Trading on a Canadian stock exchange is a slightly different process if you are only used to American exchanges. The Internet has made global communications available instantly. You can read about business deals and company performances so easily that, when you decide to invest, sometimes it comes as a surprise that you can't always buy a foreign stock using your normal broker.

However, there are several brokerage firms that can do the trade online if a U. The Toronto Stock Exchange, known as the TSX, is the main Canadian securities exchange, where common stocks are traded. It traces its roots back to the midth century, when a group of Canadian businessmen formed the Association of Brokers to facilitate the purchase and sale of stocks in Canadian companies.

united states - How to buy stock on the Toronto Stock Exchange? - Personal Finance & Money Stack Exchange

The exchange was formally created in and is now one of the largest securities exchanges in North America. Regardless of its extensive history, size and worldwide recognition, it is sometimes difficult for U. Some major brokerage firms that operate in the U. For the TSX, these firms are called participating members, and a list of these companies can be found in the Resources section below.

Trading on the Toronto Stock Exchange (TSX)

Raymond James is one well-known company that trades on the TSX and offers online trade services. Other firms also offer accounts that provide their clients with global access to trading in stocks that are not traded as American Depository Receipts, or ADRs, on a U. The first thing to remember about trading on foreign exchanges is that your price will be expressed in the currency of that country. On the TSX, shares are traded in Canadian dollars, which fluctuate in value vs.

Some brokerage firms provide a way to convert your U. Ask a customer service representative about the policies and procedures of the brokerage firm you're using. Also ask if you would be investing directly in the stock or if the firm is using a proxy -- an ADR or Pink Sheets stock that represents an investment in a foreign stock and trades in U.

If you expect the U. If this is your aim, check to see whether you can maintain your account's cash position in the Canadian currency rather than having it automatically converted to U. Before you invest, check the volatility and average shares traded daily on your stock. If you are interested in buying a mining stock, the TSX is home to 60 percent of the world's mining stocks.

Information for Individual Investors | TMXmoney

Even though the TSX is a large and active exchange, some of the mining stocks on that exchange trade infrequently and represent very small companies. Do your stock research carefully whenever trading on a foreign exchange, no matter what type of stock you are eyeing. Remember that the U. Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, mortgages, tax and investment strategies, and more. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.

This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. These returns cover a period from and were examined and attested by Baker Tilly, an independent accounting firm. Visit performance for information about the performance numbers displayed above.

How to Buy Canadian Stocks

Skip to main content. More Articles How to Buy Common Stock How to Buy Stock With No Broker Double Calendar Option Strategies How to Invest in International Stocks How to Buy Bonds in Other Countries Why Buy Foreign Bond Funds?

Toronto Stock Exchange The Toronto Stock Exchange, known as the TSX, is the main Canadian securities exchange, where common stocks are traded. Participating Members Some major brokerage firms that operate in the U. Trading on Foreign Exchanges The first thing to remember about trading on foreign exchanges is that your price will be expressed in the currency of that country.

Details to Remember About TSX Stocks Before you invest, check the volatility and average shares traded daily on your stock. References 4 Casey Research: Choosing a Broker The International Investor: Schwab Global Account Casey Research: The Casey Research Guide to Investing in Canadian Stocks.

Resources 2 Securities and Exchange Commission: International Investing Toronto Stock Exchange: Toronto Stock Exchange Participating Organizations. Recommended Articles How to Buy Foreign Stock Issues With Investing in ADRs Can I Buy More Stocks From Cash Purchasing Power?

How to Convert ADR to Ordinary Shares. Related Articles Do I Pay Income Tax on Foreign Stock When Sold? The Disadvantages of Online Investing Analysis of Foreign Stocks Does Selling Stocks in an IRA Count as Income?

How do I Buy One Stock for a Gift? Money Sense E-newsletter Each week, Zack's e-newsletter will address topics such as retirement, savings, loans, mortgages, tax and investment strategies, and more. Editor's Picks Can a Lost Stock Certificate Be Replaced?

How to Add More Shares to Stocks When the Price Is Lower? How to Get a Loan for Overseas Property Why Americans Buy Foreign Goods What Causes Stock Price Changes?

Trending Topics Latest Most Popular More Commentary. Quick Links Services Account Types Premium Services Zacks Rank Research Personal Finance Commentary Education.

Resources Help About Zacks Disclosure Privacy Policy Performance Site Map. Client Support Contact Us Share Feedback Media Careers Affiliate Advertise. Follow Us Facebook Twitter Linkedin RSS You Tube.

Zacks Research is Reported On: Logos for Yahoo, MSN, MarketWatch, Nasdaq, Forbes, Investors.

Logo BBB Better Business Bureau. NYSE and AMEX data is at least 20 minutes delayed. NASDAQ data is at least 15 minutes delayed.