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Questrade Margin: Does moving stocks to TFSA affect my cash balance?

  • Last Updated:
  • Aug 6th, 2019 2:11 pm
[OP]
Newbie
Nov 12, 2008
48 posts
6 upvotes

Questrade Margin: Does moving stocks to TFSA affect my cash balance?

Will the cash balance in my margin account change if I transfer some stocks from Margin account to my TFSA account?

I'm not talking about the buying power, because I know you can link your margin and tfsa account to share buying power.

I mean cash balance, will moving stocks to my tfsa account create a bigger deficit than I already have, and cause me to pay more interest on the money loaned in my margin account?

Thanks.
4 replies
Jr. Member
Jun 6, 2017
159 posts
244 upvotes
ajdedo wrote: Will the cash balance in my margin account change if I transfer some stocks from Margin account to my TFSA account?

I'm not talking about the buying power, because I know you can link your margin and tfsa account to share buying power.

I mean cash balance, will moving stocks to my tfsa account create a bigger deficit than I already have, and cause me to pay more interest on the money loaned in my margin account?

Thanks.
If cash balance is already negative and the transfer causes it to become more negative you will pay more interest. I would normally say it would affect maintenance excess but i guess with Questrade's Margin Power option that shouldn't be the case. It's difficult to say for certain with all the information so probably work asking Questrade themselves about the specific action/amount you intend to do to confirm as it depends on the specific situation in my opinion.
Sr. Member
Jun 28, 2018
940 posts
673 upvotes
Toronto
AllanMar wrote: If cash balance is already negative and the transfer causes it to become more negative you will pay more interest. I would normally say it would affect maintenance excess but i guess with Questrade's Margin Power option that shouldn't be the case. It's difficult to say for certain with all the information so probably work asking Questrade themselves about the specific action/amount you intend to do to confirm as it depends on the specific situation in my opinion.
I don't think it would impact, since OP is specifically transferring stock positions and not the debit position.

Just make sure when initiating, the transfer is specifically for stock not "all" stock and cash position.

Still, good idea to call Questrade to also see what impacts, including on non-reg's margin loan even with the TFSA buying power link....
The Distracted Investor

Dividends through quality companies 😃 Though I usually lose money with trades :facepalm:
Jr. Member
Jun 6, 2017
159 posts
244 upvotes
johnnychi wrote: I don't think it would impact, since OP is specifically transferring stock positions and not the debit position.

Just make sure when initiating, the transfer is specifically for stock not "all" stock and cash position.

Still, good idea to call Questrade to also see what impacts, including on non-reg's margin loan even with the TFSA buying power link....
I suspect your right, for some reason i kept reading this as transferring cash which doesn't even make sense in hindsight.
Deal Fanatic
User avatar
Jun 19, 2009
6037 posts
1909 upvotes
Scarborough
No it will not affect your cash balance if you move stock. But you will have a deemed disposition for tax purposes (and a superficial loss if it's below your purchase price)

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