Trade with CAD account is the most common way to buy US stocks. Broker charge on conversion is included in real-time exchange rate.: q& r2 y! a) q! B
Your second way is weird. Especially the charge $5/day, never heard of it. - f; A" Q; K8 B# D$ p
Unless u already have USD, either way has little difference (u need to exchange CAD to USD in either way)6 s4 K4 J5 o% t7 U1 }- R
Which broker are u using?
i'm using questrade too.: }, t4 c4 m' N: _$ c
I am sure there is no such $5 per transaction or per day fee, u may wanna check it again. ; i8 Y) ?# a1 e; Z 6 e5 h( F6 v! r6 q; J" TI have both CAD and USD account when I open the questrade.7 v1 H% w2 Y5 l! G+ n. c
I trade US stocks a lot. What I do is to exchange enough USD at the first place, and trade directly in that US account. I don't think Questrade can do the 1st way u described, but i maybe wrong. & ~; W5 _3 S2 o! u8 c7 v " d$ T" h8 ]! ]! i2 E! u JKeep in mind that transaction cost is in the same currency of stock u buy/sell.