StockGuru Canada

How to Invest in Canada

There is a wealth of opportunities in Canadian stocks and most investors have ignored the natural resource sector.  Most mining companies are headquartered in Vancouver or Toronto.  You can access Canadian stock prices by going to msn.com and type CA: and the two or three digit Canadian symbol.  For example Research in Motion would be CA:RIM or on finance.yahoo.com would be RIM.TO.

To invest in Canadian companies you can buy US stocks with Canadian operations or purchase Canadian companies listed on American exchanges (NYSE or Nasdaq) or on the OTC Bulletin Board or Pink Sheets.

Or, you can invest in stocks listed on the Toronto Stock Exchange (TSX), one of the largest stock markets in the world or the TSX Venture Exchange.  You can also buy Canadian stocks traded as American depository receipts (ADRs) on U.S. exchanges. ADRs don’t have the same currency risk as Canadian stocks bought on TSX.

The junior mining companies do not have a listing on the major US exchanges such as the Dow, Amex, or Nasdaq.  Trading the senior mining companies will have a US listing and can be easily traded with any US broker.  The junior mining companies are traded on the OTC bulletin board.  When trading on the OTC bulletin Board, you can trade online with US brokers but you must always trade with a limit order.  If the company does not have and OTCBB listing, they must be traded on the Canadian side.

To trade Canadian stocks you will usually need a full service brokerage firm.  Some online US brokers like Penn Trade (www.penntrade.com) can easily trade any of the Canadian stocks as they specialize in junior mining stocks.  TD Ameritrade can also trade Canadian stocks easily.   Ask for the foreign trading desk for stocks that do not have an OTCBB listing.  Interactive Brokers allows U.S. citizens to trade Canadian stocks economically.

Watch for our Canadian stock profiles and spotlights for companies with great potential.