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 the 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 the 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 the 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, it’s 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. 

Final Words

CIBC Investor’s Edge is one of the best investment platforms in Canada used by millions of Canadians every day. 

Investor’s Edge flat fees of $6.95 per trade is the highlight of the platform. You can invest in ETFs, Canadian & US Stocks and Mutual Funds using the platform. 

Always remember to open both the US dollar account and Canadian account for TFSA and RRSP both, when opening the new account. That’s because you can easily convert the Canadian dollars to the US dollars and save the constant spread and exchange fees when buying US stocks through Canadian dollars. 

You can trade using the online web portal, mobile smartphone app or on the tablet. The platform is quite robust and neat.

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

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