How to hold USD and U.S. investments and avoid currency conversion fees
Simplify your U.S. dollar investing strategy — and keep more of your money.
CIBC Investor’s Edge
Jul. 02, 2025
3-minute read
When you open any investment account at Investor’s Edge — excluding RESPs — you automatically get both a Canadian dollar and a U.S. dollar side, at no extra charge. This means you can hold, trade and settle investments in either currency, without juggling multiple accounts or paying unnecessary conversion fees.
It’s a feature that offers convenience and cost savings.
Why having both CAD and USD accounts matters
A dual-currency setup means you can hold Canadian cash and securities on the Canadian side of your account and U.S. cash and securities on the U.S. side. Let’s break down the key advantages.
Avoid unnecessary currency conversions
If your account only holds Canadian dollars, then every time you buy a U.S. investment, you’ll pay a foreign exchange fee to convert your CAD to USD. And when you sell? The proceeds are converted back — triggering another fee.
With a U.S. dollar side to your account, you can avoid this back-and-forth. For example, if you sell a U.S.-listed ETF and plan to reinvest the money in another U.S. security, you can keep the proceeds in USD and use them directly for the next USD trade — no conversion required.
Have U.S. funds at the ready for USD purchases
Whether you’re investing in major U.S. companies or U.S.-listed ETFs, a USD account makes the process seamless. You can keep U.S. dollars available in your account, ready to act — and have the trade settle in USD without delay.
This is especially useful for investors interested in sectors or trends — like tech, healthcare or green energy — that are more developed in the U.S. market. You get the flexibility to act quickly without having to first arrange a currency conversion.
Make the most of dividends
Many U.S.-listed stocks and ETFs pay dividends in U.S. dollars. If you hold them in an account without a USD side, those dividends are converted to Canadian dollars every time they're paid — triggering exchange fees.
With a dual-currency account, you can receive and hold those dividends in U.S. dollars. This gives you more control. You might choose to reinvest them in another U.S. holding or wait for a better exchange rate before converting to Canadian dollars.
And when you set up an automated dividend reinvestment plan (called a DRIP), it makes things even easier — your dividends are automatically reinvested in the same security at no cost. This flexibility is especially helpful for long-term investors building wealth through dividend reinvestment.
Let’s say you’re building a diversified TFSA and want to include both Canadian and U.S. holdings. You start with Canadian ETFs but later decide to add a low-fee S&P 500 ETF listed on a U.S. exchange.
With a dual-currency TFSA, you can:
- Convert a portion of your CAD to USD when rates are favourable.
- Buy the U.S.-listed ETF in USD.
- Receive quarterly dividends in USD, reinvest them or wait to convert to CAD when it suits you.
- If you later decide to sell the ETF, the proceeds stay in U.S. dollars by default — giving you the choice to hold them in USD for your next U.S. investment or convert them back to CAD whenever the timing feels right.
A dual-currency setup is automatic and free with your Investor’s Edge account — it’s a practical advantage that helps reduce costs, improve flexibility and give you more control over your investments.
Whether you’re investing within a registered or non-registered account, the ability to hold both currencies adds flexibility and efficiency at no extra charge.
So, the next time you’re thinking about adding a U.S. stock — or receiving dividends from one — your account is already set up to make the most of it.
