greenline). They are slowly getting better but there is still at least a 20-30 second delay in quotes hitting the board. On a really high volume day in a fast moving stock this number can rise to 1-2 minutes. I guess you have figured out why I don't scalp Canadian stocks <gggg>. For quick trades and flips (around 30% of my trades) I have call in order to the trading staff at Schwab...as soon as I say buy/sell I can see my bid hit the floor (3-10 seconds). Cost a little more for the trade but it is worth it for the speed. It doesn't compare to the .3 second orders discussed on this thread but I have learned to factor the delay into my trading. Best Regards KEITH

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