How to open a TFSA comes down to four things: confirming you qualify, picking an issuer, giving it your SIN and date of birth, and funding the account. This guide walks through each step using the CRA’s own rules and the instructions Wealthsimple, Questrade and EQ Bank publish.
Who can open a TFSA in Canada?
You can open a TFSA in Canada if you are a Canadian resident, 18 or older, with a valid SIN (19 in some provinces to sign the contract). In practice that means:
- At least 18 years old. In provinces and territories where the age of majority is 19, the CRA says a person can open a TFSA after turning 19 and carry over the contribution room of the year they turned 18
- A Canadian resident for income tax purposes
- A valid Social Insurance Number (SIN)
There is no earned income needed. If you’re missing a SIN, apply through Service Canada first: there is no fee to apply, and you can apply online, which Service Canada says is processed faster.
Contribution room starts building the year you turn 18, if you're a resident of Canada (and no earlier than 2009), even if your province makes you wait until 19 to open the account. As a new resident of Canada, you may open a TFSA starting on the day you become a resident, if you are 18 or older, and a newcomer’s room starts in the year you become a resident of Canada, not the year you turned 18.
Where can you open a TFSA?
The CRA says banks, insurance companies, credit unions and trust companies can all issue TFSAs. It describes three main types: a deposit TFSA, an annuity contract or an arrangement in trust. Which one fits depends on what the account will hold.
Option A: Self-directed broker (for ETFs and stocks)
A self-directed TFSA lets you buy and sell qualified investments such as stocks, bonds, mutual funds and exchange-traded funds (ETFs). Two online brokers that offer one:
- Wealthsimple Trade — $0 commissions and an account minimum of none. Wealthsimple’s TFSA page lists three ways to use the account: a managed portfolio, where Wealthsimple invests the money for you, a self-directed account for trading stocks and ETFs yourself, or a TFSA opened as a high-interest savings account.
- Questrade — $0 to buy and sell Canadian and U.S.-listed stocks and ETFs, and you can hold USD in registered accounts, so US trades don't force a conversion.
Investments held at a broker are not bank deposits. Wealthsimple describes its investment accounts as holding securities eligible for CIPF coverage up to $1M per defined account.
Option B: Savings TFSA (for cash and GICs)
A deposit TFSA holds cash or GICs instead of market investments:
- EQ Bank — a TFSA Cash Savings Account or TFSA GICs. The TFSA Cash Savings Account pays 1.50% with no fees or minimum balance, and it is available to Quebec customers.
Eligible deposits at a CDIC member are covered up to $100,000 per insured category (TFSA deposits are their own category), per CDIC member institution.
Option C: Bank or credit union branch
Banks and credit unions also issue TFSAs in person. Before buying a mutual fund inside a branch TFSA, compare its MER with an ETF’s (XEQT’s MER is 0.19%).
Wealthsimple, Questrade and EQ Bank TFSAs at a glance
| Feature | Wealthsimple | Questrade | EQ Bank |
|---|---|---|---|
| What the TFSA holds | Managed portfolio, self-directed stocks and ETFs, or high-interest savings | Self-directed stocks and ETFs; USD can be held in the account | TFSA Cash Savings Account or TFSA GICs |
| Cost | $0 to open; $0 commission on stocks and ETFs | $0 to buy and sell Canadian and U.S.-listed stocks and ETFs | no fees or minimum balance; pays 1.50% interest |
| Minimum and account fees | Account minimum: none | no annual account fees and no inactivity fees on its default $0-a-month plan | No minimum balance |
| How you apply | Online, with no bank appointments or paperwork | Online application, forms e-signed through DocuSign, photo ID uploaded | Become an EQ Bank customer, then open the TFSA under Products |
| Time the provider quotes | in minutes | in minutes | No time stated |
Sources: Wealthsimple's TFSA page, Questrade's TFSA page and account-opening guide, and EQ Bank's TFSA page, as recorded in YieldMaple's rates catalog. Provider wording is marketing copy, not a guaranteed approval time.
The same rows in words: Wealthsimple charges $0 to open an account and $0 commission, with an account minimum of none, and says an account opens without any bank appointments or paperwork. Questrade charges $0 to buy and sell Canadian and U.S.-listed stocks and ETFs, its pricing page lists no annual account fees and no inactivity fees on its default $0-a-month plan, and its TFSA page says USD can be held directly in the TFSA. EQ Bank’s TFSA has no fees or minimum balance and pays 1.50%. Wealthsimple says saving starts in minutes and Questrade says getting started happens in minutes; EQ Bank’s TFSA page gives no time.
What do you need to open a TFSA?
You need your Social Insurance Number (SIN), your date of birth and any other supporting documents the issuer asks for, according to the CRA. Online providers add their own requests. Questrade’s account-opening guide, for example, asks for:
- Personal profile — your residential address, date of birth and marital status
- Employment — your current employment status, followed by financial questions
- Identity — your citizenship information and Social Insurance Number
- Photo ID — government-issued photo ID, in most cases only the front side with your signature visible
Accuracy matters here. The CRA says an issuer can deny the registration if the information provided is inaccurate or incomplete, and if an account is not registered as a TFSA, any income it earns is taxable and must be reported on your tax return.
How do you open a TFSA online?
You open a TFSA online by completing the provider’s application and choosing TFSA as the account type; the issuer may then register the arrangement with the Government of Canada as a TFSA. The steps differ a little by provider.
Wealthsimple
Wealthsimple says a TFSA can be opened without any bank appointments or paperwork, and that saving starts in minutes. Its TFSA page offers a managed portfolio, where Wealthsimple invests the money for you, a self-directed account for trading stocks and ETFs yourself, or a TFSA opened as a high-interest savings account. The fee to open an account is $0.
Questrade
Questrade’s own opening guide describes this order:
- Start the application and choose self-directed investing
- Pick the account type: you choose the TFSA from a list that also includes margin, cash, FHSA and RSP accounts
- Fill in the personal profile (your residential address, date of birth and marital status) and your current employment status, followed by financial questions
- Enter your citizenship information and Social Insurance Number
- Review the agreements; the forms are e-signed through DocuSign
- Upload government-issued photo ID, in most cases only the front side with your signature visible
- Fund the account, which Questrade calls the last step, after signing and uploading your documents
Questrade says getting started happens in minutes, and notes the screens may vary slightly from its guide.
EQ Bank
An EQ Bank TFSA is open to any EQ Bank customer who has reached the age of majority in their province and has a valid SIN. The steps on EQ Bank’s TFSA page: sign in or become an EQ Bank customer, go to Products, scroll to TFSA and open the account. The TFSA is available to Quebec customers.
How do you fund a new TFSA?
You fund a new TFSA by depositing from a bank account or by transferring an existing TFSA from another institution. Deposit methods differ by provider; Questrade’s guide makes funding the last step, after the forms are signed and the ID is uploaded.
- A new contribution — a contribution reduces your room immediately by the amount contributed, so check your room before sending money.
- A direct transfer of an existing TFSA — when the two institutions move the account between themselves, the CRA says it has no effect on your TFSA contribution room and no tax implications. Questrade says a transfer from another bank or broker can take 20 business days or more.
- Withdrawing and re-depositing yourself — the CRA treats this differently: it is treated as a new contribution, not a direct transfer.
Wealthsimple reimburses the other institution’s transfer-out fee on transfers of $25,000 or more.
What can you hold in a TFSA?
A TFSA can hold cash, mutual funds, securities listed on a designated stock exchange, GICs, bonds and certain shares of small business corporations, according to the CRA. The account is a tax shelter around those holdings, so what it earns depends on what you put in it. Some examples:
For long-term growth
- XEQT (iShares Core Equity ETF Portfolio) — an all-in-one equity ETF with a 0.19% MER
- VEQT (Vanguard All-Equity ETF Portfolio) — the same idea from Vanguard, with a 0.22% MER
For known short-term goals
- GICs — EQ Bank’s 1-year GIC pays 3.70%; its GICs are non-redeemable, so the money stays locked in until the GIC matures
- A savings TFSA — EQ Bank’s TFSA Cash Savings Account pays 1.50%
For income
- VDY (Vanguard FTSE Canadian High Dividend Yield Index ETF) — 0.22% MER, 3.11% 12-month trailing yield
For more ETF options: Best Canadian ETFs.
Common TFSA opening mistakes
- Buying a branch’s mutual funds without comparing fees. Compare the fund’s MER with an ETF’s (XEQT’s is 0.19%) before buying.
- Contributing more than your contribution room. Check your room in your CRA account first. Over-contributions are taxed 1% per month for as long as the excess stays in the account.
- Expecting foreign dividends to arrive tax-free. Foreign dividends paid to a TFSA could be subject to foreign withholding tax, per the CRA's TFSA guide.
- Day-trading in your TFSA. A holder who trades frequently may have the account deregistered and the income taxed as business income.
- Re-contributing within the same year of withdrawal. Withdrawn amounts are added back to your room on January 1 of the next calendar year, so re-contributing earlier needs spare room.
- Counting room per account. The CRA applies one limit shared across all your TFSAs.
Sign-up offers
Wealthsimple, Questrade and EQ Bank run their own promotions, and the terms change often. Current offers and their conditions are listed on each provider’s own offer page and on the YieldMaple deals page.
Open a TFSA with Wealthsimple
Invest tax-free in a self-directed or managed TFSA.
New clients get a $25 cash bonus when they open a Wealthsimple account through our referral link and deposit at least $100 from another institution within 30 days.
Affiliate link: YieldMaple may earn a referral bonus if you open an account. It costs you nothing. Not financial advice.
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Open an EQ Bank TFSA → (opens in a new tab)What happens after you open a TFSA?
After you open a TFSA, the issuer reports the withdrawals you make during the year to the CRA by the end of February of the next year. You will see the account in two places:
- Your CRA account — the CRA updates the TFSA room figure once a year, in the spring, with the previous year's transactions, so it can lag behind recent deposits
- Your provider’s app or statements — where the balance and holdings are shown
TFSA contributions are not tax deductible (unlike RRSP contributions), and interest, dividends and capital gains earned in a TFSA are generally tax-free, even when you withdraw.
The bottom line
Opening the account is the short part: an issuer, a SIN, a date of birth and an online form. Even a small first deposit, such as $25, gets a new TFSA started.
One low-cost setup is a self-directed TFSA (Wealthsimple charges $0 in commission), an automatic monthly deposit of an amount such as $100, and a single all-in-one ETF held for the long term. This guide is general education, not financial advice.
Read next
- TFSA contribution limit — how much you can contribute
- Best TFSA Account in Canada — full institution comparison
- Best Canadian ETFs — what to invest in
- TFSA vs RRSP — which to fund first