Your guide to selling US stocks in Canada

Selling US stocks as a Canadian investor involves more than just hitting the “sell” button. From understanding the tax implications to navigating currency conversion fees, there are a few hurdles to keep in mind—especially if you’re dealing in USD.

But, with a little planning (and the right tools), it’s easy to avoid common pitfalls. Services like Wise let you receive and hold your USD earnings without getting stung by unnecessary conversion costs.

Information in this article does not constitute financial advice, and is for informational purposes only. Please consult a professional before making major investment decisions.

We will be looking at:

Can Canadians sell US stocks? How to sell US stocks in Canada Tax implications of selling US stocks in Canada Capital gains tax in Canada US withholding tax on Dividends CRA reporting requirements Best brokerages for selling US stocks in Canada TD Direct Investing RBC Direct Investing Questrade Wealthsimple Qtrade Comparison of brokerages for selling US stocks Managing currency conversion when selling US stocks Using Wise to manage US stock sale proceeds

Can Canadians sell US stocks?

Canadians can absolutely sell US stocks¹—even if they were purchased through a Canadian brokerage. But as with all cross-border investments, there are a few important details to consider before you cash out.

When you sell US stocks, you may be subject to US withholding tax, especially if the investment paid dividends. Typically, dividends from US companies are subject to a 15% withholding tax for Canadian residents, thanks to the Canada–US tax treaty². However, capital gains from selling US stocks are generally not taxed in the US for Canadian investors, unless you’re dealing with US real estate or are considered a US tax resident².

On the Canadian side, any capital gains from your US stock sales must be reported to the CRA³. You’ll need to calculate the gain or loss in Canadian dollars, using the exchange rate on the date of purchase and the date of sale⁴. Fifty percent of any net capital gains is included in your taxable income.

Brokerage fees can also eat into your returns—especially currency conversion fees if your broker automatically converts USD proceeds back to CAD. To avoid this, some investors use a USD account or a service like Wise to receive their proceeds in USD and convert only when the rate is right.

How to sell US stocks in Canada

Selling US stocks in Canada is straightforward, especially if you’re using an online brokerage. Here’s a step-by-step look at how the process works:

Step 1: Log In to your brokerage account

Sign in to your account and head to the trading platform.

Step 2: Choose the stock you want to sell

Find the US stock you’d like to sell in your portfolio. Make sure to check the current market price and choose whether you want to place a market order that sells immediately at the current price, or a limit order that sells only at a price you specify⁵.

Step 3: Place your order

Enter the number of shares you want to sell, confirm the details, and submit the order. If the market is open, market orders are usually executed instantly.

Step 4: Wait for settlement

Once your order is filled, the sale will move to the settlement period, which is typically two business days after the trade date⁶. That’s when your cash will become available to reinvest or withdraw.

Step 5: Decide what to do with the funds

After the sale settles, you can either:

• Reinvest the USD proceeds in other US securities, or
• Withdraw the funds—just note that if you don’t have a USD account, your broker may automatically convert the money back to CAD often with a hefty markup.

Tax implications of selling US stocks in Canada

Selling US stocks as a Canadian resident comes with a few tax considerations—both at home and across the border.

Capital gains tax in Canada

When you sell US stocks for more than you paid, you trigger a capital gain. In Canada, 50% of this gain is taxable and must be reported on your income tax return¹. The gain is calculated in CAD, based on the exchange rate on the purchase and sale dates⁴. That means currency fluctuations can affect your tax bill, even if the stock price in USD stays the same.

If you sell for less than you paid, you may have a capital loss, which can be used to offset capital gains in the current year or carried forward.

US withholding tax on Dividends

While capital gains on US stocks are not subject to US tax for Canadian residents, dividends are. The US imposes a 30% withholding tax on dividends paid to foreign investors⁸—but this is reduced to 15% under the Canada-US tax treaty⁷. To access the reduced rate, you must file a W-8BEN form with your broker⁸.

The amount withheld can be claimed as a foreign tax credit on your Canadian tax return to help avoid double taxation⁹. However, note that this credit is only available for taxable (non-registered) accounts.

CRA reporting requirements

If the total cost of your foreign assets exceeds CAD 100,000 at any point during the year—including US stocks—you’ll need to file Form T1135 or a Foreign Income Verification Statement with the CRA¹⁰. This applies even if you didn’t earn any income from those assets.

In addition to capital gains and foreign dividend income, make sure to keep good records of:

• Purchase and sale prices
• Exchange rates on transaction dates
• Any foreign taxes paid

Failing to report this information accurately can lead to penalties or interest.

Best brokerages for selling US stocks in Canada

If you're looking to sell US stocks in Canada, the right brokerage can make a big difference. Here's a quick look at some of the most popular platforms available to Canadian investors.

TD Direct Investing

TD Direct Investing makes it easy to trade both Canadian and US stocks from one platform, with standard trades priced at a flat commission of $9.99 per transaction¹¹. Active traders (those making more than 150 trades per quarter) can also access a discounted rate of $7.00 per trade¹¹.

You can hold US dollars in your registered and non-registered accounts, so you’re not losing money on currency conversions every time you buy or sell. With handy features like real-time quotes and portfolio tracking, the popular bank's WebBroker platform is straightforward to use.

RBC Direct Investing

RBC Direct Investing supports USD accounts with seamless integration if you already bank with RBC. Providing in-depth educational resources, stock screeners, and a mobile-friendly experience, it's a convenient option for RBC customers looking for the convenience and stability that comes with a big bank brokerage. Trading fees start at $9.95 per trade, with a discounted rate of $6.95 available to high-volume traders¹².

Questrade

Questrade is well known for its low fees and flexible currency handling. It supports USD in both registered and non-registered accounts and allows for active currency management with services like Norbert’s Gambit.

The broker now offers $0 commission trading on all Canadian and US stocks and ETFs, with no annual account fees for basic self-directed accounts. Additional services like real-time data or registered account transfers incur separate charges of $9.95 and $44.95 per month¹³.

Wealthsimple

Wealthsimple offers commission-free trading¹⁴ on US and Canadian stocks through its Trade platform, though currency conversion comes with a 1.5% fee on buys and sells¹⁵.

Wealthsimple Core subscribers can hold USD for $10/month, while those with Premium and Generation plans have this feature included¹⁶, reducing conversion costs when selling US stocks.

Qtrade

Qtrade offers USD accounts within both registered and non-registered plans, helping you sidestep unnecessary currency conversion fees when trading US stocks. Trading fees start at $8.75 per trade, and drop to $6.95 for active traders placing at least 150 trades per quarter¹⁷.

Beyond low fees, Qtrade gives you access to a wide range of TFSA, RRSP, RESP, and non-registered accounts and their education hub includes webinars, guides, and planning tools to support both new and experienced investors.

Comparison of brokerages for selling US stocks

Choosing the right brokerage can make a big difference when it comes to selling US stocks in Canada. From trading fees and currency conversion costs to account features and platform usability, each provider offers something slightly different. Here’s a side-by-side look at how the major Canadian platforms compare, so you can decide which one best fits your needs.

Brokerage	USD Account Available	Trading Fees	Forex Fees
TD Direct Investing	Yes	$9.99 per trade1	2.5%18
RBC Direct Investing	Yes	$9.95 per trade12	Currency conversion fee (spread varies)19
Questrade	Yes	$0 commission trading on all Canadian and US stocks and ETFs13	Currency exchange fee of 1.5%13
Wealthsimple	Yes	$0 commission on trades14	1.5% currency conversion fee15
Qtrade	Yes	$8.75 per trade ($6.95 for active traders17)	Currency conversion fee (spread varies)17

Managing currency conversion when selling US stocks

When you sell US stocks through a Canadian brokerage, the proceeds are typically received in USD. Unless you hold a USD account with your brokerage, those funds will be automatically converted to CAD—often at less-than-favourable exchange rates. Most platforms apply a currency conversion spread (or forex fee) of around 1.5%–2%, which can eat into your profits.

These conversion fees are easy to overlook but can have a big impact, especially if you trade regularly or deal with larger amounts. For example, on a $10,000 USD sale, a 2% spread means you could lose $200 just to currency conversion.

To avoid unnecessary FX losses, consider using a brokerage that lets you hold USD in your account or explore options like Norbert’s Gambit, a DIY strategy to reduce forex costs. Another smart move? Use a service like Wise to convert your USD at the mid-market rate and withdraw in CAD or hold the funds in USD for future investments or spending.

Using Wise to manage US stock sale proceeds

If you're selling US stocks and want to keep more of your returns, using a Wise multi-currency account can be an alternative to traditional brokers or banks. With Wise, you can receive your proceeds in USD, hold them in your account, and convert them to CAD (or any of 40+ currencies) at the mid-market exchange rate—with no hidden markups. Fees are low, transparent, and shown upfront, so you always know what you're paying.

Unlike most brokerages that automatically convert your USD at inflated rates, Wise gives you full control over when and how you exchange your funds. That’s especially useful if you want to wait for a better rate or reinvest your USD elsewhere.

Some investors try to avoid forex fees by using Norbert’s Gambit—a workaround involving buying and selling cross-listed stocks to convert currencies. While this method can save on fees, it's time-consuming and can be tricky for beginners. Wise offers a much simpler way to get a great rate without the hassle.

If you’re planning to reinvest, withdraw, or spend your USD, Wise makes it easier and more cost-effective to manage your money across borders.

Final thoughts on selling US stocks in Canada

Selling US stocks as a Canadian investor isn’t complicated—but it does come with a few things to watch for, such as brokerage fees, foreign exchange charges and tax reporting.

The right brokerage can make a big difference when it comes to trading fees and how your USD earnings are handled. And if you want to keep more of your returns, using a Wise multi-currency account is a smart way to avoid poor exchange rates and hidden markups.

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Sources:

1. Can I trade a U.S. stock in a Canadian account or vice versa? | NBDB
2. United States-Canada Income Tax Convention
3. Understanding Capital Gains Tax in Canada - TD Bank
4. Taxes From Selling Foreign Investments | 2024 TurboTax® Canada Tips
5. Order types | | Questrade Learning
6. Withdrawals Overview | Questrade Learning
7. Tax implications of investing in the United States
8. Instructions for Form W-8BEN (10/2021) | Internal Revenue Service
9. Line 40500 - Federal foreign tax credit - Canada.ca
10. Foreign Income Verification Statement - Canada.ca
11. Fees & Pricing – TD Direct Investing
12. Active Trader Program - RBC
13. Trading Commissions & Fees | Pricing | Questrade
14. Wealthsimple: Commission-free stock trading
15. Wealthsimple Investments Inc. Fee Schedule for Self-Directed Accounts
16. Compare Generation, Premium, and Core Plans & Fees | Wealthsimple
17. Pricing | Qtrade
18. TD Direct Investing Commission Schedule and Statement of Disclosure of Rates and Fees
19. RBC Direct Investing® Commissions and Fees Schedule

Sources verified on 28 March 2025