Canadian investors can purchase US stocks through Questrade by exchanging CAD to USD — but the platform's built-in currency conversion costs 1.5% (embedded in the FX rate). Converting $5,000 at that spread costs approximately $75.
Questrade offers dual-currency accounts, meaning you can hold USD without forced conversions on every trade. The behavior depends on your account type and currency settlement settings — a detail many investors overlook until they've already paid unnecessary conversion fees.
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How does Questrade handle currency conversion?
Questrade's conversion mechanics differ significantly between registered accounts (TFSA, RRSP) and margin accounts. Understanding the distinction prevents surprise fees.
Registered accounts
When you buy US securities in a registered account without USD cash, Questrade automatically converts CAD to cover the purchase at the end of the trading day (around 4pm ET). Registered accounts cannot hold negative balances due to regulatory requirements, so automatic conversion is mandatory.
The currency settlement preference (found under Account Management) determines ongoing behavior: CAD settlement converts all cash to CAD overnight, USD settlement converts all cash to USD overnight, and Currency of transaction keeps each currency separate (recommended for most investors). Setting your preference to "Currency of transaction" prevents unwanted overnight conversions and lets you maintain USD cash for future US trades.
Margin accounts
Margin accounts work differently. Buying USD securities without USD cash creates a negative USD balance — you're borrowing USD. Questrade does not auto-convert. Instead, you pay interest on the borrowed amount until you manually exchange CAD to cover it.
| Account type | Auto-conversion | Borrowing allowed | Interest charged |
|---|---|---|---|
| TFSA/RRSP | Yes (at 4pm ET) | No | N/A |
| Margin | No | Yes | Yes (USD rate) |
| Cash | Yes (at 4pm ET) | No | N/A |
If you don't want to pay margin interest, keep sufficient USD cash before placing US trades or request a manual currency exchange through the platform.
What does Questrade's currency conversion cost?
Questrade charges 1.5% (built into the FX rate) for currency exchanges. The fee applies whether you trigger automatic conversion or request manual exchange.
| Amount converted | Fee at 1.5% |
|---|---|
| $1,000 | $15 |
| $5,000 | $75 |
| $10,000 | $150 |
| $25,000 | $375 |
Compare the rate Questrade offers against the Bank of Canada's daily reference rate to verify the actual spread. Canadian banks typically charge 2%–3.5% on FX transactions, so Questrade's 1.5% represents meaningful savings — though cheaper alternatives exist.
What is Norbert's Gambit and how does it work?
Norbert's Gambit lets Canadian investors convert currency at a fraction of typical brokerage fees — often under 0.2% versus Questrade's 1.5%. The strategy uses interlisted securities (stocks or ETFs trading on both TSX and US exchanges) to move between currencies.
The process
Buy DLR.TO (Horizons US Dollar Currency ETF) in CAD, request Questrade to "journal" your shares from DLR.TO to DLR.U.TO (the USD version), then sell DLR.U.TO and receive USD proceeds.
As of early 2025, Questrade charges a flat $9.95 CAD journaling fee (plus tax) instead of per-trade commissions. Amounts over ~$8,000 benefit most from this approach because the fixed fee represents a smaller percentage.
Timeline
The full process takes 3–5 business days: trade settlement (2–3 business days) then journaling request (1–2 business days). During the waiting period, currency movements can affect your final conversion rate — a minor risk given DLR's design tracks the CAD/USD exchange rate.
Can you fund Questrade with pre-converted USD?
Bypassing Questrade's conversion entirely offers the most control over your exchange costs. Fund your account with USD directly, and you'll never pay the 1.5% spread.
Open a USD account
Most Canadian banks offer USD savings or chequing accounts — not a US-domiciled account, but a Canadian account denominated in USD. RBC, TD, Scotiabank, BMO, and CIBC all provide straightforward options.
Convert externally
Online currency exchange services typically charge 0.3%–0.5% spreads — substantially lower than Questrade's 1.5%. Convert CAD through an external service, deposit the USD into your Canadian USD account, then transfer to Questrade.
Fund via pre-authorized deposit
Set up a pre-authorized deposit (PAD) to transfer USD from your external account to Questrade: navigate to the funding section in your Questrade account, select pre-authorized deposits, add your USD account details (institution number, transit, account), and specify the transfer amount.
PAD transfers under $10,000 typically arrive within 2–3 business days. Larger amounts may take up to 7 business days. Wire transfers arrive faster but may incur bank fees depending on your account type.
How does Questrade compare to Wealthsimple for USD?
Both platforms now support holding USD — contrary to older information suggesting Wealthsimple forces conversion on every trade.
| Feature | Questrade | Wealthsimple |
|---|---|---|
| USD accounts | Free with all accounts | $10/month or Premium tier |
| Conversion fee | 1.5% | 1.5% (lower at higher amounts) |
| Norbert's Gambit | Supported ($9.95 fee) | Coming Q1 2026 |
| Commission | $0 (as of Feb 2025) | $0 |
Wealthsimple now offers USD accounts through subscription ($10/month) or automatically for Premium and Generation clients. For active USD traders, Questrade's free USD accounts and Norbert's Gambit support currently provide lower ongoing costs.
What's the cheapest way to buy US stocks on Questrade?
The optimal approach depends on your conversion frequency and amounts.
For occasional small conversions under $1,000, accepting Questrade's 1.5% fee makes sense — the convenience outweighs the ~$15 cost. For regular conversions between $1,000 and $8,000, external currency exchange services offering 0.3%–0.5% spreads make more sense — fund via PAD and trade with pre-converted USD. For large conversions over $8,000, Norbert's Gambit becomes increasingly attractive — the $9.95 flat journaling fee on $10,000 equals 0.1%, dramatically cheaper than the 1.5% standard conversion.
Save on FX costs with RemitBee
RemitBee offers CAD-to-USD exchange with rate markups of just 0.3%–0.5% and no explicit fees on amounts over $500. Convert externally, then fund your Questrade USD account with pre-converted currency to avoid the 1.5% spread entirely. RemitBee lets you exchange up to $500,000 daily, is FINTRAC-regulated with bank-level encryption, comes with a 100% money-back guarantee, and transfers complete within 1–2 business days via EFT.
Download RemitBee and compare rates before your next conversion — the savings compound significantly over time.
Frequently asked questions
Does Questrade automatically convert currency in a TFSA?
Questrade will auto-convert in registered accounts including TFSA if you hold a negative balance in either currency at 4pm ET. Set your currency settlement preference to "Currency of transaction" to prevent unwanted overnight conversions and maintain both CAD and USD balances.
What is the Questrade currency conversion fee?
Questrade charges 1.5% built into the FX rate — not shown as a separate line item. Convert $10,000 and you'll pay approximately $150 in spread, regardless of whether conversion happens automatically or by manual request. For a full platform comparison, see our guide on the best trading platforms in Canada.
Is Norbert's Gambit legal in Canada?
Norbert's Gambit is completely legal and widely used by Canadian investors. The strategy simply exploits the fact that interlisted securities trade on both Canadian and US exchanges, allowing you to move between currencies without traditional conversion.
How long does Norbert's Gambit take on Questrade?
The complete process takes 3–5 business days: 2–3 days for trade settlement plus 1–2 days for Questrade to process the journaling request. Plan accordingly if you need USD for a time-sensitive trade. For other low-cost brokerage options, see our guides on TD Direct Investing and Interactive Brokers
