Your guide to investing in US stocks in Canada

Looking to invest in US stocks from Canada? You’re not alone. With access to some of the world’s biggest companies, the US market is a popular choice for many Canadian investors. But before you get started, it’s worth thinking about how you’ll choose a brokerage, convert your money, and handle any tax obligations.

Choosing the right tools can make a big difference—Wise can help you manage currency exchange efficiently when funding your US investments, so more of your money goes to work for you.

Information in this article does not constitute financial advice, and is for informational purposes only. Please consult a professional before making major investment decisions.

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Can Canadians Invest in US Stocks? Legal and regulatory considerations Why invest in US stocks? How to Invest in US Stocks from Canada TD Direct Investing RBC Direct Investing Questrade Wealthsimple Qtrade Comparison of Brokerages for Investing in US Stocks Managing Currency Exchange When Investing in US Stocks Using Wise for Cost-Effective Currency Exchange Tax Considerations When Investing in US Stocks Capital Gains Tax Reporting to the CRA Claiming Foreign Tax Credits

Can Canadians Invest in US Stocks?

Yes, Canadians can invest in US stocks¹—and many do. The US market offers access to some of the biggest global companies, making it a tempting option for investors looking to diversify and grow their portfolios. Thanks to the close economic ties between Canada and the US, it’s relatively straightforward to get started.

To invest in US stocks, Canadians can open a trading account with a Canadian brokerage that offers access to US exchanges, like the NYSE (New York Stock Exchange) or Nasdaq. Most of the big names—like Questrade, Wealthsimple, RBC Direct Investing—make this possible with just a few clicks.

Legal and regulatory considerations

There’s no law stopping Canadians from investing in US stocks, but there are some key things to keep in mind:

• Taxes: If you invest through a non-registered account, the IRS typically withholds 15% of any dividends you receive¹. Plus, you’ll need to report capital gains on your Canadian tax return.
• RRSP advantage: The good news? If you invest using a Registered Retirement Savings Plan (RRSP), that 15% withholding tax doesn’t apply—thanks to a tax treaty between Canada and the US².
• Currency exchange: Since US stocks are priced in USD, you’ll need to convert your CAD to USD to make a purchase. This can come with costly exchange fees, which can quietly eat into your returns if you're not careful.

Why invest in US stocks?

Investing south of the border opens up a broader range of opportunities:

• Diversification: The US market has thousands of publicly traded companies, giving you access to industries and innovations that aren’t as well-represented in Canada.
• Strong performance history: The US stock market—especially indexes like the S&P 500—has a track record of long-term growth.
• More options: Whether you're into tech, healthcare, or consumer goods, the US has global giants to choose from.

How to Invest in US Stocks from Canada

Getting started with US stock investing from Canada is easier than ever, thanks to online brokerages. Here’s a simple step-by-step guide to walk you through the process—from setting up an account to buying your first US stock.

Step 1: Open a trading Account

You can choose from different account types³, including:

• Personal (non-registered) – A flexible account with no tax advantages or restrictions.
• TFSA (Tax-Free Savings Account) – Grow your investments tax-free and withdraw funds without penalties.
• RRSP (Registered Retirement Savings Plan) – Contributions are tax-deductible, and funds grow tax-deferred until retirement.
• RESP (Registered Education Savings Plan) – Designed to save for a child's post-secondary education with government grant eligibility.
• FHSA (First Home Savings Account) – Combine the benefits of a TFSA and RRSP to save for your first home.
• Crypto and USD accounts – Invest in digital assets or hold U.S. dollars to reduce currency conversion fees.

If you're investing in US stocks and want to avoid dividend withholding tax, an RRSP may be the best choice.

Step 2: Verify Your Identity

You’ll need to provide some personal details like your SIN, address, and photo ID for verification⁴. This is standard across Canadian brokerages to comply with KYC - Know Your Customer regulations⁵.

Step 3: Fund Your Account

Once your account is verified, link your Canadian bank account and transfer funds. The trading platforms usually handle conversion for you.

Step 4: Buy US Stocks

Search for the stock you want to purchase and select the US-listed version. Enter the number of shares and confirm your order.

Step 5: Monitor Your Investments

You can track your holdings and performance directly in the app or desktop dashboard. Best Brokerages for Investing in US Stocks in Canada

There are several brokerage platforms available in Canada to help you invest in US stocks:​

TD Direct Investing

TD Direct Investing is a popular choice among Canadian investors thanks to its strong reputation and wide range of tools. It charges a flat commission of $9.99 per trade for US stocks^8, though active traders (those making more than 150 trades per quarter) can access a discounted rate of $7.00 per trade⁸.

One of the great things about TD Direct Investing is that you can hold US dollars in your account⁹—so you won’t lose money converting currencies every time you make a trade. User-friendly, TD's WebBroker platform and mobile app are easy to navigate, with plenty of helpful tools, real-time market data, and learning resources to guide your investment decisions.

RBC Direct Investing

RBC Direct Investing charges a flat $9.95 per trade, with a discounted rate of $6.95 available to high-volume traders. Like TD, RBC allows you to hold US dollars in your account, which is a big plus if you plan to invest frequently in US markets.

Intuitive and easy to use, their platform comes with tools that are suitable for beginners and experienced investors alike. You’ll also benefit from seamless integration with other RBC financial services if you’re already a client.

Questrade

Questrade now offers $0 commission trading on all Canadian and US stocks and ETFs¹¹, making it a competitive choice for self-directed investors looking to cut down on fees. There are no annual account fees for basic self-directed accounts, though additional services like real-time data or registered account transfers incur separate charges of $9.95 and $44.95 per month.

Clients can hold US dollars in their accounts, enabling direct trading in US markets without the need for currency conversion (and fees) for each transaction.

Questrade has over 25 years of experience in Canada and offers tools for both beginners and experienced investors.

Wealthsimple

Wealthsimple Trade is the go-to option for beginners or those who want a simple, no-frills investing experience. It offers commission-free trading on both Canadian and US stocks¹².

However, a 1.5% currency conversion fee applies to each US trade⁶ (both when buying and selling). For those who don't trade frequently, this may not seem like a big cost, but it can eat into your profits over time. The platform is highly accessible and perfect for mobile-first users looking to start small.

Qtrade

Qtrade Direct Investing offers a good balance between competitive pricing and powerful tools. It charges $8.75 per trade, with a reduced rate of $6.95 for active traders placing at least 150 trades per quarter¹³. Like many of the other top brokerages, Qtrade supports USD accounts, allowing you to bypass currency conversion fees.

Choose from TFSA, RRSP, RESP, and non-registered accounts¹⁴ and improve your investing knowledge thanks to educational resources that include webinars and articles.

Comparison of Brokerages for Investing in US Stocks

Selecting the right brokerage is crucial for minimizing fees and optimizing your investment experience. Below is a comparison of some of Canada's top brokerages for trading US stocks:

Brokerage	USD Account Available	Trading Fees	Forex Fees
TD Direct Investing	Yes	$9.99 per trade8	2.5%15
RBC Direct Investing	Yes	$9.95 per trade10	Currency conversion fee (spread varies)16
Questrade	Yes	$0 commission trading on all Canadian and US stocks and ETFs11	Currency exchange fee of 1.5%17
Wealthsimple	Yes	$0 commission on trades12	1.5% currency conversion fee6
Qtrade	Yes	$8.75 per trade ($6.95 for active traders)13	Currency conversion fee (spread varies)13

Managing Currency Exchange When Investing in US Stocks

Currency conversion costs can quietly eat into your returns—sometimes more than you’d expect. Most brokerages automatically convert CAD to USD when buying US-listed stocks, and back again when you sell—often at a markup of 1.5% to 2.5% above the mid-market rate. These forex fees apply not just when you buy or sell, but also when you receive dividends or transfer money between accounts.

To minimize these losses, some platforms like Questrade and TD Direct Investing let you hold USD in registered and non-registered accounts. This means you can avoid unnecessary conversions by funding your account in USD and keeping your US dollars invested.

Another way to reduce conversion fees is to use a well-known technique known as Norbert’s Gambit¹⁸. This involves buying and selling a dual-listed stock - like DLR and DLR.U, to move money between CAD and USD with minimal cost. While it’s definitely more hands-on, it remains a popular option among savvy investors looking to preserve returns.

Using Wise for Cost-Effective Currency Exchange

When it comes to funding your USD brokerage account from Canada, using Wise can be a smart way to avoid hefty currency conversion fees. Wise offers the real mid-market exchange rate with no hidden markups. Instead, you pay a small, transparent fee^* that’s shown upfront before you transfer.

With a Wise multi-currency account, you can convert CAD to USD at a low cost and send it directly to your brokerage account. You’ll also get your own USD account details, which makes it easy to move money across borders like a local. For investors funding their US stock purchases, this can mean more of your money actually ends up in your account.

Whether you're moving a lump sum or investing regularly, Wise helps you manage FX with low, transparent fees—so you can focus on growing your portfolio.

Get your free Wise multi-currency account
in a few clicks >>>

Tax Considerations When Investing in US Stocks

As a Canadian resident (who is not a US citizen or green card holder), you're generally subject to a 15% US withholding tax on dividends paid by US companies¹. This is a reduced rate available under the Canada–US Tax Treaty. To benefit, you’ll need to file IRS Form W-8BEN with your brokerage to confirm your status as a non-US person. Without it, dividends may be subject to a default 30% rate¹⁹.

If you hold US stocks inside a registered retirement account like an RRSP or RRIF¹, the treaty allows for an exemption from US withholding tax, making it the most tax-efficient place to hold US dividend-paying stocks.

However, other registered accounts such as a TFSA or RESP do not receive this exemption, and dividends will be subject to withholding tax regardless²⁰.

Capital Gains Tax

The good news: capital gains on US stocks are not taxed in the US for Canadian residents. Instead, you report any gains or losses on your Canadian tax return. Gains are taxed at Canada’s capital gains inclusion rate, currently 50%¹.

Reporting to the CRA

If you hold more than CAD 100,000 in specified foreign property (including US stocks) at any point in the year, you must file Form T1135 with the CRA²¹. This includes stocks held in non-registered accounts — but not those in registered accounts like RRSPs or TFSAs.

Claiming Foreign Tax Credits

To avoid double taxation, you can typically claim a foreign tax credit on your Canadian return for US withholding tax already paid on dividends²². This helps reduce your Canadian tax owing on the same income.

Final Thoughts on Investing in US Stocks in Canada

Investing in US stocks from Canada is easier than ever, thanks to accessible brokerages and flexible account options. Once you've chosen the right platform, set up your account, and understood the tax implications, you're ready to tap into the world’s largest stock market.

Just don’t overlook the cost of currency exchange. Using a provider like Wise to fund your USD brokerage account can help you avoid unnecessary fees and get more out of your investments.

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Sources:

1. Tax implications of investing in the United States - RBC Wealth Management
2. U.S. withholding tax in an RRSP for Canadians - MoneySense
3. Accounts we offer | Wealthsimple
4. KYC Requirements Canada: A Guide to Stay Compliant in 2025
5. Verify your identity – Wealthsimple Help Centre
6. Wealthsimple Investments Inc. Fee Schedule for Self-Directed Accounts
7. Learn about fees and interest in a margin account – Wealthsimple Help Centre
8. Fees & Pricing – TD Direct Investing
9. How do I set up a recurring deposit or contribution for my TD Direct Investing account?
10. Active Trader Program - RBC
11. Trading Commissions & Fees | Pricing | Questrade
12. Wealthsimple: Commission-free stock trading
13. Pricing | Qtrade
14. Accounts | Qtrade
15. TD Direct Investing Commission Schedule and Statement of Disclosure of Rates and Fees
16. RBC Direct Investing® Commissions and Fees Schedule
17. Trading Commissions & Fees | Pricing | Questrade
18. How can I perform Norbert's Gambit ? – Qtrade Help Home
19. Instructions for Form W-8BEN (10/2021) | Internal Revenue Service
20. Canadians Investing in U.S. Equities
21. Foreign Income Verification Statement - Canada.ca
22. Line 40500 - Federal foreign tax credit - Canada.ca

Sources verified on 28 March 2025