Ads keep this website free for you. does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Brokerage Account Setup
Canadian Tax and
Financial Information Home

What's New

Links & Resources

Site Map

Need an accounting, tax or financial advisor? Look in our Directory.  Use above search box to easily find your topic!   Stay Connected with!


Home  ->  Financial Planning   ->   Stocks, Bonds etc.   ->   Borrowing to Invest -> Setting up the Brokerage Account

Setting up the Brokerage Account When Borrowing to Invest

If you borrow to invest, set up a separate brokerage account to hold the investments that you purchase with the borrowed funds (the leveraged investments).

This is the only way to ensure a clear paper trail to the borrowed funds, and will save you a lot of record keeping.  This is necessary even if you already have a margin account with a brokerage, and you want to use the margin being provided by stocks you have in the other account.  The brokerage can link the accounts so that they use a combined margin, and the stocks purchased on margin can be kept in a separate account.

Previous Borrow to Invest Article:

Methods of borrowing

Next Borrow to Invest Articles:

Buying the stocks and ETFs

What to do with the dividends

Selling the stocks and ETFs

Tax Tip:  Keep your leveraged investments in a separate brokerage account from your non-leveraged investments, to ensure a clear paper trail for interest deductibility.

Revised: October 26, 2023



Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from

Facebook  | Twitter  |  See What’s New, stay connected with by RSS or Email
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.