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Canadians: Where can I get a TFSA that allows options?


Mark Jr.
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I've been having a hell of a time opening a TFSA (RBC) that operates the same way as my RRSPs (which allow options trading), it seems some banks don't allow this and constrain your investment options to mutual funds, etc.

 

Is here anywhere I can open a TFSA that allows option trading?

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Questrade will let you do options in TFSA. Same rules as for RRSP. Not sure about IB.

 

IB's website says

TFSA Trading Permission

No trading on margin - all purchases must be paid in full in respective currencies; No account debit allowed. If needed, currency trade could be executed between USD & CAD.

 

Accounts are restricted to cash balances in CAD and USD.

 

TFSA is allowed to trade the following qualified investments:

 

Stocks listed on designated US and Canadian exchanges (excluding Venture-NEX segment and CSE single listed stocks)

Long equity call options

Long equity put options

Short equity call options with a fully covered position (covered call)

Long equity put options with a fully covered position (protective put).

Long put/call options on indices.

Warrants/Rights if the underlying asset acquired under the right to purchase is a qualified investment.

U.S. Bonds.

https://www.interactivebrokers.ca/en/index.php?f=13406&p=tfsa

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TD allows it too.

 

•••

 

I wish it didn’t. In May 2009, I bought small bit of Harley Davidson puts in my TFSA thinking it was a false rally since March. Rest of my portfolio was long. No leverage.

 

The puts went to zero in 3 days with no capital losses to show for it.

 

I recently calculated what that cash would have been worth today if it was invested long as rest of my portfolio. The answer: about $50k.

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