Your TFSA & RRSP are at the wrong bank. Here's how to move them.

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Why your bank is the wrong place for this

If your TFSA or RRSP is sitting at one of the Big 5 banks, you're almost certainly paying too much and getting too little. The average managed portfolio at a major Canadian bank carries a Management Expense Ratio (MER) of 2.0–2.5%. On a $100,000 account, that's $2,000–$2,500 per year — before you've earned a dollar of return.

More importantly, none of the Big 5 banks currently offer direct access to Bitcoin ETFs inside their retail registered accounts. You cannot hold FBTC, BTCC.B, or any other TSX-listed Bitcoin ETF inside a Big 5 managed TFSA. WealthSimple's self-directed platform changed this: Canadian investors can now hold regulated Bitcoin ETFs inside their TFSA and RRSP with zero custody fees beyond the ETF's management expense ratio.

This isn't a minor convenience difference. The gap between a 2.2% MER managed portfolio and a self-directed account holding index ETFs at 0.20% MER — plus a 2–3% Bitcoin allocation — is a compounding advantage that grows with every passing year.

The transfer process is straightforward and takes 3–10 business days once initiated. WealthSimple handles the paperwork. You don't need to close your bank account — just transfer the registered accounts.

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The TFSA Bitcoin allocation framework

The Tax-Free Savings Account is the single most powerful investment vehicle available to Canadian residents. Gains inside a TFSA — capital gains, dividends, interest — are completely tax-free. You don't report them. You don't owe anything when you withdraw. This makes the TFSA the ideal account for holding a high-growth, high-volatility asset like Bitcoin.

In 2026, the cumulative TFSA contribution room for a Canadian resident who has been eligible since 2009 is $102,000. If you've never used your TFSA — or if you've withdrawn funds and they've settled back into room — you may have significant capacity to put to work.

The recommended starting allocation is 1–5% of liquid holdings, with most individuals beginning at 2.5%. This is not a speculative bet — it's a measured, asymmetric position sized to be meaningful if Bitcoin continues its long-term trajectory, but not catastrophic if it pulls back 50% (which it has done multiple times historically).

Bitcoin ETF options for your TFSA

All of the following are TSX-listed, fully registered under Canadian securities law, and eligible inside a self-directed TFSA at WealthSimple:

For most investors, FBTC or BTCX.B is the right choice: lowest cost, physically backed Bitcoin held in institutional cold storage, straightforward structure. BTCC.B was the first Canadian Bitcoin ETF and carries a premium for its pioneer status — but there's no reason to pay 1.0% when Fidelity charges 0.39%.

DCA approach: deploy over 3–6 months

Dollar-cost averaging reduces the risk of entering at a local peak. Rather than purchasing your full allocation at once, spread it over 3–6 months. If your target allocation is $5,000, consider $1,000 purchases on the first of each month for five months. WealthSimple supports recurring automated purchases inside self-directed accounts, which makes this genuinely hands-off once configured.

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RRSP Bitcoin — different rules, same upside

The Registered Retirement Savings Plan operates differently from a TFSA in two important ways: contributions reduce your taxable income in the year you make them, and withdrawals are taxed as income (not capital gains). This creates a different optimization calculus for Bitcoin inside an RRSP — but it's still worth understanding.

When you contribute to your RRSP, you receive an immediate tax deduction. If you're in a 43% marginal bracket, a $10,000 RRSP contribution saves you $4,300 in tax this year. That deferred capital then grows inside the RRSP with no annual tax drag. On withdrawal (typically at retirement, when your income — and tax bracket — is lower), you pay income tax on the full withdrawal amount.

For Bitcoin specifically: the gain inside an RRSP is deferred, not eliminated. If Bitcoin grows from $10,000 to $100,000 inside your RRSP, you owe income tax on the full $100,000 on withdrawal — not capital gains tax on the $90,000 gain. This is less favorable than the TFSA structure, where the same gain is entirely tax-free.

The spousal RRSP angle

If one spouse earns significantly more than the other, the higher-income spouse can contribute to a spousal RRSP — receiving the deduction at the higher marginal rate, while the lower-income spouse eventually withdraws at their lower rate. On a $100,000 withdrawal, the difference between a 43% and a 26% bracket is $17,000 in tax saved. This is a legitimate income-splitting strategy with material impact on a household's lifetime tax bill.

What NOT to do: direct crypto in an RRSP

You cannot hold cryptocurrency directly (i.e., Bitcoin purchased on a crypto exchange like Coinbase or Kraken) inside an RRSP. The CRA requires RRSP-eligible investments to be "qualified investments" under the Income Tax Act — which means listed securities, mutual funds, and registered ETFs. Holding direct crypto inside an RRSP would result in the loss of registered status and immediate tax penalties. Only hold regulated Bitcoin ETFs (FBTC, BTCC.B, BTCX.B) inside your RRSP.

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How to transfer — the actual steps

The transfer process is handled almost entirely by WealthSimple. You initiate it from your new WealthSimple account, and they coordinate the ATON (Automated Transfer Order Network) transfer with your existing broker. Here's exactly what to expect:

1. Open your WealthSimple account online Takes approximately 10 minutes. You'll need your SIN, government-issued ID, and bank account details for linking. Go to wealthsimple.com and select "Sign Up."
2. Open your TFSA and/or RRSP inside WealthSimple From your WealthSimple dashboard, select "Add Account" and choose TFSA or RRSP. Both can be opened in the same session. The accounts are active within minutes.
3. Submit a transfer-in request from WealthSimple Inside your new TFSA or RRSP, select "Transfer in from another institution." Enter your current broker's name and account number (found on your last statement). WealthSimple submits an ATON request on your behalf — you don't need to call your old bank.
4. Your current broker processes the transfer in 3–10 business days ATON transfers are regulated and the timeline is standardized. Your old broker may call or email to "verify" the transfer — this is normal and you can confirm. They may attempt to retain you; you are under no obligation to stay.
5. Once settled, purchase your Bitcoin ETF When funds appear in your WealthSimple TFSA or RRSP, search for "FBTC" (or your preferred ETF ticker) in the WealthSimple trading interface and place your purchase. Consider setting up automatic recurring buys for your DCA schedule.

After your transfer completes, you may want to close the old registered accounts at your bank — or leave them open at a zero balance if there's no fee. Confirm with your old broker whether they charge an annual fee on empty registered accounts (some do; some don't).

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