In this article:
Overview
To withdraw on margin, you must have margin available to borrow against. You can think of it as similar to a line of credit that's secured by your investments. This lets you access cash without selling your investments and triggering capital gains or losses.
Before you withdraw on margin
- Margin interest: You'll be charged interest on the borrowed funds. Your rate depends on the total you've borrowed, so a withdrawal can change your rate.
- Margin calls: If the value of your collateral drops, we may issue you a margin call. You may need to deposit more cash or securities to maintain your margin loan and avoid having your securities sold.
- Risk: You're borrowing against your investments. This is a form of leverage, which can magnify your losses if the value of your investments falls. You'll still have to repay what you withdrew on margin, and you could lose part of your initial investment.
- Tax implications: Margin interest is tax-deductible only if the margin cash is used to produce income. This is usually the case when you use margin to buy securities within your margin account. If you withdraw cash for another purpose, like paying a bill, the related margin interest may not be tax-deductible. Learn more about interest deductibility from the Canada Revenue Agency.
Note: Some transfers on margin may prompt a two-factor authentication step where we'll ask you to verify your identity. This helps protect your account from bad actors and cybercriminals. Learn why two-factor authentication is important.
How to withdraw on margin
You can withdraw up to the amount shown as Available to withdraw and send the funds to an external bank account or another Wealthsimple account.
Note: Available to withdraw is your total available margin minus any pending transactions, like unsettled deposits or buy and sell orders.
Follow these steps to withdraw on margin:
- Log in to the Wealthsimple app
- Tap your Non-registered margin account
- Tap Move money
- Select the destination account
- Enter an amount to withdraw
- Tap Next
- Review the amount of cash you're withdrawing (Cash used) and any funds you're borrowing (Margin used)
- Tap Submit
- Log in to your Wealthsimple profile
- Select your Non-registered margin account
- Select Move money
- Select the destination account
- Enter an amount to withdraw
- Select Next
- Review the amount of cash you're withdrawing (Cash used) and any funds you're borrowing (Margin used)
- Select Submit
Frequently asked questions
Why am I being asked to verify my identity?
To help keep your account secure, we may ask you to verify your identity when you take certain sensitive actions in your account. If this happens, we'll ask you to enter a 6-digit code that we send to your email or phone.
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