hey guys it's Adrian here the Canadian in a T-shirt and today I'll be breaking down how
to open an investing account with questrade specifically the brand new first home savings
account or fhsa this account has finally been released for Canadian first-time home buyers
so in this video I'll go over the benefits of the fhsa why you should choose Quest trade for
your investing goals and I'll do a step-by-step walkthrough on how to open an fhsa account with
questrade as always I include timestamps for each chapter so feel free to skip ahead before we jump
in I have something very exciting to announce this is my first sponsored video ever I've been
running this channel for almost four years and I've never taken on a sponsorship I promised
myself I wouldn't do it unless it was a company that I truly love and I couldn't ask for a better
fit than questrade my favorite online broker I've already made a ton of questrate videos for free so
I'm proud to say that now I'm getting paid for this one I'll include this official disclaimer
in the box below so thank you question for sponsoring this video and let's jump in the
fhsa OR first home savings account is a brand new tax sheltered account designed to help Canadians
save up for a down payment on their first home and it combines the best benefits of both the
tfsa and the rrsp all the money you put into the fhsa can be invested grown and eventually
withdrawn totally tax-free just like the tfsa and even better whatever money you contribute
will deduct from your taxable income which lowers your tax bill just like the rrsp so when you put
money into the fhsa you can claim a tax deduction so when you file your taxes you'll receive a tax
refund and you can use this tax refund to invest further and grow your portfolio even faster or if
you expect your income to grow you can carry forward this tax deduction to a future year
and collect uneven bigger tax refund check out my video on delaying tax deductions it
works the same way for both the rrsp and the fhsa with the fhsa you can hold stocks bonds
ETFs and REITs and they will all grow tax-free so any profits from dividends or capital gains
are yours to keep no taxes and no worries note that U.S dividends will be subject to
a 15 withholding tax just like a tfsa honestly guys the fhsa is a game changer and one of the
most powerful investing tools we now have as Canadians but there are a few rules to follow
this account has a lifetime contribution limit of forty thousand dollars and an annual contribution
limit of eight thousand so right now you can put in eight thousand dollars into your fhsa
and if you keep it up every year you'll be able to Max it out in five years but keep track of all
your contributions it is your responsibility to ensure that you don't exceed your limit to open
an fhsa you must be 18 years old you must live in Canada and you must be a qualified first-time
homebuyer that doesn't necessarily mean that you've never bought a house it means that in
the past five calendar years you did not live in a house that you own or your spouse or common law
partner owns So if you live with your spouse in a condo that they own you can't open an fhsa even if
you yourself have never bought a property but on the flip side if you do own a house as a rental
property and you've never lived in it then you are eligible for this account so open up an fhsa and
start contributing to it you'll reduce your tax bill and your investments will grow tax-free year
after year and when you're ready to buy a home that money can be withdrawn again 100 tax-free
just as long as you are buying or building a home in Canada it will be your primary residence
and you have a written agreement to purchase that home if you meet those requirements then you won't
pay any tax on the withdrawal that includes your country Solutions and the investment income earned
you can use that money towards the down payment or anything related to the purchase like closing
costs legal fees and moving costs and good news the fhsa can be used with the home buyers plan
you don't have to choose one or the other the home buyers plan allows you to withdraw from your rrsp
up to thirty five thousand dollars tax free but you have to pay it back into your rrsp over the
next 15 years the fhsa is simpler no taxes and no repayments but again feel free to use both even
if you're not planning on buying a house anytime soon you should still open an fhsa you can keep
this account open for up to 15 years plenty of time to save up for a down payment plus you get
15 years of tax-free growth and tax refunds on your contributions if you never end up buying
a home you will have to close the fhsa after 15 years or when you reach 71. if that happens you
can transfer your FHS say it's your rrsp or your riff with no tax penalties otherwise you
can withdraw that money but it will be taxed as regular income and you'll pay upfront withholding
taxes the same as an rrsp withdrawal so that's the beauty of the fhsa but why should you choose Quest
trade Quest trade is my favorite brokerage I've been investing with them for years and here's why
they were one of the very first online brokers in Canada they've been around for over 23 years but
they're still innovating and adding new features like instant deposits extended trading hours the
new Quest trade Edge mobile and Quest mobile apps live stock quotes and the ability to hold both
Canadian and US Dollars all great features and they don't make you pay a monthly fee for it in
fact there are no monthly fees or maintenance fees or anything like that it's a fully loaded platform
with no annoying limitations it has all the power and features you'll find at the big Banks but it's
half the price price that's why I switched most of those Brokers will charge you ten dollars in
commission fees every time you buy or sell a stock or ETF that can really add up but with
Quest trade you pay half as much when you buy or sell stocks with Quest trade you'll usually only
pay five dollars in commission fees and even better they charge no commission when you buy
ETFs this makes a huge difference especially for beginners who are just starting out I'll break it
down Quest rates commission is priced at one cent per share with a minimum of 4.95 and a Max of 9.95
when you buy stocks buying ETFs is commission free simply put if you buy 500 shares or less
you'll only pay five dollars it's very unusual to buy more than 500 shares in a single trade unless
you're spending tens of thousands of dollars or you're buying penny stocks for me the biggest
benefit of questrade is the ability to hold Canadian dollars and US Dollars other Brokers will
automatically automatically convert everything into Canadian dollars so they'll charge you a
1.5 currency conversion fee every single time you buy or sell U.S Investments with Quest trade your
U.S Investments remain in US Dollars and your Canadian Investments remain in Canadian dollars
this saves you a ton of money in the long run with questrade there's no monthly fees or activation
fees that's what I love about them you only pay commission when you actually buy stocks if you
don't touch your portfolio it won't cost you a thing you'll just need an initial deposit to open
your account for the new fhsa account you'll only need 250 dollars to get started with questrade for
other account types like the tfsa rrsp and margin account you'll need to deposit a thousand dollars
but if you're a younger investor 25 or below Quest trade will reduce this to a 250 deposit for all
self-directed accounts but today we're opening an fhsa so you'll only need 250 dollars for all ages
and once you put that money in you can buy stocks and ETFs with it right away so that's
why questrade is my favorite investing platform now let's jump into a step-by-step walkthrough
on how to open and fund a questrate account make sure you use my referral Link in the box below
Canadian t-shirt and you'll get 50 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 fifty dollars plus I'll get a small referral bonus as well here's how you do it go to any one
of my YouTube videos including this one and scroll down to the description box click show
more and go to the questroid referral section and click my referral link there it will take
you to the questrade landing page click the green button open an account now you have to choose what
type of account you want to open as soon as you select one my referral code will pop up I'll show
you that in just a minute in this top section we see the most popular account Types on questrade
here are the top three accounts available to all Canadian Radiance the margin account tfsa and RSP
the margin account is a non-registered account so there are no limits but you will be taxed on
all dividends and capital gains that you earn the tfsa and rrsp are tax sheltered accounts and I've
already covered these in detail in my past videos so check those out note that the rrsp is the same
thing as an rrsp it's just a name change here we see the new first home savings account fhsa and
it is finally available as of April 1st click here to see more account types and they are separated
by different categories click retirement and we see a bunch of options like spousal rsps Lyra's
and riffs if you have a corporation click on entity and you can open a corporate margin
account if you have children and you want to open up an resp click on education and you can
open an individual resp or a family resp another option here is the quest wealth account this is a
more passive hands-off approach you don't pick your individual stocks or ETFs you want to buy
you just answer a questionnaire and put money in and they will automatically build a portfolio of
ETFs to suit your goals but today we're going to be opening up the first Home Savings Account fhsa
you can click here to see more details which we've already gone over so we click add and
you see here my referral code Canadian t-shirt pops up confirming that you'll receive that 50
Trade Commission rebate if you click view details you will see the eligibility requirements which
we've already gone over this is important it is your responsibility to make sure that you
meet the requirements and that you are eligible for the fhsa questrade will not do this for you
so let's do it we click the green button open now first step is to create a user ID once again we
get confirmation that my referral code Canadian T-shirt has been applied so you'll get that 50
bonus enter your contact info name email phone number verify your phone through a text message
username and password third now you have to build your profile it guides you through the process so
start with personal info enter more info like date of birth marital status and residential
address next employment information starting with our employment status are you a student retired or
employed if so enter your employer's contact info now some yes or no questions are you a Securities
dealer basically means are you a stock broker or do you work at a bank as a financial planner if
so there are some rules you'll have to follow but for most of you the answer is no next are
you a major shareholder of a company basically are you in a position where you could commit insider
trading again the answer is probably no last question is essentially do you have significant
political power again answers probably no next is financials make sure you enter everything in
Canadian dollars starting with your annual income next liquid assets that's savings cash stocks
bonds mutual funds anything that you could sell right away fixed assets are much more difficult
to sell like your house or your car liabilities are your debts like your mortgage credit card debt
student loans putting these numbers together will give you your total net worth finally we have tax
residency this one is very important so make sure you answer all the questions truthfully are you a
resident of Canada you don't have to be a citizen or a permanent resident but do you live in Canada
do you pay Canadian taxes the answer should be yes social insurance number this one is very important
this is how the government identifies you so make sure you enter it correctly the United States has
special rules so you have to declare were you born in the U.S and are you a US person meaning are you
a resident of the United States finally are you a tax resident of anywhere other than Canada or
the US great our profile is complete now we can set up the account itself follow the process it
will guide you through the whole thing starting with Account Details do you want to trade options
I personally don't trade options but if you select yes in the trading platform there will be an extra
section where you can buy stocks or options what is the purpose of this account choose the options
that apply to you we are opening an fhsa so it will be a home purchase initial deposit how much
money do you want to put into the account on day one remember when opening an fhsa account with
questrade the minimum deposit is only 250 dollars but you can always go higher today I'm just
putting in 250. next consent and communication this is where you set your preferences on how
you want to receive information and materials as a shareholder things like voting rights quarterly
statements that kind of thing persons with financial interest will there be someone else who
has access to your account for me it's just myself so I select no the agreements make sure you read
them all and accept I'm not going to show them in this video so I'll skip ahead that's it for the
questions now we have to sign some forms click the e-sign button these will be electronic signatures
through DocuSign statement of acceptance that's a quest trade form and then Wham that's a form
with the US government essentially this form allows questrade to reduce the withholding
taxes that you pay on U.S dividends normally U.S Dividends are charged a 30 withholding tax but
because of a tax treaty between Canada and the U.S by filling out a wh Bend form you're able
to reduce this withholding tax from 30 down to 15 so it's very important to fill it out just
follow the instructions on the form next upload any documents they ask for they might ask for a
government-issued photo ID like a passport or driver's license or any supporting documents
last step is to fund your account remember for an fhsa the minimum deposit is 250 dollars for
other account types the minimum deposit will be a thousand dollars unless you're a younger investor
25 or below in which case the minimum deposit is reduced to 250 for all account types to fund your
account you have several options the quickest and easiest method is instant deposit where your money
will be available to trade instantly as long as you have a Visa Visa debit card or interact debit
card I have a whole video tutorial on how to do instant deposits on questrade so check that out
the tried and true method is online banking this will work with any Canadian bank account but it
will take one to two business days for the money to arrive all you have to do is go to your online
bank account and add questrate as a payee and pay yourself the same way you would pay a phone
bill or internet bill I covered how to do this step by step in this past video pre-authorized
deposits are great if you have a US dollar bank account this allows you to deposit US
Dollars directly into Quest trade without doing any currency conversion you can also use this
to set up recurring deposits let's say you want to put money in automatically on a monthly basis
you can also transfer money and investments from your bank or broker into Quest trade and if your
bank charges you transfer fees questrade will reimburse you up to 150 dollars I have a whole
video tutorial on how to make this transfer check it out for today I did an instant deposit I'll be
used using Visa debit and it will be going into the new fhsa account that we just opened add
your debit card and enter the amount you want to deposit in this case 250 dollars again check out
my instant deposit tutorial if you want to see all these steps in detail so my instant deposit
went through and now my brand new fhsa account is open and funded you can see it has a cash balance
of 250 dollars ready to start investing for a step-by-step guide on how to buy stocks and
ETFs with this cash check out my previous Quest trade tutorials so there you have it that's how
you open a questrade investing account we opened the brand new fhsa account but the same steps
apply for all account types and you can get started with as little as 250 dollars again
if you want to get started with questrade click my referral Link in the box below to get fifty
dollars in commission free trade rebates for the first 30 days when you sign up plus you'll have
to support my channel thanks for watching guys and be sure to like comment and subscribe if you found
this video helpful every thumbs up and comment really does help me build this channel here on
YouTube and hit that Bell icon to be notified of my new videos and if you'd like to follow me on
Instagram or Facebook at canadiant t-shirt click the link in the box below or put the links on my
homepage and once again thank you to questrade for sponsoring this video so thanks everyone and I'll
see you guys on the next episode of the Canadian in a t-shirt bye guys