How Brokerage Transfer Bonuses Work

When you transfer your investment account from one broker to another, many brokers offer cash bonuses. Transfer bonuses typically range from $150–$1,500 depending on the account type and transfer size. The bonus is usually credited as cash or a deposit into your new account. Unlike promotional offers you must "earn," transfer bonuses are essentially free money for switching—you get the bonus simply for transferring your existing investments.

Eligible Account Types and Conditions

Transfer bonuses apply to RRSP, TFSA, and non-registered accounts. Some brokers offer higher bonuses for larger transfers (e.g., $500 for transfers under $10,000, $1,000 for $10,000–$50,000, $1,500 for $50,000+). Conditions typically require: (1) minimum transfer amount (usually $5,000–$25,000), (2) hold period (funds must stay in the account for 90–180 days or the bonus claws back), (3) no transfers out during the hold period, and (4) opening a new account (not adding to an existing account).

Hold Period and Clawback Risk

Most brokers impose a 90–180 day hold period on transfer bonuses. If you withdraw funds or transfer to another broker before the hold period ends, the bonus is clawed back. This locks your money in place temporarily. Plan your strategy: if you know you'll need funds for a down payment in 3 months, don't use transfer bonuses. For money staying invested long-term, clawback risk is minimal and the bonus is pure gain.

Timing Strategy and Sequential Transfers

Some investors execute sequential transfers to maximize bonuses. Example: Transfer $50,000 to Broker A (get $1,500 bonus). After 180 days, transfer to Broker B (get another $1,500 bonus). This strategy works but requires discipline—track all hold periods and avoid triggering clawbacks. Each transfer also incurs switching costs (CRA transfer form fees, account opening fees), so factor these in. Net benefit must exceed costs.

Tax Treatment of Transfer Bonuses

Transfer bonuses in RRSPs and TFSAs are not taxable—they're crediting the account. In non-registered accounts, bonuses may be treated as capital gains or income depending on the broker's tax reporting. Always ask: "Will the bonus be reported on a T5?" (investment income) or "Is it a capital credit?" In some cases, bonuses are non-taxable account credits. Confirm with your broker's tax team before transferring.