Cash account

In a Canadian investing context, a cash account is a type of non-registered account at a discount brokerage in which income generated (capital gains, dividends, interest) is taxable.

In a cash account, you can only buy securities with cash already in the account, i.e. your own money. More specifically, cash must be available on or before the settlement date of a purchase.

Margin accounts are similar but allow the investor to borrow from the brokerage to invest, i.e. use leverage.

See also

• Canadian account types
• Prioritizing investments
• Tax-efficient investing