There are two main routes to holding USD in Canada as a freelancer: a USD business account at a Canadian bank, or a Wise Business multi-currency account. They work differently, cost differently, and suit different types of freelancers. Here is how to open each and which to choose. Wise Business is the most commonly recommended option for Canadian freelancers needing a dedicated USD account.
Option 1: Wise Business (Most Cost-Effective)
What You Get
A real US bank account with a US routing number and account number, hosted at Wise’s partner bank. US clients pay you via ACH — zero fees for them, zero incoming fees for you (on ACH; SWIFT has a $6.11 USD fee). You hold USD until you are ready to convert at Wise’s mid-market rate.
How to Open
- Go to wise.com/ca/business and click “Open account”
- Select “Sole trader” or “Individual” as your business type
- Enter your legal name, Canadian address, date of birth, and SIN
- Upload government-issued photo ID (passport, driver’s licence, or PR card)
- Verify your address (utility bill, bank statement, or lease in your name)
- Pay the $55 CAD one-time fee to unlock full features including local account details
- Receive your US routing number and account number (typically within 1–3 business days after verification)
Cost Summary
- One-time setup: $55 CAD
- Monthly fee: $0
- Conversion: mid-market rate + ~0.63%
- ACH incoming: Free
- SWIFT incoming: $6.11 USD
Option 2: Canadian Bank USD Account
What You Get
A USD chequing account at your existing Canadian bank. You can receive USD wires, write USD cheques, and hold USD. When converting to CAD, you convert at the bank’s rate (2.5–3.5% above mid-market).
How to Open
Process varies by bank, but generally:
- Contact your bank to add a USD business account to your existing business relationship
- Most banks process this same-day at a branch, or online if you are an existing customer
- Required: government ID, existing business account number
Cost Summary
- Monthly fee: $5–$20 CAD depending on bank and plan
- Incoming wire: $0–$20 CAD depending on bank
- FX conversion: 2.5–3.5% above mid-market (always)
- USD cheque capability: Included
Which Should You Choose?
| Factor | Wise Business | Canadian Bank USD Account |
|---|---|---|
| FX cost | ~0.63% (excellent) | 2.5–3.5% (expensive) |
| Monthly fee | $0 | $5–$20 |
| US ACH receiving | Yes (free) | No (wire only) |
| USD cheque writing | No | Yes |
| Debit card in USD | Yes (Wise card) | Sometimes |
| Integration with Canadian bank relationship | No | Yes |
| CDIC insured | No (MSB regulated) | Yes |
For most freelancers receiving regular US income: Wise Business is the better choice — lower cost over time and US ACH receiving is the key operational advantage.
For businesses writing USD cheques to US suppliers or needing full integration with their Canadian banking relationship: A bank USD account may justify the extra cost.
Frequently Asked Questions
Do I need a USD account to invoice US clients?
No — you can invoice US clients and receive wire payments in a Canadian bank account, but it is the most expensive approach. A USD account (via Wise) saves significant FX costs over time. How much depends on your USD invoice volume: at $2,000 USD/month, Wise saves approximately $1,000–$1,500 CAD per year vs Canadian bank rates.
Can a newcomer to Canada open a Wise Business account?
Yes. Wise requires: proof of identity (passport or government ID), proof of Canadian address, and your SIN. Newcomers with temporary SINs (starting with 9) are generally accepted. Wise is more accessible to newcomers than most Canadian banks because there is no credit check and no minimum account history requirement.
Is it legal to hold USD in Canada?
Yes, completely. There is no restriction on Canadian residents holding foreign currency accounts. Earnings in USD are reported on your T2125 in CAD equivalent using the Bank of Canada rate on the date received. Holding USD is a financial decision, not a tax avoidance strategy — you report the income when received, not when you convert.