Canadian citizens can easily purchase U.S stocks. Many online stock brokers provide the facility to invest in US stocks. Questrade and Interactive brokers are some of the brokers who allow foreign investing. Apart from this, there are some other ways to directly as well as indirectly invest in US stocks. One of the non-traditional methods includes the TFSA (Tax-Free Savings Account) with which you can buy up to $6,000 worth of stocks per year.
Canadian citizens have multiple avenues to start investing in stocks. The most common medium to buy and sell shares is through online brokers. Online stockbrokers provide an informative platform and all the other necessary tools to analyze and purchase stocks of companies.
Some low-cost brokers charge very little of charge ‘zero’ for buying stocks. There are some non-traditional methods available as well for Canadian users. It is the TFSA (Tax-Free Savings Account). In this account, Canadian users above the age of 18 can contribute up to $6,000 per year which will be completely tax-free. Using this account, you can purchase shares of companies listed on the major stock exchanges.
Diversifying is very important when it comes to stock investing, therefore you should consider investing in diverse geographies. The U.S stock market is the largest and most mature stock market and is known as the mother of all markets, hence you should allocate a minor percentage of your overall portfolio towards U.S stocks.
Buying U.S stocks in Canada is fairly simple. Many brokers allow you to purchase international stocks. Some of the common stockbrokers such as Questrade, Interactive brokers, are among others that provide the international investing facility. The commissions could be relatively higher, and there could be some additional fees for currency conversion or exchange fees when it comes to buying international stocks.
With these brokers, you can easily buy Stocks listed on the common stock exchanges such as NASDAQ and S&P500.
You can also use your TFSA to buy US securities. Any share listed on a major exchange (for example NYSE, NASDAQ) can be bought. There is also the indirect method where you can buy a U.S Index ETFs (Exchange Traded Fund) which tracks the overall Index and provide returns accordingly.