How to transfer your brokerage account in-kind in Canada — without triggering tax

1. In-kind or in-cash: the choice that changes everything

Every transfer form makes you pick one of two modes:

In-kind transfer: your securities move exactly as they are. 80 units of XEQT at the old broker become 80 units of XEQT at the new one. Nothing is sold, so there is no disposition for tax purposes: no realized capital gain, and your ACB (adjusted cost base) carries over. You stay invested the whole time.

In-cash transfer: the old broker sells all your positions and sends the proceeds. Inside a TFSA or RRSP, those sales have no tax consequence (gains are sheltered). But in a non-registered account, every sale is a disposition — your accumulated gains become taxable right away.

Worked example — the $3,700 mistake

You hold $60,000 of ETFs in a non-registered account, bought for $40,000 (your ACB). You switch brokers:

• In-cash: the sale realizes a $20,000 capital gain → $10,000 taxable (50% inclusion rate) → at a 37% marginal rate, roughly $3,700 of tax due the following spring.
• In-kind: the same $60,000 lands intact at the new broker. Tax: $0. The gain is only taxed the day you actually sell.

In-cash still has legitimate uses: securities the new broker doesn’t carry (proprietary funds), tiny positions, or holdings you planned to sell anyway. But it should be a deliberate choice, never the default.

2. TFSA, RRSP, FHSA: sheltered — as long as the transfer is direct

Good news: a direct institution-to-institution transfer of a registered account has no tax consequences, whether in-kind or in-cash. The CRA sees neither a withdrawal nor a contribution. The golden rule: let the institutions move the money between themselves — never touch it yourself.

TFSA: a direct transfer between two TFSAs is a “qualifying transfer”: your contribution room is untouched. The classic trap is withdrawing the money yourself to re-deposit it elsewhere — the re-deposit counts as a new contribution, and the room freed up by your withdrawal only comes back on January 1 of the following year. With a 2026 annual limit of $7,000, pulling out $50,000 and re-depositing it a month later means a massive over-contribution, penalized at 1% per month on the excess.

RRSP: same logic, harsher consequences if you get it wrong. A do-it-yourself withdrawal triggers immediate withholding tax, the amount is added to your taxable income for the year, and — unlike the TFSA — the contribution room is gone forever. A direct RRSP-to-RRSP transfer, documented between the institutions, avoids all of it: no tax slip, no lost room.

FHSA: Canada’s first home savings account also moves directly between institutions with no impact on your contribution limits.

3. The actual process: everything starts at the NEW broker

Counter-intuitive but essential: the receiving broker runs the show. You barely need to talk to the old one.

1. Open the same account type at the new broker: TFSA to TFSA, RRSP to RRSP, non-registered to non-registered. Mixing types would be treated as a withdrawal plus a contribution.
2. Fill out the transfer form at the new broker (usually fully online). Have a recent statement from the old account handy: account number, exact type, institution name.
3. Pick the mode: in-kind, in-cash, or mixed — and full or partial (you can move only selected positions).
4. The new broker submits the request through ATON, the electronic account-transfer network connecting Canadian institutions. The old broker validates, freezes the account, then delivers the securities.
5. Verify everything on arrival: positions, residual cash, and above all the displayed book cost (see the pitfalls below).

Still picking a destination? Our guide to Canadian brokers reviews fees and account types, and our Wealthsimple vs Questrade vs Disnat comparison breaks down three of Canada’s most popular platforms.

4. Transfer fees: ~$150, and often reimbursed

The outgoing broker usually charges a transfer-out fee of about $150 + tax per account. Per the fee schedules published in 2026:

The good news: the receiving broker often reimburses that fee when the transferred assets exceed a threshold set out in its published policy. Two reflexes:

• Check the reimbursement policy before initiating: asset threshold, maximum refunded, and the process (often a support request with proof of the fee).
• Keep the statement showing the fee charged by the old broker — that’s your receipt.

One nuance for registered accounts: fees taken from inside a TFSA or RRSP shrink your tax-sheltered capital. Some brokers let you pay them from a non-registered or bank account instead — an option that preserves your room.

5. Typical timelines: 1 to 6 weeks

While the transfer runs, the source account is frozen: no buying, no selling. In-kind, your positions stay invested — you ride market moves as usual. If nothing has moved after three weeks, follow up with the new broker: it owns the request.

6. The pitfalls to know before you sign

Fractional shares don’t travel

Fractional shares (common at brokers offering fractional investing) can’t move through ATON. They’re sold automatically before the transfer and the cash follows. In a non-registered account, that micro-sale is a reportable disposition — usually a tiny gain, but a real one.

A DRIP in flight: pause it first

If your dividend reinvestment plan (DRIP) is active, a dividend paid mid-transfer creates new fractions… which trigger a residual transfer weeks later. Turn off the DRIP and any automatic contributions a few days before submitting the request.

Late dividends: don’t close the old account too fast

A dividend whose record date precedes your transfer can land in the old account after your securities have moved. Brokers run an automatic “residual sweep,” but keep the old account open for a few weeks and watch for it.

Securities that can’t transfer

Some products can’t follow you: proprietary in-house funds not distributed elsewhere, certain non-transferable GICs, labour-sponsored fund units. Your options: leave them at the old institution, or sell — weighing the tax hit if the account is non-registered. Check before launching the transfer.

Wrong book cost on arrival: the silent trap

After an in-kind transfer, the “book cost” shown at the new broker is frequently missing or wrong — and it isn’t authoritative for the CRA. Download your statements and trade confirmations before leaving (access is often cut after the account closes) and keep your own ACB history. Our ACB and taxation guide shows how to calculate it properly.

Don’t confuse a transfer with an in-kind contribution

Moving securities from your non-registered account into your TFSA or RRSP is not a broker transfer: it’s a deemed disposition. Gains become taxable immediately — and losses are denied under the superficial loss rule.

7. Step-by-step checklist

1. Compare receiving brokers: fees, account types, available securities (full guide).
2. Check the new broker’s transfer-fee reimbursement policy (threshold, process).
3. Open accounts of the same type as the ones you’re moving.
4. Pause your DRIP, automatic contributions and open orders at the old broker.
5. Download statements, trade confirmations and your ACB history from the old account.
6. Submit the transfer request at the new broker: in-kind, full or partial.
7. Stop trading in the old account entirely.
8. Track progress; follow up with the new broker if nothing moves within 3 weeks.
9. On arrival: verify every position, the sold fractions and residual cash, and fix the displayed book cost if needed.
10. Claim the fee reimbursement with proof, wait for the residual sweep, then reconnect your portfolio tracking — for example by connecting your Wealthsimple account to WealthWise in two minutes.

Frequently Asked Questions

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