To buy US stocks through TD Direct Investing from Canada, you convert Canadian dollars (CAD) to US dollars (USD) — either through TD's built-in currency conversion (which embeds a spread of roughly 2.5%–3.3% depending on the amount and method) or by funding your account with pre-converted USD.
TD charges $9.99 per online trade for US equities and supports USD component accounts in most registered and non-registered plans, which lets you hold and trade in USD without triggering a conversion on every order.
A trademark disclaimer — TD Bank is a trademark of TD Bank, N.A. RemitBee Inc. has no direct or indirect association with TD Bank in marketing, sales, or customer service.
Why do Canadians buy US stocks through TD Direct Investing?
The NYSE and Nasdaq are the two largest stock exchanges globally by market capitalization, giving Canadian investors access to companies like Apple, Microsoft, and Walmart. Holding US equities adds sector diversification that the TSX alone can't deliver — particularly in semiconductors, big tech, and biotech.
TD Direct Investing is one of Canada's most-used self-directed brokerages because it integrates with TD's banking ecosystem. However, its trading fees are higher than several competitors that now offer commission-free stock trades.
| Cost | TD Direct Investing |
|---|---|
| Online stock trade (Canadian or US) | $9.99 per trade |
| Active trader pricing (150+ trades/quarter) | $7.00 per trade |
| Options | $9.99 + $1.25/contract |
| Registered account administration fee | $25/quarter (waivable) |
The commission is flat regardless of trade size, so the fee's impact shrinks on larger orders. On a $500 purchase, $9.99 represents 2% of the total. On $10,000, that drops to 0.1%.
How does TD Direct Investing handle currency conversion?
TD converts CAD to USD when you trade US-listed securities without sufficient USD in your account. The conversion happens at TD's posted retail rate — not the mid-market rate you'd see on Google or the Bank of Canada website. The difference between those two numbers is the exchange rate margin, and it's where TD earns revenue on every conversion.
TD's FX spread
Independent monitors like KnightsbridgeFX measure TD's spread at approximately 2.64% to 3.34% for major currency pairs. As an example, on February 10, 2026, the mid-market CAD/USD rate sat near 0.7373 while TD's illustrative conversion rate showed 0.7168. That gap of roughly 2.8% means a $10,000 CAD conversion would cost you about $280 in hidden spread — money that never shows up as a line-item fee.
Registered accounts
If you hold a TFSA or RRSP with TD Direct Investing, your account can have both a CAD component and a USD component. Trading US stocks from the USD component avoids conversion entirely. Trading from the CAD component (or without sufficient USD) triggers TD's automatic conversion at their retail rate.
Opening the USD component is free — you contact TD Direct Investing at 1-800-465-5463 or request it through WebBroker. Once active, any USD you deposit or convert stays in that component until you move it.
Margin accounts
In a non-registered margin account, buying a US stock without USD cash creates a negative USD balance (a loan from TD). You pay interest on that borrowed amount until you convert CAD or deposit USD to cover it. TD's margin interest rates vary by balance size, but they add up fast on positions held for weeks or months. Converting CAD upfront eliminates the borrowing cost entirely.
What are the cheapest ways to convert CAD to USD for TD Direct Investing?
Three main approaches exist, and the cost differences are significant — especially when conversion amounts exceed $5,000.
Norbert's Gambit
Norbert's Gambit is the classic workaround for expensive brokerage FX. You buy a dual-listed ETF like DLR in CAD, journal the shares to the USD side (DLR.U), and sell in USD. The effective cost is two commissions ($9.99 each at TD) plus the ETF's bid-ask spread — roughly $25–$30 total on any amount.
A RedFlagDeals user priced a $100,000 USD conversion at TD in late 2024 and found Norbert's Gambit saved approximately $525 (0.53%) compared to TD's posted conversion rate. The tradeoff is time: the process takes about two business days because you need the buy to settle before journaling.
External provider + USD deposit
Converting through a fintech currency exchange provider before depositing USD into your TD account avoids the brokerage spread altogether. Providers like RemitBee charge exchange rate margins of 0.3%–0.5% with no separate fee — a fraction of TD's 2.5%–3.3% embedded spread.
Once you've converted, you deposit the USD into TD Direct Investing through EasyWeb (if you bank with TD) or via bill payment from another institution.
TD's built-in conversion
Using TD's WebBroker conversion tool is the fastest option (it processes instantly) but also the most expensive. The tool is accessible under Transfer & Pay > Cash/Securities Transfer, where you select the source currency and destination. What you're paying for is convenience — no waiting, no extra steps.
| Method | Approximate cost on $10,000 CAD | Time to complete |
|---|---|---|
| TD WebBroker conversion | ~$280 (2.5%–3.3% spread) | Instant |
| Norbert's Gambit (DLR/DLR.U) | ~$25–30 (two commissions + spread) | 2 business days |
| External fintech provider | ~$30–50 (0.3%–0.5% margin) | 2–3 business days + deposit |
The cost gap is hard to ignore. Converting $10,000 through TD costs roughly 10x more than either alternative.
How do you fund a TD Direct Investing account with USD?
If you've already converted your CAD to USD through an external provider (or hold USD in a TD USD account), depositing into TD Direct Investing takes a few straightforward steps.
TD bank customers
Log into EasyWeb, select Transfer, choose your USD source account (the "From" account), and select your TD Direct Investing USD component as the destination. Enter the amount, review the details, and confirm. Transfers between TD accounts are fee-free and typically process within one business day.
The per-transaction transfer limit is $125,000 USD for transfers from a TD bank account to a TD Direct Investing account. For transfers between brokerage accounts sharing the same six-digit account number, the limit rises to $500,000 USD.
Non-TD bank customers
If your USD sits in a non-TD institution, use the bill payment method. Search for "TD Direct Investing" as the payee in your bank's bill payment system, enter your TD account number, and submit the payment. Bill payments generally take 1–3 business days to appear in your TD Direct Investing account.
What to watch out for
US dividend withholding tax catches many Canadian investors off guard. The IRS withholds 15% on US dividends paid to Canadian accounts (under the Canada-US tax treaty). In an RRSP, the withholding is typically waived. In a TFSA, the 15% withholding applies and cannot be recovered through Canadian tax credits — which means your effective dividend yield drops on every US stock held in a TFSA.
Save on your next CAD to USD conversion with RemitBee
Canadian investors who convert currency regularly for stock trading, cross-border spending, or family transfers can cut their FX costs by converting through RemitBee before depositing into their brokerage. RemitBee lets you convert up to $500,000 per day, settle via EFT in 2–3 business days, comes with a 100% money-back guarantee, is FINTRAC-regulated with SHA-256 RSA encryption, and charges exchange rate margins of just 0.3%–0.5% with no separate commission.
Sign up with RemitBee to convert CAD to USD at rates that consistently beat bank spreads.
Frequently asked questions
Does TD Direct Investing charge a fee for currency conversion?
TD does not charge a separate "conversion fee" line item. Instead, the cost sits in the exchange rate spread — the gap between the mid-market rate and TD's posted rate. Independent estimates place the spread at 2.64%–3.34% for major currency pairs, which translates to $264–$334 on a $10,000 conversion.
Can I hold USD in my TD Direct Investing account?
Yes. TD supports USD component accounts within most registered (TFSA, RRSP, RESP) and non-registered plans. Holding USD in the USD component lets you trade US stocks without triggering a currency conversion on every order.
What is Norbert's Gambit at TD Direct Investing?
Norbert's Gambit is a method for converting CAD to USD (or vice versa) by purchasing a dual-listed ETF like DLR in one currency, journaling the shares to the other currency side, and selling. At TD, the process costs two trade commissions ($9.99 each) and takes about two business days to complete — saving hundreds compared to TD's posted conversion rate.
Is it better to convert currency inside or outside of TD?
For amounts over a few thousand dollars, converting outside TD (via Norbert's Gambit or a fintech provider) saves substantially. TD's embedded spread of 2.5%–3.3% is among the highest in the Canadian brokerage industry. The only advantage of TD's built-in conversion is speed — it processes instantly.
