How to buy US stocks in Canada without overpaying on currency or tax

To buy US stocks in Canada, you open a self-directed account at a Canadian brokerage, sign a US tax form called the W-8BEN, and buy the stock by its US ticker. Commissions are often zero now; the costs that matter are converting Canadian dollars to US dollars and the US tax taken from dividends. This guide compares every route on a real dollar amount and shows which accounts shelter US dividends. YieldMaple checked Wealthsimple’s pricing page and Trade fee schedule, the published pricing of four other brokerages, and IRS and CRA pages on September 23, 2026; every figure below comes from those sources.

Buying US stocks in Canada at a glance

Ways Canadians buy US stocks, and what the currency side costs (checked September 23, 2026)

	Currency cost	Best for
Wealthsimple, from a CAD account	1.5% on each purchase and each sale, plus $0 commission	Small, occasional US purchases
Wealthsimple USD account	Per conversion: 1.5% under $10,000; 1.0% from $10,000; 0.5% from $25,000; 0% from $100,000. Account: $10 a month for Core clients; free for Premium and Generation	Large conversions, frequent US trading, Premium and Generation clients
Norbert's Gambit	Bid-ask spreads on two trades plus any commissions or journaling fee; no percentage fee	Converting a large sum in one go
Interactive Brokers	0.002% of the amount (US$2.00 minimum)	Frequent, cost-focused US traders
Canadian-listed ETF such as VFV	None: it trades in CAD, for $0 commission at Wealthsimple	Investors who want the US index, not individual companies

The first row is where most Canadians start, and it’s the expensive one on large sums. Wealthsimple charges $0 commission on US stocks, but from a Canadian-dollar account every purchase is converted at a 1.5% fee, and every sale is converted back at the same fee. A Wealthsimple USD account lets you convert once instead; conversions into it are charged by size (1.5% under $10,000; 1.0% from $10,000; 0.5% from $25,000; 0% from $100,000), and the account itself costs $10 a month for Core clients; free for Premium and Generation. Norbert’s Gambit replaces the percentage fee with the spread on two trades plus any commission or journaling fee. Interactive Brokers charges 0.002% of the amount (US$2.00 minimum) to convert. And if all you want is the US market, a Canadian-listed ETF such as VFV trades in Canadian dollars, so there’s nothing to convert.

How do Canadians buy US stocks?

Through a Canadian brokerage: open a self-directed account, sign the W-8BEN, add money, then buy the stock by its US ticker, converting currency on the trade or beforehand.

1. Choose the account. US stocks can go in an RRSP, TFSA, FHSA or non-registered account. The account changes how US dividends are taxed, and the RRSP is the only one of these that the Canada–US tax treaty shelters; the account section below explains why.
2. Open a self-directed account. It has to be self-directed; a managed portfolio picks the funds for you. At Wealthsimple, opening an account costs $0 and the account minimum is none.
3. Sign the W-8BEN. Your brokerage asks for this IRS form. It confirms you’re a Canadian resident, which cuts US tax on dividends from 30% to 15%.
4. Decide how you’ll convert. For a small purchase, letting the brokerage convert on the trade is simplest. For a large sum, or if you’ll trade US stocks often, convert into a USD account first or use Norbert’s Gambit. The sections below put numbers on each.
5. Find the US listing. Search the ticker and check that the quote is in US dollars on a US exchange such as the NYSE or Nasdaq. Many large Canadian companies also trade in the US, and many US companies also have Canadian-dollar versions listed in Canada, such as CDRs, so the exchange and currency tell you which one you’re buying.
6. Place the order. The regular US session runs 9:30 a.m. to 4 p.m. ET on business days. A limit order caps the price you pay. At Wealthsimple you can buy by dollar amount where fractional shares are offered: yes — thousands of Canadian and US stocks and ETFs.
7. Keep records. In a non-registered account, note each purchase and sale in Canadian dollars at that day’s exchange rate. You’ll need those figures for your tax return.

For a walkthrough of the Wealthsimple app itself, see how to buy stocks on Wealthsimple.

What does it cost to buy US stocks in Canada?

The commission is often $0; the real cost is converting Canadian dollars to US dollars, and Canadian brokerages charge very different amounts for it.

Commission and currency conversion on US stocks, by brokerage (checked September 23, 2026)

	Commission on a US stock trade	Currency conversion cost
Wealthsimple (CAD account)	$0	1.5% on each buy and each sale
Wealthsimple (USD account)	$0	1.5% under $10,000; 1.0% from $10,000; 0.5% from $25,000; 0% from $100,000 per conversion
Questrade	$0 to buy and sell Canadian and U.S.-listed stocks and ETFs	1.5% on Canadian-to-US-dollar conversions and back, built into the exchange rate Questrade applies
Interactive Brokers	US$0.005 a share, with a US$1.00 minimum and a cap of 1% of the trade value per order	0.002% of the amount (US$2.00 minimum)
TD Direct Investing	$9.99 per trade (Standard); $7.00 per trade (Active Trader); $0 on select ETFs	1.07% under $10,000; 0.97% from $10,000 to $24,999; 0.70% in the next tier up from $25,000
RBC Direct Investing	$9.95 per online or mobile trade	about 1.6% on conversions up to US$24,999

Wealthsimple and Questrade both charge nothing to trade US stocks: Wealthsimple’s commission is $0, and Questrade’s pricing page says $0 to buy and sell Canadian and U.S.-listed stocks and ETFs. Questrade’s transaction-fees page lists a conversion fee of 1.5% on Canadian-to-US-dollar conversions and back, built into the exchange rate Questrade applies. That’s the same percentage Wealthsimple charges from a CAD account, but Questrade’s dual-currency accounts are free — every account can hold both Canadian and US dollars, so you can convert once and keep trading in US dollars with no monthly fee. Interactive Brokers charges US$0.005 a share, with a US$1.00 minimum and a cap of 1% of the trade value per order on US stocks and 0.002% of the amount (US$2.00 minimum) to convert currency; IBKR says it passes through the dealer quotes it receives and charges a separate commission. TD Direct Investing lists $9.99 per trade (Standard); $7.00 per trade (Active Trader); $0 on select ETFs, with a conversion spread of 1.07% under $10,000, 0.97% from $10,000 to $24,999 and 0.70% in the next tier up from $25,000, so larger conversions get cheaper there too. RBC Direct Investing charges $9.95 per online or mobile trade and a conversion spread of about 1.6% on conversions up to US$24,999.

Worked example: converting $10,000 to buy US stocks

Here is the one-way cost of turning $10,000 Canadian into US stock at each brokerage’s published rates:

• Wealthsimple, CAD account: $150 to buy, and the same percentage again when you sell and convert back: about $300 round trip.
• Wealthsimple USD account: a single $10,000 conversion falls in the 1.0% tier, so it costs $100. Core clients also pay $10 a month for the account, or $120 a year; for Premium and Generation clients it’s included.
• Questrade: its 1.5% fee is built into the exchange rate it applies, so about $150, with no commission on the stock trade. Because the account can hold US dollars, a sale doesn’t have to be converted back.
• TD Direct Investing: a 0.97% spread plus the $9.99 standard commission comes to about $107.
• RBC Direct Investing: about 1.6% on conversions up to US$24,999 plus a $9.95 commission comes to about $170.
• Interactive Brokers: 0.002% of $10,000 is 20 cents, below the minimum, so the conversion costs US$2.00, plus the stock commission (IBKR’s own example: US$1.00 for 100 shares at US$25).
• A Canadian-listed ETF such as VFV: $0 commission at Wealthsimple and nothing to convert.

The pattern holds at other amounts: percentage fees grow with the sum, flat and minimum-based costs don’t. On a few hundred dollars, a 1.5% conversion costs a few dollars and isn’t worth engineering around. On tens of thousands, it’s worth planning the conversion.

Should you buy US stocks from a CAD account or a USD account?

Use a CAD account for small, occasional purchases; open a USD account once you convert large sums in one go or trade US stocks often.

At Wealthsimple, a CAD account converts every US trade at 1.5%, applied to Wealthsimple’s corporate exchange rate, which the pricing page describes as a live rate that includes a spread. A USD account holds US dollars, so trading US stocks inside it involves no conversion. You pay the conversion only when money moves between the CAD and USD sides, at 1.5% under $10,000; 1.0% from $10,000; 0.5% from $25,000; 0% from $100,000 per conversion, and moving US dollars you already have into the account is free, per the pricing page. The account costs $10 a month for Core clients; free for Premium and Generation, and the pricing page lists a free 30-day trial for Core clients.

Three things decide whether the USD account pays for itself:

• Conversion size. Below $10,000 per conversion, the USD-account fee is the same 1.5% as the CAD-account fee, so a Core client buying small amounts gains nothing on the purchase and pays the monthly fee on top. The 1.0% tier saves half a percentage point, so a single conversion of about $24,000 covers a year of Core fees. At $25,000 the fee drops to 0.5%, a saving of $250 on that conversion alone.
• How often you trade. Every sale from a CAD account converts back at 1.5%. Someone who cycles the same $5,000 through ten US buy-and-sell round trips in a year pays about $1,500 in conversion fees from a CAD account; in a USD account, the money stays in US dollars between trades.
• Your plan. Premium starts at $100,000 in assets, and from there the USD account is included, which removes the fixed cost.

Wealthsimple’s pricing page doesn’t say which account types can have a USD side, so confirm in the app that your TFSA or RRSP offers one before you plan around it. The Wealthsimple USD account guide covers how the account works day to day. To run your own numbers, the calculator below compares a year of US purchases from a CAD account with converting into a USD account first.

What is Norbert’s Gambit, and is it worth it?

Norbert’s Gambit converts Canadian dollars to US dollars near the market rate by journaling a dual-listed security to the US-dollar side, and it’s worth it for large conversions.

The usual security is a currency ETF that trades as Canadian-dollar units (DLR) and US-dollar units (DLR.U) on the Toronto Stock Exchange. Its price just tracks the exchange rate, so it barely moves while your shares are in transit. A stock listed in both Toronto and New York also works, but its price moves with the company as well as the currency. The steps:

1. In your CAD account, buy the Canadian-dollar units with a limit order.
2. Ask your brokerage to journal the shares to the US-dollar side of the account.
3. When they arrive, sell the US-dollar units. The proceeds land as US cash.

Wealthsimple’s own guide to the method (updated September 15, 2026) says to plan for about 2 to 3 business days from start to finish, mostly the journaling step, and that you need both a CAD and a USD account you can invest through. Wealthsimple’s active-trading page lists Norbert’s Gambit as a feature, and on a commission-free platform the cost is a small flat journaling fee, listed on Wealthsimple’s Trade fee schedule, plus the bid-ask spread on two trades. At a brokerage that charges commissions, you pay two commissions instead.

The risks are small but real: the exchange rate can move while the shares are in transit; selling the US units before the journal completes can be treated as a loan, and your brokerage may charge interest on it; and in a non-registered account the buy and sale are a capital transaction you report, even over a few days.

At Wealthsimple, the method makes most sense for conversions below $100,000, where the USD-account fee is still a percentage. Above that, conversions into a USD account are 1.5% under $10,000; 1.0% from $10,000; 0.5% from $25,000; 0% from $100,000, so the top tier already has no fee beyond the spread. For the full method, see the Norbert’s Gambit guide for Canadians, the Norbert’s Gambit calculator, and Norbert’s Gambit at Wealthsimple.

What’s the cheapest way to buy US stocks in Canada?

A Canadian-listed ETF such as VFV is cheapest for index investing, since nothing is converted; for individual US stocks, Interactive Brokers publishes the lowest conversion fee of the brokerages compared.

Beyond that, the cheapest route depends on how much you convert at a time; match your situation below.

• You want the S&P 500 or the whole US market. Buy a Canadian-listed ETF such as VFV. No conversion at all, and $0 commission at Wealthsimple.
• You buy a few hundred or a few thousand dollars of US stock now and then. A Wealthsimple CAD account is fine. At 1.5%, a $1,000 purchase costs $15 to convert, less than two months of a Core USD account.
• You’re moving a large sum once, for example into an RRSP. Norbert’s Gambit, or a single large conversion into a Wealthsimple USD account at the lower tiers (1.5% under $10,000; 1.0% from $10,000; 0.5% from $25,000; 0% from $100,000).
• You trade US stocks often, in small amounts. Interactive Brokers’ 0.002% of the amount (US$2.00 minimum) is far cheaper than any percentage fee. The Wealthsimple vs Interactive Brokers comparison covers the trade-offs in the platform.
• You already hold US dollars. Move them in without converting. At Wealthsimple, moving US dollars into a USD account is free.

Do Canadians pay US tax on US stocks?

On dividends, yes: the US withholds 30% by default, or 15% once your brokerage has your W-8BEN. Gains on selling US shares are taxed in Canada instead.

Dividends. The IRS W-8BEN instructions say foreign persons pay US tax at 30% on US-source dividends. Article X of the Canada–US tax treaty caps it at 15% for a Canadian resident who owns shares as an ordinary investor, and the IRS treaty table lists the same rate for Canada. The tax is taken before the dividend reaches your account, so the amount you see is already net of US withholding.

Capital gains. Article XIII says gains on selling property like listed shares are taxable only in the country where the seller lives, so a Canadian resident's gain on US shares is taxed in Canada. In a non-registered account you report the gain on your Canadian return like any other capital gain, calculated in Canadian dollars. The CRA’s capital gains guide (T4037) says to convert the cost at the exchange rate when you bought and the proceeds at the rate when you sold. A stronger US dollar can therefore create a taxable gain even if the stock’s US price didn’t move.

Getting credit in a non-registered account. The CRA says you may be able to claim a federal foreign tax credit (line 40500) for foreign tax paid on income you report on your Canadian return. That credit applies only to income you report, which is why tax withheld inside a TFSA can’t be recovered: TFSA income never appears on your return.

Two reporting points. The CRA’s T1135 questions and answers say shares of foreign companies are specified foreign property even when a Canadian broker holds them, so US shares in a non-registered account count toward Form T1135, which you file once the total cost of your foreign property is more than $100,000; property held in an RRSP or TFSA is excluded. And the IRS counts shares of US companies as US assets for US estate tax. The Canada–US treaty gives Canadian residents a pro-rata credit and relief for small estates, so this mainly matters for large US holdings, where tax advice is worth getting.

What is a W-8BEN, and do you need one?

Yes, if you hold US stocks: Form W-8BEN is the IRS form that establishes that you are not a US person and, if you qualify, claims a treaty's reduced withholding rate, and your brokerage asks you to sign it.

• Why it matters. Without a W-8BEN on file, US dividends are withheld at 30%; with one, at the treaty rate of 15%.
• Who gives it to whom. The IRS says to submit the form when the withholding agent or payer asks for it. For a Canadian investor, that’s the brokerage; you don’t send it to the IRS.
• How long it lasts. A W-8BEN stays valid from the date you sign it until the last day of the third calendar year after that, unless a change in your circumstances makes it incorrect, so expect your brokerage to ask you to renew it.
• When to update it. The IRS instructions say to notify the brokerage and file a new form within 30 days if a change makes the form incorrect, such as moving to a US address.
• Who shouldn’t use it. US citizens, including those living in Canada, use Form W-9 instead.

Should US stocks go in a TFSA, RRSP or non-registered account?

For US dividend payers, the RRSP: the Canada–US tax treaty exempts retirement plans from US dividend withholding, while in a TFSA the 15% withheld is lost for good.

Under Article XXI of the treaty, as amended in 2007, the dividends and interest that a retirement plan earns are exempt from US tax, as long as the plan is operated exclusively to provide pension, retirement or employee benefits. Does an RRSP count? Yes: the US Treasury's technical explanation of the 2007 Protocol uses a Canadian RRSP as its example of a retirement arrangement described in that exemption, and the same document treats payments from RRSPs and RRIFs as pensions under the treaty. The exemption applies to US-listed stocks and ETFs held directly in the RRSP.

A TFSA isn’t a retirement plan. The CRA’s TFSA guide says foreign dividends paid to a TFSA could be subject to foreign withholding tax, per the CRA's TFSA guide, and because TFSA income isn’t reported on your return, there’s no foreign tax credit to claim. The CRA’s page on FHSA investments says the same of foreign dividends paid to an FHSA: they could be subject to foreign withholding tax. YieldMaple found no IRS or CRA page addressing RESPs directly; an RESP isn’t a retirement plan either, so plan on US withholding applying there too.

US dividend withholding on US-listed stocks held directly, by account (Canadian resident with a W-8BEN on file)

	US tax withheld on dividends	Can you get it back?
RRSP or RRIF	None: exempt under the treaty's retirement-plan rule	Nothing to recover
TFSA	15%	No: TFSA income isn't on your return
FHSA	Plan on 15%: the CRA says foreign dividends could be subject to foreign withholding tax	No official guidance found; assume not
RESP	Plan on 15%	No official guidance found; assume not
Non-registered	15%	Usually, as a foreign tax credit (line 40500)

Here’s what that means on US$1,000 of dividends in a year:

• RRSP, US-listed shares held directly: nothing withheld.
• TFSA: US$150 withheld, and it stays lost.
• Non-registered with a W-8BEN: US$150 withheld, usually credited against the Canadian tax on the same dividends.
• Any account without a W-8BEN on file: US$300 withheld.

Two practical notes. First, withholding only touches dividends, so a US growth stock that pays little or nothing loses almost nothing in a TFSA, where its gains are tax-free. Second, a Canadian-listed ETF that holds US stocks receives the US dividends itself, so the tax is withheld inside the fund. The treaty exemption covers arrangements operated exclusively to provide pension or retirement benefits, which an ETF sold to all investors isn’t, so holding it in an RRSP doesn’t bring the exemption with it. That’s the main tax argument for holding US-listed funds directly in a large RRSP; as noted above, confirm in the app that your Wealthsimple RRSP can hold US dollars before planning around it. The Wealthsimple RRSP guide and Wealthsimple TFSA guide cover each account’s rules and limits.

Should you buy US stocks directly or through a Canadian-listed ETF?

If you want the US index, a Canadian-listed ETF avoids currency conversion entirely; buy US-listed shares directly for specific companies or for a large, long-term RRSP.

VFV, Vanguard’s S&P 500 fund, trades in Canadian dollars on the TSX, charges a 0.08% MER, and holds 100% US stocks. Buying it at Wealthsimple costs $0 commission with no 1.5% conversion on the way in or out. The costs of the wrapper are the MER and the US tax withheld inside the fund on its dividends; with a 12-month trailing yield of 0.84%, that tax is a small slice of a small number. You still carry US-dollar exposure: VFV is unhedged, so its Canadian-dollar price moves with the exchange rate.

Buying US shares directly makes more sense when you want particular companies, when you already hold US dollars, or when a large RRSP will hold US-listed funds for decades and the withholding exemption adds up. Canadian Depositary Receipts (CDRs), such as those issued by CIBC Capital Markets, are another route. Per CIBC’s CDR site, they trade in Canadian dollars on a Canadian exchange, cost a fraction of the underlying share price, and use a notional currency hedge whose cost is built into the FX forward rate, so they avoid the conversion but add a layer between you and the shares. Check each CDR’s terms before buying.

The step-by-step guide to buying VFV works through VFV vs VOO with numbers, and the VFV vs XEQT comparison covers whether a US-only fund is the right core holding.

What does Reddit recommend for buying US stocks in Canada?

Canadian investing threads repeat the same handful of rules: avoid per-trade conversion fees, use Norbert’s Gambit for big sums, sign the W-8BEN, favour the RRSP for US dividends, and consider CAD-listed ETFs.

YieldMaple checked each against the official sources:

Common forum advice on buying US stocks, checked against official sources (September 23, 2026)

	Verdict	What the sources show
Don't pay a conversion fee on every trade	True above small amounts	1.5% each way from a Wealthsimple CAD account
Use Norbert's Gambit for big conversions	True	Spreads plus a journaling fee or commissions, about 2 to 3 business days
Sign your W-8BEN	True	Cuts dividend withholding from 30% to 15%
Hold US dividend stocks in the RRSP, not the TFSA	True for dividends	RRSP exempt under the treaty; TFSA loses 15%
Just buy VFV or another CAD-listed ETF	True for index investors	No conversion; 0.08% MER; US tax still withheld inside the fund
Interactive Brokers has the cheapest FX	True on published cost	0.002% of the amount (US$2.00 minimum)

In sentences: the conversion-fee tip holds because Wealthsimple’s CAD-account fee is 1.5% each way, while Interactive Brokers charges 0.002% of the amount (US$2.00 minimum). Norbert’s Gambit swaps that percentage for spreads and a journaling fee or commissions over about 2 to 3 business days. The W-8BEN cuts dividend withholding from 30% to 15%. The RRSP tip is right for dividends, while a TFSA loses the 15% for good. And VFV’s 0.08% MER buys you freedom from conversion fees, though the fund still pays US tax on its dividends. The one piece forum advice often skips: a small Core client buying occasionally doesn’t need any of the workarounds, because the fee on a small purchase is small.

Who should (and shouldn’t) buy US stocks through Wealthsimple

Buy US stocks on Wealthsimple if:

• You buy US stocks occasionally, in amounts where a 1.5% conversion is a few dollars, and you want $0 commissions and fractional shares.
• You’re a Premium or Generation client: the USD account is included, and a single conversion of $100,000 or more carries no conversion fee, only the spread in the exchange rate.
• You convert in large single amounts and want your US and Canadian holdings on one platform.

Look elsewhere if:

• You’re a Core client who trades US stocks often in small amounts. Interactive Brokers’ 0.002% of the amount (US$2.00 minimum) conversion is far cheaper; compare the platforms in Wealthsimple vs Interactive Brokers or check Interactive Brokers' current pricing .
• You want US dollars in a TFSA or RRSP without a monthly fee: Questrade says you can hold USD in registered accounts, so US trades don't force a conversion, and holding both currencies is free — every account can hold both Canadian and US dollars. Its conversion fee is 1.5%, the same as Wealthsimple’s, so the saving comes from converting once rather than on every trade. The Wealthsimple vs Questrade comparison covers the rest.

Skip individual US stocks altogether if:

• You want broad US exposure without the currency and tax paperwork: a Canadian-listed ETF such as VFV does the job with no conversion.

This page is general education, not financial advice; the right route depends on how much you invest, how often you trade and which accounts you use. For everything else Wealthsimple offers, from account types to fees, see our complete Wealthsimple guide.