Investing in stock market

[ITmanEU]

Hi,

I just opened an account with QuesTrade as I am interested in buying US stock.

In my CRA account, I can see that have an accrued limit for allowed TFSA investment of >10000 CAD. Not sure if I am allowed to use that allowance simply because I was not present in Canada 6 months out of a year in the past. I filled past application as deemed resident but having zero income was not doing any difference, so I did it with a clarification letter. Anyway I do not want to take any risk and have to face back payment later on if unduly use TFSA allowance .

My question:
How to buy stock in regular manner, that is subject to NO tax exemption? Should I just open "Margin" account and proceed ?
Any recommendations?

Thanks

 

[torontosm]

Hi,

I just opened an account with QuesTrade as I am interested in buying US stock.

In my CRA account, I can see that have an accrued limit for allowed TFSA investment of >10000 CAD. Not sure if I am allowed to use that allowance simply because I was not present in Canada 6 months out of a year in the past. I filled past application as deemed resident but having zero income was not doing any difference, so I did it with a clarification letter. Anyway I do not want to take any risk and have to face back payment later on if unduly use TFSA allowance .

My question:
How to buy stock in regular manner, that is subject to NO tax exemption? Should I just open "Margin" account and proceed ?
Any recommendations?

Thanks

When you open your account with Questrade, you can choose whether you want a registered account (RRSP, TFSA, LIRA, etc.) or a general investment account. Choose the latter and you can trade at will, as you will be using after-tax funds.

 

[ITmanEU]

torontosm, thanks for your response.
In Questrade, I have the option to select "self-directed individual margin", would this be suitable as a general investment account ?

 

[ITmanEU]

Additional question, if I do use TFSA and it turns out later on that it was not legitimate to take the benefits of TFSA (e.g. me not fulfilling the residency requirement), will I be facing fines or will it just be back payments (so at the end of the day, will be subjected to extra payment at normal tax rates)?

 

[torontosm]

Additional question, if I do use TFSA and it turns out later on that it was not legitimate to take the benefits of TFSA (e.g. me not fulfilling the residency requirement), will I be facing fines or will it just be back payments (so at the end of the day, will be subjected to extra payment at normal tax rates)?

Investing via a TFSA when you aren't allowed to will certainly result in fines/penalites. I accidentally over-contributed to a TFSA last year (bank's error) and still had to pay several thousand dollars to the CRA.

 

[Jon.Canada]

Hi,

I just opened an account with QuesTrade as I am interested in buying US stock.

In my CRA account, I can see that have an accrued limit for allowed TFSA investment of >10000 CAD. Not sure if I am allowed to use that allowance simply because I was not present in Canada 6 months out of a year in the past. I filled past application as deemed resident but having zero income was not doing any difference, so I did it with a clarification letter. Anyway I do not want to take any risk and have to face back payment later on if unduly use TFSA allowance .

My question:
How to buy stock in regular manner, that is subject to NO tax exemption? Should I just open "Margin" account and proceed ?
Any recommendations?

Thanks

I'm pretty sure, as long as you were a tax resident the TFSA limit increases every year. You don't necessarily have to live 6 months of the year to be considered a tax resident in Canada. If you do want to invest outside a TFSA, then yeah it's the Margin account on Questrade.

 

[ITmanEU]

OK. Well noted.
Thanks to both of you for your orientations.

 

[canuck78]

OK. Well noted.
Thanks to both of you for your orientations.

Are you a tax resident? Have you been paying taxes on your international income in Canada taking Into account any tax treaty that may be in place with your current country of residence? If you aren’t a tax resident investing via a TFSA may make you one. You’d have to contact CRA to determine if you are a tax resident. If you end up having to pay taxes on your international income TFSA use is probably not a good idea Until you settle in Canada. You mention that you don’t have a job in Canada but maybe you are working remotely or have investment income, rentql income, etc.

 

[foodie69]

Hi,

I just opened an account with QuesTrade as I am interested in buying US stock.

Why not investing in Canadian stock? We need investments too..

 

[fairboy]

Investing in the stock market may seem like a straightforward way of becoming rich nowadays. Still, you need to be familiar with the basics, at least the rule of 72, for example. Still, given my poor luck, even if I had invested in bitcoin back when you could buy a pizza with a hundred of them, I would not have ended up rich . Because of the simple reason that I would not have remembered the password to my online wallet . I doubt people who emigrate o Canada are interested in stock markets. They just run from poverty.

 

[phednourtensua]

Hi,

I just opened an account with QuesTrade as I am interested in buying US stock.

In my CRA account, I can see that have an accrued limit for allowed TFSA investment of >10000 CAD. Not sure if I am allowed to use that allowance simply because I was not present in Canada 6 months out of a year in the past. I filled past application as deemed resident but having zero income was not doing any difference, so I did it with a clarification letter. Anyway I do not want to take any risk and have to face back payment later on if unduly use TFSA allowance .

My question:
How to buy stock in regular manner, that is subject to NO tax exemption? Should I just open "Margin" account and proceed ?
Any recommendations stocks ?

Thanks

Investing in the stock market offers a dynamic avenue for growing wealth, but it requires careful consideration, strategy, and risk management. The stock market is influenced by various factors, including economic indicators, corporate earnings, geopolitical events, and market sentiment, all of which can lead to fluctuations in stock prices.

 

[loius0044]

From what I know, you can purchase stocks with the help of platforms that are offering these types of services. For instance, you can buy stocks using Revolut. Still, there are many other available platforms on the internet, so you just have to find one that will suit you. By the way, guys, have you ever heard about robotic advisors? I have recently read an article about nasdaq fintechzoom And to be honest, I was quite impressed when I've found out about this robotic advisor. It makes the investing process much easier. Anyway, I was actually wondering what opinion you have about this intelligent advisor.

Thanks for sharing

 

[FletcherHubbard]

Hi,

I just opened an account with QuesTrade as I am interested in buying US stock.

In my CRA account, I can see that have an accrued limit for allowed TFSA investment of >10000 CAD. Not sure if I am allowed to use that allowance simply because I was not present in Canada 6 months out of a year in the past. I filled past application as deemed resident but having zero income was not doing any difference, so I did it with a clarification letter. Anyway I do not want to take any risk and have to face back payment later on if unduly use TFSA allowance .
Nox Vidmate VLC
My question:
How to buy stock in regular manner, that is subject to NO tax exemption? Should I just open "Margin" account and proceed ?
Any recommendations?

Thanks

I accidentally over-contributed to a TFSA last year (bank's error) and still had to pay several thousand dollars to the CRA.

 

[cookchr]

To be completely honest, I don't know much about stocks either, so I’m seriously considering investing in real estate instead.

 

[cookchr]

Where are you investing these days guys?