Can international students day trade in Canada? I am a University student and wish to pursue intraday trading to earn some extra money? Is that possible? If yes, what are the conditions for this and how to do it.

Hi, I want to ask Can any international student living in Canada start day trading? What is the age requirement and other conditions for an international student to trade in Canada? Is there any bank account that can be opened for this purpose?
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Short Answer

Yes, international students can day trade in Canada. For this given they must be a major, has a SIN and must be eligible residents.

Detailed Answer

International students in Canada

Canada is a major hotspot for international students. It is 4th top in international students’ enrolment after US, UK and China. Day trading is taking advantage of share price movements on a single trading day. It is buying a share on a particular trading day and selling the share within the same trading day. Day trading is allowable in Canada. Let us explore if international students can do day trading just like a Canadian citizen or a long-time resident.

Can international students day trade in Canada?

International students can indulge in day trading in Canada as far as:

  1. They are 18 years or above (have reached a major age set by the province)
  1. They have a Social Insurance Number (SIN)
  1. They are eligible residents of Canada.

It is to be noted that international students can open a Tax-Free Savings Account (TFSA) in Canada. However, no one can do day trading within a TFSA. If this rule is breached, you will be penalised.

For long-time investors, who keep their holdings for a long time, only 50% of the profits are included in the tax returns. However, for day trading, the profits are deemed as business income and 100% of gains should be reported. Similarly, 100% of losses can be deductible too.

Online brokerage platforms such as CIBC Investor’s Edge have exclusive accounts for students who are aged 25 and below. The platform does not charge any annual maintenance fees and does not mandate any minimum balance. In addition, the platform is attached to one of the big five banks – CIBC, and if you have a CIBC smart account for students, you will get such waivers and you can have all your funds under one roof.

So, if you have a SIN and have been living in Canada for 183 days or more you are definitely eligible to trade in stocks in Canada. Since you are a student and an international one, there might be a limit imposed on the amount that you can invest.

Another important aspect in determining the majority age is that in every province of Canada it varies. So, you might be a major being 18 in Ontario but in British Columbia you have to be 19 to be a major. If it is your first time investing then try going for the big five banks because they are much safer.

Day trading for international students in Canada

Although day trading is legal for international students in Canada, it is highly complicated and is prone to financial risk, market risk, volatility risk etc., One requires huge volumes of money to make considerable profits in day trading. It is doubtful if a student will have such funds. Similarly, one needs to spend a lot of time analyzing the markets during non-trading hours and must be watchful throughout the trading hours. It is also skeptical if an international student who has flown to the country for studies can devote all the time to trade.

Tagged With: day trading canadainternational students canadainternational students day tradingintra day trading canadaday trading taxation
Categories: New Immigrants
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Discussion (1)

International students can do day trading in Canada provided they fulfill a set criteria. Moreover, day trading will help them in earning extra income for their routine expenses plus additional wants.

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