Can I use my TFSA as a trading account?
Asked 4 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?
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.
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