Question:

Do the SEC day trading regulations apply in Canada?

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Does Canada have their own regulations?

What about other foreign countries?

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3 ANSWERS


  1. if you are buying a stock trading on an american exchange, then yes, SEC regs apply.

    Canada has its own regulations and accounting requirements, although they are very similar to GAAP (american accounting standards).

    www.sedar.com is the canadian equivalent of www.sec.gov.


  2. If you are in Canada, buying stock on the Toronto stock exchange through a Canadian broker, then Canadian rules apply.  If you are buying a stock on a US exchange, or placing the order with a US registered broker, then you get some overlap.  Call your broker and they will explain what exactly applies to your situation.  

    If you are a US national creating an offshore account for the purpose of hiding your activities from US regulators, that itself might be a crime.

  3. The SEC day trading regulations only apply to those transactions done on US exchanges, regardless of the citizenship of the individuals making such transactions.

    The SEC has no jurisdiction on transactions made on exchanges in other countries since those exchanges are not registered with the SEC.

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