Okay, so Budget 2025 dropped something pretty big that honestly flew under the radar for a lot of people: they’re getting rid of those ridiculous fees banks charge you when you want to move your TFSA or RRSP to another institution.
You know those fees I’m talking about, right? The ones that feel like a breakup penalty when you try to leave your current brokerage? Yeah, those are finally going away.
Here’s why this is such a big deal: for years, these transfer fees have basically kept people trapped with whatever bank or brokerage they started with—even if they were paying way too much in fees or dealing with a clunky platform. It’s like staying in a bad relationship just because moving out seems too expensive and annoying.
But now? The game has completely changed. You can finally chase better returns, lower fees, and platforms that don’t feel like they were designed in 1997—all without getting dinged a hundred bucks (or more!) for daring to switch.
If you’ve been thinking about moving your money to something like a low-cost ETF strategy with XEQT or VGRO, this is your sign. The biggest barrier just disappeared.
What Actually Changed in Budget 2025
The Official Announcement (In Plain English)
So here’s what went down: Ottawa officially announced they’re ending investment transfer fees for registered accounts like TFSAs and RRSPs. The whole point? To make banks and brokerages actually compete for your business instead of just holding your money hostage.
It’s basically the government saying, “Hey financial institutions, you need to actually earn people’s loyalty instead of just charging them a fee to leave.”
How Things Worked Before (AKA The Bad Old Days)
Let me break down what “investment transfer fees” actually are, because the term sounds way more complicated than it is.
When you wanted to move your RRSP or TFSA from one place to another—let’s say from your traditional bank to Questrade or Wealthsimple—the institution you were leaving would charge you a fee. Sometimes $50, sometimes $150, sometimes even more depending on how much you had invested.
It was their way of making you think twice about leaving. And honestly? It worked. A lot of people just stayed put because the hassle and cost didn’t seem worth it.
The New Reality (Much Better, Trust Me)
Now you can switch between brokerages—whether you’re comparing Questrade vs. Qtrade, or thinking about ditching your big bank for something like Tangerine or EQ Bank—without any penalty at all.
Zero. Zilch. Nada.
This means your choice of where to invest can be based entirely on what actually matters: lower fees, better customer service, and investment options that match your goals.
How to Actually Take Advantage of This (The Good Stuff)
Time to Shop Around for Better Brokerages
Here’s the thing: now that transfer fees are toast, there’s literally no reason to stick with an expensive platform anymore. The only things that matter now are the actual fees you’re paying, how good the platform is to use, and what kind of deals they’re offering.
Here are some solid Canadian DIY brokerage options worth checking out:
- Qtrade – Super user-friendly, great customer service
- Questrade – Popular with the DIY crowd, low fees
- CI Direct Investing (used to be called WealthBar) – Good middle ground
And if you don’t want to pick your own investments, these robo-advisors are pretty solid:
- Wealthsimple – Probably the most well-known, super easy to use
- Justwealth – Great if you want a bit more customization
Why This Is Perfect for Index Investing
If you’re into the whole “set it and forget it” approach (which, honestly, is what most people should be doing), this fee-free environment is basically a dream come true.
Strategies like the Couch Potato portfolio—where you just buy low-cost ETFs and chill—work way better when you’re not stuck with whatever platform you randomly chose five years ago.
Some popular ETF options Canadian investors love:
- VFV – Tracks the S&P 500
- XEQT – All-equity, globally diversified
- VGRO – Balanced growth option (80% stocks, 20% bonds)
- TGRO – Similar vibe to VGRO
The beauty of these is they’re already diversified, the fees are super low, and now you can move them around to wherever offers the best deal without getting penalized.
Making Your Tax Situation Better
Here’s something people don’t always think about: being able to move your accounts around easily also means you can consolidate stuff more efficiently.
Maybe you’ve got RRSPs scattered across three different institutions from different jobs. Now you can bring them all together without paying a fee every single time, which makes it way easier to manage and optimize your contributions.
Plus, if you’re trying to offset taxes—like if you just had company stock vest—moving money into your RRSP is way less of a headache now.
What Brokerages Are Doing About All This
The Competitive Landscape Just Got Interesting
So here’s what’s funny: even before this policy officially kicks in, some brokerages were already trying to lure people over by offering to reimburse transfer fees. Qtrade, for example, has had cash-back promotions for a while now.
But now that transfer fees are going away completely? Expect things to get even more competitive. Banks and brokerages are going to have to actually work for your business.
Maybe Time to Look at Your Bank Accounts Too?
While you’re in review-mode, might as well check if your regular banking situation is optimized too. With all this competition heating up, high-interest savings accounts and no-fee chequing accounts are getting better deals.
EQ Bank and Tangerine are worth looking at if you haven’t already. They often beat the big banks on interest rates, and they don’t nickel-and-dime you with fees.
The Potential Catch (Because There’s Always Something)
Okay, real talk: just because transfer fees are going away doesn’t mean brokerages can’t charge you other stuff.
Some might have administration fees, account closing fees, or other sneaky charges lurking in the fine print. So when you’re comparing options, make sure you’re looking at the full picture, not just the absence of transfer fees.
And hey, if you want the official word on all this, you can check out the actual Budget 2025 document from the government. It’s all there in black and white.
Your Game Plan: What to Do Next
Alright, so now that you know what’s up, here’s your action plan:
1. Figure out what you’re currently paying
Look at your current brokerage or bank statements. What are you actually paying in fees? Trading commissions? Management fees? Write it down.
2. Do some comparison shopping
Check out a few different brokerages and see what they’re offering. Look at their fee structures, what investment options they have, and honestly, just see if their website is easy to use (you’d be surprised how much this matters).
3. Focus on what actually works for you
If you’re new to this or have a lower-profile blog or website, focusing on really specific topics (like this exact policy change) is smart. You’re not going to outrank MoneySense overnight, but you can become the go-to source for specific questions.
4. Check your investment mix
While you’re doing all this, take a look at your actual portfolio. Does your asset allocation still make sense? If you’re 30, being super conservative probably doesn’t make sense. If you’re 60, being super aggressive might stress you out. Make sure it matches where you’re at in life.
5. Just do it
Seriously, if you’ve found a better option, start the transfer process. It’s way easier than it used to be, and now it’s free. No more excuses.
Frequently Asked Questions
Wait, does this mean ALL fees are going away for TFSAs and RRSPs?
Nope, not quite. Budget 2025 specifically got rid of the transfer fees—the ones charged when you move your account from one institution to another. Other stuff like trading commissions or annual account fees might still apply depending on where you invest. But hey, it’s still a huge win.
When does this actually start?
Good question. The exact implementation date should be in the official budget documents, so definitely check that for the most up-to-date info. These things usually take a bit of time to roll out properly.
Do I need a super popular website to write about this stuff?
Not really. Yeah, sites like MoneySense have huge domain authority, but if you focus on really specific, helpful content and structure it well (like with good FAQ sections), you can still rank. Quality and specificity matter a lot, especially for newer sites.
The Bottom Line: Freedom to Choose
So here’s the deal: Budget 2025 basically removed the last major roadblock for DIY investors who wanted to switch to better platforms. For years, those transfer fees acted like financial handcuffs, keeping people stuck even when better options existed.
Not anymore.
Now you can make decisions based purely on what’s actually best for you: lower fees, better performance, platforms that don’t make you want to throw your laptop out the window.
If you’ve been sitting on the fence about moving to a low-cost strategy with ETFs like XEQT or VGRO, or if you’ve been annoyed with your current broker but didn’t want to pay to leave—this is your moment.
Think of it this way: imagine if every time you wanted to switch lanes while driving, you had to pay a toll. You’d probably just stay in your lane even if traffic was terrible, right? That’s what investing used to be like. Now the tolls are gone, and you can finally take the fastest route to where you want to go.
So take a look at your options, compare what’s out there, and make the move if it makes sense. Your future self (and your retirement account) will thank you.