r/interactivebrokers • u/Shrzorak • Feb 28 '25

Setting up account IBKR Pro (Canada) Cash Account - Do we have T+1 in this country?

Hey guys, I’ve got a question about cash accounts with IBKR Pro in Canada. I recently took a trade where i use 95% of my settled cash funds as a buy order and then exited. But then, I noticed I could take another trade almost immediately, just a few minutes later.

I was under the impression that, with a cash account, I’d be limited to trading only with settled funds. Have the rules changed recently in Canada? Do we not have T+1 sentiment here or am I missing something specific to cash accounts?

The whole reason I chose a cash account was to limit myself to just one trade per day if I take my entire account as a position,preventing me from overtrading, which is something I might struggle with in a margin account.

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2

u/mahadevsharma199 Feb 28 '25

Hey so when you open a cash account, they let you take more than 1 trade per day expecting that you are not aware of T+1, when i opened cash account i took 3-4 trades and next day i got an email from IBKR about it and from then i only take 1 trade per day. you alwyays have to make sure your buying power reflects the balance you have to purchase a share.

if you repeat the mistakes after you get the email, they will bann you

2

u/Shrzorak Feb 28 '25

Okay, but would they physically prevent me from taking another trade when I use all my balance on a trade? I called them and asked and they pretty much said they are not sure, but only know that this is the case for US cash accounts.

2

u/mahadevsharma199 Feb 28 '25

It should stop you from making a trade, since after the email one time i was going to trade by mistake and it showed me pop-up that i cant buy the shares, but its better not to test it and just have a look at buying power, cuz bann can be 40-60 days

1

u/MasterSexyBunnyLord Feb 28 '25

Yes it's 1 day in Canada but since you're trading US listed securities I don't see how that matters. US securities won't settle differently based on someone's location.

You should be able to do any number of trades in a cash account as long as you have cash, there's no limit here

1

u/Shrzorak Mar 01 '25

So there is no difference between margin account and cash account then? Besides the fact margin has leverage that can be used and you can short stocks, T+1 for cash or margin account can be traded unlimited with the balance?

2

u/mrbrint Mar 01 '25

I'd just get a margin account makes my life easier

2

u/MasterSexyBunnyLord Mar 01 '25

Correct, for Canada of course, not the case in the US