Non-registered accounts only tax the capital gains realized inside the account at 50% of the account holder’s top marginal tax rate. And unlike RRSPs, non-registered accounts have no contribution limits.
Many financial advisors recommend using non-registered account in conjunction with RRSPs. This allows the investors to invest the tax savings generated by the RRSP into the non-registered account. There are also some cases where the investor will benefit the most from using only a non registered account. Financial analysis is often required in order to determine which type of account will provide the most benefit.