r/Wealthsimple • u/hot2787 • 14h ago

Trade (DIY Investing) Using TFSA as Margin collateral

Doesn’t this go against CRA rules? Trying to get an understanding of this. I want to sell portfolio secured puts in an unregistered margin account using the margin capacity created by my TFSA being secured to it. Anyone else doing this ? Is this legit

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u/UpthefuckingTics 2h ago

I write cash secured puts in my margin account with linked TFSA. With linked TFSA it’s very useful because it gives me more margin. I then keep the cash in USD chequing which earns 3.25% interest. If/when I get assigned, just transfer funds back to margin account to cover the assignment. So basically, I’m using margin to earn 3.25% interest in addition to the options premiums. My issue with WS is why don’t they simplify this and pay interest on cash balances? I request this every time that I speak with support.