How to Buy US Stocks in Canada Without Paying High FX Fees

Want to buy US stocks in Canada? The good news: it is easy. The bad news: most brokers will quietly charge you 1.5–2% every time you convert Canadian dollars to US dollars — a fee that can cost thousands of dollars over a lifetime. In this guide, I will show you how to buy US stocks the right way and avoid excessive currency fees.

Why FX Fees Matter More Than You Think

When a Canadian buys a US-listed stock, your CAD must be converted to USD. Most brokers charge a spread of 1.5–2% on this conversion. On a $10,000 annual investment over 25 years, that 1.75% FX fee compounds to over $43,000 in lost wealth.

Option 1: Norbert’s Gambit (Best for Large Amounts)

Norbert’s Gambit uses a dual-listed ETF (DLR/DLR.U) to convert CAD to USD at near-spot rates. Buy DLR in CAD, journal the shares to your USD account as DLR.U, then sell DLR.U for USD. Total cost: approximately 0.10% vs 1.75% at a bank. Best at Questrade where you can journal shares online.

Option 2: Wealthsimple Plus ($10/month)

Wealthsimple Plus subscribers get zero FX fees on all US trades. If you trade US stocks frequently, $10/month is often cheaper than the effort of Norbert’s Gambit for small amounts.

Option 3: Interactive Brokers (Cheapest for Large Portfolios)

Interactive Brokers offers institutional-grade FX conversion at just 0.002% — as low as $2 per $100,000 converted. Best for portfolios over $50,000 where the savings justify the steeper learning curve.

Tax Efficiency: Where to Hold US Stocks

RRSP: Best for US dividend stocks. The Canada-US tax treaty waives the 15% US dividend withholding tax in RRSPs. TFSA: US dividends face a permanent 15% withholding tax — hold Canadian stocks here instead. Non-registered: You can claim a foreign tax credit to offset the 15% US withholding tax.

Frequently Asked Questions

Can Canadians buy US stocks?

Yes. Any Canadian with a brokerage account can buy US-listed stocks and ETFs. You will need to convert CAD to USD or use a broker that handles the conversion.

What is the cheapest way to convert CAD to USD?

Norbert’s Gambit using DLR/DLR.U at Questrade costs approximately 0.10%. Interactive Brokers is slightly cheaper at 0.002%. Both are dramatically cheaper than the 1.5–2% most banks charge.

Should I buy US stocks in my TFSA or RRSP?

Hold US dividend stocks in your RRSP to avoid the 15% US withholding tax. In a TFSA, that 15% is permanently lost. Use your TFSA for Canadian stocks and growth stocks instead.

Does Wealthsimple charge FX fees on US stocks?

Standard (free) users pay 1.5% FX fee. Wealthsimple Plus subscribers ($10/month) pay zero FX fees on all US trades.