Margin power

You have the power to increase your buying strength. It’s called Margin Power and it’s an exclusive to Questrade. Margin Power connects the savings in your TFSA with the trading in your margin account. What you get is the opportunity to enter new positions in your margin account.

Margin power benefits holders of both Questrade TFSA and Questrade Margin accounts in several ways:

• Access additional buying power from your TFSA
• Trade without selling securities or transferring cash
• Increase potential profitability in your margin account

• You tap into your TFSA to buy more

  Margin Power leverages the assets in your TFSA to enter new positions in your margin account. Once activated, your trading platform will show the buying power of your margin account and the increased buying power available via your TFSA.

• Your TFSA stays tax-free

  With Margin Power, your TFSA stays tax-free and holds the same contribution room. There’s no need to transfer cash or securities between your TFSA and margin accounts. You can trade normally in both.

• It’s like overdraft protection

  Margin Power functions as a type of overdraft protection: if the value of the positions in a margin account should drop, the untapped marginable assets from your TFSA could protect you from a margin call.

How do I link my margin account to my TFSA?

You can log in to your Questrade account and link the two accounts on the Account management screen.

Can I use margin inside my TFSA?

No, you can't use margin in a TFSA account. Margin Power links the accounts so you can leverage your TFSA assets to use in your margin account.

Is margin trading for beginners?

Trading on margin involves greater risk than just trading with the cash in your account and is generally not recommended for beginners.

Note: The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.