Buying US stocks and ETFs is straightforward for Canadians — virtually every major Canadian brokerage supports trading on US exchanges. The complexity comes from three considerations unique to Canadian investors: currency conversion costs, US dividend withholding tax (which varies by account type), and choosing between Canadian-listed vs US-listed versions of the same fund. This guide covers everything you need to know.
Yes. Canadian residents can freely buy and sell stocks listed on US exchanges (NYSE, NASDAQ, etc.) through any Canadian brokerage that supports US trading — which includes Questrade, Wealthsimple Trade, National Bank Direct Brokerage, TD Direct Investing, RBC Direct Investing, and all other major platforms. You don't need a US bank account or US brokerage account.
US stocks are priced in US dollars (USD). As a Canadian investor holding CAD, you need to convert currency to buy US stocks. There are three approaches:
Most brokerages will automatically convert your CAD to USD when you buy a US-listed security, charging a currency conversion spread of 1.5–2.0%. This is the most convenient but most costly approach. On a $100 purchase, you pay $150–$200 in hidden conversion costs — both when you buy and when you sell.
Many popular US ETFs have Canadian-listed equivalents that trade in CAD on the TSX. For example:
These ETFs hold the same underlying US stocks but trade in CAD. You avoid currency conversion entirely. The trade-off: you retain CAD/USD currency risk (if CAD strengthens, your US exposure is worth less in CAD terms). Most long-term Canadian investors accept this currency risk as normal.
Norbert's Gambit is a strategy for cheaply converting large amounts of CAD to USD (or vice versa) using a dual-listed ETF. See our full guide to Norbert's Gambit for details. This approach costs approximately 0.1–0.2% versus 1.5–2% for broker conversion — saving hundreds of dollars on large conversions. It requires a USD account at your brokerage (available at Questrade and Wealthsimple Premium).
The US government withholds 15% tax on dividends paid to Canadian investors, under the Canada-US Tax Treaty. How this withholding affects you depends entirely on which account holds the US investment:
The Canada-US Tax Treaty explicitly exempts RRSPs from US dividend withholding tax. If you hold a US-listed ETF like VOO or a Canadian-listed US ETF like VFV directly in your RRSP, US dividends are paid without withholding. This makes the RRSP the most tax-efficient account for US equity exposure with dividend income.
Despite the TFSA being a registered account, the Canada-US Tax Treaty does not recognize it as a "pension fund." US dividends paid to a TFSA are subject to 15% withholding by the IRS, and this withholding cannot be recovered through a foreign tax credit (since TFSA income doesn't appear on your tax return). For a low-dividend ETF like VFV (yielding ~1.3%), the annual cost is modest — about $19.50 per year on $100 invested. For higher-yielding US holdings, the impact is more significant.
In a non-registered account, US dividends are subject to 15% withholding, but you can claim a foreign tax credit on your Canadian tax return to recover most or all of this withholding. The foreign tax credit offsets your Canadian tax owing on the same income, effectively eliminating double taxation.
For most Canadian investors building a long-term portfolio:
Individual US stocks are also easily purchasable through Canadian brokerages. Commonly held US stocks among Canadian investors include Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Berkshire Hathaway (BRK.B). These are bought exactly like Canadian stocks — search the ticker, select the US exchange, and place a limit order in USD.
Canadians holding more than approximately USD $60,000 in US-situated assets (including US stocks held directly, not through Canadian ETFs) may be subject to US estate tax upon death, depending on the total value. Canadian-listed ETFs that hold US stocks are generally considered Canadian property and are not subject to US estate tax. For large portfolios, consult a cross-border tax specialist about structuring US equity exposure.
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