Interactive Brokers, also known as IBKR, has introduced the First Home Savings Account (FHSA) for eligible Canadian residents, offering tax-free investment growth for individuals preparing to buy their first home. The launch marks the firm’s latest expansion of tax-advantaged investment solutions tailored to Canadian clients.
The FHSA is a government-registered savings vehicle designed specifically for first-time homebuyers. It allows annual contributions of up to CAD 8,000, with a lifetime limit of CAD 40,000. Contributions are tax-deductible, and both capital gains and interest income within the account are not subject to tax.
“Buying a home is one of the biggest financial milestones”
Steve Sanders, Executive Vice President of Marketing and Product Development at Interactive Brokers, commented, “Buying a home is one of the biggest financial milestones, and we’re pleased to offer a savings solution that helps Canadians reach this goal. Our FHSA provides tax-free investment growth, low costs, and access to global markets, empowering Canadians to maximize their savings potential.”
Account holders can invest in a wide range of financial instruments, including U.S. and Canadian equities, options, and U.S. bonds, using Interactive Brokers’ advanced trading platform. The company offers low commissions and no added platform fees, supporting a cost-efficient investment experience.
The FHSA includes a long-term flexibility option. If funds are not used for a home purchase within 15 years, investors can transfer the balance tax-free into a Registered Retirement Savings Plan (RRSP), ensuring continued tax-deferred growth without penalty.
First-time homebuyers and those who have not owned a home in the past four years are eligible to open the FHSA. The account can be set up online through Interactive Brokers Canada in a few steps.
Interactive Brokers operates across more than 160 markets globally and provides automated trading, custody, and risk management services to individual investors, hedge funds, and institutions. With over four decades of experience in brokerage technology, the firm continues to expand its platform offerings to meet evolving investor needs.
IBKR launched Forecast Contracts in Canada
Earlier this month, Interactive Brokers launched Forecast Contracts for Canadian investors, offering a new way to trade directly on the outcomes of key economic, political, and climate-related events. The expansion builds on existing availability in the United States and reflects increased interest in tools designed to manage risk amid market uncertainty.
Forecast Contracts are available through IBKR ForecastTrader and all other Interactive Brokers trading platforms. Clients can use their existing login credentials to access contracts framed as simple yes-or-no questions. One example includes: “Will the Canada Overnight Rate target be set above 2.75% at the Governing Council meeting ending April 16, 2025?”
It was in June that the CFTC approved ForecastEx LLC’s application to operate a contract market and derivative clearing organization in the United States. ForecastEx contracts are ideal for establishing the consensus view on controversial issues and hedging economic exposure.
ForecastEx contracts have weekly, monthly, quarterly, and annual durations. Interactive Brokers will pay interest at 0.5% under the prevailing Fed Funds rate on the closing market value of positions. Income interest accrues daily and is paid monthly.
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