In-Kind Transfer

An in-kind transfer means moving your investments (stocks, ETFs, bonds, mutual funds) from one account to another without selling them. The holdings themselves move over. You keep the same number of shares at the same adjusted cost base.

The alternative is to sell everything, transfer the cash, and rebuy. That approach can trigger capital gains tax in a non-registered account, and you’re out of the market during the transfer.

When you’d use it

The most common scenario is switching brokerages. If you want to move your TFSA or RRSP from one institution to another, an in-kind transfer lets you do it without disrupting your investments. You can also transfer in-kind between account types at the same brokerage, though moving from a non-registered account to a registered account is treated as a sale for tax purposes (a “deemed disposition”).

How long it takes

In-kind transfers in Canada typically take one to four weeks. During that time, you usually can’t buy or sell the holdings being transferred. Some receiving brokerages will cover the transfer fee charged by your old brokerage, so it’s worth asking.

Why it matters

A concrete example

You hold $30,000 worth of XEQT in a TFSA at Brokerage A, with an adjusted cost base of $22,000. If you sell and transfer as cash, you’re out of the market during the move. With an in-kind transfer to Brokerage B, your $30,000 in XEQT arrives intact with the same $22,000 cost base. No selling, no rebuy, no time out of the market.

If you’re happy with your investments but unhappy with your brokerage, an in-kind transfer lets you move without starting over. For a step-by-step walkthrough, see our guide to transferring investments between brokerages.