How to Buy Canadian Stocks Online

Canadian stocks can be good investments.

Placing part of your money outside the United States can be a good strategy. If you feel that Canadian stocks are set to outperform the market, you can purchase stocks in leading Canadian companies, or in up and coming firms you feel will grow rapidly in the next couple years. As with any stock market investment, you need to do your homework and research the stocks before investing your money, and you need to balance your portfolio to avoid overexposure in any one country market.

Instructions

1. Review your stock market investments and determine what percentage you want to devote to Canadian stocks. Diversification is important, and it is generally not a good idea to concentrate all your holdings in a single country market or a single type of stock.

2. Make a list of Canadian stocks you would like to buy. You can get information on Canadian stocks by reviewing financial publications like the Wall Street Journal and Investors Business Daily, or at financial websites like Fool.com, CNN Money and Yahoo! Finance. Write down the ticker symbols of each Canadian stock you wish to purchase.

3. Open an account with an online broker if you do not already have one. Online brokers like E*Trade, TD Ameritrade and Scottrade (see Resources) all offer access to Canadian stocks, with trades as little as $7 each. Online brokers typically advertise in financial publications like the Wall Street Journal, Investors Business Daily and Barrons.

   When opening the account, make sure your account allows you to purchase international stocks for the same commission as domestic stock trades. Fund your account with enough money to cover the amount you want to invest in Canada.

4. Log on to your online brokerage account and go to the trading menu. Enter the ticker symbol of the first stock you wish to purchase, along with the number of shares you plan to buy. Review the details of the order carefully and make sure you have sufficient cash in your account to cover the cost of the trade. Click "Confirm" to send your order for processing.

5. Purchase the rest of the Canadian stocks you wish to own. Print a trade confirmation for each stock you buy and keep it with your tax records. You will need this documentation to determine your capital gain or loss when you sell the stock.

References

• TD Ameritrade: Trading Tools
• Money Magazine: Why Diversification Will Work Again

Resources

• TD Ameritrade
• E*Trade
• Scottrade