How to Buy US Stocks in Canada: The Easiest and Cheapest Ways in 2026
Any Canadian with a self-directed brokerage account can buy US stocks directly — Apple, Nvidia, Amazon, all of them — through a Canadian broker. No US account required. The real question isn't can you do it, but how you do it without losing 1.5% or more on every trade to hidden currency conversion fees. This guide covers the cheapest methods, the best brokers, and the tax traps to watch for.
Why Should Canadians Invest in US Stocks?
The S&P 500 represents roughly half of global equity market capitalization. The TSX, by contrast, is heavily concentrated in financials, energy, and mining — sectors that make up over 60% of the index. If your entire portfolio is in Canadian equities, you're making an outsized bet on a few industries in a single country.
US investing in Canada isn't about abandoning the TSX. It's about diversification. You get exposure to sectors that barely exist on the Canadian market: mega-cap tech, US healthcare, semiconductors, and consumer platforms. And you get it denominated in USD, which has historically acted as a natural hedge when the Canadian dollar weakens during economic downturns.
What Are the Ways to Buy US Stocks From Canada?
There are four main approaches, each with different cost and complexity trade-offs.
1. Buy US-Listed Stocks Directly
The most straightforward method. You place an order for a US-listed stock (say, AAPL on NASDAQ) through your Canadian brokerage, just like you'd buy a TSX stock. Every major Canadian broker supports this.
The catch: your broker will automatically convert your CAD to USD at their exchange rate, which typically includes a 1.5–2% markup over the interbank rate. On a $10,000 purchase, that's $150–$200 gone before the stock moves a cent. This hidden FX spread is the single biggest cost most Canadian investors overlook when buying US equities.
2. Use a USD Account to Avoid Repeated Conversions
Most brokers let you hold a USD sub-account inside your TFSA, RRSP, or non-registered account. Once you convert CAD to USD, that cash stays in US dollars. You can buy and sell US stocks without triggering a new currency conversion on every trade.
This is the minimum viable setup for anyone who plans to own more than one or two US positions. Questrade includes free USD accounts across all registered account types. Wealthsimple offers USD accounts as well, though Core-tier users pay $10/month unless they hold $100K+ (which unlocks Premium and waives the fee). Interactive Brokers supports full multi-currency accounts with near-interbank FX rates.
3. Use Norbert's Gambit to Slash FX Costs
Norbert's Gambit is the power move for converting large sums. Instead of paying your broker's 1.5% FX spread, you buy an interlisted ETF in CAD (typically DLR on the TSX), journal it to its USD-denominated counterpart (DLR.U), and sell on the US side. The only costs are the ETF's bid-ask spread and any journaling fee — usually a fraction of the standard conversion charge.
Who supports it:
BrokerNorbert's GambitJournaling FeeNotesInteractive BrokersNot neededN/AFX conversion is ~0.002% + $2. Cheaper than the Gambit itself.QuestradeYesFree onlineMost popular broker for the Gambit. Commission-free DLR purchase.WealthsimpleYes$9.95 + taxLaunched in early 2026 (web platform only). ~2 business day processing. [VERIFY: general availability status as of May 2026]Big Bank brokersYes (most)VariesBMO, TD, RBC, Scotia all support it. NBDB charges a $10 journaling fee.
For conversions above roughly $1,000, the Gambit saves real money. For $50,000, you'd save approximately $750 versus a 1.5% spread. The math is simple: flat journaling fee beats a percentage-based markup at scale.
4. Buy Canadian-Listed ETFs That Hold US Stocks
If you'd rather skip currency conversion entirely, you can buy CAD-denominated ETFs that hold US equities. Vanguard's VFV (tracks the S&P 500) or iShares' XUU (total US market) let you invest in US stocks while buying and selling in Canadian dollars.
The trade-off: you still pay an embedded FX cost inside the fund, and you lose the ability to pick individual US stocks. But for passive investors who just want broad US market exposure inside a TFSA or RRSP, this is the simplest path.
Which Broker Is Best for US Investing in Canada?
Cheapest Overall: Interactive Brokers
IBKR is the undisputed winner on FX costs. Their currency conversion spread is approximately 0.002% plus a $2 minimum commission — effectively the interbank rate. No Norbert's Gambit needed. For an investor converting $20,000 CAD to USD, IBKR's cost is about $2.40 total. Questrade's 1.5% spread on the same amount would cost $300 (though you'd use the Gambit to avoid that).
IBKR also offers the lowest margin rates in Canada (~3.83–5.83% CAD) and charges no account or inactivity fees. The downside: the platform is complex, the interface is built for professionals, and registered account coverage is narrower — no RESP, LIRA, LIF, or RDSP. Read our full IBKR review for a deeper look.
Best for: Active US stock traders, large currency conversions, anyone who prioritizes cost above all else.
Easiest Setup: Wealthsimple
Wealthsimple is the fastest way for a beginner to buy their first US stock. Account opening takes under 10 minutes, the app is genuinely well-designed, and stock/ETF trades are $0. Fractional shares let you buy $50 of Amazon instead of needing a full share.
The FX caveat: Wealthsimple's standard currency conversion spread is 1.5%, which drops to 0.05% for Premium ($100K+) and Generation ($500K+) members. Norbert's Gambit is now available on the web platform at a flat $9.95 + tax fee, which closes a major gap that previously existed. For smaller accounts on the Core tier, the 1.5% spread is still a meaningful drag on US trades.
Best for: Beginners, small accounts, investors who value simplicity over every last basis point. See our Wealthsimple review for more.
Best Balance: Questrade
Questrade hits the sweet spot between cost and usability for most Canadian investors buying US stocks. Commission-free stock and ETF trading since February 2025, free dual-currency (CAD/USD) accounts in all registered types, and established Norbert's Gambit support with free online journaling make it the go-to for cost-conscious investors who don't want IBKR's learning curve.
The platform is clean without being dumbed-down. Questrade Pro adds advanced charting and tools for those who grow into them. The 1.5% FX spread still applies if you use the standard conversion, but since most Questrade users doing significant US investing simply use the Gambit or maintain a USD balance, this is largely a non-issue.
Best for: Most Canadian investors who want low-cost US investing without complexity. Check out our Questrade review.
For a side-by-side breakdown of all ten Canadian brokers, see our full comparison table.
How Does the TFSA vs. RRSP Choice Affect US Stocks?
This is the part most guides gloss over, and it matters.
US-listed stocks and ETFs pay dividends subject to a 15% US withholding tax under the Canada-US tax treaty. How that tax hits you depends on the account type:
RRSP/RRIF: Exempt from the 15% US withholding tax on dividends. The tax treaty recognizes RRSPs as retirement accounts and waives the withholding. This makes the RRSP the most tax-efficient account for holding US dividend-paying stocks directly.
TFSA/RESP/FHSA: Not exempt. The 15% withholding applies, and you can't claim a foreign tax credit because the income isn't taxable in Canada. For a stock yielding 2%, that's 0.3% of your position lost annually to unrecoverable withholding tax.
Non-registered (taxable): The 15% withholding applies, but you can claim a foreign tax credit on your Canadian return. Net cost is usually zero or close to it.
Practical takeaway: If you hold US dividend stocks, prioritize your RRSP. If you hold US growth stocks that pay little or no dividend (think most tech), the TFSA is fine — the withholding tax on a 0% yield is 0%.
For Canadian-listed ETFs that hold US stocks (like VFV or XUU), the withholding tax still applies at the fund level on dividends received from the US holdings, regardless of which account you hold the ETF in. The RRSP exemption only works when you hold the US-listed security directly.
What About US Estate Tax?
Canadian residents who hold US-situated assets (including US stocks held at any broker) with a worldwide estate exceeding $60,000 USD may be exposed to US federal estate tax upon death. The Canada-US tax treaty provides a credit that largely eliminates this for most Canadians, but the paperwork and filing requirements can be burdensome for your estate.
Holding Canadian-listed ETFs that wrap US stocks (VFV, XUU, etc.) avoids this issue entirely, since the assets are Canadian-domiciled. This is one more reason passive investors may prefer the ETF route.
Step-by-Step: Buying Your First US Stock
Open a self-directed account at a broker that supports US trading (all major Canadian brokers do). Not sure which? Start here.
Fund your account with a CAD deposit.
Convert to USD — either via your broker's built-in conversion (fast but expensive), Norbert's Gambit (cheap but takes 2–3 days), or IBKR's direct FX conversion (fast and cheap).
Place your order for the US stock or ETF on NYSE, NASDAQ, or another US exchange.
Hold your USD proceeds in your USD sub-account so you don't trigger another conversion when you sell.
If you're investing a smaller amount or prefer simplicity, buying a Canadian-listed US equity ETF in CAD skips steps 3 and 5 entirely.
The Bottom Line
Every Canadian broker lets you buy US stocks. The difference is what it costs you — and that cost is almost entirely about currency conversion, not trading commissions.
If you're converting more than $5,000 at a time: Interactive Brokers saves you the most, full stop. If you want simplicity with solid cost controls: Questrade with Norbert's Gambit or a standing USD balance is the best all-around choice for most Canadians. If you're just getting started and want zero friction: Wealthsimple gets you trading in minutes, though watch the FX spread on smaller accounts.
For the least possible complexity, buy a Canadian-listed S&P 500 ETF like VFV in your TFSA and call it done. You'll sacrifice a bit on embedded FX costs and lose the RRSP withholding tax exemption, but you'll be invested in the US market in under five minutes with zero currency headaches.
Whatever path you choose, don't let the CAD-to-USD conversion question stop you from diversifying beyond the TSX. The FX cost is a one-time drag; the diversification benefit compounds for decades.
Check the latest sign-up bonuses before opening your account — several brokers offer cash bonuses or transfer-fee rebates for new clients.
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