Can I use my TFSA as a trading account?

Asked 3 years ago

I want to avoid tax as much as possible. Will I get taxed or have to pay a fine if I use this tax-free account to trade with?

Tax-free savings account (tfsa)Avoiding taxes Tax law

Andia Rispah Igobwa

Thursday, October 07, 2021

You can't use your TFSA as a trading account. The government deems the activity to be a business and then it is taxable. You can, however, use your TFSA for investing in stocks and bonds--the interest earned on those investments is tax-free as long as you don't withdraw those earnings. 
For example, if you buy stocks in a company that pays dividends to its shareholders, the interest earned by those dividends remains tax-free.