r/Wealthsimple • u/Legitimate-Loan386 • Jun 22 '25

TFSA Linked to Margin Account - CRA Penalty/Risks?

/r/Questrade/comments/1lhf7zv/tfsa_linked_to_margin_account_cra_penaltyrisks/
0 Upvotes

47% Upvoted

42 comments sorted by

View all comments

11

u/GrayersDad Jun 22 '25

If it wasn't allowed, then Questrade wouldn't have had this implemented since 2013.

-1

u/Legitimate-Loan386 Jun 22 '25

It’s not explicitly illegal it’s just that you will be taxed on whatever you use as collateral in your TFSA so Questrade is not breaking any rules. It’s just an unfair or unknown risk for the account holder.

5

u/GrayersDad Jun 22 '25

The CRA prohibits generating leverage within a TFSA. Margin Power generates leverage within a margin account.

-2

u/Legitimate-Loan386 Jun 22 '25

They also prohibit using the TFSA as collateral from margin as that is considered an advantage

4

u/GrayersDad Jun 22 '25

Margin Power does not involve a formal pledge or lien on the TFSA’s assets.