Day Trading Taxes in Canada (TFSA) - Investing for Beginners! - Griffin Milks

In today's video, we dive into the technicalities of day trading taxes for TFSA and other Canadian trading accounts. Day trading is the act of buying and selling financial securities within a short time frame, with the goal of generating profit from trading activities.

Unfortunately, these types of activities are not permitted within a TFSA and are considered to be business income when conducted in a regular cash brokerage account. If you invest in the stock market for the long-term, you have nothing to worry about! Watch some of my other videos to learn how to successfully invest in the stock market and create wealth.

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Disclaimer: This video contains affiliate links, meaning that if you click on a product link I may receive a commission at no additional cost to you. I do not promote products, services or companies I have not personally used or those which I do not recommend. All opinions are my own.

[GriffinMilks]

What account do you use to conduct the majority of your investing and trading? Let me know down below my fellow investors! ✅
-Griffin

[kniknayme]

CRA should establish parameters for the TFSA. ie 30 day hold or if the investment is up a certain percentage its OK to sell. Instead they choose to be vague .

[ADobbin]

I really wish there were more on youtube like you here in canada. All the trading stuff seems to come from the US where pretty much anything goes.

[mahdikahia]

Me: lose money on trading
Government: YOUR loss
Me: make money on trading
Government: *OUR GAINS*

[AD-tbxd]

I only started investing 10 days ago and I'm so I watched this video! I only made like $50 in profit day trading, so CRA if you see this pls know that I am dumb and will be holding long-term from now on.

[MTBCyclist]

It’s also important to now that if you are considered once as a day trader (business income) there is no going back to investment income with the CRA. So think twice before you decide to day trade... the taxation is very different!

[JaMdRoId]

I literally started trading options this week in my TFSA without knowing any of this information, no way thats going to be allowed. Definitely going to open a cash account and do it there, Thank you Griffin!

[MoneyballAustin]

Outstanding video my friend. When Canada first started the TFSA they had basically zero rules about what is and not allowed. Some traders took their first 5k and turned it into 100k +. After they realized some people were doing that they started cracking down on this, but like you said it's still a very grey zone. One thing for sure, if the government thinks they can make money from you they will take full advantage of that. Great video.

[KulwinderBrar_official]

Can I ask You what is best for day trading Please and thank you

[RandomRighteous]

Instant subscribe because Canadian trading information is slim to none out there.

[jojotv]

When you say long term on tfsa before trading what would be the minimum years atleast before selling a stocks on tfsa account so that won't be a red flag to CRA?

[molsharma]

What a timing. I was just asking my friends about this exact topic and here it is. Thanks a lot brother .

[GTTeck]

Perfectly explained concept! Day trading is something I’ve wondered for the TFSA

[CestTerry]

Aren’t you just golden! 😭 found your channel when i decided to purchase some stocks (self isolating at home, got intrigued, and found your channel - before in college I was only thinking about buying stocks, but never took the effort to look into them. And you, I assume similar age as me, greatly inspired me with your vision and financial planning ability ) Registered with Wealthsimple TFSA last Thursday, yet my deposit still hasn’t been approved. FINGERS CROSSED! So If there’s a another curb, I can take some action

[discoveringme]

We need more Canadian content out there on YouTube especially in this area

[michaeltrottier]

Wonderful job explaining this. It was exactly what i was looking for!

[Danthrax]

If I buy a stock, hold for 2 months, then buy additional shares of the same stock, (dollar cost average), then sell within a week, is that considered holding the stock for a week, or 2 months to the CRA?

Second question, if my TFSA does get flagged for taxation, who informs me?

[fancymrfox]

Any idea how you’re taxed on losses in a TFSA?
For instance, if you invest your $5000 and then sell on the same day for a $3000 profit (balance now at $8000) then go on to lose $6000 the same week, (balance at $2000 now) by tax season, are you taxed on the remaining $2000 or the $6000 gain?

[tyyyyyyywu]

Just found out that I’m a day trader in my tfsa after watching your video that I shouldn’t be doing that in my tfsa. So what should I do in this case? Sell all of my holdings and take all of my money out to the cash account to continue my day trading activities? How about what I have earned from my tfsa, how do I report that to cra?

[teslanaires]

if you buy stocks frequently but never sell them, would that still be considered as trading frequently, even though you never sold them???