Non-registered investment accounts in Canada offer flexibility and accessibility for individuals looking to grow their wealth outside of tax-advantaged accounts like Registered Retirement Savings Plans (RRSPs) or Tax-Free Savings Accounts (TFSAs). While these accounts do not provide the same tax benefits, they are an essential component of a well-rounded investment strategy. This guide explains what non-registered investment accounts are, their advantages, taxation, and when they might be the right choice.
| Name | Logo | GMG Rating | Customer Reviews | Account Fees | Dealing Commission | CTA | Feature | Expand |
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 | GMG Rating | Customer Reviews | Account Fees $0 | Dealing Commission 0.05% | Features:
| Interactive Brokers General Investment Account Review: Excellent low-cost investing and trading Account: Interactive Brokers General Investment Account Description: Interactive Brokers’ (IBKR’s) GIA is aimed at sophisticated investors, and offers access to derivatives, options, and futures. The platform is one of the cheapest across all asset classes. Capital is at risk. Is IBKR's GIA a Good Account? IBKR’s GIA is its “universal account” that lets you invest in all asset classes via shares, CFDs, futures, options or funds. The account is excellent for sophisticated investors who want to manage their own portfolios with complex order types. It’s ideal for active investors who need access to a wider range of investment products like derivatives, options, and futures. IBKR is also one of the cheapest investment platforms across all asset classes, as it was built on offering electronic discount brokerage. Fees There is no account charge for general investment accounts at IBKR. When you buy and sell shares minimum dealing commissions are £1 in the UK or 0.05% of the deal size. Special Offers IBKR clients can earn $200 for each qualified referral while giving their friend the opportunity to earn up to $1000 of IBKR stock. What is IBKR’s Platform Like to Use? The investment platform is a slimmed-down version of its exceptional desktop trader station. For investing it gives you a good overview of shares and funds.
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Overall5 | ||
 | GMG Rating | Customer Reviews | Account Fees $0 | Dealing Commission $0 | Features:
| Moomoo Canada is a self-directed trading platform that lets investors trade US and Canadian stocks, ETFs, and US options through its mobile and desktop apps. Moomoo Review: A nod to bullish trading and investingProvider: Moomoo Verdict: Moomoo is an online trading and investing platform developed by Futu Holdings, a technology-driven brokerage firm based in Hong Kong. Moomoo offers a range of long term investment products like fractional stocks and ETFs as well as speculative options and margin trading. Is Moomoo any good? Moomoo is available in Canada, Australian Singapore and the US and has a robust platform that caters to both retail and more sophisticated traders. Compared to platforms like Robinhood and Webull it’s got better data, DMA and global market access. However, for active traders it’s not as institutional grade as Interactive Brokers or more established platforms like TD Ameritrade’s thinkorswim. There are a few key features to Moomoo like real-time market data and advanced charting where you can trade DMA, with good technical indicators for advanced traders. There is also a good demo trading account so you can practice before you deposit real funds. You can also make a automatic buy sell order on Moomoo with OCO stop and limit orders for effective risk management of positions. We consider Moomoo a safe trading platform as they are regulated by the SEC in the US, the MAS in Singapore and ASIC in Australia. Pros
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Overall4.5 |
What Are Non-Registered Investment Accounts?
Non-registered investment accounts are standard brokerage or investment accounts that allow Canadians to buy and sell a wide range of financial assets, such as stocks, bonds, mutual funds, exchange-traded funds (ETFs), and more. Unlike registered accounts, there are no contribution limits or withdrawal restrictions, giving investors complete flexibility in managing their funds.
These accounts are called “non-registered” because they are not registered with the Canada Revenue Agency (CRA) for specific tax-advantaged purposes. As a result, any income earned within the account is subject to taxation.
Advantages of Non-Registered Investment Accounts
- No Contribution Limits: Unlike RRSPs and TFSAs, there are no annual or lifetime contribution limits. This makes non-registered accounts ideal for high-income earners or individuals who have maxed out their registered accounts.
- Flexibility: Funds in a non-registered account can be accessed at any time without penalties, making them suitable for both short-term and long-term financial goals.
- Broad Investment Options: These accounts allow access to a wide range of financial products, including foreign investments, which might not be available in registered accounts.
- No Age Restrictions: Unlike RRSPs, which require conversion to a Registered Retirement Income Fund (RRIF) by age 71, non-registered accounts can be maintained indefinitely.
Taxation of Non-Registered Investment Accounts
One of the key considerations with non-registered accounts is their tax implications. The income earned in these accounts is taxable, but the type of income determines how it is taxed:
- Capital Gains:
- When you sell an asset for more than its purchase price, the profit is considered a capital gain. Only 50% of the capital gain is taxable at your marginal tax rate.
- Dividends:
- Eligible dividends from Canadian companies are subject to a dividend tax credit, which reduces the effective tax rate.
- Interest Income:
- Interest earned from bonds, GICs, or savings is fully taxable at your marginal tax rate.
- Foreign Income:
- Income earned from foreign investments is taxable, and you may need to account for withholding taxes levied by the foreign jurisdiction.
To manage taxes effectively, consider working with a financial advisor or accountant who can help optimize your portfolio for tax efficiency.
Who Should Use Non-Registered Accounts?
Non-registered accounts are suitable for a variety of investors, including:
- High-Income Earners: Individuals who have maxed out their RRSP and TFSA contribution limits can use non-registered accounts to continue investing.
- Investors with Short-Term Goals: Because there are no withdrawal restrictions, non-registered accounts are ideal for saving for goals like buying a home, funding a child’s education, or building an emergency fund.
- Diversified Investors: Non-registered accounts allow for greater diversification through access to international markets and alternative investments.
Strategies for Managing Non-Registered Accounts
- Focus on Tax-Efficient Investments: Prioritize investments that generate capital gains or Canadian dividends, as these are taxed more favorably than interest income.
- Use Tax-Loss Harvesting: Offset capital gains by selling losing investments to realize a capital loss, which can be applied to reduce taxable gains.
- Hold Foreign Assets Strategically: Be mindful of withholding taxes on foreign dividends and consider using registered accounts for tax-sheltered foreign investments.
- Track Adjusted Cost Base (ACB): Maintain accurate records of your investments’ ACB to calculate capital gains or losses correctly.