Cash account

In a Canadian investing context, a cash account is a type of non-registered account at a discount brokerage in which income generated (capital gains, dividends, interest) is taxable.

In a cash account, you can only buy securities with cash already in the account, i.e. your own money. More specifically, cash must be available on or before the settlement date of a purchase.[1]

Margin accounts are similar but allow the investor to borrow from the brokerage to invest, i.e. use leverage.

See also

References

  1. ↑ TD Direct Investing (a broker), What is the difference between TD Direct Investing's margin and cash account?, viewed October 26, 2023.
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