International Investing From Canada: World Markets

1. International Investing From Canada Starts With US Stocks

Why the US comes first. For most Canadian investors, investing in US stocks from Canada is the first step outside the home market. Every broker we cover offers US-listed stocks and ETFs, US shares can be held in a TFSA, RRSP, FHSA or taxable account, and the Canada-US tax treaty sets clear rules for the tax on dividends.

What changes between brokers. Commissions on US trades are $0 online at seven brokers. Interactive Brokers charges USD 0.005 a share with a USD 1 minimum on fixed pricing, moomoo US$0.0099 a share with a US$1.99 minimum, CIBC Investor’s Edge $6.95, RBC Direct Investing $9.95, and TD Direct Investing and Scotia iTRADE $9.99, with Scotia’s charged in US dollars. The other big difference is whether your registered accounts can hold US dollars, and for what account fee.

The top five for US stocks. Our US-stocks score weights US features (US dollars in registered accounts and US commissions) 40%, costs 25%, account types 10%, platform 10%, safety 10%, and cash and margin rates 5%. Using figures checked on October 22, 2026, the top five are Desjardins Online Brokerage (4.6 / 5), Questrade (4.6 / 5), National Bank Direct Brokerage (4.5 / 5), Wealthsimple (4.0 / 5) and moomoo Canada (4.0 / 5). Desjardins and Questrade score exactly 4.575, so Desjardins is listed first by name. The full list, with pros and cons for each, is on our best brokers for US stocks page, and the scoring rules are on our broker rating methodology page.

The steps. You choose the account, pick a broker with US-dollar accounts, open the account and file a W-8BEN, fund it and place your order. Our guide on how to buy US stocks in Canada walks through each step with costs in dollars, including order types, US trading hours and pass-through fees on $0 trades.

Safety. Every broker we cover 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 and a separate $1,000,000 for retirement accounts. It does not cover market losses.

2. US Investing and USD Accounts

Which accounts can hold US dollars. Brokers differ on whether a TFSA, RRSP or other registered account can hold US dollars, and on the account fee for it. Our US-stocks score gives 3 points for US dollars in registered accounts with no fee, 1.5 where a fee applies and 0.75 where it is not stated. The table lists what each broker publishes, in US-stocks score order.

Wealthsimple’s tiers. Wealthsimple’s USD account fee of $10 plus tax a month applies on Core. It is included from Premium, at $100,000 or more in assets, and on Generation, at $500,000 or more. Our Wealthsimple USD accounts review covers which Wealthsimple accounts can hold US dollars.

Fees on $0 trades. A $0 commission covers the trade itself. Questrade charges ECN fees on direct-routed US orders, and Wealthsimple passes through exchange and regulatory fees on some US orders. Our investment fee calculator adds up commissions, account fees and fund fees for your own pattern.

Tick the features you need below, such as US dollars in registered accounts or a DRIP, and this tool lists every broker that offers them, ranked by our overall score.

3. US Withholding Tax by Account

The treaty rate. Article X(2)(b) of the Canada-US tax treaty caps US tax on dividends paid to a Canadian resident at 15%. The broker, as withholding agent, needs a valid Form W-8BEN to apply it. Without the form, most US-source income paid to a foreign person is taxed at 30%.

The retirement exemption. Article XXI(2) exempts dividends and interest earned by arrangements operated exclusively to provide pension or retirement benefits. RRSPs, RRIFs, LIRAs and LIFs qualify, so US-listed securities held directly in them have no US tax withheld on dividends once the broker has the account documented. TFSAs, FHSAs and RESPs are not retirement arrangements.

What it means for placement. US dividend payers keep the most in a documented RRSP. In a TFSA, the 15% is a permanent cost, but growth and gains are never taxed in Canada, so US holdings that pay little or no dividend still fit there well. Our US stocks in a TFSA guide puts the TFSA cost in dollars, and our best RRSP for US stocks and best TFSA for US stocks pages rank brokers for each account. If you hold dividend payers, our list of the best brokers for dividend investing ranks the 7 brokers that list a DRIP.

Use this calculator to see the US tax on your own yearly dividends in each type of account, with and without a W-8BEN.

4. Holding US Dollars: Savings and Protection

US-dollar savings. US dollars waiting to be invested can sit in a US-dollar savings account. The highest US-dollar savings rate in our register was 2.50% at the EQ Bank US Dollar Account, effective May 15, 2026. Compare rates on our USD savings accounts page.

Deposit insurance. Eligible deposits in Canadian or foreign currency at a CDIC member are insured up to $100,000 per insured category at each member institution. Stocks, ETFs and crypto are not CDIC-insured, wherever you hold them.

Investor protection. Shares and cash held at an investment dealer are covered by the Canadian Investor Protection Fund instead. If a member firm fails and client property is missing, CIPF covers up to $1,000,000 for general accounts and a separate $1,000,000 for retirement accounts. It does not cover a fall in market value. Our guide to CIPF vs CDIC explains which protection applies to each kind of holding.

5. Foreign Stocks Beyond the US: What Canadian Investors Can Reach

What the published pricing shows. Every broker we cover publishes commissions for Canadian-listed and US-listed stocks and ETFs. Interactive Brokers, for example, offers fractional trading on TSX and Cboe Canada stocks and ETFs as well as US stocks. Direct access to stock exchanges outside North America, and the commission for each of those markets, is not listed by broker in the pricing we checked on October 22, 2026, so this page does not name which brokers offer it. If you want to buy foreign stocks in Canada directly on an overseas exchange, please ask the broker for its list of markets and its commission for each one before you open an account.

Depositary receipts. Many large companies based outside North America also trade in the United States as American depositary receipts (ADRs). An ADR is a US-listed certificate that represents shares of a foreign company, traded in US dollars like any other US-listed share. Some brokers pass on a custody fee: Webull charges an ADR custody fee of US$0.01 to US$0.03 per share. The company’s home country may also withhold tax on its dividends, at a rate set by that country’s rules and its treaty with Canada, which this page does not cover.

Funds. The most common route to markets outside the US is a fund: a Canadian-listed or US-listed ETF or mutual fund that holds international stocks. One purchase gives exposure to many countries, and a Canadian-listed fund trades on a Canadian exchange like any Canadian share. The structure of the fund decides how many layers of foreign withholding tax apply, as section 6 explains.

The same account rules apply. Listed shares and funds are generally qualified investments for registered accounts, but confirm that a foreign listing qualifies before you buy it in a TFSA or RRSP, since a non-qualified investment is taxed at 50% of its fair market value. Foreign dividends in a TFSA, FHSA or RESP lose whatever the foreign country withholds. In a taxable account, foreign tax can generally be claimed as a foreign tax credit, up to the Canadian tax on that income.

Watch the extra costs. Overseas markets can bring other trading hours and other fees. Before you invest outside North America, write down the commission, any custody fee and the foreign withholding rate, and compare the total with a fund that gives similar exposure.

6. Global Investing in Canada Through Funds: Layers of Withholding

Why structure matters. Two funds can hold the same companies and still lose different amounts to foreign tax. The difference is where each layer of withholding is taken and whether your account can recover it. This section describes the layers in general terms; it is not a view on any fund.

In a TFSA. For US companies, each structure loses one 15% layer, so the fund’s fees decide. For companies outside the US, a US-listed fund or a Canadian fund that holds one can lose two layers, while a Canadian fund holding the stocks directly loses one.

In an RRSP. A US-listed fund held directly avoids the 15% US layer under the treaty’s retirement exemption, which is the main reason investors hold US-listed funds there. A Canadian-listed fund does not, because the exemption does not reach through a Canadian fund.

In a taxable account. Foreign tax reported to you, such as US tax on a US-listed holding or the foreign tax a Canadian fund reports on its slips, can generally be claimed as a foreign tax credit. Tax withheld deeper inside a structure may not be reported to you in a way that can be claimed.

The trade-offs. Fewer layers usually means less tax lost, but US-listed funds trade in US dollars, and fund fees differ. Weigh all three before choosing a structure, and read each fund’s tax and distribution documents. Our US stocks in a TFSA guide applies these layers to the TFSA in more detail.

7. Foreign Investments in a Taxable Account

Reporting foreign dividends. In a non-registered account, foreign dividends are reported in Canadian dollars at their gross amount, before the foreign tax withheld. They do not qualify for the Canadian dividend tax credit, so they are taxed at your full marginal rate, like interest.

The foreign tax credit. You then claim a credit for the foreign tax withheld. The credit is 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 a US dividend worth $1,000 in Canadian dollars, Canadian tax is $296.50 ($1,000 x 29.65%). The $150 of US tax is less than that Canadian tax, so the full $150 is credited. Net Canadian tax is $146.50 ($296.50 – $150), and total tax is $296.50.

Capital gains and losses. Gains and losses on foreign shares in a taxable account are reported on your Canadian return like any other capital gain or loss. A loss is denied under the superficial loss rule if you or an affiliated person, including 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. Net capital losses can be carried back three years or forward indefinitely against taxable capital gains. The capital gains tax calculator estimates the tax on a gain.

Registered accounts. None of this yearly reporting applies inside a TFSA, RRSP or FHSA. RRSP and RRIF withdrawals are taxed as income when you take them, and the foreign tax lost inside a TFSA, FHSA or RESP cannot be claimed.