Our tax-free trading account has all the benefits of a tax-free savings account, plus all the benefits of a direct-access trading account including Questrade’s exclusive services:
- Trade in USD without forced currency conversions. See USD in RSP and USD FAQs for details.
- Trade gold bullion in your account and the gold can be securely stored at the Royal Canadian Mint.
- All accounts automatically get democratic pricing – stock trade commissions for 1¢ per share, $4.95 minimum / $9.95 maximum. Other brokers typically reserve the best pricing for accounts above a certain threshold, usually around $100,000. With Questrade, you’ll get our best pricing – always.
Any investment income you earn, such as interest, dividends, and capital gains, is tax free. This means you can withdraw money including income at any time without penalty.
There are no fees to open an account, close an account, and no minimum activity fees. Our regular account fees may apply, such as
trade commissions,
data access or
ECN fees.
You can contribute up to $5,000 per year. Your unused contribution room can be carried forward from year to year. If you make a withdrawal, your contribution room will increase in direct proportion to the amount you take out. For example, if your initial contribution of $5,000 goes up in value to $6,000 and you withdraw the entire amount, your contribution room for the following year will be $6,000 plus the annual contribution amount of $5,000, for a total of $11,000.
You can transfer investments from existing non-registered accounts into a TFSA as long as the transferred positions are qualified securities and you have available contribution room. This would take the form of an in-kind contribution.
Anything available for trading in an RSP can be traded in a Questrade tax-free trading account. This includes stocks, gold, bonds, mutual funds, etc.
No. Just like a registered account like an RRSP or an RESP, there is no trading on margin available in a tax-free savings account.
A tax-free trading account is a registered account, just like an RRSP. The major difference between the two is when you pay the tax. A TFSA has no upfront tax benefits – contribution to a TFSA does not reduce your taxable income. However, any investments or income earned in the account can be withdrawn completely tax-free. An RRSP defers taxes – you pay tax when you de-register your investments or withdraw funds.