How can I buy U.S stocks in Canada?

Short Answer

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.

Detailed Answer

How to buy stocks in Canada?

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.

How to buy US stocks in Canada

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.

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Categories: Stock Trading
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Related FAQs

How can I buy a stock without a broker in Canada?

Canadian citizens above the age of 18 can open a TFSA (Tax-Free Savings Account) in which you can contribute up to $6000 annually. This can be in the form of stocks or other securities. You can also use an RRSP (Registered Retirement Savings Plan) where you can contribute a higher sum which will be taxable, unlike the TFSA which is completely exempt from taxes.

Is day trading legal in Canada?

Day trading is completely legal in Canada. Although Canadian brokers don’t require any minimum capital to start trading, unlike the U.S where brokers demand a minimum Capital of $25,000. The tax implications of day-trading are different from buying and selling regular shares.

Can non-US citizens open a brokerage account with a US broker?

Non-U.S citizens cannot directly open an account with a U.S based broker as they would not possess the necessary documents, required to open an account with a U.S broker. But there are many U.S based international brokers like 'Interactive Brokers', etc, who allow users from multiple countries to open an account with them. Using that account you can easily gain access to the U.S markets.

Is E*Trade available in Canada?

Currently, Etrade is not available in Canada as the broker operates solely in the U.S. Therefore Canadian citizens cannot open an account with ETrade. The broker used to operate in Canada but stopped its operations after 2008. There are many other low-cost brokers available in Canada such as Questrade that you can consider while opening an account.

Can I buy Canadian stocks on Charles Schwab?

Charles Schwab is a U.S.-based broker which offers many brokerage accounts to its users. You can buy Canadian stocks on the platform although Canadian users cannot open an account with it as it offers its services exclusively in the U.S. Existing account holders can purchase Canadian stocks during the market hours using the broker's platform.

Is Webull available in Canada?

Webull is a U.S based stockbroker which is not available for Canadian users. Canadian citizens cannot open an account with Webull. You have to either be a citizen of the U.S or have a valid U.S Passport in order to open an account with Webull.

Is Paytm Money Safe and reliable Broker for Stock Trading & Investing?

Yes, it is completely safe to invest your money in the stock market using Paytm money App. In fact, PayTm has come up with stock broking services recently and trying to establish itself in the said field. And, to give tough fight to top existing players it has to keep its services up to the mark. Paytm Money made a big name in mutual fund investment industry and now it's time to see its performance in the stock brokers' world.

Is ThinkorSwim available in Canada?

ThinkorSwim is not available to Canadian users. TD-Direct Investing, which was providing the platform to its users replaced it with another trading platform known as Advanced Dashboard. Hence Canadian citizens who have a TD account can no longer access ThinkorSwim as earlier. In order to get ThinkorSwim, you need to have a TD Ameritrade account which is a U.S based broker.

Who owns Virtual Brokers?

Virtual Brokers is owned by CI Investments Services Inc, which took over it in 2017, from BBS Securities, the previous owner of Virtual Brokers. Virtual Brokers was integrated with WealthBar, another financial platform in 2020 to form a new investment platform known as CI Direct Investing. Although it operates separately in Canada.

Is Upstox safe, good & reliable broker for stock trading & investment?

Yes, Upstox is safe, good and a very reliable stock broker for trading and long term investing. Being registered with SEBI, NSE, BSE, MCX and CDSL the stock broker has built a good reputation and a decent customer base over the years.