How To Exchange CAD To USD In CIBC Investor’s Edge?

US stocks are all buzzing and the best of tech stocks are out there with Apple splitting 4 for 1 and now Tesla 5 for 1.

You might be wondering how to invest in US stocks. If you are like me and bank with CIBC and hold a CIBC Investor’s edge account then this article is for you. 

Note: You can purchase and hold the US stocks in your TFSA or RRSP Canadian account as well. In this case, your Canadian Dollars will be exchanged to USD automatically upon the stock purchase and similarly when you sell the stock.

Instead of holding US stocks under Canadian Account type, keeping it under RRSP USD or TFSA makes more sense, you get to control when to exchange the money and at what time. That’s the whole point of discussion here. 

Let’s get started. 

How To Convert CAD to USD Using the Investor’s Edge Platform? 

If you invest using the CIBC’s Investor’s Edge platform and want to buy US stocks, here’s how you can convert Canadian Dollars to US dollars in a simple way. 

Remember, your CIBC Investor’s Edge account has four components: 

  1.  RRSP Canadian
  2.  RRSP US
  3.  TFSA Canadian 
  4.  TFSA US

The Pros of holding US stocks in RRSP are: 

  1. A dividend cut of 15% will not be applicable to you. For example, apple stock pays out a dividend of 0.82 USD per quarter at the moment. 

The Cons of holding US stocks in RRSP are: 

  1. You cannot take out the money if required without paying the taxes applicable per Canadian Government and your tax slab, except buying a first house or student loan

Pros of holding US Stocks in TFSA: 

  1. You can invest in US stocks anytime you want to and how much you want to (within the TFSA limits of course) 

  2. You can take out the money to your chequing account when needed (counts against the annual quota)

  3. If you invest in US stocks using TFSA CAD account type, your Canadian dollars are going to be converted to USD, but still, you will see the stock value increase/decrease in Canadian dollars, per exchange rate at that minute. 

  4. If you invest in the TFSA USD account, you will have to first convert CAD to USD and then buy the individual stocks or ETFs trading in the US exchanges. 

Let’s look at option 4 here.

Investor’s Edge TFSA CAD To USD Money Exchange

Steps to be followed to convert TFSA CAD to USD account: 

  1. Login to your CIBC Investors Edge Account here – https://www.investorsedge.cibc.com/en/home.html

cibc investors edge account

  1. Click “Cash Transfers” from the left menu 

  2. Click on Foreign Exchange>Submit A Request link 

  3. Make sure you have sufficient funds in the TFSA Canadian account (TFSA CAD) 

  4. Select the TFSA CAD account and enter the amount you want to convert to USD

  5. The system should automatically populate the equivalent US dollars and “choose the TFSA USD account” for exchange

  6. Click on submit the request. (Double-check the exchange rate you’re getting)

  7. The Canadian amount should be converted and you should see the USD amount in your TFSA USD account within 5 minutes max.

Remember: You cannot exchange the money at any time you want to, you will have to always do it during the regular market trading hours. 

trading hours

Following the above steps is extremely convenient and easy. This way, you don’t have to call CIBC Investor’s edge every time you need to convert money and wait on hold to speak to someone. 

You can also follow similar steps to convert money from RRSP CAD to RRSP USD in your Investor’s Edge Account. 

A quick note about the Wealthsimple Trade App 

Using The Wealthsimple Trade app, you can buy and sell Canadian/US stocks at $0 commission. (No affiliate link, don’t worry :))

Whereas with CIBC Investor’s Edge, I usually pay $6.95 per trade. $13 for buying and sell in total.  

I’ll personally recommend anyone just starting to invest, please google Wealthsimple Trade and signup, its free and the iOS app is extremely useful to start transferring money and investing. If you trade frequently or plan to Invest in ETFs every month, you’ll end up saving a ton of money in fees and will also benefit from the dollar cost average. 

For Example: 

Transfer $100 to your Wealthsimple trading account every month: 

Price of ETF for example: 

June: $10

July: $15

August: $12 

Dollar Cost Averaging: 10+15+12 = 37/3 = 12.33 + $6.5*3 = %19.5 saved in fees. 

Please let me know your thoughts and comments below.  Thanks for reading!

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5 thoughts on “How To Exchange CAD To USD In CIBC Investor’s Edge?”

  1. Hi,

    I just signed up for Investors Edge and want to buy US stocks.

    Do I need to sign up for a CIBC US account and CIBC US TFSA account?

    Is my other option to buy US stocks in my Canadian TFSA?

    I am confused when you say “Instead of holding US stocks under Canadian Account type, keeping it under RRSP USD or TFSA makes more sense, you get to control when to exchange the money and at what time… If you invest in US stocks using TFSA CAD account type, your Canadian dollars are going to be converted to USD, but still, you will see the stock value increase/decrease in Canadian dollars, per exchange rate at that minute.”

    Does that mean that the US stock is held in USD or CAD?

    Thanks

    Reply
    • Hi Kim,

      Please find the answers below:

      1. When you open the CIBC Investor’s Edge account, you should get both the CAD and US accounts. Login to your Investors edge account and look for two account options under TFSA and RRSP (CAD and USD is what it should show). Again, Investor’s edge is a separate app on iOS. In case you don’t have both the account options, you might have to call CIBC Investor’s edge to make sure.

      2. Yes, you can buy US stocks in your TFSA CAD too, for example – when you buy AAPL (apple stock) in the Canadian TFSA, the price per share of Apple (which is around $114 USD today) get converted to CAD (114*1.32) and will be bought in your TFSA Canadian account. The stock’s everyday price movements will also be tracked in Canadian. That’s what I meant.

      Thanks!
      S

      Reply
  2. Hi Sagar,

    Thanks for your reply. It was very helpful.

    Can you clarify what the difference of buying US stocks in a CAD TFSA and US TFSA is? Is the only difference that the CAD TFSA displays the US stock in CAD?

    Thanks!

    Reply

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