Save. Spend. Splurge.

2 Comments

  • Nicole

    Thanks for all the info! I’ve just been reading about foreign withholding tax on Canadian-held US ETFs. As I understand it so far… the taxes apply to the yield only so it could be worth paying it vs having to convert CAD to USD to get the US-held funds. Do you have experience with buying US currency/funds through a brokerage and is it worth it for you? Any further reading you can recommend on the subject? Thanks again!

    • Sherry of Save. Spend. Splurge.

      It is only to the yield yes, and “worth it” but for me it eats into profits so I am hesitant, to be honest.

      What you need to do is convert CAD to USD (and pay a forex fee) within your discount brokerage/account (I use Questrade – referral code [ o0soehds ].

      After you convert CAD to USD, then you just buy what you want in USD. You have two currency balances inside an account and can see combined balances or JUST CAD or JUST USD.

      If you want to buy US stocks there is no other way around it. For me, it has seemed to have been worth it but with the exchange rate at 1.30, PLUS a Forex fee, PLUS the 30% withholding… it seems like a lot of hassle when you can just buy Canadian stocks or ETFS.

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