Hey there everyone, just wondering if anyone is currently writing to the finance minister in Alberta trying to get an exemption for FOREX trading in Alberta.
Basically what happened is I was trading FOREX on Questrade and making a bit of money here or there, and losing some as well, anyway everything was fine until I received an e-mail from Questrade;
Please be advised that the Alberta Securities Commission has confirmed its position that over-the-counter derivative products, such as the foreign exchange contracts (forex) offered on our QuestradeFX and QuestradeFX Pro platforms, are only permitted to be offered on a prospectus-exempt basis to residents of Alberta. This notice does not affect the trading of securities (such as stocks and options) on a recognized exchange.
To maintain your forex account with Questrade, you must read and complete the Acknowledgement for clients residing in Alberta form.
After you have completed and signed the form, please mail it to:
Attn: Forex Department
5650 Yonge Street, Suite 1700
Toronto, ON, M2M 4G3
You must return the completed form within thirty(30) days of the date of this email. If we have not received the completed form within that time, Questrade will close your account without further notice. Any residual balance remaining in your account will be returned to you.
Please be advised that should you not qualify as either an accredited investor or a qualified party, we are not able to transfer your trading account to another dealer, since this trading prohibition applies to all investment dealers seeking to offer forex and CFDs to client residents in Alberta.
Questrade is permitted to offer our forex products to retail clients resident in all other provinces of Canada except Alberta; therefore, if you intend to move or relocate outside of Alberta, contact Questrade for more details.
We sincerely apologize for any inconvenience this may cause; however, we are required by the securities laws of Alberta to request and confirm this information. Please contact forex client services if you have any questions or concerns.
Questrade Forex Client Services
Toll free: 1.866.980.9591 option 2
Basically after doing some checking and talking to Questrade and the Alberta Securities Commission I found out that in Canada it is actually not allowed for any average citizen to trade FOREX, HOWEVER it has being ruled that each province can modify the Securities act in there specific province. Now what has happened is every province EXCEPT Alberta has granted exceptions for FOREX trading allowing anyone to trade FOREX, except ALBERTA. If you live in Alberta and you are not a qualified “Accredited Investor” your out of luck, your FOREX accounts must be closed. If you haven’t received any notices yet, you will according to the ASC.
So my question is, has anyone else written to the ALBERTA finance minister to complain about this?
P.S. For those who would like to know what the qualifications are here is the form…
You, or the undersigned on your behalf as the case may be, certifies for the benefit of Questrade Inc. (“Questrade”), that you or each beneficial owner
for whom you have acted, are/is (i) a resident of Alberta; and (ii) an “accredited investor” within the meaning of National Instrument 45-106 or a
“qualified party” within the meaning of ASC Blanket Order 91-503 because you, or the beneficial purchaser(s) is/are:
_______________ COMMERCIAL USER
A person that sells, buys, trades, produces, markets, brokers or otherwise uses in his/her business a commodity and as a consequence enters into
an OTC derivatives transaction or a commodity contract.
_______________ INCOME BEFORE TAXES OF $200,000 OR WITH SPOUSE $300,000
An individual whose net income before taxes exceeded $200,000 in each of the two (2) most recent calendar years or whose net income before
taxes combined with that of a spouse exceeded $300,000 in each of the two (2) most recent calendar years and who, in either case, reasonably
expects to exceed that net income level in the current calendar year.
_______________ FINANCIAL ASSETS OF $1 MILLION OR MORE
An individual who, either alone or with a spouse, beneficially owns, directly or indirectly, financial assets having an aggregate realizable value that
before taxes, but net of any related liabilities, exceeds $1,000,000.
_______________ NET WORTH OF $5 MILLION
An individual who, either alone or with a spouse, has net worth of at least $5,000,000.
_______________ REGISTERED OR FORMERLY REGISTERED INDIVIDUAL
An individual registered or formerly registered under Canadian securities legislation as a representative of a dealer or adviser.
_______________ COMMERCIAL USER
A company that sells, buys, trades, produces, markets, brokers or otherwise uses in its business a commodity and as a consequence enters into an
OTC derivatives transaction or a commodity contract.
_______________ COMPANY OR OTHER LEGAL ENTITY OWNED BY ACCREDITED INVESTORS
An entity in respect of which all of the owners are “accredited investors” (see individual thresholds above for reference).
_______________ $5 MILLION IN NET ASSETS
A company or other legal entity that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements.
_______________ SECURITIES REGISTRANT
A firm registered under securities legislation as an adviser or dealer.
_______________ INVESTMENT FUND
An investment fund that (i) distributes or has distributed its securities pursuant to a prospectus exemption (i.e. accredited investor, $150,000 minimum); (ii) that distributes or has distributed securities under a prospectus; or (iii) that is advised by a registered adviser.
_______________ SOPHISTICATED ENTITIES
A person or company that together with its affiliates that intends to enter into OTC derivatives or commodity contract transactions where the
total gross marked-to-market positions shall be at least $100 million aggregated.
CORPORATE OR OTHER LEGAL ENTITIES
(Check one or more, as applicable, and initial):_______________ FINANCIAL INSTITUTIONS AND SUBSIDIARIES
A Canadian financial institution, a bank to which the Bank Act (Canada) applies, the Business Development Bank of Canada or a subsidiary
_______________ LOANS AND TRUST COMPANIES
A trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada).
_______________ CREDIT UNIONS AND CAISSES POPULAIRES
A credit union central or a federation of caisses populaires or any credit union or regional caisse populaire located in Canada.
_______________ INSURANCE COMPANIES
An insurance company licensed to do business in Canada or a province or territory of Canada if the insurance company has a minimum paid up
capital and surplus, as shown on the last audited balance sheet, in excess of $100 million.
_______________ GOVERNMENT AND AGENCIES
The Government of Canada or any crown corporation, agency or wholly owned entity of the Government of Canada including a municipality,
public board or commission.
_______________ PENSION FUND
A pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada) or a pension commission or similar
Note: for a complete definition of “accredited investor” and “qualified parties” and defined terms contained, please contact Questrade.
_______________ None of the above statements apply.
By signing below I/we acknowledge that I/we fully understand the terms of this Acknowledgement and that the information I/we have provided is
true and accurate. I/we further acknowledge that should any of the information I/we have provided in this Acknowledgement change in the future, (in
particular, my residential and financial status), I/we will notify Questrade immediately