Day Trading In Canada

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September 14, 2023

Last Updated – September 14, 2023

It is NOT Worth the Risk

Warning to Canadians that “flip” or swing trade. If you trade in any investment account and you make a lot of money in a calendar year, you’re possibly setting yourself up to pay more income taxes.

The Canadian Revenue Agency (CRA) doesn’t have a clear definition on “day trading” which allows it use their judgement on the interpretation. Day trading can be viewed by CRA as income and not investing.

CRA knows each trade you make as it’s specifically reported to them. If someone declares a good amount of capital gains and if there are enough trades in the year, it’s in CRA’s best interest to declare the capital gains as income to generate extra income for the federal government.

Sure, one can fight the CRA but there’s no guarantee that one will win the case.

Ask yourself………. is the money one makes “day trading” worth the risk of possibly turning the remaining 50% of the non-taxed capital gains into fully taxable income for a whole calendar year?

This is something to keep in mind if one is day trading.

My opinion is day trading/swing trading is NOT worth the risk.

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