Your guide to buying stocks internationally in Canada

If you want to look beyond Canada, international stocks open the door to fast-growing markets, currency diversification, and industries you won’t find at home.

This guide will show you how to invest globally from Canada, covering everything from choosing the right platforms to handling taxes and minimizing fees. To help keep more of your money invested, using Wise can reduce costly currency exchange fees when moving funds or receiving dividends.

We shall look into:

Can Canadians Invest in International Stocks? Legal and Regulatory Considerations How to Buy International Stocks in Canada: A Step-by-Step Guide Canadian Brokerages That Let You Buy International Stocks Buying US vs Overseas Stocks: What’s the Difference? Canadian investors can easily access US stocks, but investing beyond North America involves additional layers of complexity. Here’s how buying US stocks compares to investing in overseas markets: Accessibility Currency conversion Tax implications Settlement times and market hours Regulatory protections Currency Exchange & International Investing When are FX fees charged? How Wise helps lower FX costs Tax Considerations for Canadian Investors Buying Foreign Stocks Commonly asked questions about buying foreign stocks in Canada

Can Canadians Invest in International Stocks?

Yes, Canadians can legally invest in international stocks. Whether it’s US tech giants, European multinationals, or emerging market companies, Canadians can access global equities through a number of regulated brokerages that allow you to buy, hold, and sell foreign stocks.

Legal and Regulatory Considerations

Before diving into international markets, Canadian investors need to understand the legal and tax obligations involved:

Use a registered brokerage

Only invest through brokers licensed by the Investment Industry Regulatory Organization of Canada (IIROC) or other authorized bodies to ensure your investments are protected under Canadian regulations.

Tax reporting requirements

• Capital gains: Profits from selling foreign stocks must be reported to the Canada Revenue Agency (CRA) and are subject to capital gains tax¹.
• Foreign property disclosure: If your total cost of foreign investments exceeds CAD $100,000, you must file Form T1135 (Foreign Income Verification Statement) with your tax return².

Withholding taxes on dividends

• Countries like the US impose a withholding tax on dividends paid to non-residents. Canadians can reduce the US rate from 30% to 15% by submitting a W-8BEN form^3,4.

Currency exchange disclosure

Be aware that gains or losses due to exchange rate fluctuations may also have tax implications if you're converting between CAD and foreign currencies when buying or selling.

How to Buy International Stocks in Canada: A Step-by-Step Guide

Step 1: Open a trading Account with global access

Choose a broker that supports international trading. Some of the most popular options for Canadians include:

• Questrade Global – Trade US and select global equities with low fees
• Interactive Brokers – Access to over 150 global markets in 33 countries
• RBC Direct Investing – Trade and invest in US and select international markets with integrated research tools
• TD Direct Investing – Offers access to US markets and some international markets

Step 2: Verify your identity

You'll need to complete identity verification in line with Canadian financial regulations. This usually includes providing:

• Your Social Insurance Number (SIN)
• A valid photo ID (e.g. driver’s licence or passport)
• Proof of address (e.g. utility bill or bank statement), telephone number, email, etc.

These requirements follow KYC (Know Your Customer) standards to ensure financial security.

Step 3: Fund your account and manage currency

Once your account is open, link your Canadian bank account to transfer funds.

If your brokerage requires you to trade in foreign currencies (like USD or EUR), you’ll need to convert your CAD:

• Most platforms offer built-in currency conversion but may charge high FX fees
• Services like Wise allow you to convert and send money to your investment account using the real exchange rate, often at a fraction of the cost charged by banks

Step 4: Choose your international stocks

Use your platform’s tools to research and select stocks listed on foreign exchanges. You’ll find global equities listed on markets such as:

• NYSE / NASDAQ (US)
• LSE (United Kingdom)
• Euronext (Europe)
• HKEX (Hong Kong)

Make sure to select the correct international listing and check for potential fees, liquidity issues, or differences in trading hours.

Step 5: Understand tax and reporting requirements

International investing comes with added tax considerations:

• Capital gains: Report gains or losses to the CRA as part of your annual return¹
• **Foreign property over $100,000 CAD?: **File CRA Form T1135 to disclose your holdings²
• **Dividend Withholding: **For US stocks, complete IRS Form W-8BEN to reduce withholding tax from 30% to 15%^3,4

Step 6: Monitor your investments

Track your portfolio’s performance and currency impact using your broker’s dashboard. Stay informed about:

• Company earnings and market news
• Dividend payments (and withholding tax applied)
• Currency exchange fluctuations that could affect your returns

Some platforms also allow you to set alerts for price movements, dividends, or news events tied to your holdings.

Canadian Brokerages That Let You Buy International Stocks

Several Canadian brokerages provide access to global markets beyond the TSX. Here's a comparison of some popular platforms that support international stock trading, including access to US stocks, supported regions, fees, and special considerations.

Brokerage	Countries Supported	Access to US Stocks	Fees	Notes
Questrade	Access to US and global markets on 15+ the international exchange via CFDs	Yes	Trade commission fee; Mutual funds $9.95/trade, International equities 1% of the trade value5	Access to global markets through CFDs, no direct ownership of international stocks
Interactive Brokers	150+ markets across 33 countries	Yes	For US Markets - IBKR Pro Tiered: USD 0.0005–0.0035/share (min USD 0.35); IBKR Pro Fixed: USD 0.005/share (min USD 1)6	Extensive global access, advanced trading tools; best for active and international traders
RBC Direct Investing	18 domestic and global markets, including online access to Hong Kong, London, Paris, and Frankfurt exchanges	Yes	$9.95 CAD commission per online or mobile trade; $6.95 commission per online or mobile trade when you trade 150+ times per quarter7	Online trading on select international exchanges; hold up to 8 foreign currencies in non-registered accounts, FX conversions required
TD Direct Investing	Canada, the US, and select international markets	Yes	$9.99 CAD/trade (Standard Trader); %7 CAD/trade (Active Trader)8	International trading requires contacting TD Direct Investing directly; only CAD and USD supported in accounts; currency conversion fees apply

Buying US vs Overseas Stocks: What’s the Difference?

Canadian investors can easily access US stocks, but investing beyond North America involves additional layers of complexity. Here’s how buying US stocks compares to investing in overseas markets:

Accessibility

• US stocks: Readily available through all major Canadian brokerages like Questrade, TD Direct Investing, and RBC Direct Investing. Orders can be placed online, and many platforms support US-dollar-denominated accounts.
• Overseas stocks: Direct access is limited. Most platforms offer international exposure via US-listed ADRs (American Depository Receipts) or ETFs. For full exchange access (e.g., London Stock Exchange or Tokyo Stock Exchange), platforms like Interactive Brokers are usually required.

Currency conversion

• US stocks: Transactions are typically in USD. Investors may open USD accounts or use in-platform conversions, which often include spread fees.
• Overseas stocks: Investments may involve multiple currencies (e.g., GBP, EUR, HKD), each requiring conversion. This increases FX costs and complicates tracking.

Tax implications

• US stocks:

• Subject to 15% US withholding tax on dividends

• IRS Form W-8BEN must be submitted to avoid default 30% withholding

• Overseas stocks:

• Each country has its own tax treaty with Canada. Withholding tax on dividends varies—e.g., UK (0%)⁹, Germany (26.375%)¹⁰, etc.—and cannot always be fully offset.

• Foreign income must be reported on your Canadian tax return, and credits may apply for foreign tax paid.

Settlement times and market hours

• US stocks: Follow North American trading hours and T+1 settlement cycle¹¹.
• Overseas stocks: Time zone differences and unique settlement rules (e.g., T+2 and T+3 in some markets) can delay trades or cause overnight price gaps.

Regulatory protections

• US stocks: Covered by US regulatory bodies (SEC, FINRA), but protections apply under Canadian broker safeguards (CIPF).
• Overseas stocks: Subject to local market rules; investors may face increased risk due to unfamiliar regulations or lower transparency.

Currency Exchange & International Investing

When investing internationally, currency exchange can eat into your returns—often more than you might expect. Most Canadian brokerages charge foreign exchange (FX) fees when you fund your account in CAD and trade in a foreign currency (e.g., USD, EUR, GBP).

When are FX fees charged?

Brokerages typically charge:

• A currency conversion spread (markup on the exchange rate)
• Sometimes a flat transfer fee

FX fees may apply when you:

• Fund your broker account in a foreign currency
• Buy or sell stocks in a non-CAD currency
• Withdraw investment proceeds or dividends in another currency

For example, converting CAD to USD within platforms like Questrade, Wealthsimple or TD Direct Investing typically includes a 1.5%^12,13,–2.5%¹⁴ exchange rate markup, depending on the account type and volume.

Most Canadian brokerages apply these fees automatically unless you have a multi-currency account. And even then, moving money across borders can trigger additional charges from your bank.

How Wise helps lower FX costs

Wise houses the mid-market exchange rate with no markup and charges low, transparent fees, starting from 0.48%¹⁵. This makes it ideal if you:

• Need to fund a USD, EUR, or other foreign currency brokerage account
• Want to repatriate profits from a sale in another currency
• Need to send or receive dividends internationally
• Are withdrawing foreign dividends or income

Unlike banks, Wise doesn’t hide fees in the exchange rate. Everything is clearly shown upfront.

CAD to USD/EUR Transfer Cost Comparison

Provider	Exchange Markup	Transfer Fee	Estimated Time
RBC	2.5%16,17	$0 CAD for RBC Online International18 From $45 CAD/USD for outgoing wire transfers19	2–7 business days
TD	2.5%14	Up to $25 CAD per transfer20	1–5 business days
Wise	Mid-market exchange rate	Varies by currency, starting from 0.48%15	Same day–2 business days

Tax Considerations for Canadian Investors Buying Foreign Stocks

When investing internationally, Canadians should be aware of the tax implications—particularly around dividends, capital gains, and reporting requirements.

1. Withholding tax on dividends

Foreign countries often apply a withholding tax on dividends paid to Canadian investors:

• US stocks: Subject to 15% withholding tax under the Canada–US Tax Treaty.
• To receive the reduced rate, investors must submit IRS Form W-8BEN, valid for 3 years. Without it, a 30% rate applies^3,4.
• Other countries: Withholding rates vary by treaty (e.g., UK: 0%⁹, Germany: 26.375%¹⁰). You may be eligible to claim a foreign tax credit on your Canadian return.

2. Capital gains

Profits from selling foreign stocks are considered capital gains and are taxable in Canada:

• 50% of the gain is included in your taxable income²¹.
• The gain must be reported in Canadian dollars, using the exchange rate at the time of purchase and sale.

3. Reporting requirements

• Foreign investment income (dividends, interest, capital gains) must be declared on your Canadian tax return.
• If the total cost amount of all foreign property exceeds $100,000 CAD, you must also file Form T1135 – Foreign Income Verification Statement².

Commonly asked questions about buying foreign stocks in Canada

Q: Can Canadians buy US and international stocks?

A: Yes, Canadians can buy both US and international stocks. Most major Canadian brokerages—including Questrade, TD Direct Investing, RBC Direct Investing, and Interactive Brokers—allow access to US markets directly. Access to global stocks outside North America is more limited and often facilitated through US-listed ADRs (American Depository Receipts) or international ETFs. For direct access to foreign exchanges (e.g., the London or Tokyo stock exchanges), platforms like Interactive Brokers offer wider international coverage.

Q: What’s the cheapest way to buy US or global stocks?

A: The most cost-effective way to buy US or global stocks from Canada typically involves using a low-fee brokerage that offers USD accounts or competitive foreign exchange rates. Questrade and Interactive Brokers are often praised for their low trading commissions and multi-currency support. To minimize foreign exchange (FX) costs, services like Wise can be used to convert CAD to USD or other currencies at mid-market rates with transparent fees—often much cheaper than using your bank or in-platform conversions, which can include markups of up to 2.5%.

Q: Are there tax forms I need to file for foreign investments?

A: If you earn dividends from US stocks, you must submit IRS Form W-8BEN to your brokerage to reduce withholding tax from 30% to 15% under the Canada–US tax treaty. Capital gains on foreign stocks must be reported on your Canadian tax return in CAD. Additionally, if the total cost of your foreign assets exceeds $100,000 CAD, you’ll need to file Form T1135 – Foreign Income Verification Statement with the CRA to avoid penalties..

Conclusion

Looking beyond Canada when you invest can unlock new possibilities. You get to diversify your portfolio, discover rapidly growing markets, and explore industries you wouldn’t normally come across at home. But to make the most of it, you need to understand how taxes work, follow the rules, and choose a trading platform that fits your needs.

One of the biggest challenges is handling currency and cross-border money transfers smoothly and affordably. That’s where a tool like Wise comes in handy. When you combine a great trading platform with smart money moves, you’ll feel confident building a global portfolio that can really grow over time.

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Sources:

1. Capital Gains – 2024 - Canada.ca
2. Foreign Income Verification Statement - Canada.ca
3. United States - Corporate - Withholding taxes
4. Claiming tax treaty benefits | Internal Revenue Service
5. Trading Commissions & Fees | Pricing | Questrade
6. Commissions & Fees | Interactive Brokers LLC
7. RBC Direct Investing
8. Online Trading and Investing -- TD Direct Investing
9. United Kingdom - Corporate - Withholding taxes
10. Germany - Individual - Income determination
11. T+1 (T+2, T+3) Explained: Definitions and Settlement Example
12. Trading Commissions & Fees | Pricing | Questrade
13. Wealthsimple Investments Inc. Fee Schedule for Self-Directed Accounts
14. TD Direct Investing Commission Schedule and Statement of Disclosure of Rates and Fees
15. Wise Fees & Pricing: Only Pay for What You Use
16. Visa Infinite Avion
17. RBC Direct Investing® Commissions and Fees Schedule
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20. Send money Internationally to your recipient’s bank account with TD Global Bank Transfer
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Sources verified on 9 July, 2025