What is the easiest way to buy stocks in Canada?
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- Updated On:29-Nov-2022
- Replies:1
Short Answer
The easiest way to purchase stocks in Canada is to select an online stock broking platform of your choice, choose an investment account, establish an account online, fund the trading account and start buying shares.
Detailed Answer
Purchasing Stocks: An Introduction
Stocks also known as shares and equities, is one of the growth investment asset classes that is widely invested in. A company raises capital for its operations by selling its shares.
If you purchase shares of a company, then you are one of the owners who has an interest in the company. You have a claim on the profits of the company which is distributed as dividend, depending on the number of shares you hold.
Ways to Buy Stocks in Canada
There are two ways in which you can purchase shares in Canada.
- You can directly buy them over the counter from the Toronto Stock exchange or any other stock exchange in Canada.
- You can open an account with an online discount broker of your choice and buy your desired share within the platform.
What is the easiest way to buy stocks in Canada?
The easiest way to purchase a stock is through an online broking platform. Once you open an account with a good stock broker, you can easily purchase the shares of your choice, at the convenience of your home.
How to Buy Stocks in Canada? Process
Here, we have illustrated the steps:
- Make a complete research of online trading platforms that are available based on the fees you are ready to pay, the features you require, the tools you need, security, your goals and preferences. There are various platforms such as Wealthsimple, Questrade, Qtrade, Scotia iTrade, TD Direct Investing etc.
- You must also select the type of investment account you want your shares to be in. It can be a non-registered account or a TFSA, RRSP or an RESP.
- After selecting the platform and investment account of your choice, you can open your account online by filling up the form, e-signing your form, and by submitting valid proofs.
- Once your brokerage account is active, you are required to link the platform with your bank account and transfer at least the minimum balance to be maintained.
- Once the money comes into your account, you can start purchasing shares of your choice.
a. Type the name of the share or its ticker in the search bar.
b. Select the order type – market order, or limit order or trailing order, stop loss order etc.
c. Type in the number of shares you wish to buy.
d. Review your order.
e. Click ‘Buy”.
That's it! You are done buying the stocks you like.
Buying Stocks in Canada
After the advent of online broking platforms, it has become very easy and accessible to purchase shares. It is merely a click away.
However, It is important that you make a complete fundamental analysis of the balance sheet of the company and technical analysis of the stock’s historical trends before buying or investing in the units of a company’s shares.
For a newbie, this might seem a bit tricky. So, be very careful while putting your money in risky asset classes.
Now, that you have knowledge of buying stocks in Canada, which stocks do you wish to invest in? Feel free to share your thoughts.
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Discussion (0)
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.
There are several choices available to Canadians who want to invest in the stock market online. Questrade ranks higher a sone of the best stock trading site for a beginner in Canada, offering access to both the Canadian and American stock markets.
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.
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.
Are you looking forward to buying an ETF in Canada? You simply have to open an account on the trading platform of your choice that offers ETFs and start investing.
Based on our analysis, Questrade seems to be the best day trading broker in Canada. It offers a dedicated intra day trader tool which enables you to be well-informed about the markets.
A fractional share is a small part of a company's stock which is less than one full share of the company and can be owned by an individual. An investor can buy fractional shares in Canada with platforms like Wealthsimple Trade and Interactive Brokers, etc. Go through the post to understand it completely.
To open a brokerage account in Canada, you’ll need to provide your full name and a valid form of a government-issued photo ID and some personal details such as your email address, phone number, residential address and Social Insurance Number (SIN).
Are you planning to buy Vanguard ETF in Canada? You can open an account with the trading platform of your choice, that offers Vanguard and start investing.
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.