Use the chart below to help you find the account the best suits your trading and investing needs.
| Account Type |
Description |
| Non-Registered Accounts |
|
Cash CAD & USD (includes Individual, Joint, Corporate, Investment Club, Estate)
|
With a cash account, you can trade equities, options and mutual funds.
This is the most common type of account and is meant for investors who intend to pay cash for every purchase.
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| Margin CAD & USD |
With a margin account, you can borrow additional capital and benefit from more trading flexibility.
For instance, you can either pay for each trade or you can buy margin-eligible securities on credit.
By using this borrowing capability, you can react quickly to market opportunities without having to worry about finding the cash to cover the transaction.
If you want to trade options or sell securities short, you must have a margin account.
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| Short-Selling CAD & USD |
The premise behind this type of account is that you anticipate a decrease in the price of a stock and want to profit by selling the stock short and then buying it back at a later date, at a lower price.
This type of account is not intended for novice investors.
This speculative-type account requires up to 150% of the market value of the stock sold short in the account as margin.
Also, there is no interest paid on the credit balances in the account.
If dividends are declared on the stock while it is sold short in the account, the short seller is responsible for paying the dividend.
Additional guarantees may be required before opening such an account.
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| Options USD and CAD |
With this type of account,
you can perform any of the transactions possible in a conventional margin account, PLUS a variety of option strategies, such as:
- Buying call and put options
- Selling covered call options
- Selling uncovered calls and puts
- Long or short straddles (covered or uncovered)
- Spreads
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| Registered Accounts |
|
| Registered Retirement Savings Plan (RRSP) (includes Spousal) |
Self-directed RSPs offer a combination of flexibility, convenience, and choice to investors who are seeking to control their retirement savings investments,
while enjoying the tax-deferral benefits of registered plans.
With your self-directed RSP, you can:
- Hold a wide array of RSP-eligible investments, including Canadian and U.S. equities, mutual funds and options.
- Consolidate and manage all aspects of your RSP investing at your convenience, including contributions, transactions, dividend and income collection.
- Pay no annual administration fee
By contributing to an RRSP, you can defer your tax payments on the money you invest until you retire. Your RRSP must be collapsed in the year in which you turn 71. At that time, you will need to withdraw your savings or transfer them to a Registered Retirement Income Fund (RRIF).
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| Registered Retirement Income Fund (RRIF) |
As long as you have "earned income", you can contribute to your RSP until December 31st of the year you turn 69.
At that point, you have three options. You can set up an annuity, receive the proceeds of your RSP as a lump sum and they will be included as taxable income for the year, or you can transfer the funds to a Retirement Income Fund (RIF).
If you transfer your savings to a RIF, you direct a specified amount to be transferred out of your registered account on a regular basis (monthly, quarterly, semi-annually, or annually). The funds you withdraw are subject to income tax and the annual minimum payment amount is dictated by federal legislation. However,
you continue to defer the taxes payable on the funds that remain in your RIF. Plus, you retain control over how that money is invested.
With a TradeFreedom RRIF, you can:
- Access a broad assortment of RIF-eligible investments
- Achieve diversification among your assets
- Receive one consolidated statement
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| Locked-in Retirement Account (LIRA) |
Changing employers throughout your career? LIRA accounts offer the possibility of transferring pension funds or funds from a retirement plan with a former employer to this type of account.
However, no additional contributions can be made to the account and the funds cannot be withdrawn until retirement.
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| Locked-in Retirement Account (LIRA) |
When you retire, you can convert your LIRA or your pension fund to a LIF account, according to the policies established by law. A LIF allows you to receive different instalment amounts.
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| Registered Retirement Income Fund (RRIF) |
If you plan to help finance your children's or grandchildren's post-secondary education, you may want to consider investing in an RESP as it offers an excellent way to save for future education costs, while benefiting from certain tax-deferral features.
Here's how RESPs work:
- The lifetime maximum contribution per child is $50,000 – no annual maximum contribution limit.
- Through the Canada Education Savings Grant (CESG) program, you receive 20% on the first $2,500 you contribute to your RESP each year, to a maximum of $500 annually (additional Grant amounts may be available depending on family income).
- The contributions you make to your RESP are not tax-deductible, but your investment grows on a tax-deferred basis until the funds are withdrawn (usually by the beneficiary you name who will likely be in a lower tax bracket).
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| Tax-Free Savings Account (TFSA) |
The TFSA is a new registered savings vehicle that enables you to earn investment income tax-free.
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