How investing works in Canada
Understand what you need to know to open your investment account in Canada.
CIBC Investor's Edge
4-minute read
Welcome! As a newcomer to Canada, you've probably opened a bank account or even a credit card. An important next step is to open an investment account. Newcomers to Canada typically open an investment account to help them achieve a goal, like saving for a home or paying for their children’s education. Which goals are important to you?
In Canada, it's easy to invest and save for your goals:
- Want to invest? Buy shares in US or Canadian companies or in funds holding a portfolio of investments.
- Want to save? Choose from popular products such as High-Interest Savings Accounts or Guaranteed Investment Certificates.
Whether you want to invest or save, opening an investment account is an important next step to help you achieve your goals.
Investing with CIBC Investor's Edge
Opening an investment account with CIBC Investor's Edge gives you a lot of benefits:
Security of a large bank
As a CIBC Investor's Edge client, you have the security of dealing with a subsidiary of one of the largest financial institutions in Canada. At CIBC, we've been taking care of Canadians since 1867.
Easy-to-use investing platform
The CIBC Investor's Edge platform is easy to use, whether it comes to opening an account, buying investments or keeping track of your portfolio. The platform is available through online and mobile banking applications, allowing you to invest easily and comfortably with a few clicks.
Helpful service
An annual survey of brokerage clients by J.D. Power ranked CIBC Investor's Edge in top place among the brokerages owned by the Big Five banks. Our CIBC Investor's Edge client service representatives are always happy to help with your account questions.
Convenient access to your bank account
Your CIBC Investor's Edge investment account links easily to your CIBC bank account. This enables you to transfer money instantly between your accounts. Your CIBC bank account is also covered by our fraud guarantee.
Helpful education
The CIBC Investor's Edge website includes educational information from highly qualified CIBC investment professionals in our Learn section.
Invest for yourself and save money
CIBC Investor's Edge clients enjoy selecting their own investments. They also like the lower cost of being self-directed investors, compared to investing through an advisor. Do you like choosing things for yourself and getting a good deal? Then self-directed investing with CIBC Investor's Edge might be right for you.
These are special types of accounts that may help you defer or reduce your taxes when you invest or save. Learn more about some of these accounts in our related article about investment account types.
In Canada, there are registered accounts to help you save for different goals. For example, you may invest for retirement in a Registered Retirement Savings Plan (RRSP), invest for your children's post-secondary education in a Registered Education Savings Plan (RESP) or save for a first home using a First Home Savings Account (FHSA). What's more, Canada has a registered account that enables you to invest or save tax-free for any purpose, the Tax Free Savings Account (TFSA). The TFSA is popular with Canadians because it's easy and flexible to use.
What you need to open an account
To open an investment account with CIBC Investor's Edge, you need:
- Social Insurance Number (for registered investment accounts)
- Canadian residency
- To have reached the age of majority
Social Insurance Number
You need a Social Insurance Number (SIN) to work in Canada, access government programs or open registered investment accounts. The SIN is a nine-digit number issued by Service Canada.
Question: Do I need a SIN to open an investment account?
Answer: It depends on the type of account. To open a registered investment account, you need a SIN, so that we can register the account with the Canada Revenue Agency. To open a non-registered or taxable account, we will ask for a SIN but you do not have to provide one (we can still open the account without a SIN).
Canadian residency
Canadian residency means that you live in Canada. It does not refer to your immigration status, such as whether you're a permanent resident or citizen.
Question: I recently arrived in Canada but I'm not a permanent resident or citizen. Can I open an investment account?
Answer: Yes. You can open an investment account as soon as you start living in Canada. You do not have to wait to become a permanent resident or citizen to open an investment account.
Age of majority
Age of majority means the age when you become an adult under the law. The age of majority is 18 in Alberta, Manitoba, Ontario, Prince Edward Island, Quebec and Saskatchewan. The age of majority is 19 in British Columbia, New Brunswick, Newfoundland, Northwest Territories, Nova Scotia, Nunavut and Yukon.
