How to Invest in the Canadian Stock Market

By Jason Gordon

  • Overview

    Globalization has made the world smaller. Modern communications including the Internet allows anyone to take advantage of booming markets no matter where they are located geographically. Canada, like many modern developed economies, maintains a steady growth rate of 2-3 percent a year in gross domestic product. Especially rich in natural resources, Canada is known for its many large commodity-based companies.
    Canada

    • Step 1

      Create or log-in to your online brokerage account. Larger firms such as Fidelity Investments and Charles Schwab are more likely to have options for buying international stocks and funds. To check whether you can invest in Canadian stocks, call your brokerage or check their webpage to see if they are registered with the relevant Canadian exchanges.

    • Step 2

      Research the Canadian companies you are interested in. An example of a large Canadian company is Imperial Oil Company. To buy shares in this company, contact your broker or log in to your online brokerage page and click "Trade."

    • Step 3

      Input the ticker symbol IMO and the number of shares you wish to purchase. IMO trades on the NYSE so it is relatively easy for U.S. investors to buy stock. For Canadian companies that don't list on U.S. exchanges, you may need to call your brokerage's international trade desk to purchase an international security.

    • Step 4

      Click "Submit" with a market order for the easiest kind of trade. For companies listed on Canadian exchanges only, the stock may only be available to purchase when the TSX (Toronto Stock Exchange) is trading. As the U.S. and Canada share the same time zones, this shouldn't be a major problem.

    • Step 5

      You should receive confirmation from your brokerage once the trade is executed. Congratulations! You are invested in the Canadian stock market.
    • Skill: Moderate
    • Ingredients:
    • Brokerage account
    • Tip: You can also invest in Canada by purchasing shares of and ETF which are designed to track the whole Canadian economy. Try the iShares MSCI Canada Index (EWC).

    Trending Now

    © Demand Media 2011