This is a tricky question and does not have an exact answer. However, an average Canadian is likely to invest less than $2,000 in stocks. This number is not fixed and may go up or down based on an individual's earning, saving, expenses and financial gaols.
Canada is one of the wealthiest nations in the world, with a nominal gross domestic product (GDP) of approximately $1.64 trillion. This factor has helped make Canada one of the premier global investment destinations, particularly for Canadian and U.S. investors.
Investing in stocks requires just three things: a broker to make the trade, money to purchase the investment, and an idea of what you want to buy.
The easiest part of your journey to stock ownership will be to find a trading platform (if you want to buy and sell stocks yourself) or an automated investing service (to invest on your behalf).
The real challenge you now face is deciding exactly what you should be buying. An individual stock? A mutual fund? An ETF? Well, it all depends on your personal sitch.
Thrifty, self-motivated investors who know exactly what they want might be best served by online brokerages, especially ones providing commission-free trading.
For those that don’t want to pick their own stocks, automated investing services are a reasonably priced, user-friendly way to invest.
Financial advisors and human brokers offer the highest level of service and can also include investment advice, but are also the most expensive option.
The thing is, most professionally managed funds also underperform the market. So, what are you supposed to do?
Instead of picking individual stocks or giving your money to someone who is paid to pick individual stocks, you can also invest in index funds.
This will further spread investments across a bunch of companies and will try to mimic the performance of the market as a whole.
While it is possible to buy stocks directly from companies like through direct stock purchase plans, there’s typically little reason to avoid brokers.
Brokerage accounts can now be opened online in minutes and may offer commission-free trading.
If you’re interested in trading without a broker, we guess that you consider trading online, where you choose, and buy your own stocks through an exchange. And, that exchange is your broker.
Canadians can buy any Canadian stock about as easily as they can order a parka.
Signing up with a trading platform is free and requires about the same amount of information Canada Goose’s website would ask of you during a sale.
If you don’t want to trade yourself, automated investing is a great alternative.