If you are looking to withdraw your money from Questrade, you may be wondering how long it actually takes for the withdrawal to complete.
Withdrawing money from Questrade can take a varying amount of time depending on whether you are transferring out or closing down an account. The Questrade withdrawal time for closing an account and transferring cash to a bank account should take anywhere between one and five business days.
Account transfers to a different financial institution can take as long as several weeks to process (depending on the institution).
Relative to other self-directed brokerages, Questrade came in second place in terms of investor satisfaction, with a score of 662 on a 1,000-point scale.
Make sure to do your due diligence, especially if you are transferring to a different discount brokerage, as the grass may not always be greener on the other side.
Questrade – Ways to Withdraw
If you are withdrawing your money from Questrade and not transferring your accounts to another financial institution, there are three ways to do so. Questrade supports electronic funds transfers (EFTs), wire transfers, and international wire transfers.
Questrade used to allow both certified and uncertified cheques as a withdrawal option in the past. Given the additional costs involved with this approach, they have chosen to discontinue promoting it. It is still likely an option if you submit a specific request to do so.
Questrade Transfer Out Fees
Questrade charges clients a fee of $150 for transferring out an account to a different financial institution. In some cases, the receiving institution will help to cover some or all of this transfer out fee (especially if you are transferring a large account).
Questrade Deregistration Fees
Questrade charges different deregistration fees based on the account that you are looking to withdraw from. A partial deregistration refers to a partial withdrawal from a registered account.
A full plan deregistration means that you will be closing down your account and withdrawing your funds as cash.
The deregistration fees charged by Questrade are currently:
| RRSP | RESP | Spousal RRSP | LIRA | LRSP | Lifelong Learning Plan | Homebuyer’s Plan | |
| Partial Deregistration | $50 | $50 | $50 | $50 | $50 | $25 | $25 |
| Full Plan Deregistration | $100 | $100 | $100 | $100 | $100 | $50 | $50 |
Questrade Withdrawal Fees
In some cases, you may have to pay fees when you are withdrawing your money from Questrade.
The fee schedule is broken down below:
- Canadian dollar electronic funds transfer (of up to $50,000): No Fee
- US dollar electronic funds transfer (of up to $25,000): No Fee
- International wire transfer: $40
- Canadian dollar wire transfer: $20
- US dollar wire transfer: $30
- Uncertified cheques: $50
- Certified cheques: $75
If you would like your cheques to be couriered to you, there is an additional cost ($35 for Canada and $70 for the US).
Withdrawing from Registered Accounts: Withholding Taxes
If you are withdrawing money from a registered account, there are several things to keep in mind before deciding to do so.
Withdrawing from a Tax-Free Savings Account (TFSA)
A Tax-Free Savings Account contains your after-tax dollars. Withdrawing from a TFSA comes with fewer implications than withdrawing from an RRSP, especially from a tax perspective.
Withdrawing from a TFSA does not reduce your contribution room – you will be able to re-contribute the withdrawn amount back into the account in the future. You will have to wait until the next year in order to do so.
There are no tax implications when withdrawing money from your TFSA.
Withdrawing from a Registered Retirement Savings Plan (RRSP)
A Registered Retirement Savings Plan contains your pre-tax dollars.
A withdrawal from an RRSP permanently decreases the contribution room used to make the original contribution. On top of this, withdrawals from an RRSP are treated as income for that particular year. Keep in mind that income is taxed the least favourably (when compared to capital gains and dividends).
Your financial institution will also withhold taxes when you withdraw from your RRSP. The amount of taxes withheld depends on the amount of your withdrawal as well as which province you reside in. The amount of taxes that you owe (or are owed) is reconciled at the end of the year when taxes are filed.
Residents of Canada (except Quebec) are subject to the following withholding tax rates:
- 10% for amounts up to $5,000
- 20% for amounts between $5,000 and $15,000
- 30% for amounts over $15,000
Funds that are held in the province of Quebec are subject to the following withholding tax rates:
- 5% for amounts up to $5,000
- 10% for amounts between $5,000 and $15,000
- 15% for amounts over $15,000
The province of Quebec also withholds provincial tax in addition to the above rates.
Non-residents of Canada face a 25% withholding tax unless reduced by a treaty.
Withdrawing from a Registered Retirement Income Fund (RRIF)
Between the ages of 55 and 71, you have the option to convert your RRSP to a RRIF. An RRIF account comes with a minimum amount of income that has to be withdrawn each year based on your age.
If you only withdraw the RRIF minimum amount within a specific year, you will not have to pay any withholding taxes. If you choose to withdraw more than the yearly minimum, withholding taxes will once again come into play.
RRIF annual minimum amounts increase substantially as you age.
Conclusion
If you are looking to withdraw money from Questrade, whether that means transferring to a different institution or cashing out to a bank account, withdrawal times can vary.
Withdrawing your money outright typically takes between one to five business days. Transferring an account to a different institution can take as long as several weeks.
Fees involved with withdrawing money from Questrade can be substantial, especially if you are planning to deregister multiple registered accounts.
If you are undecided about which trade platform to use going forward, take a look at my detailed review of the best trading platforms in Canada.
