Use your TFSA to boost your margin power
Smarter leverage starts here. Now you can link your self-directed TFSA to your margin account to boost your buying power — all while keeping your investments in your TFSA, with any gains growing tax-free.
With interest rates as low as prime –0.5% (for Generation clients), Wealthsimple margin accounts are already lower than any Canadian bank. And now, this latest feature gives you even more flexibility to make market moves when opportunity strikes.
First things first: What’s a margin account?
A margin account lets you borrow money to invest, using the investments you already own as collateral. It gives you the flexibility to take on more risk — with the potential for greater reward. It’s a go-to for experienced investors because you can:
- Trade without selling long-term positions.
- Explore advanced strategies like options.
- Access funds like a line of credit.
But here’s the catch: like any loan, borrowing can amplify both gains and losses. So, it’s important to do your research and have a strategy before jumping in.
How linking your TFSA works
When you link your TFSA to your margin account, the assets in your TFSA are factored into your total buying power. That means you don’t have to move money between accounts or use up any contribution room. Your TFSA stays right where it is — and can keep growing tax-free.
If your margin account dips into a margin call, you’ll get a notification and be given time to either deposit funds or adjust your positions. If no action is taken, we’ll sell assets from your margin account first. If that’s still not enough to cover the shortfall, we may sell assets from your linked TFSA.
A few things to keep in mind
With more power comes (you guessed it) more responsibility. Here are a few important reminders:
- Only self-directed TFSAs can be linked to your non-registered margin account. Managed portfolios aren’t eligible.
- This feature is only available for individual margin accounts, not joint or corporate ones (currently in beta).
- You can unlink your TFSA anytime, as long as your margin account stays properly funded.
- Only one TFSA account can be linked per margin account.
Ready to link up?
It just takes a few clicks — and could give your investing strategy more flexibility when you need it most.
Learn how to link your TFSA to your margin account.
New to margin trading? Start by visiting our product page and our Margin guide.
Legal
Compared with all margin interest rates available with similar asset requirements from Canadian financial institutions as listed under Schedule I under the Bank Act as of July 9, 2025. Wealthsimple’s margin account interest rate is P-0.5% for Generation clients, P+0% for Premium clients, and P+0.5% for Core clients. Prime rate is 4.95% for CAD and 7.5% for USD as at [DATE]. Subject to change. Annualized rate, calculated daily, charged monthly. All investments involve risks. See here for details.
