Canada is an excellent place to invest in the International market. The Canadian market has an array of companies, startups, and sectors that you can invest in. The Canadian stock market has various small exchanges and one large exchange. Toronto Stock Exchange is one of the major exchanges in the world. The TSX Venture Exchange is where you find lower-priced stocks. Canada’s economy heavily relies on natural resources, which is also reflected in the market. More than 3000 companies trade in Canadian stock markets.
Perks of Investing in the Canadian Stock market
Canada’s economy is driven by companies that deal with natural resources. The commodities are volatile but have substantial growth opportunities. There are many choices for investors looking for Canadian companies to invest in.
Canada has a strong economy and a banking system considered safe. The balance sheets of the banks are strong, making the lending rates lower than in most countries. This gives positive outcomes in the retail and real estate sectors.
The fact that the Canadian stock market is mostly traded using the Canadian currency makes it an excellent way to protect your U.S dollars. When the U.S dollar loses value, the foreign markets do not suffer. By buying Canadian stocks, you protect your investment in case the value of the U.S dollar decreases. Foreign markets enable investors to make profits when the value of the U.S. dollar decreases.
How to Buy Stocks in Canadian Stock Markets
As an investor, you can buy stocks in the Canadian stock market through licensed brokers. This allows you to place orders directly with your broker. However, be sure you inquire about the fees associated with foreign investments.
Purchasing Canadian bonds and stocks can also be done through exchange-traded funds. These securities track various assets. Like mutual funds, exchanged-traded funds are listed on the stock exchange.
American depository receipts are another way to buy stocks from other exchanges via the U.S market. The ADRs are securities that permit foreign companies to trade.
The Canadian stock markets operate from 9.30 am to 4 pm on weekdays. They have an extended session that runs up to 5 pm on trading days. The market remains closed on weekends and holidays. It is essential to know the difference between U.S public holidays and Canadian public holidays. In addition, consider using the TSX or TSX Venture exchange lists to determine the Canadian companies to invest in.
Canadian Financial Market Trends
Generally, Canada has a strong economy. In addition, it has excellent monetary policies, and its industries have low deficits. Like any other Exchange, the Canadian Stock Market follows specific trends. It relies on commodities, which means that seasonal factors determine the market’s tone for commodities such as gas and oil. Such commodities make the Canadian Stock Market relatively volatile. Legal policies also affect market trends. Recently, Canada passed legislation that legalized marijuana use. The law has caused some excitement in the stock market.
Stay ahead of the game by checking out the TSX composite index to track your stocks’ value so you can make gains and minimize losses.