Wealthsimple Trade currently supports three account types:
- Tax-free savings accounts (TFSA)
- Registered retirement savings plan (RRSP) accounts
- Non-registered personal accounts
What to expect
- You can only open one of each account type in Wealthsimple Trade
- If you have an existing RRSP or TFSA with another institution and you’d like to move it to Wealthsimple, you can request a transfer
- You can have separate TFSAs, RRSPs and non-registered personal accounts in both in Wealthsimple Trade and Wealthsimple Invest
Open a new account
- Sign into the Wealthsimple Trade app on your mobile device
- Tap the Profile icon on the top left corner of the screen
- Select the Accounts menu item
- Select a TFSA, RRSP or Personal account
- Follow the prompts to open the account
Tip: If you’re not sure whether to put money in a TFSA, RRSP or non-registered personal account, take a look at our ‘RRSP vs TFSA: What’s the Better Choice?’ guide.
What is a TFSA?
The tax-free savings account (TFSA) is designed to help Canadians save and invest money without paying tax on the gains. Although it is called a ‘savings’ account, a better name for it would be a ‘investment’ account since you can invest money in all kinds of investment products from within a TFSA.
- A TFSA must be held by one individual only. Each person has their own individual contribution limit, which cannot be combined with anyone else's.
- You can designate beneficiaries and successor holders to your TFSA.
- If you are a US citizen and are considering opening a TFSA, please note that the IRS considers TFSAs to be ‘foreign trusts’ and therefore any income earned in these accounts would be considered taxable on your US tax return
Tip: Check out ‘Tax Free Savings Account (TFSA)’ for more information about TFSAs.
What is a RRSP?
A registered retirement savings plan (RRSP) account is designed to help Canadians save for retirement. The money you contribute to your RRSP is tax-deductible. You can subtract the amount you contribute from your income and pay less in income taxes.
For example, if you made $70,000 this year and you contributed $10,000 to your RRSP, you will only pay tax on $60,000 of income. You will eventually have to pay income taxes when you withdraw your money from your RRSP, but the idea is that when you do so, you’ll be retired and your tax rate will be lower. Until you withdraw from your RRSP, any growth on your investments is tax-free.
You can also use a certain amount of funds from your RRSP to buy a home or even fund your education.
- Accounts like Spousal RRSPs, RIFs, LIRAs, and LIFs are not yet supported on the Trade platform
- You can designate beneficiaries and successor holders to your RRSP.
Tip: Check out our ‘What is an RRSP & How Does It Work?‘ guide for a complete overview of RRSPs.
What is a non-registered personal account?
With a non-registered personal account, there are no deposit limits or withdrawal restrictions. However, any gains on your investments are taxable.
It's important to consider what sort of taxes you could be liable for before liquidating or moving assets held within a non-registered account.
- When you open a non-registered account, we have to take a few extra steps to verify your identity as these accounts are not registered with the Canada Revenue Agency (CRA). We perform this extra step of verification to protect our clients' identities and for anti-money laundering (AML) purposes.
- This verification involves confirming the details you entered with a credit reporting agency. If all of your details match, then your account will open right away. However, if there are discrepancies, we first ask you to confirm those details to make sure they were entered correctly when signing up.
- If we’re having difficulty verifying your identity, we may ask you to provide us with additional documentation such as a bill or a T4 statement or Notice of Assessment.