Overview

Understand the financial aspects of options trading, including associated fees, tax implications, and how we handle your orders. This article provides an overview of these considerations when you trade options at Wealthsimple.

Options trading fees

Wealthsimple has a $0 per-contract fee on all successful buy and sell options orders. You can find our detailed fee schedule on our website.

Tax implications of trading options

The tax implications of options trading depend on whether the Canada Revenue Agency (CRA) considers the transaction as "income" (business income or loss) or "capital" (capital gain or loss).

• If considered income: Your income includes any gains you make, and they're taxed at your marginal rate. Any losses are deductible against all income sources (for example, employment income, business income, capital gains). If you can't deduct the loss in the same tax year, you can carry it forward 20 years or carry it back 3 years.
• If considered capital: Your income includes half of the capital gain and is taxable. Half of the capital loss is deductible, and you can use it to offset taxable capital gains. If you can't deduct the loss in the same tax year, you can carry it forward indefinitely or carry it back 3 years.

It's also important to remember that trading in a registered account, such as a TFSA or RRSP, could constitute a business activity depending on the circumstances. In this case, you would be subject to income tax on any income earned.

Related articles

• Enable options trading in your investing account
• Understand options terminology
• Buy a long option
• Sell a long option
• Sell a covered call
• Buy to close a covered call
• Manage and close options positions
• Use auto-sell for options
• Understand options exercise and assignment
• Trade options in a margin account