Wealthsimple margin account: rates by plan, margin calls and the line of credit

A Wealthsimple margin account lets you borrow against your investments to buy more stocks, ETFs and options, at an interest rate set by your Wealthsimple plan. You have to apply, how much you can borrow depends on what you hold, and a falling market can end in a margin call that forces sales. This guide sets out the rates by plan, who can open one, how margin requirements and margin calls work, and how margin compares with Wealthsimple’s portfolio line of credit, which charges the same Canadian-dollar rates for borrowing cash. It is general education, not financial advice.

Wealthsimple margin account at a glance

Wealthsimple margin account: key terms (September 2026)

	Wealthsimple margin account
CAD rate (Core / Premium / Generation)	4.95% / 4.45% / 3.95%
USD rate (Core / Premium / Generation)	7.5% / 7% / 6.5%
Interest	calculated daily and charged monthly
How you get it	Application with employment and financial questions
Account type	Non-registered; a TFSA can be linked for extra buying power
Minimum deposit	None listed; cash or eligible securities needed as collateral
What you can trade	Canadian and US stocks and ETFs, long calls, long puts and covered calls (options on US assets only)
How much you can borrow	Set by each security's margin requirement
If markets fall	Margin call: add cash or securities, or holdings can be sold

On Core, a Wealthsimple margin account charges 4.95% on Canadian-dollar loans, against 4.45% on Premium and 3.95% on Generation. US-dollar loans cost 7.5%, 7% and 6.5% on the same three plans, and interest is calculated daily and charged monthly. You get the account by applying and answering questions about your employment and finances. It’s a non-registered account, but you can link a TFSA to it for extra buying power. The margin page lists no minimum deposit, though you need cash or eligible securities in the account as collateral before you can borrow. You can trade Canadian and US stocks and ETFs on margin, plus long calls, long puts and covered calls on US assets. Each security’s margin requirement sets how much you can borrow, and if prices fall far enough you get a margin call: add cash or securities, or Wealthsimple can sell holdings for you.

What are Wealthsimple’s margin rates in 2026?

Wealthsimple’s CAD margin rates are 4.95% on Core, 4.45% on Premium and 3.95% on Generation, as of September 18, 2026; USD loans cost more.

Each rate is Wealthsimple’s own prime rate plus or minus a spread set by your plan: Core pays prime plus 0.5%, Premium pays prime, and Generation pays prime minus 0.5%. Wealthsimple’s CAD prime was 4.45% and its USD prime 7% on September 18, 2026, so your rate moves whenever Wealthsimple changes its prime rate. Your plan depends on your total assets at Wealthsimple: Core starts at $1 in assets, Premium at $100,000 and Generation at $500,000. Whether moving money over to reach Premium is worth it for other reasons is covered in the Wealthsimple Premium breakdown.

Margin interest is calculated daily and charged monthly. Wealthsimple’s portfolio line of credit charges the same Canadian-dollar rates on each plan; how it differs from margin is covered further down.

Wealthsimple markets these rates as lower than any Canadian bank’s, but the comparison behind that claim is dated December 11, 2025, and banks aren’t the only alternative. Interactive Brokers Canada’s margin-rates page, checked September 23, 2026, lists 3.571% on the first $130,000 borrowed in CAD (IBKR's benchmark rate + 1.5%) and 5.38% on the first US$100,000 borrowed in USD (benchmark + 1.5%), both below Wealthsimple’s Generation rates. Check your current broker’s posted margin rate before you move an account for this reason alone.

What borrowing $10,000 on margin costs for a year

A worked example makes the plan gap concrete. Borrowing $10,000 in Canadian dollars for a full year, with no repayments and the rate unchanged, costs roughly:

• Core at 4.95%: about $495 a year, or about $41 a month
• Premium at 4.45%: about $445 a year, or about $37 a month
• Generation at 3.95%: about $395 a year, or about $33 a month
• USD margin on Core at 7.5%: about US$750 a year on a US$10,000 loan

Each step up a plan saves about $50 a year per $10,000 borrowed. If you never pay the interest down, the real cost runs slightly higher than these figures, because each month’s interest is added to what you owe.

Who can open a Wealthsimple margin account?

You have to apply for a Wealthsimple margin account, and Wealthsimple approves it only after asking about your employment, financial status and a few other details.

Wealthsimple’s margin page gives the reason: margin trading carries more risk than a cash account, so it isn’t switched on automatically. Approval isn’t an endorsement of the strategy either; Wealthsimple’s own guides describe margin as suited to experienced investors who understand margin calls. Two more details shape who it fits:

• It’s a non-registered account. Wealthsimple’s margin-vs-cash guide calls margin and cash accounts two types of non-registered investment account, and realized gains and income in a non-registered account are taxable each year, unlike in a TFSA. A TFSA can be linked to add buying power without becoming a margin account, and Wealthsimple says the link is neither a withdrawal nor a contribution.
• Collateral comes first. The margin page lists no minimum deposit, but nothing can be borrowed until the account holds cash or margin-eligible securities.

For a map of every account type, see the Wealthsimple account types guide.

How to open a Wealthsimple margin account

1. Open a Wealthsimple account if you don’t have one. Opening one costs $0.
2. Apply for margin in the app or on the web. Wealthsimple asks about your employment, financial status and a few other things, because margin carries more risk than a cash account.
3. Fund it once approved. Deposit cash or transfer in eligible securities. Margin accounts are among the account types Wealthsimple accepts by transfer, and transfer-out fees charged by your old broker are reimbursed on transfers of $25,000 or more, up to $150 per account.
4. Optionally link a TFSA to add buying power.
5. Check buying power and margin health before your first leveraged buy, and decide in advance how much of your limit you’ll leave unused.

What are Wealthsimple’s margin requirements?

Wealthsimple margin requirements are set per security by CIRO minimums or Wealthsimple’s higher limits; its own example allows up to 3.33x your available margin at a 30% margin requirement.

The margin requirement is the share of a position you must fund yourself. The Canadian Investment Regulatory Organization (CIRO) sets minimums for each security, and Wealthsimple can set higher requirements, as well as concentration limits on how much you can borrow against a single holding. According to Wealthsimple’s margin guide, CIRO’s basic minimum is 50% for a stock trading at $2 or more; many stocks qualify for lower requirements, so their loan value is often up to 70% of market value; and cheap shares can’t be borrowed against at all, since the requirement is 100% below $1.50 a share (no borrowing against it). Brokers can raise a security’s requirement at any time, for example when it becomes volatile, which cuts your buying power without any change in price.

Wealthsimple’s leverage example is the same idea turned around: a 30% requirement means you fund 30% of a position and borrow the rest, so each dollar you put in can support about $3.33 of holdings, which is where the maximum in its example comes from. Your buying power in the app shows the live figure for what you actually hold.

What can you trade on margin at Wealthsimple?

As of September 23, 2026, Wealthsimple’s margin page lists Canadian and US stocks and ETFs, long calls, long puts and covered calls as what you can trade on margin, with options on US assets only. Short selling isn’t on that list. Wealthsimple’s options page says every strategy other than long calls, long puts, secured puts and covered calls, such as spreads, can only be placed in a margin account. See the Wealthsimple options trading guide for what each strategy needs.

Worked example: how far a position can fall before a margin call

Suppose you deposit $10,000 and buy an ETF with a 30% margin requirement. You are in a margin call once your equity (the position minus the loan) drops below 30% of the position’s value. Ignoring interest:

• Use all your buying power: you can buy about $33,300 of the ETF by borrowing about $23,300. Your equity already equals the requirement, so almost any dip puts you in a margin call.
• Borrow $10,000 (a $20,000 position): the call comes when the position falls below about $14,300, a drop of about 29%.
• Borrow $5,000 (a $15,000 position): the call comes below about $7,100, a drop of about 52%.

The formula behind each line: a margin call starts when position value × (1 − margin requirement) falls below the loan. Using a fraction of your buying power is what buys you room. Interest charges and a higher requirement both move the trigger closer.

What happens in a Wealthsimple margin call?

A Wealthsimple margin call means your account has dropped below its maintenance margin, and you must add cash or securities or sell holdings, or Wealthsimple can sell them for you.

Per Wealthsimple’s margin page and margin-call guide, a call can be triggered by falling prices, a higher margin requirement on something you hold, or interest charges that push the account under the line. Once you’re in a call:

1. Your account is restricted. Wealthsimple’s margin-call guide says an account in a call is generally limited to trades that reduce it.
2. You fix it by depositing cash, moving in margin-eligible securities, or selling positions until buying power is back above zero.
3. If you don’t, Wealthsimple can sell some or all of the securities in your accounts under the agreements you signed, which may lock in losses and, in a non-registered account, trigger capital gains or losses for tax.
4. If sales don’t cover the loan, you still owe the difference. That is how a margin investment can cost more than you put in.

Wealthsimple offers a margin health status tracker and sends alerts when you get close to a margin call. Treat those as a courtesy, not a guarantee: Wealthsimple’s own guide says brokers aren’t obliged to notify you, and calls are payable on demand.

One protection doesn’t help here. CIPF coverage (securities eligible for CIPF coverage up to $1M per defined account) is for the insolvency of a member firm, and per CIPF’s own FAQ, CIPF doesn't protect you from a drop in the value of your investments, for any reason, so it won’t make up for losses from falling prices or from securities sold in a margin call.

Wealthsimple margin vs line of credit: what’s the difference?

A Wealthsimple margin account lends you money to buy more investments, while the portfolio line of credit lends you cash against investments you already own, at identical CAD rates.

Wealthsimple margin account vs portfolio line of credit (September 2026)

	Margin account	Portfolio line of credit
CAD rate (Core / Premium / Generation)	4.95% / 4.45% / 3.95%	4.95% / 4.45% / 3.95%
USD borrowing	7.5% / 7% / 6.5%	Priced off CAD prime; no USD rate listed
Built for	Buying more stocks, ETFs and options	Withdrawing cash for any purpose
How you get it	Application with employment and financial questions	No approval step and no credit check
How much you can borrow	Set by each security's margin requirement	Broadly up to 35% of eligible assets
Collateral	Holdings in the margin account, plus an optional linked TFSA	Up to 5 TFSAs or non-registered accounts (managed or self-directed)
Minimum	No minimum deposit listed on the margin page	$1,000 of collateral value per account
Repayment	Any time; interest charged monthly	Any time; no minimum payment
If markets fall	Margin call: add cash or securities, or holdings can be sold	Limit shrinks; borrowing and withdrawals are restricted at the limit

In Canadian dollars the two products cost exactly the same on every plan, from 4.95% on Core to 3.95% on Generation, and Wealthsimple publishes USD rates only for margin. Margin needs an application and its borrowing power depends on what you hold; the line of credit needs no approval, lends broadly up to 35% of eligible assets, and requires at least $1,000 of collateral per linked account, drawn from up to five TFSAs or non-registered accounts. Both can be repaid at any time. The biggest practical difference is what happens in a market drop: margin can end in a margin call and forced sales, while the line of credit freezes further borrowing and withdrawals once you reach your limit.

The two overlap more than the names suggest. Wealthsimple’s line-of-credit page describes the product as a separate margin account, and as a margin loan with a more conservative limit. A margin account can also pay out cash: Wealthsimple’s margin page says you can withdraw funds against your assets when you have available margin. So the real split is design:

• The margin account is a non-registered trading account. You apply, Wealthsimple approves you, and borrowed money becomes buying power for Canadian and US stocks and ETFs, plus options, including the options strategies Wealthsimple allows only in a margin account.
• The portfolio line of credit is built for cash. You link collateral accounts, borrow, and move money to a chequing or investing account in seconds. It can also act as overdraft protection on eligible transactions in an eligible CAD chequing account, per Wealthsimple’s pricing page. Wealthsimple says people typically use it for everyday cash needs rather than to buy investments, and it keeps limits conservative so a market swing is less likely to push collateral below what the loan requires.

How does the Wealthsimple portfolio line of credit work?

Wealthsimple’s portfolio line of credit lets you borrow cash against TFSA and non-registered investments, broadly up to 35% of their value, with no credit check.

• Limit: Wealthsimple’s example is $150,000 in eligible assets supports up to $52,500 of borrowing. The limit is recalculated daily from the type and value of your collateral, so it moves with the market.
• Minimum: each collateral account must provide at least $1,000 of collateral value.
• Collateral: up to 5 non-registered accounts or TFSAs (not margin accounts, FHSAs, RRSPs, RESPs, LIRAs or joint accounts). Managed accounts count, so a robo-advisor portfolio can back the line.
• Credit check: none — no impact on your credit score, per Wealthsimple.
• Rates: 4.95% on Core, 4.45% on Premium, 3.95% on Generation, the same as CAD margin.
• Interest and fees: interest accrues daily and is added to your line-of-credit balance on the first day of each month, so unpaid interest becomes part of the balance you pay interest on. Wealthsimple’s comparison chart, dated March 25, 2026, lists $0 in fees.
• Repayment: none — repay any time. You pay interest only on what you’ve drawn.

What happens when you hit the line of credit limit?

Wealthsimple says you reach your credit limit if you borrow the maximum or if your collateral falls far enough. At that point three restrictions apply: you can’t borrow more, you can’t withdraw or transfer money or holdings out of a collateral account, and you can’t buy anything with cash held in those accounts. To lift them, pay down the balance, add collateral, or both.

The buffer depends on how much of your limit you use. Wealthsimple’s wording on the exact trigger is loose, so treat this as an estimate: using its own figures ($150,000 in eligible assets supports up to $52,500 of borrowing) and assuming the limit stays at roughly the same share of everything you own:

• Borrow $20,000 and your limit only falls to that balance if eligible assets drop to about $57,100, a fall of about 62%.
• Borrow the full $52,500 and you are at the limit from the start, so the restrictions apply straight away, before prices move at all.

Compared with the margin example above, that’s the point of the product: a lower ceiling means a far bigger cushion before restrictions kick in.

Can you borrow against your TFSA at Wealthsimple?

Yes: a TFSA can be collateral for Wealthsimple’s portfolio line of credit, and it can be linked to a margin account to boost buying power.

Wealthsimple says linking a TFSA to a margin account is neither a withdrawal nor a contribution, so your TFSA contribution room is untouched and the assets stay in the TFSA. Pledging a TFSA as line-of-credit collateral likewise leaves the investments inside the TFSA. Two cautions:

• Linked assets are at risk. They back the loan. If you hit the line-of-credit limit, you can’t withdraw or transfer out of a collateral TFSA until you fix it; in a margin account, the TFSA’s holdings add to your buying power, so a drop in their value can push the margin account toward a call.
• Other registered accounts don’t qualify. RRSPs, FHSAs, RESPs and LIRAs can’t be used as line-of-credit collateral, and, per the CRA, interest on money borrowed to contribute to a TFSA or RRSP isn’t tax-deductible.

For contribution rules and room, see the Wealthsimple TFSA guide.

Is a Wealthsimple line of credit better than a bank line of credit?

A Wealthsimple portfolio line of credit skips a bank’s credit check, but its limit moves with your investments, so it suits people whose portfolio can absorb a downturn.

How the three common ways to borrow cash differ (concepts, not rates)

	Wealthsimple portfolio line of credit	Unsecured bank line of credit	Home equity line of credit (HELOC)
Secured by	Your TFSA or non-registered investments	Nothing: your credit and income	Your home
Credit check	None, per Wealthsimple	Yes	Yes, usually with a property appraisal
What moves your limit	Daily market value of your collateral	The lender's review of your credit	Home value and your mortgage balance
Main risk	Restrictions, and possibly forced sales, if markets fall	Usually a higher rate than secured borrowing; lender can cut the limit	Your home is the collateral

The Wealthsimple line of credit is fast and needs no credit check because your investments secure it. An unsecured bank line of credit is approved on your credit history and income, so a stock-market crash doesn’t change your limit and none of your investments are at risk. A HELOC is secured by your home and approved after a credit check, with the house as the collateral. Wealthsimple pitches its line of credit for paying off high-interest credit cards; that swap can cut interest costs, but it turns unsecured debt into debt backed by your investments, so it only works if you’ll actually pay the balance down.

Does Wealthsimple offer loans?

Wealthsimple’s Borrow menu lists a portfolio line of credit and mortgages; it doesn’t list unsecured personal loans.

Mortgages are the other item on that menu, and Wealthsimple’s credit card sits under Chequing as a card for purchases, not a personal loan. So a “Wealthsimple cash loan” in practice means the portfolio line of credit, or a cash withdrawal from a margin account, and both need eligible investments at Wealthsimple as collateral. If you have no investments there, a bank loan or line of credit is the route. For everything else Wealthsimple offers, from chequing to tax filing, start with our complete Wealthsimple guide.

Who should open a Wealthsimple margin account (and who shouldn’t)?

A Wealthsimple margin account suits experienced investors who understand margin calls and could cover one from savings; if you only need cash, the line of credit leaves a bigger buffer.

Pick the margin account if:

• You want to invest more than your cash covers, you understand margin calls, and you could cover one from savings without selling at the bottom.
• You trade US stocks and want to borrow US dollars.
• You need options strategies that Wealthsimple only allows in a margin account.

Pick the portfolio line of credit if:

• You need cash for a bridge, a large purchase or an emergency and don’t want to sell investments (and possibly trigger capital gains) to get it.
• You hold at least $1,000 of eligible collateral in a TFSA or non-registered account.
• You want a limit with a wide buffer and no credit check, and you have a plan to repay.

Use neither if:

• You’re new to investing, or a 30% drop in your holdings would force you to sell.
• The money is for everyday spending you can’t repay within a few months.
• You need short selling, which Wealthsimple’s margin page doesn’t list.
• You’ll carry a large margin balance for months and the rate matters most: Interactive Brokers Canada charges 3.571% on CAD and 5.38% on USD loans (its first tiers), against 4.95% and 7.5% on Wealthsimple Core. The Wealthsimple vs Interactive Brokers breakdown compares the two brokers in full.