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Amazon is one of those companies most Canadians interact with on a weekly basis, whether it is ordering something online or streaming a show. So the idea of owning a slice of the company is a natural next step for a lot of people. The good news is that buying Amazon shares from Canada is a pretty standard process. AMZN trades on the NASDAQ in US dollars, and most Canadian brokerages can get you there. Here is a walkthrough of how it works.
Can Canadians Buy Amazon Stock?
Yes. Amazon trades under the ticker AMZN on the NASDAQ, a US stock exchange. It is not listed on the TSX or any other Canadian exchange, but that is not really a hurdle. Most Canadian self-directed brokerages include access to US-listed stocks as a standard feature.
Once your brokerage account is set up with US market access, buying Amazon is mechanically no different from buying any other NASDAQ-listed stock. The main things you need to sort out are currency conversion and which account type to use, both of which we will cover below.
Step 1 – Open a Brokerage Account with US Market Access
You will need a self-directed online brokerage account that lets you trade on US exchanges. The sign-up process is fairly standard: personal identification, your Social Insurance Number, address, employment information, and a brief questionnaire about your investing experience.
During setup, you will pick an account type. The three main options are a TFSA, an RRSP, or a non-registered account. Amazon does not currently pay a dividend, so the dividend withholding tax difference between account types is not an immediate concern. That said, the accounts still differ in how capital gains are treated, so the choice is still worth thinking through.
One thing to note for completeness: if Amazon ever introduces a dividend in the future, the US withholding tax rules would kick in. In an RRSP, that withholding is typically waived under the Canada-US tax treaty. In a TFSA, it is not. Something to keep in the back of your mind, even if it does not apply today.
Step 2 – Fund Your Account and Convert CAD to USD
Amazon shares are priced in US dollars, so at some point your Canadian dollars need to make the switch. How this happens depends on your brokerage setup.
Most brokerages will automatically convert your CAD to USD when you place the order. It is seamless from a user experience standpoint, but the brokerage applies a spread on the exchange rate. Think of it as a fee that is baked into the rate itself rather than listed separately. It is small on any single trade, but it adds up if you are buying and selling US stocks frequently.
The alternative is to hold a USD balance in your account. Some brokerages offer USD sub-accounts where you can convert a lump sum of CAD to USD ahead of time and then draw from that balance whenever you trade US stocks. If you are planning to invest in more than just Amazon on the US markets, this can be a more cost-effective approach over time.
Step 3 – Find Amazon Stock and Confirm the Ticker
Search for “AMZN” or “Amazon” in your brokerage platform. You should see Amazon listed on the NASDAQ, priced in USD. If multiple results come up, look for the NASDAQ listing specifically, that is the one you want.
The stock detail page will show you the current share price, market capitalization, and the 52-week price range. This is useful background context, but it is informational, none of it is a buy or sell signal.
Step 4 – Place Your Buy Order
With AMZN pulled up, you are ready to place your order. The two most common options are a market order and a limit order.
A market order executes at the current price as soon as you submit it. Straightforward and fast. A limit order lets you set a ceiling on what you are willing to pay. The trade only happens if the price drops to your specified level. It gives you price control, but there is a chance it never fills if the stock does not hit your target.
You will fill in the ticker (AMZN), the number of shares (or fractional shares if your brokerage supports them), select the order type, and review the estimated total in USD before confirming.
NASDAQ is open from 9:30 a.m. to 4:00 p.m. Eastern Time. A market order placed outside those hours will queue and execute when trading resumes.
Which Account Type Should I Use to Buy Amazon Stock in Canada?
This is one of the first questions that comes up, and the answer depends on what matters most to you.
A TFSA lets your investments grow tax-free. Capital gains, dividends, and other investment income earned inside the account are not taxed when you withdraw. There are annual contribution limits, and once you have used your room, you cannot add more until the next year. For a non-dividend-paying stock like Amazon, the TFSA is straightforward, no US withholding tax to worry about right now, and gains come out tax-free.
An RRSP defers tax on your investment growth until you withdraw the money. Contributions reduce your taxable income in the year you make them, which can be a meaningful benefit depending on your income bracket. The main advantage for US stocks is that dividend withholding is typically waived under the Canada-US tax treaty, though since Amazon does not pay a dividend at the moment, this benefit is theoretical for now.
A non-registered account has no contribution limits and no special tax treatment. Capital gains are taxable in the year you sell, and any future dividends would be taxed as well. The flexibility is the upside, there are no caps on how much you can invest.
None of these is universally the right answer. It depends on your contribution room, income level, and investment timeline.
Tax Considerations for Canadians Buying Amazon Stock
If you sell Amazon shares at a profit, the gain is treated as a capital gain under Canadian tax law. The CRA determines what portion of the gain is included in your taxable income, check with the CRA or a tax professional for the current inclusion rate, as it can change.
Amazon does not currently pay dividends, so there is no US withholding tax to deal with on income distributions. If that ever changes, the standard rule under the Canada-US tax treaty is a 15% withholding on dividends paid to Canadian residents, with the RRSP exemption applying as described above.
If your total foreign property holdings exceed a certain threshold, you may need to file a T1135 (Foreign Income Verification Statement) with the CRA. The threshold is set by the CRA and can be updated, so it is worth checking the current figure or asking your tax advisor.
The CRA and the Canada-US Tax Convention are the authoritative sources for all of this. For anything that touches your specific financial situation, a tax professional is the right call.
What Are the Risks of Buying Individual Foreign Stocks Like Amazon?
Concentration risk. When you buy a single stock, your investment performance is tied entirely to one company. Amazon is large and diversified across several business lines, but that does not make it immune to downturns.
Currency risk. Amazon is priced in USD, and your day-to-day life runs on CAD. Exchange rate movements between the two currencies affect what your investment is worth in Canadian dollar terms, independent of how the stock itself performs.
Company-specific risk. Competitive dynamics, regulatory actions, leadership changes, and shifts in consumer behavior can all influence any individual company, no matter the size.
No CDIC protection. Stocks are not covered by the Canada Deposit Insurance Corporation. If your investment loses value, there is no insurance safety net.
Volatility. Stock prices fluctuate. Even well-known companies can see significant price swings over short periods.
Individual stock investing is different from holding diversified investments, and it comes with a different risk profile. This page is for informational purposes only.
Frequently Asked Questions
Yes. Most Canadian brokerages allow you to hold US-listed stocks like Amazon in a TFSA. Since Amazon does not currently pay a dividend, there is no immediate US withholding tax concern in a TFSA.
Amazon trades under the ticker AMZN on the NASDAQ.
Yes. AMZN is priced in USD. Your brokerage will either convert CAD automatically when you buy, or you can hold a USD balance in your account to avoid paying the conversion spread each time.
No. Amazon is listed on the NASDAQ in the United States. Canadian investors access it through a brokerage with US market trading.
Profits are treated as capital gains under Canadian tax law. In a TFSA, gains are tax-free. In an RRSP, gains are tax-deferred. In a non-registered account, gains are taxable in the year you sell.
Some Canadian brokerages offer fractional share trading, which lets you buy a portion of a share rather than a full one. Check with your brokerage to see if this is available for AMZN.
Under the Canada-US tax treaty, US dividend withholding tax is typically waived in an RRSP. Since Amazon does not currently pay dividends, this is not an active benefit, but it would apply if Amazon begins paying dividends in the future.
A TFSA offers tax-free growth and tax-free withdrawals. An RRSP offers tax-deferred growth with tax-deductible contributions, but withdrawals are taxed as income. For a stock like Amazon that does not currently pay dividends, the main difference is in how capital gains are treated at withdrawal.
Disclaimer: The information provided on this website is for educational and informational purposes only and should not be construed as financial, investment, or trading advice. We are not licensed financial advisors, brokers, or dealers. Always conduct your own research and consult with a qualified financial professional before making any investment decisions. Past performance is not indicative of future results, and all investments carry risk, including the potential loss of principal.
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