TFSA

TheOneNeartheTop

1500 shares on margin. & 25% of my daughters education fund. & 25% of my home fund (don't tell my wife). & 30% of my TFSA

No_Service_7730

This is a great question. I am in a similar boat. I have parked funds in TFSA RrSP but not invested them. I have considerable savings and still saving more every month. My questions (assume this is a canada specific post) 1 - if you have lumpsum cash in CAD should you do STP/ SIP or go all in something (?) 2 - is it accurate that if you’re a Canadian resident, first park your funds in RESP, RRSP, TFSA, FHSA (registered funds) then invest them. 3 - if you still have savings left then invest in non registered like cash account etc? What should be the strategy like, if you’re a Canadian citizen and have available funds in the range of 300-400k (please don’t suggest real estate) as I hate paying crazy interests to the banks. My whole belief in real estate is over seeing my friends chained/ enslaved by giving into FOMO and buying pigeonhole condos and paying maintenance through their teeth. There gotta be some other instruments to invest and like they say “make your money make money for you?” Thoughts ?

iWasAwesome

I did a SPY 0DTE in my TFSA (Canadian tax free account) while Powell was talking today lol

Elibroftw

I maxed my TFSA a whole month ago and almost all my gains got erased the last few trading days. I'm going to sell Dolarama (DOL.TO) tomorrow since I was losing money on it before the earnings "pop." It's been flat ever since. Intel and Cloudflare my biggest losers and unfortunately the latter is on me for not following my gut and selling last Tuesday.

carsonthecarsinogen

You’re 22 but have over $40k worth of TFSA contribution room?? Did TFSA rules change ?

1UpUrBum

Other TFSA? The total you can put into those because of your age is around $31,500. Make sure you read the link below and figure it out exactly. https://www6.royalbank.com/en/di/hubs/investing-academy/chapter/how-much-can-i-contribute-to-my-tfsa/ki58km3m/ki58km3u Somebody else posted these links r/personalfinancecanada

scottsaa

Day trading in TFSA and RRSP is super risky because if you lose it all, you lose that contribution room forever. Day trading should be done in a non-registered account. Gains will be taxed but any investment is whether its s&p or stocks.

Spl00ky

[This Activity Could Put You Offside of TFSA Rules | Morningstar](https://www.morningstar.ca/ca/news/239166/this-activity-could-put-you-offside-of-tfsa-rules.aspx#:~:text=However%2C%20there%20are%20certain%20TFSA,pay%20taxes%20on%20your%20profits.)

bilingualbunny

Thats not what I was referring to, I'm saying if you lose money in your TFSA and you realize the loss, you will permanently lose that contribution room. Example if you lose 1k and your contribution room is 10k, you've realized that 1k loss and now your room is 9k. You can't re add that 1k you've lost. Its already accounted for.

logikok

Wait what do you mean? Trading inside of a TFSA? As long as it's not a business as per the CRA (which is a very loose definition) then he should be fine? I'm not an accountant and I'm not providing any advice but if one were to do a few trades a month, that should be okay no?

bilingualbunny

You probably shouldn't do this inside of your TFSA. You will lose the contribution room permanently. Just do a personal account bro. Then if you lose you can deduct it from your taxes.

DVRavenTsuki

Canadian? Wonder if it could be held in a TFSA

omarrubenxi

If you're cool with paying out $9.95 for options, then QT might work for you. But more brokers like IBKR and Moomoo are stepping up their game and offering options with lower commissions already. So why not? I've got my TFSA and RRSP accounts with Moo too, so I think they've got you covered in your situation.

Folsey

Thanks...yeah I just looked them up again and what you're saying is true. I'm gonna give them a shot. I mostly trade options and s couple days a week day trade indices. Think I'll get fucked doing that with a TFSA, but either way capital gain tax isn't even that bad in Canada.

The_old_number_six

I'm also in Canada and have a TFSA, RRSP and margin account with IBKR and don't have $10K to my name between all of em. Only minimum I have is maintain $2k USD to have margin. Otherwise, it is just a cash account. No minimum deposit in my experience.

Vancouver68

Hi...yes, you can trade options in an IBKR TFSA or RRSP. If your retirement account is a LIRA or LRSP (locked-in), IBKR doesn't handle those types of accounts yet.

austoin

No tax on withdrawals from a TFSA - that happens in an RRSP. However you should be careful about day trading inside of a TFSA - if the CRA determines it to be frequent enough to be considered income, you will pay tax on it

jedinachos

For those of us who bought Jan 2025 $PAA calls and are now up huge after one week with 9 months until expiry - How should we play this out? Does the price of oil generally fall after the summer? Friggin bought these in my TFSA too! lol https://preview.redd.it/niy1p6xxfvsc1.png?width=1238&format=png&auto=webp&s=d99babac4ef68847e27f9754ea10be0b90a6eb41

UnseasonedAndCrispy

Tf is TFSA

jpows_pet_hamster

That’s true. I don’t even think the CRA will waste their time since everyone can trade easily now. Well unless you’re moving some huge numbers. They’d probably pitty the average degenerate day trader on the verge of wiping out their entire TFSA 

jpows_pet_hamster

Pretty much yeah. And the CRA could go after you if you use your TFSA to day trade

Moose_knucklez

I guess the TFSA is a no no with the factor of losses erase your investment room, still thinking about doing it anyways to avoid this kind of situation and taxes in general.

Dazzling_Basket_6127

Are you using your TFSA to trade SPY calls?

newtownkid

Every year you gain about 6k in available contribution space. So let's say he's 28 and has 60k room and is diligent and has maxed to out with 60k savings (pretend no other growth for this example). If he burns that 60k, that's it - you don't get the space back if you used the contribution room and squandered it on bad investments, next year he'll be able to put 6k more in the account, but that's it. Withdrawing from a TFSA adds that room back (oversimplification), so if you saved 60, and withdrew it to buy a house or something, next year you can put 66k. But losing it on bad investments doesn't count as withdrawing. So TFSA is a great place for reasonable investments, you aim for %7ish percent a year and eventually you've got 100k in there off of only 60k invested. You get that money tax free, and if you withdraw it, your available space for the next year would be 106k. TFSAs are a fantastic tool, and their space is precious. It's absurd to risk it on options.

newtownkid

Jesus. Did you just burn 40k in TFSA contribution room in one day? 7 years of contribution space. Only play options in unregistered accounts dude.

NoStructure371

Thats in a TFSA as well kek, max regard

RegularDevelopment52

In the TFSA too, I groaned out loud damn.

ItzDrSeuss

Can’t trade in the TFSA. Options are allowed but they’re a grey area. If you buy and sell options on the same day it’s clear open and shut case for CRA. Anyways even in those grey areas CRA wins. I wouldn’t trade options in a TFSA at all. If you really want to do it, only buy options you plan on holding for a long time, like 3+ months. These gains from OP are for sure getting taxed and he possibly will waste time with the CRA as well.

Valuable-Play-2262

Please say this was in your TFSA

lastsanepersonality

In your TFSA, really dude?

permabear2023

And that too in your TFSA. Guh!

ParanoidAndroids96

Day trading in a TFSA…

Spezcanchokeonmydick

RIP TFSA, can’t even claim it as a loss!

Usual_Leading5104

CRA going to come after gains like this on TFSA. Op should be ready to pay taxes on this

Ordinary_News_6455

Stop gambling in your TFSA, you stupid idiot.

Sherwood_Hero

You know you can't day trade in a TFSA right? CRA is going to come knocking.

doublechinchillin

No tax on gains in TFSA, gains don’t affect contribution limit, seems like a win to me

upthechels12

TFSA 

A-B47

IN THE TFSA

patmangames

you need to enable it with your broker. otherwise it's accepted in TFSA.

rjskel

Great way to lose TFSA room lol

Aceofspades968

Look up a TFSA

WorkIsCringe

SOFI 4/29 ER LFG got my whole port + 401k + TFSA + RRSP in this

slbaaron

401k is RRSP. TFSA is called Roth IRA

PumpkinHistorical548

I am seeking investing advice for a few of my Canadian accounts: TFSA (Tax Free Savings Account) & RRSP (Registered Retirement Savings Account). I have done my fair share of research and while there are many options available to narrow it down to the top selections for my portfolio's are difficult. A quick background on myself to perhaps aid in the selection.. I am turning 40 years old in May. While I started investing in my 20's unfortunately major life occurrences happened which forced me to start over these past 5 years in most areas. I do have a mortgage thankfully which is low in consideration to the market. My career is solid and my pay is great as a Electrical Foreman. Though I've lost time in investing having to start over again in my life and I can make it up somewhat by being able to put larger amounts of money into these accounts. The core ETF's that always come up are VOO, QQQM, SCHD, SCHG, VTI & XEQT. My goal even if I'm a bit older is growth for now and perhaps aim for some dividends. My thoughts were to separate the TFSA & RRSP accounts into two separate portfolios using different ETFs and or stocks. I'm looking for opinions on combinations of etfs and/or stocks for each or even just a single etf. The only difference between the two would be the RRSP is that it would remain untouched and the TFSA maybe I would occasionally use a little or the growth for something but then recontribute back into it as it's allowed. All input is appreciated!

PumpkinHistorical548

I am seeking investing advice for a few of my Canadian accounts: TFSA (Tax Free Savings Account) & RRSP (Registered Retirement Savings Account). I have done my fair share of research and while there are many options available to narrow it down to the top selections for my portfolio's are difficult. A quick background on myself to perhaps aid in the selection.. I am turning 40 years old in May. While I started investing in my 20's unfortunately major life occurrences happened which forced me to start over these past 5 years in most areas. I do have a mortgage thankfully which is low in consideration to the market. My career is solid and my pay is great as a Electrical Foreman. Though I've lost time in investing having to start over again in my life and I can make it up somewhat by being able to put larger amounts of money into these accounts. The core ETF's that always come up are VOO, QQQM, SCHD, SCHG, VTI & XEQT. My goal even if I'm a bit older is growth for now and perhaps aim for some dividends. My thoughts were to separate the TFSA & RRSP accounts into two separate portfolios using different ETFs and or stocks. I'm looking for opinions on combinations of etfs and/or stocks for each or even just a single etf. The only difference between the two would be the RRSP is that it would remain untouched and the TFSA maybe I would occasionally use a little or the growth for something but then recontribute back into it as it's allowed. All input is appreciated!

m1nhuh

You cannot open spreads in RRSP and TFSA.

dismanhasneuraldamaj

you say that the 529 can turn into an IRA so does that mean an RESP can turn into a TFSA? my parents have saved money for college but realised that my tuition may be completely free if i go to specific university...

Razwog

Maxed out TFSA and FHSA right now is 79k. TFSA is 61k, all in on XEQT (which has a return rate of 10% yearly, 8% when adjusting for inflation). With a time horizon of 30 years, and adding 7k of savings to the TFSA at the start of every year, the end balance is **$1,470,243.15, with the starting amount and total contributions adding up to $280,000. (55 years).** If I wait 35 years that becomes **$2,204,621.04. (60 years)** If I wait 40 years then that becomes **$3,283,663.09 (65 years).** These calculations aren't including the RRSP, which I'll start contributing to in a few years. I'll probably use the 15 years of appreciation from the FHSA to roll it into extra RRSP contribution room.

geokilla

Good thing I lost about $25k of TFSA room to options trading, weedstocks, and penny stocks in the past. Still can't max out TFSA either because cost of living is too damn high.

newtownkid

Wealth simple self directed trading account. Not and RRSP FHSA or TFSA, just a plain old unregistered trading account.

newtownkid

Dude not even in the TFSA. Realistically we're going to lose money or scrape some small wins most of the time. Just use a non registered account and if you happen to hit jackpot on a lotto spin, pay the tax - but it's unlikely so I wouldn't waste precious TFSA room on options.

geokilla

My TFSA is mainly XEQT. Got about 20% spread between ENB, a 5% GIC, and XUS as well. RRSP is split between XEQT and VGRO.

Razwog

Yeah. With a maxed out TFSA I'll be retiring comfortably by 55, even without a DB plan. 

geokilla

I lost about $30k in TFSA before this trading weedstocks, penny stocks, and options from 2018 to 2023.

Different_Many3099

are you using a margin account? I have a TFSA. I haven’t seen any charges for transferring currency. I’ll look into it though.

LazyAd3074

Same here, loss a ton of money in my TFSA and RRSP. Hating myself now lol

planethempnaarea

When I created this account I requested options to not be allowed same as in my RRSP - options only allowed in my TFSA which I already blew up twice. Down $24K but learned from the mistakes - around $50K spread around the RRSP and FHSA.

NextTrillion

They’re monitoring activity, but probably mostly on the higher level accounts. If you think about it, a reasonable, risk adverse investor shouldn’t have anywhere near a $200k or more TFSA, unless they either got super lucky, or engaged in a lot of trades (and still got lucky). So they’re watching for guys using their tax sheltered TFSA account for the purpose of running a daytrading business that they’re trying to avoid paying tax on. I’ve heard one should make a trade (buy and sell) with a frequency of greater than once a week.

angershark

>Damn ! That clears so much shit up lolll turns out i had no idea what a TFSA was xD Naturally you've found your way to wsb where you belong

DontDrinkBongWater

Buy and hold is not business income. Also you can trade in a TFSA but try not to open and close positions on the same day (weekly + monthly should be fine) For smaller values buying and holding the only platform in Canada I would recommend is Wealthsimple, as long as you're working with Canadian stocks. Reason is that Wealthsimple has no fees on Canadian stocks but they'll rip you off hard for US. For question 3 ... I mean you're already in WSB... Set up an interactive brokers account. Learn your Greeks, throw your money into 0dte options on NVDA.

laveshnk

Damn ! That clears so much shit up lolll turns out i had no idea what a TFSA was xD Just a few questions if you dont mind answering as well: 1. I do buy and hold for quite small values. Is it advisable to continue with wealthsimple TFSA? I dont have an RRSP yet. 2. Is buy n hold considered buisness income in canada? 3. Any advice on getting into options as a canadian?

DontDrinkBongWater

Contribution room = how much you can contribute into the account. Lets say you have 30 000 in contribution room, you deposit $100 and yolo your way to 30 000. Your contribution room is now $29 900. Gains made in the account have no impact on contribution room. The CRA may or may not come after you for this depending on how many times the CRA agent reviewing your file caught his wife with her BF that day. In general small gains under 100k the CRA will ignore it. But day trading is considered as **business income** in Canada and if its done in a TFSA they may take away the TFSA designation from the account and make you pay taxes on your gains. Advice: Do it in an RRSP or better yet in a non registered account so that when you inevitably lose money you at least get to write it off as a loss. Also any losses in your TFSA take away contribution room permanently. Second advice, don't use Wealthsimple for options but this is a gambling forum carry on.

throughahhweigh

If you're buy and hold investing, the TFSA is a good choice. If you're trading, a cash or margin account is better. In regular accounts like these, any capital losses can offset taxable capital gains, even if those gain occurred in other years. I don't have an opinion on which brokerage or platform is best to invest through, they all have their pros and cons. If you like wealthsimple keep using them.

laveshnk

Omg I see! I absolutely did not know that because I thought CRA does not tax capital gains from tfsa. Im a very beginner trader (like maybe 300$ CAD profit so far). For the long term do you recommend me to continue trading US stocks with wealthsimple TFSA? Or any other option. Also I dont do options yet. I just buy the regular fractional stock (dunno the exact terminology) Im asking cuz you seem quite knowledgeable about this subject.

throughahhweigh

contribution limit only matters for the amount of money you put in (i.e. contribute) the account. Once the money is in the account how much it grows (or shrinks in this crowd's case) doesn't matter as far as tax owing. The exception is if CRA decides you're operating a business through your TFSA. Frequently trading, especially in more sophisticated instruments like options, is a bright red flag to them in this regard. In this case the gains are treated as regular income and get taxed as such, despite being in a so-called tax free account.

laveshnk

what? What do you mean. Sorry im an extreme noob at this shit, im genuinely confused. correct me if im wrong but I thought gains from a TFSA account arent taxable as long as you stay within the contribution limit. Exceeding that may cause CRA to audit u or some shit?

DontDrinkBongWater

No. Bruh that's not how TFSA's work at all

exploitableiq

Well yes, but that option is not on the table because op wants to hold the assets in a TFSA. That is the only situation I can think of where owning the etf is better than the coins itself. The "insurance" that you guys mentioned is pretty much worthless just keep your coins off exchange.

exploitableiq

Right, a TFSA is probably the only account that should hold a btc etf because no better alternative.

-pANIC-

That's right, that is an option too. But you can't hold the pure Bitcoin asset itself inside TFSA/RRSP's. Maybe one day we'll be able to.

HANKnDANK

There are Bitcoin and even alt coin ETFs already in Canada you can purchase in your TFSA/RRSP for 2+ years now.

-pANIC-

You CAN'T buy Bitcoin with your TFSA or RRSP (speaking as a Canadian), and those that have large sums already in those types of accounts aren't going to exit their retirement and tax-free portfolios to take a tax hit in order to buy buy Bitcoin. $MSTR gives those people a proxy-entry point to Bitcoin INSIDE those types of accounts.

ShartSqueeze

Same thing here. Recently doubled down in my RRSP to get my avg to 4.53. Sold at 7.40 and 7.66 because it was just too insane of a move not to. I can't imagine us not seeing a big pullback. Still have an avg of $40 in my TFSA, though (-76k USD loss). Would be happy to see continuation just to clear that up, but it would feel like insanity to get back up to that size of a market cap. I'm bullish on CGC long-term, but I'd rather see marjet cap growth come from a more explainable source, not some gamma squeeze.

Aceofspades968

I can’t speak for Groww. SIP or JM. Or your bank. Your bank should be able to give you their charges. Normally, as a fiduciary they’re legally required to tell you them ahead of time. They should also be able to supply you with the information upon request by law. But don’t quote me on that. You seem to be on the right path and your intuition is on. Look into TFSA’s. South Africa started using them in 2015.

PlumpkinMunchkin

Good to get for a few months out. Mine are for Sept but you could probably get some a bit earlier and cheaper. It’s a safe bet for a swing trade everytime it drops to $58-59. I’m also buying 10 shares slowly at a time. I ALSO have several hundred TD shares in my TFSA and RRSP which makes really good dividends. So yeah I’m all about TD and Canadian banks.

SobekInDisguise

I didn't think day trading was allowed in a TFSA?

Munroho

Yolo in the TFSA; certified canadian regard

AltNickCSGO

if those werent 19k of gains you made INSIDE your TFSA, your contribution room is reduced by 19k for the rest of your life

shabloog

are you trading options through your wealthsimple TFSA?? how is trudeau gonna regard that???

ahsenshah

Canadian here, Lost $5K last week in NVDA in TFSA Questrade, and I am done with options.

Kmac0505

You should have a US fund TFSA to trade US Tickers. Otherwise, you’re going to get hit with exchange fees on each side of the trade. Call your broker. Unless that is just displaying in CAD. Then carry on.

beardgangwhat

Yeah hold on what, are u able to buy calls in your TFSA on wealth simple?mm

OnlyDivergences

Options in your TFSA? The CRA is ok with that?

YouMissedNVDA

Goddamn I didn't even know that one. That's absurd. And here I am being happy with a TFSA...

CatchesFallingKnives

This is Questrade, right? Why is your buying power only 251k if you have 257k cash? You're not doing this in your TFSA or another registered account, are you? If you day trade in a registered account they can still tax you on it. It can be taxed as business income just like it was in an unregistered account.

kuun0113

To those who are trading with TFSA how much contribution room did you lose

everydayrelics

I sold my HMUS at a good profit as soon as I heard the ETF was closing. I just mimic MSOS in stocks, so I hold GTII, CURA, CL, VRNO, AYR and TRUL in my canadian TFSA and regular trading accounts.

RobertsonvsPhillips

I'm Canadian, so I don't really know what a Roth is, but if it's like a TFSA, then it is considered very super highly regarded to gamble in it, and that's what I do.

Akanan

A point soooo often overlooked when people judge about strategies, if they are good or not. - Do you trade in a tax free account? - If yes, you have to be "careful" when you educate yourself or follow superinvestors. Many decisions are taken for fiscal efficiency, which is an obstacle you don't have if you don't pay taxes (likes TFSA and RSP in Canada).

rajalreadytaken

>I noticed OP was trading options in their RRSP. While it's allowed, if those options were to go to 0, their contribution room for the year wouldn't change. The secret is to not lose that money I guess 😜 Luckily I'm transferring money from other RRSP accounts within wealthsimple to this "Sandbox" RRSP. I've been investing for about 18 months and have had some pretty lackluster results. Read some "stock tips" that all pretty much tanked, tried to diversify with bond stocks that all also tanked when interest rates went up, etc. I was happy to sell many of those a month ago and start playing with options. Since it's all either from other RRSP accounts or in the same RRSP account but on the Canadian fund side, I'm not affecting my contribution limits at all. I might get into a little bit of trouble if I go too crazy and get seen as a day trader, but I think CRA is only really concerned about people doing that in their TFSA.

FarLog4503

Gambling in TFSA 

No_Assumption_6196

Advice Needed: Student Investing in Blackrock XWD (Pros / Cons) \- Would it be best to invest a lump sum from summer savings, or split the amount over four months as an example. \- As a beginner (no finance/investing background), any advice, or insights, are greatly appreciated. \- I was advised to invest into it on Wealthsimple with the TFSA/Cash option (what is the difference and which would be best) \- Thank you so much for your help in advance!!!

CJ-2QT

because day trading is strictly prohibited in your TFSA, if the CRA notices you are day trading they will make you pay taxes on it... ​ You can still buy options in your TFSA its just you can't day trade. You'll probably be fine as long as you aren't buying and selling the same stock on the same day. Monthlies and leaps are fine, but if it goes south and your option expires worthless you will never get that contribution room back. ​ The USD account is nice, because you only have to pay 10 bucks a month and it makes trading much easier. Conversion fees eat away at your profits. Better off just buying VFV in your TFSA for the next 20-40 years (assuming you are young) and then sell it all and buy dividends when you are an old fart ready to retire.

adonai_lizama

Noted, I’m going to open a non registered for my options trading and buy stock normally under my TFSA, also going to buy the USD account (so far this is only my second options trade so I was just testing it out) Why is it bad to use you TFSA for options though? I’m still super new to this and trying to figure it all out

PhrygianMetal

Hi, I'm a 27 year old Canadian. Looking to deposit 30K into my TFSA. Currently employed making around 55K a year (I should be able to bump this up to around 65K in a few months) Goals with this money is to just let it grow for the next 10+ years. No immediate need for cash. I'm still farily young and believe I have the potential to be a high-income individual with my career in a few years so my risk tolerance is quite high. I was thinking of doing around a 85/15 portoflio. No current holdings. No debt. I guess my question is, I just don't know what to put the money in? I just want to "set it and forget it" kind of thing, keep it pretty passive. Looking at the VFV ETF. But is it a bad idea to put the entire 80% allocation solely into that ETF or should i be diversifying into other equity ETFS? What about for the 15% allocation towards fixed income/other investments?

PuldakSarang

Yah CRA actually might fuck with him. This is why I keep boomer plays in my TFSA and degen plays in my margin acct

CJ-2QT

why the fuck are you buying short dated options in your TFSA? Seriously man this is terrible, open a non-registered. and for the love of god if you're going to use WS buy the USD account, you save so much money. regards, fellow regard

TheOnlySafeCult

if you want to permanently lose $700 of room in your TFSA....

Salsa_CT

CBST only thing keeping my TFSA in the green today. Talk about upside down world.