Canada Stock Market

Canadian Stock Market is one of the most mature markets in Northern America. The Toronto Stock Exchange (TSX) is a stock exchange located in Toronto, Ontario, Canada. The TSX has listed more than 1,500 companies and is home to a wide range of companies that span across important sectors such as energy, mining, technology and real estate.

The exchange switched to an all-electronic platform in 1997, ending its trading floor.

TSX operates from Monday to Friday from 9:30 AM ET to 4 PM ET

Pre opeing period is from 7 AM to 9:30 AM where orders can be only placed but cannot be executed.

Instruments Traded - shares, investment trusts, and exchange-traded products (ETPs), bonds, commodities, futures,

options and other derivatives.

Currency - All transactions are performed in Canadian Dollars

Ownership - TSX is owned by the TMX Group, which also oversees the Montreal Exchange, the TSX Venture Exchange, and the Canadian Derivatives Clearing Corporation.

Index - The S&P/TSX Composite Index, composed of influential stocks, mirrors the market’s performance. It’s rebalanced quarterly.

What are some popular Canadian stocks ?

1] Royal Bank of Canada - Its the largest Bank in Canada with market cap of $200 billion

2] Toronto-Dominion Bank - Market cap of over $130 billion

3] Bank of Nova Scotia

4] Enbridge Inc

5] Canadian Natural resource Limited (CNQ)

6] Suncor Energy Inc

7] Shopify Inc

8] Franco-Nevada Corporation

How can I buy Canadian stocks from outside Canada?

1] International Brokers - This is the easiest method used. A number of Canadian investors may not realize that with multiple online brokers offering international access, they could also be watching the Toronto Stock Exchange (TSX).

Only choose one that specifically mentions canadian stock trading brokers Some popular currencies may include Interactive Brokers, Charles Schwab (depending on country of residence), or Fidelity (depending on country of residence)

2] ADRs (American Depositary Receipts) - These are only a few of the Canadian companies that have ADRs listed in US stock exchanges. These derive from the underlying Canadian stock, but they trade in USD).

This might be an easier way to go instead as it saves you from converting the money to USD and can potentially be done through your existing account if you have a US brokerage.

What are the fees associated with trading Canadian stocks ?

1] Trading Fees - Just a few years ago, Canadian investors were shelling out about $29 per trade to buy and sell stocks at the discount brokerage units of big banks.

The advent of online brokers has since squeezed costs to around $5 to $10 per trade.

Example: You can trade for free1 on Wealthsimple Trade.

2] Currency Conversion Fees - Spend Pro is for Canadian trades only, also keep in mind the currency exchange costs if you are trading USD (U. S., A) stocks from outside of a CAN based brokerage account.

They generally add a 1-2% spread to the spot foreign exchange rate when they convert CAD into USD on your behalf - so you pay extra when doing this.

3] Additional Costs - Remember other possible fees - like account maintenance fees or premium benefits (real-time quotes, etc.)

Several providers also have plans that require a monthly subscription fee or not (e.g., Think Wealthsimple Plus $10 per month.

Are there any tools to analyze Canadian stock performance?

1] Stock screeners - Stock screeners facilitate the process of sorting stocks according to particular standards (e.g., market cap, industry, dividend yield). TMX Money and Yahoo Finance are two websites that provide free stock screeners.

2] Technical Analysis Tools - Popular methods for technical analysis include moving averages, candlestick charts, and the Relative Strength Index (RSI). Technical indicators and interactive charts are offered by websites such as Trading View.

3] Portfolio Tracking Apps - Use Interactive Brokers, Questrade, or Wealthsimple Trade to monitor the performance of your portfolio and get notifications.

4] News & Research Platforms - Hear news from CNBC, Reuters, and Bloomberg. Examine research papers provided by brokerage houses and investment banks.