Archive for the '• Tax Free Trading Account' Category

Trading in Tax-Free Savings Accounts (TFSA)

March 27th, 2009 Comments(8)

I opened up a TFSA with Questrade as soon as it became available.

This account must be in the individual’s name. If you’re transferring funds from a joint bank account, Questrade may ask for proof that you are, in fact, one of the account holders of this joint account (I ran into that issue). A simple screenshot of your bank e-statement is enough proof.

I started with the minimum CAD $1,000 and after thinking about it for some time, decided to make it my challenge for the year – turn $1,000 into $5,000, without additional deposits. No restrictions on the method, except no direct shorting or selling naked options (it’s not a margin account).

In the top menu on the site, there’s a new button, TFSA $5K. On that page I’m going to post all the trades I make in TFSA.

Quick backgrounder on this new account type –

TFSA (Tax-Free Savings Account) advantages:
  • Invest up to $5,000 each year and every year
  • Accumulate faster by never paying tax on your investment income, interest, dividends and capital gains
  • Withdraw funds any time and for any purpose without paying any taxes
  • All income earned — dividends, interest, capital gains – grows tax free
Questrade’s trading services in TFSA:
  • No annual fees, no inactivity fees, and a low account-opening minimum of CAD $1000
  • Low commissions on stock trades: 1¢ per share, minimum $4.95 / maximum $9.95
  • Hold and trade U.S. dollars and pay no forced currency conversion fees
  • Trade gold bullion
  • Get $50 in free trades when you open a new account (must open account from the link above)