The best broker for U.S. stocks in Canada depends on more than trading commissions. Wealthsimple, Questrade, and Interactive Brokers all allow Canadians to invest in American companies, but their currency-conversion costs, trading tools, and account features can make a significant difference in how much you pay.
For years, investors primarily compared online brokerages based on stock-trading commissions.
That comparison has changed.
Wealthsimple and Questrade now offer $0 commissions on eligible online U.S. stock and ETF trades. Interactive Brokers (IBKR) continues to charge relatively small trading commissions, but it offers a major advantage for Canadians who regularly convert Canadian dollars into U.S. dollars.
Why does this matter?
Because a brokerage advertising commission-free trading might still charge $75 to convert $5,000 CAD into USD.
Meanwhile, another brokerage could charge a small stock commission but substantially less for currency conversion.
For Canadians purchasing American companies such as Apple, Microsoft, Amazon, or Nvidia, these differences can add up over time.
In this guide, we’ll compare the best brokers for U.S. stocks in Canada, including their trading fees, CAD/USD conversion costs, USD accounts, registered-account options, and suitability for different investing strategies.
Quick Answer: Best Broker for U.S. Stocks in Canada
There isn’t one brokerage that’s best for every Canadian investing in U.S. stocks.
Each platform has different strengths.
| Brokerage | Best For | Main Advantage |
|---|---|---|
| Wealthsimple | Beginners and simple investing | $0 eligible stock commissions, fractional shares, recurring investments |
| Questrade | Traditional self-directed investors | $0 eligible online commissions and convenient CAD/USD holdings |
| Interactive Brokers | Frequent USD investors and advanced traders | Low-cost currency conversion and international market access |
My overall assessment:
Wealthsimple is generally the easiest choice for Canadians who prioritize simplicity and automated investing.
Questrade is a strong alternative for investors who want a more traditional brokerage platform with the ability to hold both Canadian and U.S. dollars.
Interactive Brokers is particularly attractive for investors who regularly convert larger amounts of CAD into USD.
The biggest takeaway is simple:
For Canadians buying U.S. stocks, currency-conversion fees can matter substantially more than trading commissions.
Best Brokers for U.S. Stocks in Canada at a Glance
| Feature | Wealthsimple | Questrade | Interactive Brokers |
|---|---|---|---|
| U.S. stock commission | $0 | $0 online | From USD $0.0035/share, tiered |
| U.S. ETF commission | $0 | $0 online | Low per-share commissions |
| Standard CAD/USD conversion | Generally 1.5% for smaller conversions | Generally 1.5% | Low spot-FX commissions |
| Hold USD | Yes, with eligible USD account functionality | Yes | Yes |
| TFSA | Yes | Yes | Yes |
| RRSP | Yes | Yes | Yes |
| FHSA | Yes | Yes | Yes |
| Fractional shares | Yes, eligible securities | Yes, eligible securities | Yes, eligible securities |
| Recurring investments | Extensive | Available for eligible securities | Available through supported tools |
| Beginner experience | Excellent | Good | More advanced |
| Advanced trading tools | Growing selection | Traditional brokerage tools | Extensive |
| Global market access | Primarily North America | Primarily North America | Extensive international access |
These are standard self-directed investing comparisons. Additional fees, account restrictions, and transaction conditions may apply.
For a broader look at these three platforms, see our Questrade vs Wealthsimple vs Interactive Brokers comparison.
Why Currency Conversion Matters More Than Trading Commissions
This is arguably the most important consideration when choosing a Canadian brokerage for U.S. stocks.
American stocks generally trade in U.S. dollars.
If you earn and save money in Canadian dollars, you’ll usually need to convert your money before purchasing U.S.-listed securities.
And that conversion isn’t always free.
How a 1.5% Currency-Conversion Fee Works
Suppose you have $5,000 CAD to invest in American stocks.
Your brokerage charges a 1.5% currency-conversion fee.
You would pay approximately $75 CAD in conversion costs before accounting for market movements or other charges.
Now consider larger investments.
| CAD Converted | Approximate 1.5% FX Cost |
|---|---|
| $500 | $7.50 |
| $1,000 | $15 |
| $2,500 | $37.50 |
| $5,000 | $75 |
| $10,000 | $150 |
| $25,000 | $375 |
These amounts illustrate a 1.5% fee applied to the Canadian-dollar transaction value.
A $0 stock commission doesn’t eliminate these costs.
Why Repeated Conversions Can Become Expensive
Imagine investing $1,000 CAD into U.S. stocks every month.
Over a year, you would convert:
$1,000 × 12 = $12,000 CAD
At 1.5%, your approximate annual conversion cost would be:
$12,000 × 1.5% = $180 CAD
Over five years, that could represent approximately $900 in conversion fees, assuming the same contribution schedule and fee rate.
This doesn’t include investment returns, currency movements, or additional conversions when selling.
If your brokerage also converts your U.S. sale proceeds back into CAD, you could incur another conversion charge.
Why Interactive Brokers Is Different
Interactive Brokers offers currency conversion through a different pricing structure.
Rather than applying a standard 1.5% percentage-based conversion charge, IBKR publishes spot-FX commissions measured in basis points, with minimum order charges.
Its published spot-currency commission schedule ranges from approximately 0.08 to 0.20 basis points of trade value, depending on volume, with a minimum commission that is generally around USD $2 for a manually executed spot-FX conversion.
One basis point equals 0.01%.
Therefore, 0.20 basis points equals 0.002%.
For many ordinary conversions, the minimum commission, not the tiny percentage calculation, determines the amount paid.
Automatic currency conversions may follow different pricing rules.
You can review the current structure through the Interactive Brokers Canada currency commission schedule.
Does That Make Interactive Brokers Automatically Better?
Not necessarily.
IBKR generally charges stock-trading commissions, while Wealthsimple and Questrade offer $0 commissions on eligible online U.S. stock trades.
For someone making very small investments, commissions and minimum charges can matter.
For someone who already holds USD, currency-conversion costs may not matter at all.
The best choice depends on your actual transactions.
Wealthsimple for U.S. Stocks: Best for Simplicity
Wealthsimple has become one of the most accessible investing platforms in Canada.
Its main strengths are commission-free trading, a straightforward interface, and features designed to make regular investing easier.
For someone purchasing U.S. stocks occasionally, Wealthsimple can be particularly convenient.
Wealthsimple U.S. Stock Trading Fees
Wealthsimple offers $0 standard commissions on eligible Canadian- and U.S.-listed stocks and ETFs.
For example, you could purchase shares of Microsoft, Apple, or an eligible U.S.-listed ETF without paying a standard stock-trading commission.
However, currency-conversion fees can still apply.
You can review its published pricing through the Wealthsimple trading fee schedule.
Wealthsimple USD Accounts
Wealthsimple offers USD account functionality that allows eligible investors to hold U.S. dollars.
This is important because it can eliminate repeated conversions when buying and selling U.S. securities using an existing USD balance.
For example, suppose you convert $5,000 CAD into USD.
You purchase shares of Apple and later sell them.
If your account is configured to hold USD, the proceeds can remain in U.S. dollars.
You can then use those funds to purchase another U.S. stock without converting them back into Canadian dollars first.
That can reduce unnecessary currency-conversion costs.
How Much Does a Wealthsimple USD Account Cost?
Wealthsimple’s published USD account arrangement has included:
- Core clients: Approximately $10 CAD per month, plus applicable taxes.
- Premium clients: USD account functionality without the additional subscription fee.
- Generation clients: USD account functionality without the additional subscription fee.
Client-tier requirements and subscription terms may change.
For Core clients, the subscription fee is worth considering.
At $10 per month, the annual subscription cost would be approximately $120 CAD before taxes.
That doesn’t automatically make the subscription worthwhile.
Its value depends on how frequently you trade U.S. securities and whether holding USD helps you avoid repeated conversion fees.
Wealthsimple’s Tiered Currency-Conversion Fees
For eligible conversions through upgraded USD accounts, Wealthsimple has published the following structure:
| Conversion Amount | Applicable FX Fee |
|---|---|
| Under $10,000 | 1.5% |
| $10,000–$24,999.99 | 1.0% |
| $25,000–$99,999.99 | 0.5% |
| $100,000 or more | 0% additional conversion fee |
These tiers depend on the eligible account and conversion method. The applicable corporate exchange-rate spread can still affect the exchange rate, including at the highest tier.
A 0% additional conversion fee should not be interpreted as a guaranteed conversion at the mid-market exchange rate.
For example, an eligible $15,000 conversion at 1.0% would have an approximate explicit fee of $150 CAD.
The same conversion at 1.5% would cost approximately $225 CAD.
That difference can become meaningful for larger transactions.
Review the Wealthsimple USD account information for current eligibility and conversion rules.
Wealthsimple Fractional Shares and Recurring Investments
Wealthsimple also supports fractional shares and recurring investments for eligible securities.
These features are useful for Canadians investing smaller amounts.
For example, suppose you want to invest $100 CAD every payday into a U.S. company whose shares trade for several hundred U.S. dollars each.
Fractional shares may allow you to invest a dollar amount rather than purchasing a full share.
Recurring investments can also help automate purchases.
However, automatic investing doesn’t eliminate applicable currency-conversion charges.
Who Should Consider Wealthsimple?
Wealthsimple may be particularly attractive for beginners, occasional U.S. stock investors, people who already hold USD, and investors who value simplicity over sophisticated trading tools.
Its biggest drawback for CAD-funded U.S. investing remains currency-conversion costs.
Verdict: Wealthsimple is a strong choice for straightforward U.S. stock investing, especially when you can avoid repeated conversions.
For a direct comparison with IBKR, see our Interactive Brokers vs Wealthsimple Canada guide.
Questrade for U.S. Stocks: Best Traditional Brokerage Alternative
Questrade has changed significantly from the pricing structure described in many older brokerage comparisons.
It now offers $0 commissions on eligible online Canadian- and U.S.-listed stock and ETF trades.
That makes it much more competitive with Wealthsimple.
Questrade U.S. Stock Trading Fees
Under its current online pricing structure, Questrade advertises commission-free trading for eligible U.S. stocks and ETFs.
This means you can generally purchase and sell eligible American securities online without paying a standard trading commission.
However, currency conversion and certain other charges can still apply.
See the Questrade self-directed trading pricing for current details.
Holding CAD and USD With Questrade
One of Questrade’s main advantages is its ability to hold Canadian and U.S. dollar balances in supported investment accounts.
For example, suppose you have $5,000 USD in a Questrade TFSA.
You could purchase eligible U.S.-listed stocks using that balance.
If you later sell those stocks, the proceeds can generally remain in USD when your registered-account currency-settlement settings are configured appropriately.
You could then reinvest the proceeds without converting them back into CAD.
This is useful for investors who regularly trade U.S. securities.
Questrade Currency-Conversion Fees
Questrade’s standard CAD/USD conversion fee is generally 1.5%.
For example:
$10,000 CAD × 1.5% = $150 CAD
Although Questrade offers commission-free online stock trading, the conversion cost can still be substantial.
Investors who frequently convert larger amounts of CAD may find IBKR’s foreign-exchange pricing more attractive.
What About Norbert’s Gambit?
Questrade has traditionally been popular among Canadians using Norbert’s Gambit.
This strategy involves purchasing an eligible security in one currency, journaling it to its corresponding listing in another currency, and selling it.
The objective is to convert currencies without paying a traditional percentage-based retail FX fee.
However, the strategy involves additional steps, settlement requirements, bid-ask spreads, and potential market-price changes.
It may also involve transaction-specific charges.
For someone converting $200, the complexity may not be worthwhile.
For someone converting $20,000, it may deserve consideration.
Investors should confirm Questrade’s current journaling policies and applicable fees before attempting the strategy.
Questrade Trading Tools
Questrade offers a more traditional brokerage environment than Wealthsimple.
Depending on the platform, investors can access research tools, market data, different order types, and additional trading functionality.
This may appeal to investors who want greater control over their transactions.
Who Should Consider Questrade?
Questrade may be attractive for investors who want a traditional Canadian brokerage, commission-free online stock trading, and the ability to hold CAD and USD.
Its main limitation for U.S. investing is the standard 1.5% currency-conversion fee.
Verdict: Questrade is a strong alternative to Wealthsimple, particularly for investors who prefer traditional brokerage tools and convenient dual-currency holdings.
For more details, see our Wealthsimple vs Questrade Canada comparison.
Interactive Brokers for U.S. Stocks: Best for Frequent Currency Conversion
Interactive Brokers is particularly attractive for Canadians who invest heavily in American securities.
Its main advantage is not commission-free trading.
Instead, it offers competitive stock commissions, inexpensive currency conversion, and sophisticated investing tools.
For investors regularly converting thousands of Canadian dollars into USD, the savings can be significant.
Interactive Brokers U.S. Stock Trading Commissions
IBKR uses per-share commission structures.
Its published U.S. stock pricing includes tiered and fixed plans.
| Pricing Plan | Published Starting Commission | Minimum Order Commission |
|---|---|---|
| Tiered | USD $0.0035/share | USD $0.35 |
| Fixed | USD $0.005/share | USD $1.00 |
Additional exchange, clearing, regulatory, and other applicable charges can affect the final cost, particularly under tiered pricing.
For example, under the starting tiered commission rate, purchasing 100 U.S. shares would produce a base commission of:
100×0.0035=0.35$ USD
The actual commission could be higher depending on the applicable pricing rules.
You can review the Interactive Brokers Canada stock commission schedule.
Interactive Brokers Currency Conversion
This is where IBKR becomes especially competitive.
Its published spot-FX pricing uses small basis-point commissions rather than the typical 1.5% retail conversion fee.
For manually executed spot conversions, minimum commissions generally start around USD $2.
Suppose you convert $10,000 CAD into USD.
At a brokerage charging 1.5%, the approximate explicit conversion fee would be $150 CAD.
At IBKR, a manual spot-FX conversion might incur a minimum commission around USD $2, subject to its pricing rules.
That difference can be substantial.
However, the exact amount depends on the conversion method, account permissions, applicable minimums, and exchange rates.
IBKR’s automatic currency-conversion functionality may use a different fee structure.
Interactive Brokers Trading Tools
Interactive Brokers offers multiple trading platforms, including advanced tools designed for experienced investors.
Its features include sophisticated order types, options trading, margin accounts, detailed market data, and international exchange access.
These capabilities may be unnecessary for someone purchasing a few U.S. stocks each year.
However, they can be valuable for active investors.
International Market Access
IBKR also provides access to a broad range of international exchanges.
Its advertised market coverage extends to approximately 175 markets worldwide, although availability depends on account permissions and jurisdiction.
For Canadians investing outside North America, this is a meaningful advantage.
Who Should Consider Interactive Brokers?
IBKR is particularly attractive for frequent U.S. stock investors, people making larger CAD/USD conversions, active traders, and investors seeking international markets.
Its biggest disadvantages are its more complicated platform and commission schedules.
Verdict: Interactive Brokers is my preferred choice among these three for Canadians who frequently convert substantial amounts of CAD into USD.
For a more detailed comparison, see our Questrade vs Interactive Brokers Canada guide.
Wealthsimple vs Questrade vs Interactive Brokers: Currency Conversion Compared
For Canadians investing in U.S. stocks, foreign-exchange pricing can be the deciding factor.
All three platforms let eligible investors hold USD, but the cost of obtaining those dollars varies significantly.
| Broker | CAD/USD Conversion Structure |
|---|---|
| Wealthsimple | 1.5% for smaller conversions; reduced tiers on eligible larger USD-account conversions |
| Questrade | Generally 1.5% |
| Interactive Brokers | Spot-FX commission of approximately 0.08–0.20 basis points, subject to minimums |
These structures are reflected in the brokerages’ published fee schedules. Wealthsimple+2
Comparing the Cost of Converting $5,000 CAD
Suppose you want to convert $5,000 CAD into USD before purchasing American stocks.
| Brokerage | Illustrative Conversion Cost |
|---|---|
| Wealthsimple, standard 1.5% fee | $75 CAD |
| Questrade, standard 1.5% fee | $75 CAD |
| Interactive Brokers, manual spot FX | Approximately USD $2 minimum commission |
These figures exclude differences in exchange rates, spreads, and any applicable trading commissions.
IBKR’s approximately USD $2 minimum applies to qualifying manual spot-FX transactions. Automatic conversions can be priced differently.
Even after paying a small stock commission, Interactive Brokers may be considerably cheaper in this scenario.
Comparing a $15,000 CAD Conversion
Now suppose you convert $15,000 CAD.
At Questrade’s standard 1.5% rate:
$15,000 × 1.5% = $225 CAD
At Wealthsimple’s eligible 1.0% USD-account tier:
$15,000 × 1.0% = $150 CAD
At IBKR, a qualifying manual spot-FX conversion may still be subject to approximately the USD $2 minimum commission.
The difference becomes increasingly important as conversion amounts grow.
However, Wealthsimple’s reduced tiers apply only to eligible conversions, and its corporate exchange-rate spread remains relevant.
What If You Convert Money Frequently?
Suppose you invest $1,000 CAD into U.S. stocks every month.
At a standard 1.5% conversion fee, you’d pay approximately $180 CAD annually.
If you instead use IBKR’s manual spot-FX conversion at a USD $2 minimum each month, twelve conversions would cost approximately USD $24 in FX commissions, excluding stock commissions and other costs.
This illustrates why IBKR can be attractive for regular U.S. investors.
However, manually converting currencies may be less convenient than using a brokerage that automatically handles the transaction.
What About Wealthsimple’s Larger Conversion Discounts?
Wealthsimple’s USD-account conversion tiers can reduce the explicit fee on larger individual transactions.
| Eligible Conversion Amount | Conversion Fee |
|---|---|
| Under $10,000 | 1.5% |
| $10,000–$24,999.99 | 1.0% |
| $25,000–$99,999.99 | 0.5% |
| $100,000 or more | 0% additional conversion fee |
These tiers apply per eligible transaction, not necessarily to your annual conversion total.
The corporate exchange-rate spread still applies. Wealthsimple
For large conversions, Wealthsimple becomes more competitive than its standard 1.5% rate suggests.
However, investors should compare the actual exchange rate offered by each platform, not simply the advertised percentage.
Currency conversion is one of the strongest reasons to compare Interactive Brokers against commission-free Canadian brokerages.
Which Broker Is Best If You Already Have USD?
If you already hold U.S. dollars, the comparison changes considerably.
You may receive USD income, maintain a U.S. dollar bank account, or already hold USD in another brokerage account.
In these situations, converting CAD into USD may be unnecessary.
Wealthsimple With Existing USD
Wealthsimple allows eligible investors to hold USD through its USD-account functionality.
Supported direct USD deposits from eligible Canadian USD bank accounts can help avoid a new CAD/USD conversion.
Once USD is available in the trading account, purchases and sales of U.S.-listed securities using that balance generally don’t trigger another conversion.
However, account subscription fees and deposit eligibility should be considered.
Questrade With Existing USD
Questrade allows supported investment accounts to hold CAD and USD.
For example, an investor with $10,000 USD in a Questrade RRSP can purchase eligible U.S. stocks using those funds.
If the investor sells the stocks, the proceeds can remain in USD when the appropriate settlement settings are in place.
This makes Questrade attractive for investors who already maintain U.S. dollar balances.
Interactive Brokers With Existing USD
Interactive Brokers also supports multicurrency investing.
If you already hold USD, you can generally purchase U.S.-listed securities without first converting CAD.
However, stock-trading commissions still apply.
Which Brokerage Wins?
When currency conversion isn’t necessary, Wealthsimple and Questrade become more competitive because their standard stock-trading commissions are $0.
IBKR’s biggest cost advantage becomes less relevant.
For an investor already holding USD who makes occasional stock purchases, Wealthsimple or Questrade may offer a lower direct trading cost.
For an active trader who needs advanced order types or international market access, Interactive Brokers may still be preferable.
Best Broker for U.S. Stocks in a TFSA
A Tax-Free Savings Account (TFSA) is a popular account for Canadian investors.
Eligible U.S.-listed stocks and ETFs can generally be held in a TFSA, provided they meet the applicable qualified-investment requirements.
All three brokerages offer self-directed TFSAs.
However, their trading costs and USD functionality differ.
Wealthsimple TFSA for U.S. Stocks
Wealthsimple offers a straightforward TFSA investing experience.
Its commission-free stock trading and recurring investment functionality may appeal to investors who want to make regular contributions.
However, Canadians purchasing U.S. stocks with CAD should consider currency-conversion costs.
Using eligible USD account functionality can help avoid repeated conversions.
Questrade TFSA for U.S. Stocks
Questrade allows investors to hold CAD and USD in eligible TFSAs.
This is useful for investors who regularly buy and sell U.S. securities.
For example, if you sell shares of Microsoft, you can generally keep the proceeds in USD instead of converting them automatically back into CAD.
Questrade’s standard currency-conversion fee remains relevant when you initially convert Canadian dollars.
Interactive Brokers TFSA for U.S. Stocks
IBKR also offers TFSAs.
Its low-cost currency conversion can be particularly attractive for investors who regularly contribute CAD and purchase U.S.-listed investments.
However, trading commissions and registered-account restrictions still apply.
Important TFSA Tax Consideration
Although investment growth and withdrawals are generally tax-free in a TFSA under Canadian rules, U.S.-source dividends may still be subject to U.S. withholding tax.
For a typical Canadian resident holding ordinary U.S. stocks, the treaty-reduced withholding rate is generally 15%.
That withholding is generally not recoverable through a Canadian foreign tax credit when the dividend is received inside a TFSA.
This is separate from brokerage commissions.
Investors should also remember that TFSA contribution limits apply across all their TFSAs combined.
For more information on building a portfolio, see our TFSA Investing Strategy for Beginners guide.
Best Broker for U.S. Stocks in an RRSP
A Registered Retirement Savings Plan (RRSP) is another popular account for Canadians investing in U.S. securities.
All three brokerages support RRSP investing.
Wealthsimple RRSP
Wealthsimple may appeal to investors who want a simple long-term investment strategy.
Its commission-free trading can be useful for investors regularly purchasing eligible stocks and ETFs.
However, USD-account access and currency-conversion fees should be considered.
Questrade RRSP
Questrade supports holding CAD and USD in eligible RRSPs.
This allows investors to maintain U.S. dollar balances and reinvest proceeds without repeatedly converting currencies.
Its traditional brokerage tools may also appeal to investors who prefer greater control over their portfolios.
Interactive Brokers RRSP
IBKR’s low currency-conversion costs can make it attractive for investors regularly purchasing U.S. securities in an RRSP.
For example, an investor contributing several thousand Canadian dollars annually may save on FX costs compared with a standard 1.5% conversion charge.
U.S. Dividend Withholding Tax in an RRSP
An important distinction between TFSAs and RRSPs involves U.S. dividends.
Under the Canada–U.S. tax treaty, dividends paid on qualifying U.S. investments held directly in an eligible RRSP generally benefit from an exemption from U.S. withholding tax.
This treatment can differ for Canadian-listed ETFs holding U.S. securities indirectly.
The exact tax treatment depends on the investment structure and account.
This doesn’t automatically mean every U.S. stock belongs in an RRSP.
Your tax bracket, contribution room, investment strategy, and withdrawal plans also matter.
For a broader retirement-investing approach, see our RRSP Investing Strategy Canada: A Simple Beginner’s Guide.
Best Broker for U.S. ETFs in Canada
Many Canadians invest in American markets through exchange-traded funds rather than individual stocks.
Popular U.S.-listed ETFs include:
| ETF | General Exposure |
|---|---|
| VOO | S&P 500 |
| VTI | Total U.S. stock market |
| QQQ | Nasdaq-100 |
| SCHD | U.S. dividend-focused equities |
These ETFs generally trade in U.S. dollars.
Consequently, currency-conversion costs remain relevant.
Wealthsimple for U.S.-Listed ETFs
Wealthsimple offers $0 standard commissions on eligible U.S.-listed ETFs.
Its fractional-share and recurring investment features may also be useful for supported securities.
However, an investor regularly converting CAD into USD may incur ongoing FX costs.
Questrade for U.S.-Listed ETFs
Questrade also offers commission-free online purchases and sales of eligible U.S.-listed ETFs.
Its ability to hold USD is useful for investors who plan to maintain a U.S. ETF portfolio over time.
However, the standard 1.5% conversion fee can be significant when funding investments with CAD.
Interactive Brokers for U.S.-Listed ETFs
IBKR charges trading commissions but offers inexpensive currency conversion.
For investors regularly purchasing U.S.-listed ETFs with Canadian dollars, this can create meaningful savings.
Should Canadians Buy Canadian-Listed ETFs Instead?
Not necessarily, but it’s worth comparing the alternatives.
For example, a Canadian investor interested in the S&P 500 could purchase VFV, a Canadian-listed ETF that provides exposure to large U.S. companies.
This allows the investor to purchase the ETF using Canadian dollars.
However, the ETF still has underlying U.S. dollar exposure, and its returns can be affected by CAD/USD exchange-rate movements.
Buying a Canadian-listed ETF doesn’t automatically eliminate currency risk.
Investors should also consider management expense ratios, withholding-tax treatment, and currency hedging.
Our VFV vs VSP comparison explains how currency hedging affects two Canadian S&P 500 ETFs.
For investors considering broader diversification, VFV vs XEQT compares U.S. large-cap exposure with a globally diversified all-equity portfolio.
Best Broker for Small U.S. Stock Investments
For Canadians investing relatively small amounts, convenience becomes especially important.
Suppose you invest $200 CAD every two weeks into U.S. stocks.
Over 26 pay periods, you would invest:
$200 × 26 = $5,200 CAD
At a standard 1.5% conversion fee, the approximate annual FX cost would be:
$5,200 × 1.5% = $78 CAD
That may not seem enormous, but it represents money that isn’t invested.
Wealthsimple for Small Investments
Wealthsimple’s main advantages are its simple interface, fractional shares, and recurring investments.
For someone purchasing small amounts regularly, these features can make investing easier.
However, the currency-conversion fee still matters.
Questrade for Small Investments
Questrade’s commission-free online stock trading is competitive.
However, its standard 1.5% FX fee can still apply when converting small CAD contributions.
Investors who already hold USD may find Questrade more attractive.
Interactive Brokers for Small Investments
IBKR’s low FX costs can be attractive even for smaller investors.
However, manual currency conversions and stock commissions introduce additional steps and costs.
For very small contributions, an investor may prefer converting less frequently rather than paying a minimum FX commission on every payday.
For example, converting $1,000 quarterly may be more cost-efficient than converting $250 every month, depending on the brokerage’s pricing and the investor’s circumstances.
Which Is Best for Small Investors?
Wealthsimple is likely the simplest choice.
Questrade is also competitive for investors who prefer its brokerage tools.
Interactive Brokers deserves consideration when minimizing currency-conversion costs is a priority.
However, Canadians investing small amounts may also want to consider Canadian-listed ETFs that provide U.S. stock exposure without requiring direct USD purchases.
Best Broker for Large U.S. Stock Investments
For investors converting five-figure amounts into USD, foreign-exchange pricing becomes considerably more important.
Suppose you want to invest $25,000 CAD in U.S. stocks.
At a standard 1.5% conversion fee:
$25,000 × 1.5% = $375 CAD
That’s a substantial cost for a single conversion.
Wealthsimple for Large Conversions
Wealthsimple’s eligible USD-account conversion tiers reduce the explicit fee on larger transactions.
For example, a qualifying $25,000 conversion at 0.5% would cost approximately $125 CAD in additional conversion fees, before considering the corporate exchange-rate spread.
That’s significantly less than a standard 1.5% fee.
However, it may still be more expensive than IBKR’s manual spot-FX commission structure.
Questrade for Large Conversions
Questrade’s standard 1.5% FX fee can be expensive for large conversions.
However, investors may explore alternatives such as Norbert’s Gambit, subject to current policies and transaction costs.
Questrade can still be attractive when an investor already holds USD or doesn’t need to convert currencies frequently.
Interactive Brokers for Large Conversions
Interactive Brokers is particularly competitive for larger CAD/USD conversions.
Its spot-FX pricing can result in significantly lower explicit conversion commissions.
Even after accounting for stock-trading commissions, IBKR may offer meaningful savings.
Which Is Best for Larger U.S. Investors?
For frequent five-figure CAD/USD conversions, Interactive Brokers is my preferred option among these three.
For investors already holding USD, the comparison is closer.
And for investors who prioritize simplicity over advanced features, Wealthsimple or Questrade may still be appropriate.
Best Broker for U.S. Stocks in Canada: Which Should You Choose?
The best choice depends on your investing habits, account requirements, and how frequently you convert currencies.
| Investor Type | Platform to Consider | Main Reason |
|---|---|---|
| Complete beginner | Wealthsimple | Simple interface |
| Wants recurring investments | Wealthsimple | Strong automation features |
| Wants $0 stock commissions | Wealthsimple or Questrade | Commission-free eligible trades |
| Already holds USD | Wealthsimple or Questrade | Can avoid new currency conversions |
| Prefers a traditional brokerage | Questrade | Research and trading tools |
| Frequently converts CAD to USD | Interactive Brokers | Low spot-FX commissions |
| Makes large U.S. investments | Interactive Brokers | FX savings can outweigh commissions |
| Active stock trader | Interactive Brokers | Advanced order and execution tools |
| International investor | Interactive Brokers | Extensive global market access |
| Passive U.S. ETF investor | Depends | FX costs and investing frequency matter |
Can You Use More Than One Brokerage?
Yes.
For example, you could use Wealthsimple for recurring Canadian-listed ETF purchases while maintaining an Interactive Brokers account for U.S. stocks.
However, using multiple brokerages introduces additional administration.
You’ll need to track account balances, investment transactions, and registered-account contributions.
For taxable investments, tracking your adjusted cost base across institutions is also important.
Using multiple platforms can make sense when each serves a distinct purpose, but it’s not necessary for everyone.
Final Verdict: Best Broker for U.S. Stocks in Canada
Finding the best broker for U.S. stocks in Canada comes down to more than commission-free trading.
Wealthsimple, Questrade, and Interactive Brokers each have advantages.
Wealthsimple is my preferred choice for beginners and investors who prioritize simplicity.
Its commission-free eligible stock trading, fractional shares, recurring investments, and accessible interface make it attractive for straightforward investing.
However, its currency-conversion costs deserve attention, particularly for frequent CAD-funded U.S. purchases.
Questrade is a strong choice for investors who prefer traditional brokerage features.
Its commission-free eligible online U.S. stock and ETF trading, dual-currency holdings, and research tools make it competitive.
However, its standard 1.5% currency-conversion fee can become expensive.
Interactive Brokers is my preferred choice for Canadians who frequently convert CAD into USD.
Its low spot-FX commissions can produce substantial savings compared with percentage-based retail conversion fees.
It also offers advanced trading tools and extensive international market access.
For someone investing $100 occasionally, convenience may matter most.
For someone converting $10,000 or $25,000 regularly, FX costs deserve considerably more attention.
And for someone who already holds USD, Wealthsimple and Questrade become much more competitive.
The most important takeaway: A brokerage offering $0 stock commissions isn’t necessarily the cheapest brokerage for buying U.S. stocks.
Compare your complete transaction costs, including currency conversion, trading commissions, and account fees—before choosing.
Frequently Asked Questions
What Is the Best Broker for U.S. Stocks in Canada?
Interactive Brokers is particularly attractive for Canadians who frequently convert CAD into USD because of its low spot-FX commissions.
Wealthsimple is generally easier for beginners, while Questrade offers a traditional brokerage experience with commission-free eligible online U.S. stock trades.
The best choice depends on your investing habits.
Does Wealthsimple Charge Fees for U.S. Stocks?
Wealthsimple generally charges $0 standard commissions on eligible U.S.-listed stocks and ETFs.
However, currency-conversion fees can apply when converting CAD into USD.
Eligible USD accounts can help avoid repeated conversions when trading with an existing USD balance.
Does Questrade Charge Commissions on U.S. Stocks?
Questrade currently offers $0 commissions on eligible online U.S.-listed stock and ETF trades.
However, currency-conversion fees and other applicable charges can still apply.
Its standard CAD/USD conversion fee is generally 1.5%.
Is Interactive Brokers Cheaper for U.S. Stocks?
It can be, especially for Canadians converting substantial amounts of CAD into USD.
IBKR charges stock-trading commissions but offers low spot-currency conversion commissions.
For investors already holding USD, the comparison is closer because Wealthsimple and Questrade offer $0 standard commissions on eligible trades.
Can Canadians Hold U.S. Stocks in a TFSA?
Yes.
Eligible U.S.-listed stocks can generally be held in a Canadian TFSA.
However, U.S.-source dividends may be subject to withholding tax, even though the account is tax-free under Canadian rules.
Can Canadians Hold USD in an RRSP?
Yes.
Wealthsimple, Questrade, and Interactive Brokers offer eligible RRSP accounts that can hold U.S. dollar investments.
Account functionality, conversion charges, and other restrictions vary by brokerage.
Is It Better to Buy U.S. Stocks or Canadian-Listed ETFs?
That depends on your investment strategy.
Individual U.S. stocks provide exposure to specific companies, while Canadian-listed ETFs can offer diversified exposure to U.S. markets without requiring you to purchase securities directly in USD.
Investors should compare diversification, currency exposure, management expenses, and tax considerations.