Dual Currency FAQs

In which accounts am I able to hold U.S. dollars?

You have the option to hold U.S. dollars in most accounts, including:

• Tax-Free Savings Accounts (TFSAs)
• Registered Retirement Savings Plans (RRSPs)
• Group RRSPs
• Registered Retirement Income Funds (RRIFs)
• Life Income Funds (LIFs)
• Locked-in Retirement Income Funds (LRIFs)
• Prescribed Retirement Income Funds (PRIFs)
• Restricted Life Income Funds (RLIFs)
• Locked-in Retirement Accounts (LIRAs)
• Restricted Locked-in Savings Plans (RLSPs)
• Cash investment accounts
• Margin investment accounts

The only exception is Registered Education Savings Plans (RESPs), where a U.S. dollar side is not offered

I currently have an RBC Direct Investing account; how can I hold U.S. dollars in my account?

As a client, you don’t have to take any action to be able to hold U.S. dollars in qualifying accounts. The U.S. dollar side of the account is automatically available in all accounts except RESPs. You can contribute new funds in real-time directly from an RBC U.S. dollar banking account, or you can make a conversion to buy U.S dollars if you already have funds in Canadian dollars, by going to Transfer Cash & Foreign Exchange from the My Portfolio menu.

How can I open an RBC Direct Investing account where I can hold U.S. dollars?

The ability to hold U.S. dollars in your account is automatically available in all new and existing accounts except RESPs.

How can I move my U.S. securities from the Canadian dollar side to the U.S. dollar side of my account?

If you would like your U.S. securities moved to the U.S. dollar side of the account, please contact us at 1-800-769-2560. Alternatively, send us a secure message with your instructions, including the account number, the name of the security and the quantity of the security you would like moved to the U.S. dollar side of your account.

Are negative cash balances in one currency offset by a positive cash balance in the other currency within the same account?

No, currency positions are treated separately within the same account. A negative cash balance (debit) in one currency is not offset by a positive cash balance (credit) in the other currency. In addition, interest is charged and calculated separately for each currency that you hold in your account.

Am I able to hold U.S. dollars in Registered Education Savings Plans (RESPs)?

No. The ability to hold U.S. dollars is not available for RESPs at present because of the additional complexity of RESPs. 

Trading

How do I trade the securities on the U.S. dollar side of my account?

Each account displays both Canadian dollar (CAD) and U.S. dollar (USD) holdings. The account number drop-down menu on the Order Entry page lists each of your accounts followed by “CAD” and “USD.” To settle a trade on the U.S. side of the account simply select the USD account when placing an order.

I have a U.S. dollar security sitting on the Canadian side but I would like to have this security settle in U.S. dollars when it is sold. How do I do this?

You can sell the position on the U.S. dollar side by selecting the USD side of your account on the Order Entry page. The security that was sold may still appear temporarily on the Canadian dollar side of your account while the U.S. dollar side of your account shows a negative position. When your trade settles, both the Canadian dollar and U.S. dollar sides of your account will be automatically corrected.

Do I have to call in advance to avoid currency conversions when I trade U.S. securities in my accounts?

Because you can hold U.S. dollars in all accounts except RESPs, you don’t need to call in with a special request to trade U.S. securities in qualifying accounts when you select the U.S. dollar side of the account.

Retirement Income Fund accounts

Are U.S. dollar payments from an income fund permitted?

To start receiving RIF/LIF payments in U.S. dollars please contact us by phone at 1-800-769-2560 or via secure email.

Is income fund unlocking available on the U.S. dollar side of the account?

To unlock income funds please contact us by phone at 1-800-769-2560 or via secure email.

Taxes and Fees

What are the tax implications of trading on the U.S. dollar side of a registered account?

Since you are trading in a tax-sheltered plan, the tax implications of any trade are the same in Canadian and U.S. dollars.

Are additional trading commissions or fees applied if I choose to trade in U.S. dollars?

RBC Direct Investing does not charge any extra fees or transaction costs when you choose to settle in U.S. dollars. Our same low trading commissions apply, applicable in the currency you are trading in. Please refer to the Commissions and Fees schedule.

Is there a single quarterly maintenance fee or one for each side of the account, Canadian and U.S.?

The two currency sides form a single account. At RBC Direct Investing, there is no maintenance fee¹ if your combined assets are $15,000 or more across all of your RBC Direct Investing accounts. If your combined assets are less than $15,000 across all of your RBC Direct Investing accounts, you will be charged one maintenance fee of $25 CAD per quarter (split across all your accounts*). However, this fee can be waived for a number of other reasons. For full details please refer to the complete Commissions and Fees schedule.

^*Clients can open a maximum of 10 accounts for a combined maintenance fee of $25/quarter. Additional maintenance fees will apply if a client has more than 10 accounts.

What are RBC Direct Investing’s commissions and fees?

Online or mobile equity trades are $9.95 flat² with no minimum account balance or trading activity requirements. If you trade 150 times or more per quarter, you pay only $6.95 flat per trade. For more information, please visit our Commissions and Fees schedule.

Contributions

Can I make a cash or in-kind contribution in U.S. dollars?

Yes. The funds or securities you contribute will remain in U.S. dollars in your account, but the contribution receipt will reflect the Canadian dollar equivalent. Note that in-kind contributions in either currency are considered deemed dispositions for tax purposes (the Canada Revenue Agency treats the investments as sold, meaning you realize a capital gain or loss). Under normal circumstances any capital gain will have to be declared, but you may not claim any resulting capital loss. Please consult with a qualified tax advisor for more information.

Can I contribute to the U.S. dollar side of my registered account from my U.S. dollar RBC bank account?

Yes, you can contribute directly from your RBC U.S. dollar chequing or savings account into the U.S. dollar side of your registered account (excluding RESPs).

Withdrawals

How will U.S. dollar withdrawals work for Registered Retirement Savings Plans and Income Funds (RRSPs and RRIFs)?

You can withdraw U.S. dollars from your RRSP and RRIF. Withholding taxes will be charged in U.S. dollars but reported in Canadian dollars using the previous day’s average exchange rate. Withdrawal fees (if applicable) will be charged in U.S. dollars for RRSPs but in Canadian dollars for RRIFs.

Can I withdraw U.S. dollars for the purpose of the Home Buyers Plan or the Lifelong Learning Plan?

No. Withdrawals made as part of the Home Buyers Plan or the Lifelong Learning Plan are required to be in Canadian dollars.

Can I make a TFSA withdrawal in U.S. dollars from the U.S. dollar side of my account?

Yes, you can make a TFSA withdrawal in U.S. dollars. For tax purposes this will be reported and valued in its Canadian dollar equivalent.

Statements

How will I receive statements for the U.S. dollar side of my accounts?

One statement will be issued for the Canadian dollar side of your account and one for the U.S. dollar side, if you have U.S. dollar holdings or transactions. Statements are issued quarterly (March, June, September and December) regardless of activity. For all other months a statement will be generated only if there was activity in the account.

Where can I see U.S. dollar contributions on my statement?

Your contribution summary appears on the first page of your Canadian dollar statement regardless of what side of the account the contribution was made to. You will see the U.S. dollar contribution transaction on the U.S. dollar statement along with the exchange rate applied at the time.

Other

What are the Canada Revenue Agency (CRA) foreign content rules?

There are no foreign content limits on registered or non-registered accounts. Some U.S. securities traded on the over-the-counter market might not be eligible to be held in a registered account. Please contact us at 1-800-769-2560 or via secure message to confirm the eligibility of a security.

How are dividends for U.S. securities treated if they are held on the U.S. dollar side of the account?

Dividends are paid in U.S. dollars if the investment is held on the U.S. dollar side of the account. Dividends from U.S. companies are subject to withholding taxes; the tax rate depends on the type of account and investment. The good news is that this tax rate can often be reduced as a result of U.S. statutory exemptions or provisions under a tax treaty with the U.S. To make certain that you are not paying any unnecessary taxes, complete the online W-8BEN Substitute Form for your account.

Can an RRSP withdrawal be done in U.S. dollars?

Yes, you can withdraw U.S. dollar holdings from your RRSP. For income tax purposes, the U.S. dollar value of the security will be nominally converted to Canadian dollars before withholding tax is deducted. The previous day’s average exchange rate is used to calculate the Canadian dollar value of the withdrawals.