Investing

Best Brokerage when trading within your corp to avoid Professional Fees??

  • Last Updated:
  • May 9th, 2021 12:29 pm
[OP]
Member
Sep 8, 2010
318 posts
55 upvotes
Chambly

Best Brokerage when trading within your corp to avoid Professional Fees??

So I went through the entire hassle of opening a trading account for my business. After weeks of getting all paperwork, funding, etc, I realize Interactive brokers does not offer free market Data. Worst thing is when I tried to add it, the same package that costs $4.50/month for personal now costs $125/month for me because a corporation is automatically considered a professional. They do not waive it after so many trades either and this is just Level 1 Data.

I am with TD also, but got tired of paying 9.95/trade.

Anyone else trading through their corp and what are they using? I am not putting money into my corp to save taxes, rather it is accumulated cash from active business I want to invest so it needs to stay in the corp. My plan is to open one account for day trades and another for longer term trades. With IB I would not even be able to share market data between both so I need two Data Fees.

Anyone use National Bank for trading...I just noticed they have 0.95/trades for 100+, but no clue how fast execution is.
12 replies
Member
Jul 26, 2015
257 posts
203 upvotes
Vancouver, BC
I use TD for my corp trading. Everything is really smooth. It’s $9.99 per trade. Don’t see any issues with it. Just a cost of making money. Though if anyone chooses to trade a lot with extremely small volumes it may be a burden. You can also get market data from other personal platforms while trading within your corporate account if you choose to do so. Anyway $9.99 per trade should not be an obstacle for anyone to make money, especially within a corp. if it is, then the math is already off at the stage of getting incorporated.
[OP]
Member
Sep 8, 2010
318 posts
55 upvotes
Chambly
As I said, I didn’t open the Corp just fir trading. It’s been open for a while and have accumulated into it. I do 25+ trades on some days, so 9.95 adds up quickly.
Member
Jul 26, 2015
257 posts
203 upvotes
Vancouver, BC
tradinghumble wrote: Any advantages of open a Corp for trading?
Not really. For a corporation that conducts other business or was created as a holding company it’s just a way to generate some sort of income using the funds that otherwise would just sit in a corporate account or in a GIC.
Member
Jul 26, 2015
257 posts
203 upvotes
Vancouver, BC
mcu wrote: As I said, I didn’t open the Corp just fir trading. It’s been open for a while and have accumulated into it. I do 25+ trades on some days, so 9.95 adds up quickly.
25+ trades per day will get you to $7 per trade commission as an active trader just in 6 days. 150 trades per quarter get you there with TD.
Though it’s still a huge expense for you considering frequent trading.
Deal Addict
Feb 4, 2003
2728 posts
786 upvotes
My Corp account is with cibc, $6.99 per trade. But there is no market data.

CIBC does not allow for linking to 3rd party business account, so to get money out you need to request a cheque if you don't have a business banking chequing account with them.
Member
Oct 27, 2006
416 posts
35 upvotes
$4.95 with cibc if you are part of their premium edge.
Deal Expert
User avatar
Feb 11, 2009
19028 posts
7264 upvotes
Toronto
If your sole basis for where to open your account is overall fees, and you have more than 150 trades/quarter, then go with National Bank and their $1 flat rate per trade.

I have my personal accounts with TD, and my corporate accounts at Questrade. The corporate accounts don't trade as much so QT seemed to be the best bet for me.
Real Estate Agent, MAcc, CPA, CA
Deal Addict
Aug 26, 2004
2112 posts
224 upvotes
Toronto
When you trade within a Corp is this taxed if you don’t withdraw
Member
Jul 26, 2015
257 posts
203 upvotes
Vancouver, BC
CDNPatriot wrote: When you trade within a Corp is this taxed if you don’t withdraw
Yes. Very similar to trading in your personal account. There will be a tax obligation for your corporation if you sell a stock.
[OP]
Member
Sep 8, 2010
318 posts
55 upvotes
Chambly
It’s taxed as personal approximately. There is no real saving to take your personal money and put it I to a Corp to invest. Now if you have accumulated cash in your existing Corp it would be more advantageous to invest it directly through the Corp and then declare dividends to yourself as needed and as you please. If you declare a dividend to yourself and then invest it, then there will be much less to invest after you pay the taxes on your dividend.
Sr. Member
Mar 6, 2010
567 posts
193 upvotes
Brampton
mcu wrote: It’s taxed as personal approximately. There is no real saving to take your personal money and put it I to a Corp to invest. Now if you have accumulated cash in your existing Corp it would be more advantageous to invest it directly through the Corp and then declare dividends to yourself as needed and as you please. If you declare a dividend to yourself and then invest it, then there will be much less to invest after you pay the taxes on your dividend.
Thanks for the clarifications.
Does it become quite complicated at tax filing time if one trades moderately in a corporation? Lets say 30 times in a year.
And do you (or anyone one else) have any opinion whether it is advantageous to buy growth stocks only as against buying a mix of georth + dividend stocks or even pure dividend stocks?

Top