What is the easiest way to buy stocks in Canada?

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.

  1. You can directly buy them over the counter from the Toronto Stock exchange or any other stock exchange in Canada.
  1. 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:

  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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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Categories: Stock Market
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