How to Invest Online for Canadians
Online investing is a convenient and relatively inexpensive way to buy and sell stock. Quick, easy transactions, reduced fees and the ability to do immediate research make online investing a savvy choice for investors. In a study released by the Bank of Montreal in July 2010, the bank found that Canadians increasingly turn to online investing, and more than one-third either trade online or are considering it.
Other People Are Reading
Instructions
-
-
1
Compare online brokerages to determine which suits your needs best. There is a wide range of banks and independent companies that you can use to invest your money.
Bank of Montreal InvestorLine offers tools to help investors plan, select, monitor and manage their investments. Investors can buy and sell commodities, including Canadian and U.S. stocks, corporate bonds and T-bills, and more than 9,000 mutual and Canadian savings bonds. Fees for online trades range from $9.95 per trade.
BMO InvestorLine
Transit No. 3973
First Canadian Place
100 King St. W., Floor B1
Toronto, Ontario M5X 1H3
888.776.6886
bmoinvestorline.com
Royal Bank of Canada Direct Investing offers interesting online features including a Practice Accounts feature, which allows investors to gain experience investing, without risking any money. Investors can trade online for as low as $6.95 per transaction.
RBC Direct Investing Inc.
Royal Bank Plaza
200 Bay Street, North Tower
P.O. Box 75
Toronto, Ontario M5J 2Z5
800-769-2560
rbcdirectinvesting.com
QTrade Investor is an independent online brokerage, providing online investing solutions to the customers of more than 180 financial institutions across Canada. Fees per transaction are as low as $7.
Qtrade Financial Group
Suite 1920, One Bentall Centre
505 Burrard Street, Box 85
Vancouver, BC V7X 1M6
877-787-2330
qtrade.ca
-
2
Register online with the brokerage of your choice. Unless you have bank accounts with the business, it will require you to record a credit card with the brokerage so that you can make immediate stock purchases.
-
-
3
Familiarize yourself with the stock market and investing, and research any specific companies offering shares you wish to buy. Ensure you understand what you are buying, and the types of stocks and funds available.
-
4
Learn about the features offered by your brokerage of choice. You will probably be able to schedule regular daily, weekly or monthly purchases and make immediate, real-time trades. Use features such as Royal Bank of Canada's Practice Accounts to refine your investing skills without risking any money. You might also benefit from taking investment classes at a local community college.
-
5
Set spending limits for your stock purchases. Like online shopping and gambling, it can be tempting to spend more than you can afford because of the immediacy of the process.
-
6
Check the bank account or credit card you are using to purchase stocks on a regular basis to ensure the correct debits and to keep track of spending. Your online brokerage will provide tools that allow you to track the progress of your commodities.
-
1
Tips & Warnings
Start out cautiously. It is important to remember that you can lose or make money on the stock market. Don't let your enthusiasm lead you to spend more than you can afford.
References
- Photo Credit stock market analysis screenshot image by .shock from Fotolia.com
