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.
Please follow our Community Guidelines
Related Articles

What You Need to Know Before Buying Crypto With PayPal
Shir Lapidot
April 21, 2021

What Is the Ideal Amount of Shares a Beginner Trader With Little Money Should Have?
Sofia Thai
April 29, 2021

What You Need to Know About Investing in Multiple Cryptocurrencies
Filip Dimkovski
May 25, 2021
Can't find what you're looking for?