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A time comes in every Canadian investor’s career when they may need to withdraw funds from their brokerage accounts. There is a myriad of reasons to do this.
They may want to enjoy their investment returns, reinvest their trading proceeds into other investments and financial institutions, or deploy those funds into something unrelated to securities.
Questrade allows its account holders to withdraw funds to their bank accounts or another financial institution. In today’s article, we will take you step by step on how to withdraw money from Questrade accounts.
It’s important to note that this can be done as a domestic bank withdrawal or an international bank withdrawal, and funds can be withdrawn in Canadian dollars or USD cash into your bank account.
Questrade even allows you to withdraw more U.S dollars than you currently have in your USD account, provided you have enough Canadian dollars that can cover the difference after they convert the currency.
Equity investments are subject to market risks and may not be suitable for all investors. If you have any doubts as to the merits of an investment, you should seek advice from an independent financial advisor. So please invest at your own risk.
Steps to Withdraw From Questrade
To execute a withdrawal from your Questrade account, you only need to follow the instructions below:
- Access your Questrade Account and log in.
- Go to the Request Section and Find the Menu Option.
- Select “Withdraw Funds.”
- Select the Account You Wish To withdraw from.
- Select the Currency you wish to withdraw (Canadian dollars or U.S dollars)
- Specify the Withdrawal Amount.
- Choose the Withdrawal Method.
- Provide Your Banking Details.
- Finally, click Continue to Confirm the Withdrawal.
- You can easily monitor your withdrawal by checking the “Request History” tab.
- Canceling a withdrawal is usually a tedious task and requires direct communication with Questrade customer care for them to reverse it. The account holder is advised to be sure of their intent to withdraw funds before executing a withdrawal.
Questrade Withdrawal Method
Questrade accounts allow for three main withdrawal methods. They include Electronic funds transfer, Wire transfer, and International Wire Transfer.
Although bank transfer is the most common mode of withdrawal, Questrade has also made the option to transfer to electronic wallets, such as Interac Online, available for Questrade accounts.
Your banking details will be requested when you use Electronic funds transfer and Wire transfer. This is usually done electronically. In case electronic means are not available, you can manually upload your bank details using a void cheque or a direct deposit form.
If an account holder wishes to execute an international wire transfer, a “Funds withdrawal international funds transfer” form will need to be filled.
Certified cheques and Uncertified cheques were once a withdrawal option on the Questrade platform, but they have since been discontinued.
Questrade Withdrawal Fees
In Questrade, the withdrawal fees will depend on the method used.
For Electronic funds transfers, the transactions are Free for both Canadian dollar and U.S dollar withdrawals. This is capped at $50,000 for CAD and $25,000 for USD.
In the case of local wire transfer. The Canadian investor will be charged $20 for Canadian dollar transfers and $30 for U.S. dollar transfers. International wire transfer attracts a $40 fee.
Although discontinued by the Questrade Platform, Certified and Uncertified cheques were used as a withdrawal option. The use of certified cheques attracted a fee of $50, while an uncertified cheque attracted a fee of $70.
Should an investor choose not to pick up the cheque themselves, a courier fee is charged with $30 for Canada and $70 for the U.S to deliver the cheque to them.
Transferring Your Account From Questrade
Questrade allows owners of registered accounts such as (TFSA, RRSP, etc.) to transfer their accounts to and from other financial institutions.
When a new account is opened with Questrade, you can transfer an account to them free of charge. They will, on the other hand, charge you if you wish to transfer your account from them to another financial institution.
A full transfer of an account to another institution attracts a $150 charge, and a partial transfer attracts a $25 charge.
How Long Does it Take to Withdraw Funds From Questrade Account
The average wait time for completion of an account transfer is 1 – 5 business days. This varies depending on the withdrawal method that was used.
An Electronic Fund Transfer, on average, takes longer to complete, even though it’s free. This is because they are processed in batches, especially when they exceed their capped limit ($25,000 for USD and $50,000 for CAD).
In the event you need to withdraw more money than the limit, you should contact customer service for assistance in fast-tracking the withdrawal.
Additional Things Worth Noting
It’s important to note that withdrawals will affect registered accounts differently.
For example, Should you choose to withdraw from your RRSP account, you will be subject to withholding tax. Depending on the withdrawal amount, taxes can get as high as 30%.
In the case of RRIF, withholding taxes only kick in if you exceed the annual minimum contribution amount.
If you choose to withdraw from your Tax-Free Savings Account(TFSA), your contribution room will not be affected, but you will be barred from re-contributing to the fund for 1 year.
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How to Withdraw Money From Questrade: Bottom Line
As we explained above, the process of withdrawing funds from your Questrade account is relatively simple. With three main withdrawal methods, Electronic funds transfer, Wire transfer, and International Wire Transfer, Questrade’s services are more than adequate to handle the Canadian investor’s withdrawal needs, whether locally or internationally.
Despite that, some degree of attention and care is necessary concerning understanding how fees are charged, how certain withdrawals will affect investor contribution plans, and how certain withdrawals will affect a Canadian investor’s tax liabilities.
Withdrawals from Questrade will get much more manageable as Questrade adds options for their users, such as facilitating withdrawals to Electronic Wallets. This is a step in the right direction.
As long as you follow the steps and take into consideration the nuances of specific withdrawal methods, fees charged, and the effects these withdrawals have on different accounts withdrawing money from your Questrade account becomes super Simple.