There’s a trader in all of us
Diversify your portfolio with
U.S. Dollar Registered Accounts
There’s a trader in all of us
Diversify your portfolio with
U.S. Dollar Registered Accounts
Diversify your registered investments
Take advantage of investment opportunities in U.S. markets with Scotia iTRADE® U.S. dollar registered accounts1, which allow you to hold U.S. cash and securities in your registered account(s).
- No currency conversion costs1 when buying or selling U.S. denominated securities in the U.S. dollar side of your registered account
- Hedge against currency fluctuations by holding U.S. dollars
- Trade and hold securities and receive dividends in the U.S. side of your account
The following registered account types have a U.S. dollar side:
- Registered Retirement Savings Accounts (RRSP)
- Tax-Free Savings Accounts (TFSA)
- Registered Retirement Income Accounts (RRIF)
- Locked-in Retirement Accounts (LIRA)
- Locked-in Retirement Savings Plan (LRSP)
Registered Education Savings Plans (RESPs) are not available in U.S. dollars, however, Scotia iTRADE offers a U.S.-Friendly RESP that provides many of the same benefits of U.S. dollar registered accounts when saving for your child’s education.
Existing Accounts
If you currently have a Canadian dollar registered account, there’s no need to open a new account – simply enroll in the U.S. dollar side of your account. Once you have enrolled, the U.S. side of your account will be displayed when you next login to Scotia OnLine.
There are many ways to fund the U.S. dollar side of your registered account, including transfers from existing accounts and moving securities, or by using other funding methods.
New Accounts
If you open a new U.S. dollar eligible registered account with Scotia iTRADE, you’re ready to start taking advantage of all of the benefits of dual-currency registered accounts – the U.S. dollar side of your account is ready for U.S. dollar contributions immediately.
For a flat fee of $30 per calendar quarter per account, enrollment in a U.S.-Friendly RESP allows you to save for your child’s education, while taking advantage of trading U.S. denominated securities, without paying a retail foreign exchange spread2 in your Canadian denominated registered account.
Benefits
- No foreign exchange costs when buying or selling U.S. denominated securities in your registered account
- Can be applied to any RESP account at any time
- Easy to enroll in a few simple steps
How to Enroll
- Log on to Scotia OnLine
- Go to Manage My Accounts > Additional Services
- Click on "Service Request" and select "Enroll Registered Account(s) in the U.S.-Friendly RESP Account Service"
The following questions and answers relating to US dollar registered accounts are intended to provide some general background only. Please refer to the Canada Revenue Agency (CRA) and your tax advisor for detailed information and guidance on registered investments in general, and U.S.-denominated accounts in particular.
Accounts and Enrolment
1. What is a U.S. dollar registered account?
Your Scotia iTRADE registered account has both a U.S. and Canadian dollar “side”, meaning you can hold cash and securities in both currencies in the same account in their respective currency “sides”. You can enroll in the U.S. dollar side through Scotia OnLine >> Manage my account >> Additional Services >> Scotia iTRADE >> Service Request >> Enroll to enable the U.S. Dollar side of registered account.
2. What registered accounts are offered by Scotia iTRADE with a U.S. dollar side?
All registered account types, except Registered Education Savings Plans, (RESPs), have a U.S. dollar side. For RESPs, Scotia iTRADE offers a U.S.-Friendly option.
3. How do I open a new registered account that holds U.S. dollars?
You can open a new registered account that holds US dollars (in addition to CAD) using Scotia iTRADE’s online application process. The U.S. dollar side of the account will automatically appear in Scotia OnLine the next time you log in. The only registered accounts that do not offer US dollar settlement are Registered Education Savings Plans (RESPs) – for those we have a U.S.-Friendly option.
If you have an existing Scotia iTRADE registered account, you can enable the USD side by enrolling in Scotia OnLine.
4. How does the U.S. side of my account work?
Your registered account can hold U.S. dollars and securities, allowing you to purchase, hold and trade U.S. dollar securities in your account. If you currently hold U.S. dollar denominated securities in the Canadian side of your registered account, you can move these over to the U.S. side, allowing you to receive any distributions in U.S. dollars. For detailed instructions on moving your securities, please login to Scotia OnLine, go to Account Details > Additional Services > Transfer Securities Between Accounts, or contact us at 1-888-872-3388.
5. Can I move funds between the Canadian and U.S. dollar sides of my registered account?
You can move funds from one side to another through Scotia OnLine > Transfers > Registered Withdrawals and Currency Conversion > Currency Conversion. Please note that you will be charged applicable foreign exchange fees.
6. What are the benefits of a U.S. dollar registered account?
The main benefit is avoiding the currency conversion fees1 associated with purchasing and selling U.S. dollar securities in a Canadian registered account. You must have sufficient U.S. funds available in the U.S. side of your account to purchase U.S. securities. Foreign exchange fees will apply if you convert Canadian dollars into U.S. dollars. Any subsequent trading of the U.S. security within the U.S. side of your account will not be subject to foreign exchange.
7. Can I continue to hold U.S. equities in the Canadian side of my account?
Yes, you can still elect to hold U.S. securities on the Canadian side of your account, but future trades of that security will be subject to foreign exchange. Additionally, if you hold U.S. securities that pay interest or dividends in the Canadian side of your account, any distributions will be converted into Canadian dollars, and subject to foreign exchange.
Contributions, Transfers and Foreign Exchange
8. How do I contribute to my U.S. dollar registered account online?
Your Scotia iTRADE registered account has both a U.S. and Canadian dollar “side”, meaning you can hold cash and securities in both currencies in the same account in their respective currency “sides”. You can enroll in the U.S. dollar side through Scotia OnLine >> Manage my account >> Additional Services >> Scotia iTRADE >> Service Request >> Enroll to enable the U.S. Dollar side of registered account.
9. How do I know what my registered contribution limits are for my U.S. dollar registered account?
Your contribution limits are provided on your CRA statements. Your Scotia iTRADE account statements and Account Details within Scotia OnLine will show you the Canadian dollar equivalent of your contributions for the current tax year.
Withdrawals/Other
10. How do I withdraw funds from my U.S. dollar registered account Online?
You can withdraw from the U.S. dollar registered account as follows; log into Scotia OnLine, go to Registered Withdrawals and Currency Conversion > Registered Withdrawals and simply select your U.S. registered account as the “From” account, from which you want to withdraw funds. You can withdraw both Canadian and U.S. dollars from the U.S. side of your registered account; however, foreign exchange charges will apply if you convert U.S. dollars into Canadian dollars.
All fees and applicable taxes will be charged in Canadian dollars from the Canadian side of your registered account, so please ensure you have sufficient funds. Please consult your tax advisor or the CRA for tax implications of withdrawn funds.
Scotia iTRADE offers Registered plans (e.g. RRSP, RRIFs) that are denominated in both Canadian and U.S dollars (except Registered Education Savings Plan which is denominated in only Canadian dollars). Where foreign denominated assets are bought, sold or held in such a registered account with both Canadian and U.S. dollar side enabled:
a. Any tax withholding or reporting under applicable tax legislation will be in Canadian dollars, at the applicable exchange rate. It is your responsibility to monitor any limits under applicable tax legislation when dealing in foreign denominated assets in a registered account;
b. We may sell or settle assets within a registered account between different currencies to administer the account, including payment of fees, or to prevent debit balances; and
c. We are not liable in respect of any fees or losses that may arise in connection with sales or conversions of foreign denominated registered assets; and
d. For contributions and withdrawals where a currency conversion occurs, the foreign currency component may include a retail "mark-up" or spread over and above the single, benchmark, mid-market rate used by Scotia Capital Inc.
Please ensure you have reviewed section 1.7 of the Scotia iTRADE® Relationship Disclosure Document and Terms and Conditions. In addition, you can get more details on foreign exchange transactions by logging onto Scotia OnLine, clicking ‘Help’, and searching for "Converting Funds Between Currencies through Scotia iTRADE" in the help section.
For trades in U.S. securities in Scotia iTRADE's U.S.-Friendly Canadian dollar registered accounts on a single trading day, the foreign currency component will be transacted at the single, benchmark, mid-market rate used by Scotia Capital Inc. to price its holdings of US/Canadian dollar currencies at the end of that trading day (SCI Rate). Scotia iTRADE will not apply its retail "mark-up" or spread over and above the SCI Rate to the foreign currency component of the trade. Only trades in U.S. securities in the U.S.-Friendly registered accounts will be given this preferential foreign exchange rate. A quarterly fee of $30 (plus applicable taxes) per registered account per calendar quarter applies. For important information on foreign exchange transactions, log on to Scotia OnLine, click ‘Help’ and search for "Converting Funds Between Currencies through Scotia iTRADE" in the Help section.