how to open a Questrade investing account and transfer money

Questrade account. Investing in the stock market is easier than most people realize you do not need a stock broker on wall street and you don't have to rely on banks and their mutual funds for their expertise anyone can invest in the stock market by themselves and from the comfort of their own home using an online broker like Questrade i've already talked about 

why i love Questrade in past articale in fact this articale is chapter 4 of my Questrade guide playlist so click the pop-up at the top right to check out those article as well in those article i've gone over the benefits of Questrade the fees to expect a step-by-step walkthrough on how to buy stocks i've talked about how to invest in the us market as a Canadian and the cheapest way to convert Canadian dollars into us dollars using Norbert's Gambit so make sure you check those out as well in this articale i want to start at the very beginning how to actually open a Questrade account before we get to that i want to give you a quick overview of why Questrade is my favorite online broker all the major banks td scotiabank BMO RBC they all have their own versions of online brokers and those are great platforms but they are expensive with those brokers every time you buy or sell a stock or an ETF you'll have to pay $10 in commission fees those fees can really add up with Questrade you pay half as much in commissions compared to the big banks when you buy or sell stocks with Questrade they'll only charge you five dollars in commissions and even better when you buy ETFs they'll charge you no commission at all this makes a huge difference especially for beginners who are just starting out with small sums of money Questrade's commission is priced at one cent per share with a minimum of $4.95 and a maximum of $9.95 when you buy stocks buying ETFs is free to simplify if you buy 500 shares or less you'll only pay five dollars if you buy 1000 shares or more you'll pay $10 between 500 and 1,000 shares you'll probably pay around seven dollars for most people you'll only ever be charged five dollar commissions on stocks it's very unusual to purchase more than 500 shares in one single trade unless you're investing in tens of thousands of dollars at once so for most people it'll only cost you five dollars another huge benefit over other brokers like wealthsimple trade is that Questrade allows you to hold Canadian dollars and US dollars with wealthsimple you can only hold canadian dollars so whenever you buy or sell a US stock it's automatically converted back into canadian dollars and you pay a 1.5% currency conversion fee every single time with Questrade your us investments remain in u.s dollars and your canadian investments remain in canadian dollars this saves you a ton of money in the long run and if you need to convert canadian dollars into us dollars you can use norbert's gambit with Questrade to make this conversion for free you won't be charged a conversion fee like you would if you walked into a bank or if you used another broker like wealthsimple click the pop-up at the top right to check out my step-by-step guide on Norbert's gambit it can save you hundreds or thousands of dollars in fees i'll be making a whole articale comparing Questrade and wealthsimple trade very soon as well as a review of other brokers in canada so stay tuned for those to open up a Questrade account you'll need to put in at least one thousand dollars you're not losing this money this one thousand dollars is still yours to invest in stocks or ETFs but Questrade does require a one thousand dollar minimum balance to open an account the good news is that once you put in this one thousand dollars Questrade will never charge you a monthlyfeere or a maintenance fee or anything like that as long as you have at least one thousand dollars in your account this is another advantage over other brokers which do char stock in questrade instead of paying exactly five dollars in commission fees you might be charged five dollars and one cent or five dollars and three cents those extra few pennies are due to ECN fees these ECN fees come to 0.35 cents per share they're tiny so you'll probably never notice them unless you're buying thousands of shares at once they'll only ever cost you a few pennies for the majority of people so don't worry it's still much better than paying ten dollars in commission fees with another broker so that's a quick summary of why Questrade is my favorite online broker and a breakdown of its fees now let's jump into a step-by-step walkthrough on how to open and fund a Questrade investing account to open an account click the referral link in the box below and you'll get fifty dollars in commission free trade rebates for the first 30 days when you sign up that basically means that your first 10 stock trades will be commission free that saves you $50 plus i'll get a small referral bonus as well and here's how you do it in all of my Questrade articale i include a referral link so to do that scroll down to the description box click show more and you'll see the Questrade referral section where you'll find the link so click on that link it'll take you to the Questrade homepage and you click open an account so now you choose which type of account to open here are the three main account types which are available to all canadians margin TFSA and RRSP the margin account is a non-registered account so there are no limits but you will be taxed on all dividends and capital gains you earn in this account the TFSA and RRSP are registered tax sheltered accounts and i've already covered these extensively in past articale so click the pop-up to check those out there are also more specialized account types so to access those click on see more account types and if you go to the retirement section you can see LIRA, spousal RRSP and a RIF and in the education section you can find the RESP which i talked about in my last articale you can either open up an individual RESP or a family RESP but in this articale i'm going to be opening up a margin account i already have a TFSA and RRSP account so i'll be opening up a margin account but the same steps apply for opening any of these account types so i click margin account and you'll see that my referral code automatically populates and you can see that offers me a $50 trade commission rebate so i click on accept the terms and open now so first step is to create a user ID so enter your contact info so name email and phone number enter a username and password enter your security questions in case you forget your password so now you have to build your profile it guides you through the process so start with personal info here just enter more personal information so name date of birth marital status residential address and then move on to the employment section start by entering your employment status so if you're a student retired employed and if you're employed enter your employer's contact information now some yes or no questions are you a securities dealer basically means are you a stock broker or do you work for a bank as a financial planner or a financial advisor if so then there are some limitations but for the vast majority of people the answer will be no next are you a major shareholder of a company basically means are you capable of committing insider trading if yes you probably aren't watching this articale so the answer's probably gonna be no and the last question is basically do you have significant political power the answer is probably no now your financials make sure you enter everything here in canadian dollars so first enter your annual income then enter your liquid assets 

So that's cash stocks bonds basically anything that you could sell right away fixed assets are things that are much more difficult to sell so things like your house or your car and then liabilities are the debts you owe so your mortgage credit card debt student loans that kind of thing enter these three numbers and it will calculate your overall net worth so now enter your citizenship information and now for the united states they have special rules so you have to tell them were you born in the u.s and do you live in the u.s so no for both and now enter your social insurance number or SIN this is the most important piece of information that you have to enter this is how the government identifies you so make sure you enter it correctly finally are you a tax resident of anywhere other than canada or the us great so now our profile is complete now we have to set up the account itself remember the new account i'm creating is a margin account so i click on set up the account i have to follow these three steps so we'll start with the account details do you want to trade options i personally don't trade options but if you select yes in the training platform you'll have an extra section where you can buy or sell options now the purpose of the account investing purposes retirement education personal use business purpose set the ones appropriate and now the initial deposit this is how much money you're going to initially put in 

On day one you have to put at least one thousand dollars to open an account that's the minimum so i'm gonna put one thousand dollars and now consent and communication this is where you set your preferences on how you want to receive information and materials whether you want to receive them in physical mail format or electronic format as well as things like voting rights financial statements that kind of thing persons with financial interest so this is something like a spouse or someone who has interest in the account or shares the account with you for me it's just myself so i've selected no the agreements make sure you read them all and accept i won't show them this articale so i'm just going to skip ahead okay now we've answered all the questions for setting up the account now we just have to electronically sign the documents so make sure you read through this document and sign where it asks you to next is the upload government issued photo id so take a picture or scan your passport or driver's license and upload that image i've already done that and now the final step is to fund the account remember you have to put at least one thousand dollars to open the account so that's how we open the account now we actually have to put money into it there are a few options to do this but the easiest way is through online banking i do this every time i open a new account and every time i put money into my investing accounts this doesn't cost anything at all and it only takes one business day for the money to arrive if you have cash in your bank's chequing account you simply transfer money into your Questrade account as if you were making a bill payment you add Questrade as a payee you include your Questrade account number and you simply pay yourself into this investing account as if you were paying your phone bill or credit card bill this is how i always do it but remember you have to have cash available in a chequing account if you have money tied up in investments or money in a registered tax sheltered account like a TFSA or an RRSP this won't work you'll have to request a transfer and i'll be making a whole articale on how to do that in this example i have cash sitting in my chequing account ready to go so let's see how i do it so here's where i left off i click on the fund button and it shows me a variety of options i'm going to choose online banking here they spell out the same steps that i just talked about you log into your bank's checking account you add a payee you enter Questrade as the payee and you enter your account number and then you just send money as if you were making a bill payment here you can see all my Questrade accounts including the new margin account that i just created and i need to copy this account number now you can log into your bank account directly or you can select your bank from the drop down list so i'll choose Toronto dominion bank TD bank it takes me right to the login page of my td bank account i log in and you can see all my accounts here you can see i have a checking account with fifteen hundred dollars sitting there i'm going to take one thousand dollars out of this and put it into my new Questrade account to do that i go to pay bills and as you can see here i have two payees for each of my existing Questrade accounts my TFSA and RRSP account so whenever i want to send money to my TFSA or RRSP account i just make a bill payment to either one of these two payees but to add money to my new account i have to add a new payee so i scroll down and click the add payee button for the payee name i search Questrade and i select Questrade online brokerage now i have to enter my account number so i go back to Questrade and i copy and paste the account number of this new margin account you can choose to give this payee a nickname i'm going to call it non-registered so that i know it's my margin account to distinguish it from the TFSA and RRSP that's good so i hit next i confirm these details the account number and then i click finish okay so i've set up this payee now i want to send the initial $1000 deposit to this new Questrade account so i click pay this payee so i have $1500 in my checking account i'm only going to send one thousand dollars into my Questrade non-registered or margin account that's gonna be a one-time payment and i'm gonna send it today i click next now let's confirm the details i'm sending a thousand dollars to my Questrade non-registered account at this account number let's double check to make sure this account number is correct yes it is okay and i click finish and here's the confirmation window i sent a thousand dollars into my new Questrade margin account make sure you record every time you contribute money into your investing accounts especially if it's a tax sheltered registered account like a TFSA or RRSP because you have limited contribution room you never ever want to exceed the contribution room so make 

Ahabit of recording every single time you put money in let's go back to the payees so click pay bills and scroll down and now you'll see that i have three different Questrade payee accounts the RRSP the TFSA and the brand new non-registered or margin account that i just created the money takes one business date to arrive in Questrade today is a friday so on monday morning i'll have that one thousand dollars sitting in my brand new margin investing account it's now monday morning and now when i log into Questrade i should see that one thousand dollars sitting in my new margin account on the home page i see that i now have three investing accounts including the margin account that i just created however i don't see any money in there but don't worry the home page balances are always delayed by one day if i click on the green trade button you'll see that my money is there at the top right i can select the different account types and now you can see i have three accounts to choose from i'll select the margin account as expected i have one thousand dollars in cash sitting there and waiting to be invested now that i have a thousand dollars in cash i can start buying stocks and ETFs right away for a step-by-step guide on how to buy stocks and etfs using this cash click the pop-up at the top right to check out my previous Questrade tutorial so there you have it that's how you open a Questrade investing account and how to transfer money into it to start investing different brokers will have a very similar process 
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