How to Buy US Stocks in Canada: Step-by-Step Guide

1. How to Buy US Stocks in Canada, Step 1: Pick a Broker

What matters most for US stocks. The best way to buy US stocks in Canada starts with a broker whose prices and accounts fit how you invest. Three things decide most of your cost and convenience: the commission on US trades, whether your registered accounts can hold US dollars, and any fee for that USD account. Account types, platform and safety come next. Our US-stocks score weights US features 40%, costs 25%, account types 10%, platform 10%, safety 10%, and cash and margin rates 5%. The US part scores US dollars in registered accounts and the US commission, and cost uses commissions and account fees for two trading profiles. The rules are on our broker rating methodology page.

How to read the table. Desjardins and Questrade tie at 4.6 / 5 on the unrounded score as well, so they are listed by name; the same applies to BMO InvestorLine and Interactive Brokers at 3.6 / 5. Wealthsimple sits just ahead of moomoo on the unrounded score. A per-share commission, as at Interactive Brokers and moomoo, is small on a few shares but adds up on large share counts. A USD account fee, as at Wealthsimple on Core and Qtrade, is a fixed cost that weighs most on a small account. The full ranking with pros and cons is on our best brokers for US stocks page, and Questrade vs Interactive Brokers compares two popular choices head to head.

Check the accounts you need. Not every broker offers every account. moomoo offers cash, margin, TFSA, RRSP and spousal RRSP accounts but no FHSA, RESP, joint or corporate account, and Webull lists cash, margin, TFSA and RRSP only. If you plan to hold US stocks in an FHSA, note that National Bank, Qtrade and TD Easy Trade do not offer US dollars in that account, while Wealthsimple does.

No paid placement. Scores come from published prices and features only. Our disclosure on how WealthScale makes money explains how the site is funded, and our editorial standards explain how every figure is checked.

2. Step 2: Open the Right Account and File Your W-8BEN

Choose the account type first. The same US share costs you different amounts in tax depending on where it sits, so decide which account will hold it before you open anything. Most investors use a TFSA, an RRSP or a non-registered cash or margin account, and some use an FHSA or RESP. Step 5 explains how each one treats US dividends, and section 8 sets out which US holdings tend to fit each account.

What the broker will ask for. Expect to give your social insurance number, government photo ID, your address, employment details and a Canadian bank account for deposits. For a registered account, you also confirm your eligibility, such as residency and age for a TFSA, and name a beneficiary or successor holder where the account allows it.

Minimums. Interactive Brokers and Qtrade say there is no minimum to open an account. National Bank Direct Brokerage, RBC Direct Investing and Wealthsimple publish no minimum, and Wealthsimple’s Core tier starts at $1 in assets. TD Easy Trade lets you start with $1.

The W-8BEN. Form W-8BEN is the US Internal Revenue Service form a foreign beneficial owner gives the withholding agent, which is your broker, to claim the reduced treaty rate. With it on file, US dividends have 15% withheld instead of the 30% that applies to most US-source income paid to a foreign person. You give the form to your broker, not to the IRS. Brokers that offer US trading ask clients for it, often as part of the application. Please confirm it is on file before you buy your first US dividend payer.

Check the regulator status. Every broker in the table above is a member of the Canadian Investor Protection Fund (CIPF) or belongs to a bank group whose dealer is on CIPF’s member list. CIPF covers property missing when a member firm fails, up to $1,000,000 for all general accounts combined (cash, margin, TFSA and FHSA), with separate $1,000,000 limits for retirement accounts and for RESPs. It does not cover market losses. All CIPF members are regulated by the Canadian Investment Regulatory Organization (CIRO). Our CIPF vs CDIC guide explains how this protection differs from deposit insurance.

Turn on the features you need. If the broker requires it, ask for a USD side on each account that will hold US stocks, enable US trading, and switch on fractional shares or a dividend reinvestment plan (DRIP) if you plan to use them. A USD side may carry a fee: Wealthsimple charges $10 a month plus tax on Core, after a 30-day trial, and Qtrade US$15 a quarter per registered account unless you qualify for Investor Plus.

3. Step 3: Fund the Account

From your bank. Most investors fund the account by linking a Canadian bank account and sending a transfer. For a registered account, the deposit counts against your room: $7,000 of new TFSA room for 2026, $8,000 of FHSA room a year, and your personal RRSP deduction limit. Please check your room before you deposit, not after.

By transferring an account in. Moving an existing account is usually done as a direct transfer from the old institution. For a TFSA, a direct transfer has no effect on your room, while withdrawing and redepositing counts as a new contribution and can create an excess taxed at 1% a month. Investments can often move in kind, which avoids selling. Our guide on how to transfer a TFSA, RRSP or investment account covers the forms.

Moving US shares you already own. If you hold US shares at another Canadian broker, transferring them in kind avoids selling them and buying them back. Check the old broker’s transfer-out fee first: $150 at Questrade, Qtrade, National Bank, TD, RBC and Scotia iTRADE, and $150 for a full transfer at Desjardins. moomoo charges $75 for a full transfer or $50 for a partial one per currency, so an account holding both Canadian and US dollars pays twice. Wealthsimple charges $0.

Cash waiting to be invested. Money waiting for the right time to buy can sit in a savings account rather than earning little in a brokerage account. Questrade’s interest on uninvested cash works out to effectively 0%, and CIBC Investor’s Edge, National Bank and Scotia iTRADE list 0% on Canadian cash. If you keep US dollars, compare rates on our USD savings accounts page. Eligible deposits at a CDIC member, including US-dollar deposits, are covered up to $100,000 per insured category at each member institution, while stocks and ETFs are not covered by CDIC.

4. Step 4: Place Your Order

Find the right listing. Search the company name or ticker and check that you have the US listing, priced in US dollars, if that is what you want. Some companies also trade in Canada, and some brokers show both. Confirm which account the order is coming from before you submit it.

Market or limit order. A market order buys at the best available price right away, which may be higher than the last price you saw. A limit order sets the highest price you will pay and fills only at that price or better. Limit orders give you control over price, and they are required for extended-hours trading at Wealthsimple.

Trading hours. The regular US session runs from 9:30 am to 4:00 pm Eastern time. Wealthsimple also offers pre-market trading from 4:00 am, after-hours trading until 8:00 pm and an overnight session from 8:00 pm to 4:00 am, from Sunday 8 pm to Friday 8 pm Eastern time. Prices outside regular hours can be less stable, and fewer shares may trade.

Fractional shares. A fractional order buys part of a share. Wealthsimple offers it on thousands of Canadian and US stocks and ETFs from $1, during market hours only. Questrade and Interactive Brokers offer fractional trading, CIBC advertises it, and TD charges $1.99 per partial-share trade. moomoo does not support fractional shares.

Pass-through fees on $0 trades. “$0 commission” does not mean no cost. Questrade charges ECN fees on direct-routed orders only, and an SEC fee on US sales of 0.0000206 times the trade value, about US$0.21 on a US$10,000 sale (US$10,000 x 0.0000206 = US$0.206). Webull passes on the SEC fee, a FINRA trading activity fee of $0.000195 per share (maximum $9.79) and an ADR custody fee of US$0.01 to US$0.03 per share on depositary receipts. Wealthsimple notes that exchange, ECN, TAF or ORF fees may apply to some US orders. These are small on most trades but show on your confirmations.

5. Step 4 in Detail: US Commissions and Yearly Trading Costs

Why the yearly figure matters. A single commission looks small, but a regular buying habit repeats it. One 40-share US trade a month for a year costs $0 at the seven $0-commission brokers, US$12.00 at Interactive Brokers (US$1.00 x 12), US$23.88 at moomoo (US$1.99 x 12), $83.40 at CIBC Investor’s Edge ($6.95 x 12), $119.40 at RBC Direct Investing ($9.95 x 12), $119.88 at TD Direct Investing ($9.99 x 12) and US$119.88 at Scotia iTRADE (US$9.99 x 12).

Our two trading profiles. To compare brokers on cost, our ranking uses two patterns in a TFSA with $20,000: an active investor making two Canadian and one US trade a month, and a buy-and-hold investor making one Canadian trade a month. Each trade is a $2,000 order of 40 shares at published prices, and any yearly account fee is added.

How the figures add up. At TD Direct Investing, the active profile is ($9.99 x 3) x 12 = $359.64. At moomoo it is ($1.49 x 2 + $1.99) x 12 = $59.64, using the CA$1.49 Canadian minimum and the US$1.99 US minimum. Webull charges $0 commissions, so both profiles are its $0.70 monthly account fee ($0.70 x 12 = $8.40).

Enter your own trading pattern in this calculator to see the yearly cost at every broker.

Options on US stocks. If you also trade US equity options, prices differ widely: $0 per contract at Wealthsimple and Questrade, US$0.65 per contract (minimum US$1) at Interactive Brokers and moomoo, and US$0.99 at Webull, as of October 22, 2026. Our best options trading platforms list ranks brokers on options costs and tools.

6. Step 5: Taxes on US Dividends by Account

What happens on payment day. The US tax is taken before the dividend reaches your account. The rate is 15% under Article X(2)(b) of the Canada-US tax treaty with a W-8BEN on file, 30% without one, and 0% on US-listed securities held directly in a documented RRSP, RRIF, LIRA or LIF.

Check the first payment. Divide the tax withheld by the gross dividend on your first US payment. If it is 30%, contact your broker so a valid W-8BEN goes on file before the next payment. If an RRSP shows 15%, ask the broker to confirm the account is documented as a retirement plan.

Canadian-listed funds of US stocks. The RRSP exemption covers US-listed securities you hold directly. A Canadian-listed fund that owns US shares has the 15% withheld inside the fund in every account, including an RRSP. In a taxable account the fund generally reports the foreign tax so you can claim a credit. This is a general description of how the layers work, not a view on any fund; our US stocks in a TFSA guide explains the layers in more detail.

Use this calculator to see the US tax on your own yearly dividends in each type of account.

Reinvesting US dividends. A DRIP uses each dividend to buy more of the same holding, after the US tax is withheld. Questrade reinvests with no transaction fee, Wealthsimple switches reinvestment on or off for a whole account, and National Bank and TD Direct Investing reinvest in whole shares on request. Our list of the best brokers for dividend investing ranks the brokers that offer a DRIP, led by Questrade at 4.3 / 5.

7. Step 5: Taxes on US Stocks in a Non-Registered Account

US dividends. Report the gross dividend as foreign income on your Canadian return. US dividends do not get the Canadian dividend tax credit, so they are taxed at your full marginal rate, like interest. You then claim a foreign tax credit for the US tax withheld: the lesser of the foreign tax paid and the Canadian tax on that income. The federal part goes on Form T2209 (line 40500) and, outside Quebec, the provincial part on Form T2036.

A worked figure. This example is hypothetical. An Ontario resident with $70,000 of taxable income in 2026 has a combined marginal rate of 29.65% (20.5% federal plus 9.15% Ontario). On $1,000 of dividends reported on her return, Canadian tax is $296.50 ($1,000 x 29.65%). The $150 of US tax is less than that Canadian tax, so all $150 is credited. Net Canadian tax is $146.50 ($296.50 – $150) and total tax stays at $296.50.

Capital gains. You report a capital gain or loss on US shares only when you sell them. One-half of a net capital gain is included in income for 2026, as it was for 2001 to 2025. Keep every trade confirmation so you can work out your adjusted cost base when you sell. Use our capital gains tax calculator for the tax on a gain.

The superficial loss rule. A loss is denied if you or an affiliated person, which includes your spouse or common-law partner, buy identical property within 30 calendar days before or after the sale and still hold it 30 days after. The denied loss can usually be added to the cost of the replacement shares, so it is deferred rather than lost.

Using losses. Net capital losses can be carried back three years or forward indefinitely, and they offset only taxable capital gains. Losses inside a TFSA or RRSP cannot be claimed at all.

Registered accounts. None of the yearly reporting above applies to US holdings inside a TFSA, RRSP or FHSA. RRSP and RRIF withdrawals are taxed as income when you take them out.

8. Step 5: Account Placement for US Stocks

Why placement matters. The United States withholds tax on dividends paid to Canadians, and whether you lose that tax, recover it or avoid it depends on the account. Placing each US holding in the account that taxes it least is one of the few costs you fully control.

RRSP, RRIF, LIRA and LIF. Article XXI(2) of the Canada-US tax treaty exempts arrangements operated exclusively to provide retirement benefits. US-listed securities held directly in these accounts have no US tax withheld on dividends once the broker has the account documented. The trade-off is that RRSP withdrawals are taxed as income. The 2026 RRSP dollar limit is $33,810, or 18% of your 2025 earned income if less, adjusted for pension adjustments and unused room.

TFSA, FHSA and RESP. These are not retirement arrangements, so 15% of each US dividend is withheld (30% without a W-8BEN) and it cannot be recovered. Growth and capital gains are still sheltered from Canadian tax. The 2026 TFSA limit is $7,000, and FHSA room is $8,000 a year to a $40,000 lifetime limit. Our US stocks in a TFSA guide puts the TFSA cost in dollars.

Non-registered cash or margin account. The 15% is withheld, but you claim it back as a foreign tax credit on your Canadian return. Dividends, interest and realized gains are taxable each year, and capital losses can be used against gains.

A rule of thumb, not a rule. If you have room in both, many investors put US dividend payers in the RRSP and growth-focused US holdings in the TFSA. Your own order depends on your tax rate now and later; our TFSA vs RRSP comparison walks through it, and the investment accounts guide covers every account type.

Where the RRSP comes in. Because the RRSP avoids the 15% on US-listed holdings, it is often the first home for US dividend payers. Our best RRSP for US stocks ranking orders brokers for that account, and the best TFSA for US stocks ranking does the same for the TFSA. In both, Desjardins Online Brokerage and Questrade lead at 4.6 / 5.

9. After You Buy: Keep Costs Low

Account fees that catch small accounts. Several brokers charge a fee to hold a small or inactive account. Each has ways to avoid it, so check the conditions against your own balance.

Match the USD account fee to your balance. Wealthsimple’s $10 monthly fee on Core is $120 a year before tax ($10 x 12): 1.2% of a $10,000 account but 0.12% of a $100,000 one, and it no longer applies once you reach the $100,000 Premium level. Qtrade’s US$15 a quarter is US$60 a year per account (US$15 x 4).

Fit the commission to your habit. Small, frequent US purchases cost the most at a flat-fee broker: $9.99 on a $500 order is 2.0% of the purchase ($9.99 / $500 = 1.998%). At a $0-commission broker the same purchase costs only the small pass-through fees. Our investment fee calculator adds up commissions, account fees and fund costs for your own pattern.

Review once a year. Prices change. Compare your broker’s commissions, USD account fee and account fees with the best online brokers in Canada each year, and use a direct transfer if you decide to move.