Non-registered account
What it is
A non-registered account is an ordinary investment account with no special tax treatment — sometimes called a "cash account" (when leverage isn't used) or a "margin account" (when it is). It's the default account type when registered options have been exhausted or aren't available.
The defining features are negative: no tax deferral, no tax-free growth, no contribution cap, no withdrawal restrictions. Every tax-relevant event is recognized in the year it happens and flows through to the investor's annual tax return.
Who can open one
Any Canadian resident with a SIN. Some brokerages set minimum age requirements (typically 18); some allow in-trust accounts for minors with an adult trustee.
How contributions work
No cap. Funds can be deposited and withdrawn at any time. No record of lifetime contributions is maintained by the CRA — the account's cost basis (adjusted cost base, or ACB) is the investor's responsibility to track.
Tax treatment
Every tax-relevant event hits the tax return in the year it occurs:
- Interest — fully taxable as ordinary income at the investor's marginal rate.
- Canadian eligible dividends — grossed up and then credited via the dividend tax credit, resulting in a lower effective rate than interest for most taxpayers.
- Foreign dividends — taxable as ordinary income, with any foreign withholding tax typically claimable as a foreign tax credit.
- Realized capital gains — only a portion of the gain is included in taxable income, at the current inclusion rate set by the Income Tax Act. Capital losses offset gains in the same year; unused losses carry back three years or forward indefinitely.
- Unrealized gains — not taxed until realized.
Reporting every position, transaction, and distribution at tax time is the investor's burden (usually via broker-issued T3/T5 slips for income and a summary capital-gains calculation using ACB).
How withdrawals work
Withdrawals aren't a distinct event — "withdrawal" just means selling positions and transferring cash out. The sale creates a realized gain or loss (if the position had one). The cash transfer itself is not a taxable event.