Where Can I buy stocks listed on the Toronto exchange if I am based in the U?

Answer 1

You can buy them at any stock broker. Setup an account at a place like Scottrade or Charles Schwab and you can use your account there to purchase and sell stocks on any exchange.

Answer 2

1

Answer 3

The US & Canada have mutually arranged that taxpayers resident in one country can't open securities accounts in the other, so you won't be able to get a Canada-based account as some answers above suggest.

Interactive has a global platform and one correspondent, DV, has mentioned that Etrade is opening one also. These may work for you. It's remotely possible that you won't get access to full range of Canadian securities including the Venture exchange products (junior companies) and the Montreal exchange (options & futures) - you'd have to inquire.

Here are some other possibilities. Personally, I'd go with suggestions (1) or (3).

1) does the stock you're interested in trade in the US on an organized exchange? Most larger canadian companies are interlisted, trading both in Toronto and on the Naz, the Amex or New York. Example: talisman energy, barrick gold, bank of montreal. In this case, prices are already in US currency and you can trade online, so you're home free.

2) the stock you're interested in may also trade in the US in the "foreign" sector of the pink sheets. You'll know this group because the symbols all end in letter "F." Example: Genco resources, a small precious metals exploration and mining company, trades in Toronto as GGC and also through pink sheets under the symbol GGCRF.PK.

I wouldn't go this route. Reason: all foreign pink sheet stock trades are executed by a US broker directly upon the foreign market that hosts the security. Using Genco as an example, a US broker will buy in Toronto in Canadian currency and "sell" to the client as a pink sheet purchase in US currency. There will be a large markup in price, to compensate the broker for a) his unusual trouble and b) his currency transaction. You'd expect to pay more than $100.00. Of course, you won't see this as a commission, but it'll be there in the pink sheet bid and ask for the stock. These will run at least $100 higher than the stock is actually trading in its own foreign market.

Furthermore, if you buy a pink sheet foreign stock, you won't be able to get live quotes throughout the day. Pink sheet quotes are not available until after hours each day.

Also, there are bulletin-board traded Canadian stocks. I believe called OBs in the US. In this case, an inventory of the stock itself may be maintained within domestic USA, it may not be necessary for the broker to take a special trip to Toronto for each trade, and so the built-in fees might be lower. Volume would tend to be thin, with the big bid/asks that accompany illiquidity.

3) Most US online brokerages can take telephone orders for Toronto stock. The commission is greater than for online trades, it's said to run around $29.00. In addition, the customer will have to have a Canadian dollar denominated account or be willing to convert his currency each times he trades. However, this is the route I'd take if my chosen stock didn't already trade in a big US exchange.

What makes this arrangement slightly preferable is that the investor can keep track of his security by getting quotes on various systems, including at the TSX website, here on yahoo or through his broker. In addition, once he gets a Canadian $ account up and running, he's got a slight hedge against the US greenback. This can sometimes work to his advantage.

Best of luck!

Answer 4

If you have an account with an online broker, you can buy in any place that has an Internet connection.

In fact trough online trading, one doesn't know, and doesn't care, from which stock exchange you are buying.

Answer 5

E-Trade has launched a global trading platform for US investors. You will be able to trade 6 world exchanges including Canada. You can read more about it online, but I provided a link for you. Good luck.

Answer 6

TD Waterhouse.
E*Trade.

Answer 7

Where is the U?