Transfer shares in-kind between Wealthsimple accounts

In this article:

Note: This article covers in-kind share transfers between Wealthsimple accounts. For information about cash balance transfers between Wealthsimple accounts, please review this article.

Overview

You can move investments, like stocks or ETFs, directly between your Wealthsimple accounts without selling them for cash first. We call this an "in-kind transfer." This can be useful if you want to rebalance your portfolio or consolidate your investments.

Some in-kind transfers are tax-free, while others might lead to tax implications, especially if you're moving holdings between different account types. We'll explain the details below.

Important information about in-kind transfers:

  • Settled trades: Your trades must settle before you can transfer your holdings.
  • No reversals: Once you submit a transfer, we can't reverse it.
  • Timing: Transfers generally take one business day to complete.
  • Contributions: Moving shares from a non-registered account to a registered account is treated as a contribution to the registered account.

Taxable vs tax-free transfers

Taxable

We transfer assets between accounts based on their current market value. Because of this, transferring from a non-registered to a registered account may trigger capital gains taxes.

After the transfer, the asset's book cost in the new account is updated to reflect its current market value. This affects how much tax you might pay when you sell those assets in the future.

Tax-free

In-kind transfers between accounts of the same type with the same owner are tax-free.

Assets are transferred at their book cost from one account to the other, and there are no associated tax implications.

How Wealthsimple determines a stock's value

When you transfer holdings in-kind, their value is important for tax purposes and for updating their original purchase price (book cost) in the new account.

  • For in-app transfers, we use the fair market value of the asset at the time of transfer, which becomes the new book cost of the asset.
  • For transfers submitted through our support team, we use the previous day's end-of-day closing price and foreign exchange rate to value and transfer in-kind assets. This can affect your book cost.

Eligible accounts

You can transfer holdings in-kind between many of your Wealthsimple accounts. Some transfers can be done directly in the app, while others require our support team's help.

Transfers you can do in the Wealthsimple app

You can only transfer shares in the Wealthsimple app between the following account combinations:

  • From Non-registered to:
    • Non-registered
    • Margin*
    • TFSA
    • RRSP
    • FHSA
    • Spousal RRSP
  • From TFSA** to:
    • Non-registered
    • RRSP
    • FHSA
    • Spousal RRSP
  • From RRSP to:
    • FHSA

*Moving holdings to your Margin account:

  • Moving margin-eligible securities to your Margin account allows you to use these securities as collateral when you trade on margin.
  • This increases your margin available, allowing you to purchase more securities without having to deposit cash.
  • Your additional margin available depends on various factors such as the margin rate, market value, concentration limit of the transferred securities, and current holdings in the account.
Note: When you move securities to a Margin account, you're subject to the terms and conditions you agreed to upon account opening. This means Wealthsimple may liquidate the assets in your account due to margin calls or extenuating market conditions without prior notice.

**Moving holdings from your TFSA account:

  • If your TFSA is linked to a Margin account for margin boost, you won’t be able to make an in-kind transfer from your TFSA to ensure that the Margin account doesn’t go into a margin call.
  • You can unlink your TFSA from your Margin account to access in-kind transfers from your TFSA.

Note: You can’t transfer shares

  • to or from crypto and chequing accounts, or
  • from joint non-registered accounts to any other account type.

Learn more about tax implications for transfers to registered accounts below. 

Transfers requiring the support team's assistance

Please contact our support team if you want to:

  • transfer shares from a managed account to a self-directed account
  • transfer shares out of Margin accounts, or
  • transfer non-qualifying investments (NQI).
Note: NQI transfers from a TFSA to a non-registered account are now supported in the Wealthsimple app.

How to submit an in-kind transfer

Follow the steps below to make an in-kind transfer:

  1. Sign in to the Wealthsimple app on your mobile device
  2. From the Home tab, select your desired account to transfer shares from
  3. Scroll down and tap Move holdings
  4. Select the account to transfer the holdings to
  5. Review the information about tax implications
  6. Tap Next
  7. Enter the number of shares to transfer or select All
  8. Tap Review
  9. Tap Submit to confirm the in-kind transfer
Note: The transfer takes 1 business day to complete.
Tip: You can also select the Move tab to transfer holdings.

Tax implications

The tax implications of an in-kind transfer depend on the account types involved.

Transfers to registered accounts (TFSA, RRSP, FHSA)

When you move holdings from a non-registered account to a registered account (like a TFSA, RRSP, or FHSA), we consider this a contribution to the registered account. There will be tax implications for any unrealized gains (meaning the holdings have increased in value since you bought them, but you haven't sold them yet).

  • Transferring holdings showing a loss: If you hold holdings with a loss in a non-registered account and transfer them in-kind into your registered account, you can't claim a capital loss.
  • Transferring holdings showing a gain: If you transfer holdings that have increased in value, the CRA considers this a "deemed disposition." This means it's as if you sold the holding at its current market value, even though you didn't physically sell it. You'll be responsible for reporting and paying tax on any capital gains.
Example: Let's say you transfer 100 shares of XYZ in-kind from a non-registered account to a TFSA. If the shares are worth $100 each on the transfer date, the CRA will consider them sold at $100, even though no physical sale occurred. You'd then pay tax on any capital gains. As a result, your average cost for those shares in the new account would be different.

Transfers from a TFSA to a non-registered account

Moving holdings in-kind from a TFSA to a non-registered account is considered a withdrawal, also known as a redemption. We send redemption information for TFSAs to the CRA during tax season.

When you move holdings out of a TFSA, you lose contribution room for the year based on the total market value of all holdings combined. You'll get this contribution room back in January of the following year.

Frequently asked questions

What types of assets aren't supported for in-kind transfers?

The assets below aren't supported for in-kind transfers:

  • NQI assets
    • Note: Please contact our support team to transfer these assets. NQI transfers from a TFSA to a non-registered account are now supported in the Wealthsimple app.
  • Security not active
  • Assets on loan
  • Asset status is not trading (for example, delisted, halted, suspended, or undergoing corporate action)
  • Asset type is anything other than stocks or ETFs (for example, cash, bonds, mutual funds, crypto, options)
  • Securities not supported for fractional trading
  • Gold

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