How to buy US stocks from Canada

Updated October 10, 2026 · StockSignalCheck

Many of the world's largest companies are listed in the United States, and Canadian investors can buy them through most Canadian brokerages. Before you do, it helps to understand the costs and tax rules that are specific to holding US stocks from Canada.

Fees, account types and features vary between brokerages and change over time. Check your broker's current fee schedule before trading.

1. Currency conversion is often the biggest cost

US stocks trade in US dollars. If your account only holds Canadian dollars, your broker converts the money each time you buy and again when you sell. Brokers typically charge for this through a percentage fee or a markup on the exchange rate, often around 1% to 2% each way. On a $1,000 purchase, that can mean $10 to $20 going in and the same coming out, which adds up quickly.

Ways investors reduce this cost:

Hold US dollars in a USD account. Many brokers offer USD accounts or USD sides of TFSA and RRSP accounts. Converting once and keeping the US dollars avoids paying the fee on every trade, and dividends and sale proceeds stay in USD.
Norbert's gambit. Some investors buy a security listed in both currencies, such as an interlisted ETF, in Canadian dollars, then sell it in US dollars. This can cost less than a standard conversion but involves more steps, timing and trading fees. Ask your broker whether they support it.

2. Consider Canadian listings and cross-listed shares

Some options avoid currency conversion entirely:

Cross-listed companies. Many large Canadian companies, such as banks and energy companies, trade on both the TSX in Canadian dollars and the NYSE in US dollars. Buying on the TSX avoids conversion. Browse the Canadian company pages on StockSignalCheck.
Canadian-listed ETFs that hold US stocks. These trade in Canadian dollars on the TSX. Some are "hedged" to reduce the effect of exchange-rate moves; others aren't. See what is an ETF.
Canadian Depositary Receipts (CDRs). These trade on a Canadian exchange in Canadian dollars and represent a fraction of a share of a large US company, with built-in currency hedging. They're a different product from owning the US share directly, so read how they work before buying.

3. The exchange rate affects your returns

When you own a US stock, your return in Canadian dollars depends on both the share price and the exchange rate. If the US dollar weakens against the Canadian dollar, your investment is worth less in Canadian dollars even if the share price doesn't move, and the reverse is also true.

4. The W-8BEN form and dividend withholding tax

The US withholds tax on dividends paid to non-residents. Your broker will usually ask you to sign a W-8BEN form confirming you're a Canadian resident. With it on file, the Canada–US tax treaty generally reduces the withholding on dividends to 15% instead of the standard 30%.

How that 15% is treated depends on the account:

RRSP and RRIF: US-listed stocks and ETFs held directly are generally exempt from the withholding under the treaty.
TFSA: the 15% is withheld and can't be recovered.
Non-registered (taxable) accounts: the 15% is withheld, but you can usually claim a foreign tax credit on your Canadian return.

Our TFSA vs RRSP guide explains the accounts in more detail.

5. Reporting foreign property

If the total cost of your foreign investments held outside registered accounts, such as TFSAs and RRSPs, is more than $100,000 CAD at any time in the year, you generally need to file form T1135 with your tax return. US stocks held at a Canadian broker count as foreign property for this purpose.

Checklist before your first US trade

Know your broker's currency conversion cost, and whether a USD account would save you money.
Check whether the company is also listed on the TSX.
Make sure a W-8BEN is on file.
Decide which account suits the stock, especially if it pays dividends.
Remember that exchange-rate moves will affect your return.

Official sources

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This guide is for education only. It isn't personalized financial, investment or tax advice, and nothing here is a recommendation to buy or sell any security. Investing involves risk, including the possible loss of your money.