How to Buy & Sell Stocks in Canada

Canadian broker needed to buy Canadian stocks

When U.S. investors interested in rounding out their stock portfolios with Canadian stock try to place an order with stockbrokers or on-line, they are told they are not authorized to buy Canadian stocks that are not listed on an exchange in the United States. Investors must make arrangements to do so through a Canadian broker licensed to trade on the various Canadian exchanges.

Instructions

1. Open an account with either a full-service broker or one of the many brokers you'll find on the Internet.

   A full-service broker will be prepared to advise you about the most appropriate stocks to buy given your account and style. Just like in the U.S., such brokers charge a hefty commission but are available for consultation and direction.

   You may be able to save money on commissions if you establish a relationship with an on-line broker. You will have to do more of your own research but most companies will support your effort with research of its own.

2. Subscribe to the financial press in Canada. There are numerous Canadian websites devoted to financial matters. Also consider a subscription to The Investor's Guide of Canada. Round out that information with a subscription to The Financial Post, Canada's version of The Wall Street Journal.

   U.S. residents can contact The Financial Post's circulation department at 1-800-668-7678 or by email at [e-mail].

3. Keep separate records of trading information and costs for Canadian stock holdings, because, at the end of the year, you'll need to file Canadian tax forms. If you have made a long-term profit on those investments, you will owe capital gains tax.

4. Keep current with Canadian stocks you own or are interested in using The Canadian System for Electronic Document Analysis and Retrieval (SEDAR) to which every listed company must submit earnings and public disclosures on a regular basis.

References

• stocktrades.ca: How to buy stocks