Funding Your Account
Your account is open. Now comes the part that actually gets you invested: getting money into it.
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There are two different ways money ends up in a self-directed brokerage account, and it's worth knowing the difference up front, because they work nothing alike.
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Cash funding — moving new money in from a bank account. This is the everyday, ongoing way most people fund an account, and it's what this page covers.
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In-kind transfers — moving investments you already hold somewhere else (a fund company, a managed account, another brokerage) over as-is, without selling them first. That's a distinct process with its own mechanics and its own quirks, covered separately. More Info On Funding
Already have investments sitting with a bank or advisor and wondering how those move over? That's a different process than the one below — see "Moving Your Money Over: In-Kind Transfers."
The Short Version
Funding a self-directed account with cash almost always works the same way, regardless of broker or country: you link a bank account electronically, request a transfer, and the money shows up in your brokerage account within a few business days. Wire transfers move faster but usually cost more. Cheques still work at most brokers but are the slowest option by a wide margin
Linking a Bank Account
The first time you fund an account, the broker needs to confirm the bank account is actually yours. This usually happens one of two ways:
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Instant verification — you log into your bank through a secure connection inside the broker's app, and the link is confirmed immediately.
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Micro-deposit verification — the broker sends one or two small deposits (a few cents) to your bank account, and you confirm the amounts back in the broker's app a day or two later.
​Once a bank account is linked, it typically stays linked, so this verification step is usually a one-time thing rather than something you repeat for every deposit.
Ways to Move Money In
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Electronic bank transfer — the standard, no-fee way to fund an account. Slower than a wire, but fine for routine deposits and contributions.
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Wire transfer — same-day or next-day availability, generally used for larger lump sums. Usually free on the receiving (broker) end, but the sending bank often charges a fee.
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Cheque — still accepted by most brokers, either mailed in or deposited through a mobile app, but it's the slowest option and holds tend to be longer.
Why There's a Waiting Period
Money that arrives by electronic transfer is often shown in the account balance right away, but it isn't always fully "yours to use" the moment it lands. Brokers commonly place a hold on newly deposited cash — sometimes a few business days — before it can be withdrawn again or, in some cases, before it can be used to buy certain investments outright.
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This isn't a broker being difficult. It's a standard anti-fraud measure across the industry: electronic transfers can occasionally be reversed for a short window after they're initiated, and the hold protects both the investor and the broker from that risk. Wires generally clear faster and with shorter holds, which is one reason people use them for larger, one-time deposits.
How Much You Need to Fund
How much you need to get started ties back to the account minimums covered earlier in this module — some accounts can be opened and funded with no minimum at all, while others (particularly margin accounts) have a required opening balance. Worth a re-read if you skipped it.
Funding Ties Into Account Type
Which account you're funding matters too. A taxable account can generally be funded with any amount, at any time, with no restrictions on how much goes in. A registered retirement or tax-advantaged account is a different story — those come with annual contribution limits, and depositing more than the allowed room can trigger penalties. If you haven't looked at how account types differ, that's covered in the previous piece in this series.
Setting Up Ongoing Contributions
A single deposit gets an account started, but most self-directed investors set up a recurring transfer so money moves in automatically on a schedule — weekly, biweekly, or monthly. That process, along with how it pairs with automatic investing, is covered next.
Where the Details Differ
The overall shape of funding an account is nearly identical in Canada and the US — link a bank, transfer cash, wait out a short hold. But the specific systems, typical fees, and terminology diverge enough to be worth a dedicated look at each:
Go Deeper
EFT, e-Transfer, wire transfers, and CIPF protection
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ACH transfers, wire transfers, and SIPC protection.
Funding Your Account: Canada
The mechanics of moving cash into a Canadian brokerage account, and what to expect along the way.
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Electronic Funds Transfer (EFT)
EFT is the standard way Canadians fund a brokerage account. Once a bank account is linked, an EFT transfer can usually be set up in a few clicks from inside the broker's platform, and it's free at the vast majority of Canadian brokers.
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Typical Timing
EFT transfers generally take one to three business days to arrive, and brokers commonly apply a short additional hold — often several business days — before the funds can be withdrawn back out or used for certain trades.
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Interac e-Transfer
A number of Canadian brokers also accept Interac e-Transfer for smaller deposits, which can land faster than a standard EFT — sometimes within minutes to a few hours. It's a convenient option for topping up an account, though many brokers cap the amount that can be sent this way per transaction or per day.
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Wire Transfers
For larger, one-time deposits, a wire transfer from a Canadian bank typically arrives the same day or next business day. The brokerage side is usually free to receive; the sending bank is the one that charges a fee, generally in the range of a modest flat cost per outgoing wire.
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Registered Accounts and Contribution Room
Funding an RRSP or TFSA isn't just about moving money — it also draws down available contribution room. Depositing more than the room available for the year can trigger a penalty from the CRA, which is worth keeping in mind before making a large lump-sum deposit into a registered account.
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What Protects the Cash
Cash and securities held at a Canadian Investment Regulatory Organization (CIRO) member firm are covered by the Canadian Investor Protection Fund (CIPF) in the event the firm itself becomes insolvent, up to defined per-account limits. This protects against the brokerage failing — it does not protect against investment losses from normal market movement.
Funding Your Account: US
The mechanics of moving cash into a US brokerage account, and what to expect along the way.
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ACH Transfers
ACH (Automated Clearing House) transfer is the standard way US investors fund a brokerage account. Bank linking is usually handled through a secure third-party connection inside the broker's app, and ACH transfers themselves are free at nearly every major broker.
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Typical timing
ACH transfers commonly take one to three business days to fully settle. Many US brokers make the cash available to trade with sooner than that — sometimes immediately — while still holding a portion back from withdrawal until the transfer fully clears, as protection against a transfer being reversed.
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Wire Transfers
For larger deposits, a domestic wire transfer typically arrives the same business day. Most brokers don't charge to receive a wire, but the sending bank usually does, generally in the range of a modest flat fee per outgoing wire.
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Check Deposits
Many US brokers still accept paper checks, either by mail or by mobile deposit through the broker's app. It remains the slowest common option, and the hold period before funds are fully available tends to be longer than with ACH or wire.
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IRA Contribution Limits
Funding a traditional or Roth IRA isn't just a deposit — it also counts against the annual IRA contribution limit set by the IRS. Depositing more than the allowed limit in a given tax year creates an excess contribution, which carries its own tax consequences until it's corrected.
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What Protects the Cash
Securities and cash held at an SIPC-member brokerage are protected if the brokerage itself fails, up to defined limits, with a separate (smaller) sublimit specifically for uninvested cash. Like its Canadian counterpart, SIPC protects against the firm's failure — not against investments simply losing value.