Buying us stocks on questrade

This means you can trade in markets on both sides of the border without surprise currency conversion fees when you buy, sell or receive dividend income.

The currency settlement preference lets you control how money is deposited settled in your account when you sell or receive dividend income, and also when you transfer in funds from another financial institution.

Before Questrade introduced the option to choose how currency settled, no one in the industry allowed investors to hold U. Cash was always in Canadian dollars, meaning any trade in the U. With currency settlement, you can set your account to currency of the trade , USD or CAD settlement. No more surprise currency conversion fees means potentially huge savings for you. This is the simplest option and is the default selection when you open a new registered account.

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If you invest in U. If you invest in Canadian markets, your currency will remain in CAD. Perfect, your currency will always settle in the currency of the trade. The exception to this rule is if trades or fees cause a debit balance during the trading day.

You also sold DEF. When you have set your currency settlement preference to CAD only, any funds deposited into your account will be converted to CAD automatically overnight. If you received USD from the proceeds of selling US stocks, the USD will be converted to CAD overnight. This would be converted to the equivalent CAD overnight using the end-of-day exchange rate on the market and adjusting the rate for the associated exchange rate spread.

If your currency settlement is set to USD only, any funds deposited in your account will automatically be converted to USD overnight.

For example, assume you sold XYZ.

This would be converted to the equivalent USD overnight using the end-of-day exchange rate on the market and adjusting the rate for the associated exchange rate spread.

To update your currency settlement preference, please visit: From there, you can change your currency settlement preference for your accounts. Please note that changes made after 2 p. ET may not be applied to any end-of-day conversions that are scheduled to occur on the same business day. In that case, the change will be effective the following business day.

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What do you think? Login to comment on this article.

Because the way it is described currently is very misleading. Also it would be helpful to your clients not to hide 1. I have just found out the hard way that I am being charged interest on all my U. I am a new account holder and funded account with my Canadian dollars. I did not realize I had to transfer my funds to U. I have tried to go into "account management" and there is NO "currency settlement" as you mention in the above post.

What do you suggest now that I have a significant amount of my portfolio in U.

Questrade is very misleading as the same happened to me. I was buying USD stocks thinking I was using my money and I found out that they were "lending me" money I did not ask.

Then I was charged a year of interest for this money. These guys are deceiving people! All content in the Exchange , whether provided by Questrade or created by the community members, is for informational purposes only and does not contain advice or recommendations on behalf of Questrade Inc.

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Overview DIY investing Managed investing ETFs IQ news Idea exchange Client notice. Request a feature Share your ideas. Why currency settlement is important Before Questrade introduced the option to choose how currency settled, no one in the industry allowed investors to hold U. Trade currency This is the simplest option and is the default selection when you open a new registered account.

Managed CAD When you have set your currency settlement preference to CAD only, any funds deposited into your account will be converted to CAD automatically overnight. Managed USD If your currency settlement is set to USD only, any funds deposited in your account will automatically be converted to USD overnight.

The following business day, you will hold the equivalent USD amount adjusted for spread. Updating your preference To update your currency settlement preference, please visit: This article was written by one of our staff members, Jeffrey A. Great Article Jeffrey, but it should be posted here: Community Blogs Forums Twitter Facebook YouTube. Since , Questrade has been recognized as one of Canada's Best Managed Companies.