How to buy Nasdaq stocks in Canada
The world's second largest stock exchange just dropped 4%. Here's what you need to know before you buy in.
How to invest in Nasdaq from Canada
There are a number of ways you can invest in the Nasdaq from Canada. These days many stock-trading platforms and brokers offer access to US stock markets. You can buy individual stocks that are listed on the Nasdaq, or invest in index funds that track the performance of the Nasdaq stock market, for example.
Popular Nasdaq ETFs
|ETF Name||Stock Code||Go to site|
|First Trust Nasdaq-100 Equal Weighted Index Fund||QQEW||Buy on Interactive Brokers|
|Invesco DWA Nasdaq Momentum ETF||DWQA||Buy on Interactive Brokers|
|PowerShares QQQ||QQQ||Buy on Interactive Brokers|
|ProShares Equities for Rising Rates ETF||EQRR||Buy on Interactive Brokers|
|Fidelity Nasdaq Composite Index Tracking Stock ETF||ONEQ||Buy on Interactive Brokers|
Should I invest in the Nasdaq?
That depends on how it performs. As with all investing, there is risk. The Nasdaq and the US in general have been the powerhouse of global growth for many years.
On Monday May 9, the Nasdaq dropped more than 4% as investors grow more concerned with inflation and sell off mega-cap growth shares by the masses. Apple shares made the biggest impact after their shares dropped by 3.3%.
The Nasdaq is the world’s second largest stock exchange by market capitalization after the New York Stock Exchange. It’s the home of some of the most globally renowned companies and the growth of the whole index reflects that. It is also incredibly tech-heavy with big tech companies like Amazon, Apple, Meta and more trading on the exchange.
Canadian investors looking to expand their portfolio will be able to trade over 3,300 stocks on the Nasdaq.
How to invest in the Nasdaq from Canada
- Choose a broker or trading platform. Different platforms have different fees and account options, so it’s important you pick the one that best suits your investing needs. You can compare a range of share-trading platforms that let you invest in the Nasdaq below.
- Open a share-trading account. Once you’ve selected which broker or platform you’d like to use, you’ll need to open an account with a share-trading platform or broker to start investing.
- Deposit funds. Brokers will let you deposit in Canadian dollars, then will either convert your funds into US dollars or leave them as Canadian dollars. If your funds are left in CAD, it’s likely you’ll need to pay an FX fee on each trade, which can end up costing more overall.
- Buy shares on the Nasdaq. Once your account is set up and funded, you can begin buying and selling shares.
- Easy-to-use platform
- Low fees
- Student and young investor discounts
- Access to international stock exchanges
- Low margin rates
- Powerful research tools
- $50 in free trades
- Low commissions
- Easy-to-use app
How much does it cost to invest in the Nasdaq?
Some brokers or trading platforms will charge you a commission on every trade, while others may only charge you an FX fee when you initially deposit CAD, then charge no commission on trades.
It’s important that you understand the fee structure of each platform before using it to trade. Certain brokers or platforms will suit different types of investors, but may prove to be expensive if you’re only investing small amounts.
Broker trading fees
Below is a breakdown of the basic fees you’ll pay when making a single Nasdaq trade using each broker:
- Questrade. 1 cent per stock (Between $4.95 and $9.95), ETFs are free to buy
- Qtrade. Between $6.95 and $8.75 for equities including ETFs (or you can pick from 100 free ETFs)
- TD Direct Investing. Between $7 and $9.99 for equities
- RBC Direct Investing. Between $6.95 to $9.95 for equities including ETFs
Other ways to invest in the Nasdaq
If you want to invest in the Nasdaq but don’t want to buy Nasdaq stock directly, you have other options. You can buy an exchange-traded fund that tracks the performance of the entire Nasdaq index, as well as indices like the S&P 500 or Dow Jones Industrial Average.
Which stocks are on the Nasdaq?
There are over 3,300 stocks available on the Nasdaq, including many of the largest companies in the world by market capitalization.
Popular Nasdaq stocks include:
The Nasdaq Composite (IXIC) is a stock market index that tracks the common stocks and securities on the Nasdaq. The Nasdaq-100 is an index that tracks a subset of the top 100 non-financial stocks on the Nasdaq. You can invest in these indices by buying an ETF that specifically tracks the performance of the stocks in the index.
Nasdaq trading hours
The Nasdaq is open during regular US market hours, which are between Monday and Friday from 9:30am to 4pm (Eastern Time).
Compare platforms to buy Nasdaq stocks
Canadians consider stocks a smart investment option in 2023
According to results from the Finder: Consumer Sentiment Tracker Q1 (CSTQ1), more than a third (36.18%) of Canadians considered equities to be a smart investment in the first quarter of 2023. This dropped only slightly in the second quarter of 2023 to 27%, according to the Finder: Consumer Sentiment Tracker Q2 (CSTQ2).
Men preferred stocks as an investment option, with 41% considered Q1 2023 a “good time to invest in stocks,” compared to 32% of female investors.(1)
Age also had an impact on an investor’s confidence in stocks as an investment opportunity. The youngest generation, Gen Z (investors up to the age of 24) had the most confidence in stocks as a good investment opportunity in the first quarter of 2023 with 53% believing “now is a good time to invest in stocks,” compared to 42% of millennials, 31% of Gen X and 19% of baby boomers.
In general, almost a third of Canadians investors (31%) held stocks outside of their registered accounts, such a retirement savings fund (RRSP) or Tax-Free Savings Fund Account (TFSA) and almost three quarters (72%) bought or sold stock through an online stock platform or app. This seems logical, given that 29% of respondents in the CSTQ2 stated they had never worked with and had no plans to use the services of a financial advisor.(2)
More on investing
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