Open a non registered account today | Scotia iTRADE® (2024)

FAQs

What is an open non-registered account? ›

A non-registered account is an investment account that is taxable for Canadian citizens. It means that it is not registered with Canada's federal government. These accounts have no contribution limits and are more flexible in terms of investments, however, offer no major tax advantages.

Opening an account is easy and takes about 15 minutes.

Many financial advisors recommend using non-registered accounts for short and long-term investing. These accounts offer a lot of flexibility with consistent liquidity and no contribution limits, as well as a tax benefit. Dividends are taxed on a gross amount but benefit from a dividend tax credit.

A non-registered account is a type of investment account that is subject to tax when income is earned on investments held in the account. A non-registered account is sometimes called a “taxable” or “open” account.

Choosing between registered vs non-registered investments

Registered accounts, like RRSPs and TFSAs, offer immediate tax advantages. However, non-registered accounts can provide flexibility, especially with no contribution limits and the expanded types of investments they can hold.

There is no penalty for withdrawing from a non-registered investment account, however, please remember you will be taxed on any capital gain arising from this withdrawal. How exactly does that work?

There is no minimum balance required to open an account at Scotia iTRADE. However, to avoid being charged a Low Activity Account Administration Fee, we encourage you to deposit a minimum balance of at least $10,000.

Ready to invest? Open an account in about 10 minutes.

So, if you have a long time horizon and a growth-oriented risk profile, investing in stocks, ETFs or mutual funds in a cash account could give you growth coupled with relatively lower taxes.

Can you have a beneficiary on a non-registered account? ›

You cannot name a beneficiary or successor holder/annuitant on non-registered accounts. You can have more than one beneficiary, and this information can be updated on your account at any time.

GICs held in registered accounts allow you to grow your savings tax-free while non-registered GICs are taxed by the government, and the interest earned is considered taxable interest income.

Every year that a mutual fund pays out distributions in your non-registered account, you will receive a T3/Relevé 16 tax slip (see image below). This form is also known as a Statement of Trust Income Allocations and Designations. It states: the total amount of income the fund distributed in the previous year.

Non-Brokerage Account means an account that is exempted from the definition of Account in this Code, such as the employee's NorthStar 401(k), a retirement plan sponsored by a previous employer, a Family Member's employer sponsored retirement plan, accounts held directly at a mutual fund company, 529 or other college ...

Unregister means the item or person does not appear on the list because they were never on the list. De-register means the item or person was initially listed, but has been removed and is no longer on the list.

: an account with a debtor or creditor having a balance due or payable.

A registered account is an investment account that is given tax-deferred or tax-sheltered status by the government. Income earned on the account is not taxed until withdrawal or in the case of a TFSA, is typically not subject to taxation. Examples include: RRSP (Registered Retirement Savings Plan)

Non-qualified plans are designed to meet specialized retirement needs for key executives and other select employees. They can act as recruitment and/or employee retention tools. These plans are also exempt from the discriminatory and top-heavy testing that qualified plans are subject to.