Is it worth buying US stocks in Canada?
- Asked By
- Updated On:11-Aug-2023
- Replies:1
Short Answer
If a person wants to expand his investment opportunities and become a part of some of the great US companies. Then yes, buying US stocks in Canada is totally worth it.
Detailed Answer
The Canadian market is presently overshadowed with the presence of US stocks. The overall process and steps involved in buying US stocks is also similar to buying Canadian stocks. All you need to do is open an account and hire a broker.
The US stocks offer great returns and make your portfolio look very diverse. It will provide you a glimpse of the American market. All you need to do is weigh the risks and returns involved in investment.
Benefits of Buying US Stocks in Canada
One need not worry about any kind of double taxation. All the taxes you pay internationally will be allowed for credit reversal. This being said, you just need to pay the Capital gain taxes on the stock profits. There are plenty of advantages to buying US stocks in Canada such as:
-** Diverse Portfolio**- If you have been planning to diversify your portfolio then US stock provides an excellent opportunity for it. In the stock market the probability of losses is also present. By having US stocks you can compensate for your losses made in the Canadian stocks. Similarly, if the US stocks do not do well, you can choose the Canadian stocks to rely upon.
- Better Performance- Based on the historical performance, the US stocks have performed better than the Canadian stocks. As per the statistics, the large US stocks are given an average 14% annualized returns. Instead the Canadian stocks only offered half of the US stocks. Therefore, based on performance indicators, US stocks are worth buying. It will be a good profitable way.
- Discounts on Forex Conversions- Think of US stocks as an opportunity to get discounts on forex conversions. When you buy the US stock in Canadian $ at a rate that is favourable, it means you are getting discounts. You can compute the profit on conversion by yourself. Therefore, the US stocks can be a great source to get discounts..
Hence, being in Canada and buying US stocks is totally worth it. You can consult a broker about the commissions and conversions. There are plenty of brokers in Canada that make the top list. What are your thoughts on it? Do you feel buying US Stocks as a Canadian resident is worth it? Do share your views.
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Discussion (0)
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.
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