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Originally Posted by mikemhg
Let me prefix I know dick all about stock trading, but I'm looking to dabble a bit here.
I have a fair sum sitting in my RRSP account with Sun Life, and I'm thinking of moving some of it out in order to invest into some stocks. I'm assuming I'd have to do that through a TFSA?
Am I able to move funds out of RRSPs into another registered account to invest in stocks? If so, what's the best bank or system to do so?
I know I sound like a newbie here, so bare with me.
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You don't need to buy stocks in a TFSA, although that would be the best way to do so if you have contribution room. You can just open up any trading account at any financial institution and either buy stocks outright (you'll be taxed on profits when you sell) or buy one and hold them in a TFSA (you won't be taxed on any gains).
If you're thinking of moving RRSP funds --> TFSA, that would count as a withdrawal and there would be tax implications. Any amount you "move" to the TFSA would count as income for the year, so your taxes may or may not go up accordingly. So I would suggest you find money to put into a TFSA from elsewhere and leave your RRSP alone.
You can look at opening a self-directed RRSP account (so current RRSP --> new self directed RRSP) to do your own trading and do an in-kind transfer to that new account. That would not count as a withdrawal and you wouldn't be taxed for doing so. Unfortunately I don't have any suggestions to make as to where you should open up a Self-directed RRSP, but I'm sure any bank will do it for you. Maybe check with Sun Life first if they have that option.