Withdrawing from a Cash account

Cash accounts, similar to margin accounts, are non-registered investment accounts. This means that there are no limitations to withdrawing your funds unlike registered accounts such as an FHSA, TFSA, and RRSP. In addition, there are no contribution limits to a cash account. 

Learn how to place a withdrawal request in your cash account in this  helpful article.

• Settlement Periods: Understand there’s a settlement period after selling securities. The settlement period is a duration of when you trade (buy/sell) a security and when that security  settles  (which is 1-2 days after trading). Your funds will be available for withdrawal only after this period and wil take additional time to be sent to your bank account depending on the method of withdrawal. 
• Checking Balances: Periodically check your account balance to ensure you have enough funds available to withdraw, and keep in mind any pending transactions or unsettled trades.
• Impact on Investment Goals: Consider how withdrawing funds might affect your long-term investment strategies. It’s always important to align withdrawals with your financial goals.

And here are a few more things you need to know when withdrawing from your cash account:

• Tax Responsibilities: Questrade does not withhold taxes on your transactions in a cash account. So, it's advisable to consult with a tax professional to understand how your investment actions impact your tax obligations.
• Income and Capital Gains for Tax Purposes: As a non-registered account, you’ll incur taxes on the securities you sell (as capital gains) or dividends (as taxable income). 
• Please note that the realization (or ‘locking in’) of profits when you buy or sell securities are what is taxed, not the act of withdrawing from the account. Please consult a tax professional to understand how capital gains may impact your tax obligations.

Note: The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.