Using USD accounts

When you subscribe to USD accounts for your stock trading accounts, we'll automatically add a USD account to each of your eligible accounts. We'll also transfer any U.S. assets you hold in your CAD account into your USD account. 

Add funds to your USD account

There are four ways you can add funds to your USD accounts: 

1. Convert funds from your CAD account to USD
When you want to add funds to your USD account, you can convert your Canadian Dollar cash balance into U.S. dollars. When you convert Canadian Dollars into U.S. dollars, there is a one-time 1.5% currency conversion fee.

2. Deposit USD directly from a US dollar bank account into your US dollar trading account
There are no fees for this transfer. These deposits must come from a Canadian financial institution. We do not support connecting U.S. dollar accounts from US financial institutions.

3. Transfer USD from another institution
You can also transfer USD from an investment account at another institution. There are no currency conversion fees when you transfer USD from another institution.

4. Wire USD to your USD account
You can wire USD directly to your USD accounts from institutions in Canada or the United States.

Move funds between USD accounts

It’s currently not possible to move a USD cash balance between USD accounts.

Withdraw funds from your USD account

When you want to withdraw funds from a USD account, you can simply withdraw USD from your account into a linked USD bank account.

Alternatively, you can convert your cash to CAD and withdraw it to your connected CAD bank account. 

Note: When assets are sold in a USD account and the cash is immediately converted into CAD, the funds may be subject to a 4 business day settlement period to reduce the risk of fraud and/or delinquent accounts. This is due to the small delay in posting the transaction to the official ledger which usually takes about 1 hour. Conversions made after this process should only face a 2 business day settlement period.

Trading in a USD account

When trading stocks and ETFs, your USD accounts work the same way as your CAD accounts. You have access to the same types of orders in your USD account as in your CAD account. 

Receiving dividends from U.S.-listed companies

Dividends from U.S.-listed companies are paid into the account where the shares were held on the dividend Record Date. The Record Date is the day the company checks its records to identify its shareholders.

Consider the following examples:

Subscribing to USD accounts after the record date
  • Company A is a U.S.-listed company.
  • On the record date, Sam holds shares of Company A in her CAD TFSA.
  • Sam subscribes to USD accounts after the record date. We automatically move all her Company A shares into her USD TFSA.
  • Sam receives the dividend from Company A into her CAD TFSA, because that’s the account where she held the shares on the record date. 
  • We automatically convert Sam’s dividend to CAD. (There is no currency conversion fee.)
Holding shares in a USD account on the record date
  • Company A is a U.S.-listed company.
  • On the record date, Sam holds shares of Company A in her USD TFSA.
  • Sam will receive the dividend from Company A into her USD TFSA. The amount will be in USD.

What happens to my USD accounts if I cancel my subscription?

If you cancel your USD accounts, we'll move all your USD stocks to your CAD account and cancel any open orders. There is no currency conversion fee to move your holdings from a USD account to a CAD account.

 

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