buying US stock

  • Last Updated:
  • Jul 16th, 2020 11:21 am
Feb 7, 2019
94 posts

buying US stock

So, if you want to buy US stock (unregistered account, but this should not matter), there seem to be two options:
1) - Convert CAD to USD and buy US stock in USD.
2) - Buy US stock in CAD (conversion is done automatically by the broker when bought and sold).
Which option would you recommend?
3 replies
Deal Fanatic
Apr 5, 2016
5939 posts
First option. So you control the rate. If USD is down, then stock up on USD.

Second option is only for must trades if I don't have enough USD then I'll definitely the conversion on the spot.
Deal Fanatic
Feb 4, 2015
8680 posts
Canada, Eh!!
Research Norbit's Gambit.

Would also suggest to keep funds in USD even if sell whatever you previously bought.
2022: BOC raised 6 times and MCAP raised its prime next day.
2017 to 2018: BOC raised rates 5 times and MCAP raised its prime next day each time.
2020: BOC dropped rates 3 times and MCAP waited to drop its prime to include all 3 drops.
Deal Addict
Dec 3, 2014
2348 posts
Depends on how large your intended transaction is. For Questrade for example, you know that the conversion fee is 2%. You can therefore calculate what your cost will be vs. the gambit.

If making smaller transactions, say $2,000, I personally wouldn’t bother with the gambit because you won’t save much and time is also worth something.

I did use the gambit recently to covert about $10,000 and calculated that I saved about $175 or so on the gambit. If I was converting $2,000 I may have saved $40 but you are delayed by about a week and have to wait on hold for often an excessive time. That’s not worth $40 to me but my time is worth a lot.