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Everything you need to know about swing trading taxes Canada

In the past few years, many Canadians have joined the trading industries. Different traders follow different trading strategies, and for Canadians, Swing trading is an effective strategy that helps them earn more. However, with earning, you need to be careful about swing trading taxes Canada. Paying those is not the sweetest part about earning through trading, but it is a must.

So, here is everything that you need to know about the swing trading taxes Canada.

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What is meant by swing trading and swing trading taxes?

Usually, there are 2 types of investments. Some people use the day trading technique for investment, where they have to sell the assets before closing the day. Similarly, some people use passive investment technique that involves purchasing assets and holding them for long-term profit.

Swing trading differs from all these because it is a short-term investment, but you do not sell the assets before the night. There is at least one night to hold on to the assets, and you do that by the risk-reward analysis. In this way, you determine the point of entry and the exit points with a stop loss that will bring capital gains for you.

Swing trading taxes Canada

Now that you earn with swing trading, you have to officially pay taxes on your earnings. Those taxes are known as the swing trading taxes Canada. It is important to consider that swing trading needs active efforts regularly because you are not holding on to your assets for a very long time. It is considered a business income, so you must pay the swing trading taxes accordingly.

Is swing trading legal in Canada?

Yes, swing trading is among the legal trading strategies in Canada. However, to comply with swing trading, you need to pay your swing trading taxes Canada. According to the rules and regulations in Canada, it is considered to be similar to day trading when you need to pay taxes.

The reason is consistent efforts for earning here. So, you need to track all your earnings and losses as a business income. In this way, you can report those losses and gains on your tax either to pay tax or to get tax returns, depending on the situation.

How do swing traders pay taxes in Canada?

When you are swing trading in Canada, your trading income or loss is considered a business capital. So, you need to pay tax accordingly. Unlike investors who only have to pay 50% of the capital gains as their tax, things are different for swing traders.

According to the current rate, they have to pay 100% of all profits made as taxes. Similarly, they can file for a 100% return on all losses made as a business capital. Remember that CRA only accepts any deductions when you have receipts of those expenditures from your trading business income. It is how swing traders pay taxes in Canada.

How can swing trading be beneficial for your taxes?

Swing trading taxes Canada can be to your benefit in so many ways. As swing trading is mostly compared with day trading, here we will be discussing how it can be beneficial in comparison to regular day trading:

  • Swing trading needs less commitment because you can hold the trades overnight. So, the overall tax you have to pay is for lesser efforts.
  • Swing trading does not need any special type of account, and you do not need to pay special taxes. Everything is regular here, like day trading.
  • It is considered business income so that you can earn with short-term gains.
  • When going for swing trading, you can combine it with different trading strategies for long-term income.
  • You can report tax returns for any investments, like internet fees, equipment costs, educational resources costs, and more.

Top Swing trading platforms in Canada

If you are looking for a swing trading experience in Canada, you need to use a cheap trading platform. This way, you will save the most even after paying your swing trading taxes Canada. So, the following are our top swing trading platforms in Canada:

1. AvaTrade

The best platform for all types of trading, including swing trading, is AvaTrade which offers you trading opportunities with thousands of trading assets. The intuitive user interface makes it easier for you to understand trading opportunities and avail them in a much better way.

2. Qtrade

Qtrade offers competitive pricing for your swing trading needs. So, you can trade all the traditional assets at those competitive prices to enhance your trading experience. Here you get a lot of options apart from trading, like discovering new things, evaluating your ideas and monitoring the market.

3. BitBuy

If you are interested in swing trading cryptocurrencies, then there may be no better option than BitBuy. It offers an advantage to experienced traders with better brokerage services. However, beginners can also rely on the trading tools provided here. One of the best things about BitBuy is the customer support here.

4. Questrade

Questrade is another low-cost trading platform to meet your swing trading needs. Here you can being your journey in a burden-free environment because of low costs. It provides different accounts and several tools for beginners out there.

5. Oanda

Oanda brings better leverage with low spreads to enhance your swing trading experience from the very first day. It is an old brokerage dating back to 1996, so it is reliable, and today, Oanda has users from around 200 countries across the globe. With its cheap pricing, competitive spreads, and wide array of trading options, it can offer the best head start for your swing trading journey.

Top Swing trading platforms in Canada โ€“ Comparison

Broker Mobile app Annual Fee IIROC Regulation
AvaTrade Yes None Yes
Qtrade Yes None Yes
BitBuy Yes None Yes
Questrade Yes None Yes
Oanda Yes None Yes


Now that you know about the best swing trading platforms in Canada ensure that you select the best one according to your requirements. When signing up with one of these platforms, look for:

  • Transparency in fees
  • Discounts
  • Ease of deposit and withdrawal
  • Research tools
  • IIROC regulations
  • Security
  • Trading platforms
  • How often you will be trading, etc.

Considering all these things will help you select the best swing trading platforms for better earnings and tax.


Do you want a better experience than day trading with fewer efforts, risk, and cost? Try swing trading in Canada. It can be an awesome experience considering the capital gains. However, it is equally important to maintain all your trading gains and losses as your business income to pay swing trading taxes Canada. In Canada, it is necessary for everyone using the swing trading strategy to pay taxes over their gains or get tax returns over their losses.