I am new to stocks and I am using an application that's called Wealthsimple. The application shows different account types (non-registered, TFSA, and RRSP) but I don't understand really what are the differences.

I read online that the differences are related to taxation (like here: Investments beyond RRSP and TFSA, in non-registered accounts?) but still, it's not clear for me. I am living in Canada and I am new to the taxation system as I used to live in a country that has no taxation system.

My goal is to buy stocks and sell them (short-term trading). So, Which account type should I use? Can someone please give an example of the differences?


Can I use the non-registered account to trade and withdraw my money when I want?

  • Does this answer your question? Asset Allocation between TFSA vs RRSP Sep 9 '21 at 19:44
  • Apart from the linked question - do you intend to live permanently in Canada, or until retirement, or just a few years, or what? This will impact how significant the tax advantages of these programs would be. Sep 9 '21 at 19:50
  • @Grade'Eh'Bacon No I don't think so, but probably I'll be coming here and I almost got the Canadian passport. Also, it's not clear for me the answer there + it doesn't mention the non-registered account. Finally, what is the TFSA account annual limit (Annual limit: ~$5.5k / year)?
    – Minions
    Sep 9 '21 at 22:22
  • 1
    Every year of tax residency in Canada would make you eligible for an extra 5.5k / year to be contributed to your TFSA (may increase with inflation). If you won't be a tax resident in Canada, is there somewhere that your investments will be taxed? This is a really long discussion and needs to start with an understanding for yourself of where your life will be at least over the next few years. Sep 10 '21 at 12:55
  • There are many online explanations of TFSAs and RRSPs. Here is one I found written by ...Oh! Wealthsimple! Please read and tell us what you don't understand. Sep 10 '21 at 17:37

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