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How to invest in the TSX

Here's how to buy a TSX stock online and invest in the largest stock exchange in Canada

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The Toronto Stock Exchange (TSX) is a major global stock market based in Canada. It deals primarily with energy and financial companies, such as Canada’s largest banks and a number of oil and gas companies. Find out how invest in the TSX, and learn more about how to buy a TSX stock online.

How to invest in the TSX

You can follow the steps below to set up an account and buy TSX stocks:

  1. Choose a broker or trading platform. You’ll need to choose a broker or trading platform that gives you access to the TSX or at least lets you buy and sell the TSX stocks that you’re interested in. You should also try to compare at least three to four brokers to find the cheapest option before you decide on a service.
  2. Open a share-trading account. Once you’ve landed on the right broker or platform, you’ll have to open a trading account with them. This can usually be done by filling out a quick online application with the provider you’ve settled on. This will require you to supply personal information such as your full name, address, email and phone number.
  3. Deposit funds. When your account is up and running, you’ll have to load funds into your “wallet” to start trading. You may need to link your bank account to your trading account to initiate a transfer, depending on which platform you use. Some platforms may allow you to pay with a credit card or Interac e-Transfer.
  4. Buy stocks on the TSX. Once your money is loaded into your account, you’ll be ready to start trading. You can buy and sell stocks as well as a number of other financial products (such as bonds, exchange-traded funds and derivatives) on the TSX. This will cost you different amounts, based on which broker or platform you use.
  5. Pay the required fees. Many brokers charge commissions every time you make a trade on the TSX. This commission will be deducted from your account balance as soon as you execute a trade. You may also have to pay an account maintenance fee quarterly or once per year to keep your account active.

How to buy TSX Stocks online

You can buy a listed TSX stock online by signing up for an online broker such as Wealthsimple Trade or Questrade. From there, you’ll have access to every stock listed on the TSX. You’ll be able to load money into your account by linking your bank account to your trading account. You can also use your online or mobile app to track your gains and losses.

Investing in stocks using an online or mobile trading platform is the easiest and cheapest way to invest in the TSX. If you’re not comfortable making manual trades online or with your phone, you may want to look into investing with a robo-advisor or a financial planner.

Compare stock trading platforms with access to TSX stocks

Name Product Available Asset Types Stock Fee Option Fee Account Fee ETF Transaction Cost Feature Table description
OFFER
Wealthsimple Trade
Stocks, ETFs
$0
N/A
$0
Free
Get 2 free stocks when you open a Wealthsimple Trade personal account and deposit and trade at least $150.
Pay no commissions when you trade Canadian stocks and ETFs with Wealthsimple Trade.
Interactive Brokers
Stocks, Bonds, Options, ETFs, Currencies, Futures
Min. $1.00, Max. 0.5% of trade value
$1.50 min. per order
$0
Min. $1.00, Max. 0.5% of trade value
Extensive trading capabilities and global investment tracking.
Access market data 24 hours a day, six days a week and invest in global stocks, options, futures, currencies, bonds and funds from one single account.
BMO InvestorLine
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
$9.95
$9.95 + $1.25 per options contract
$0 if conditions met, otherwise $25/quarter
$0 - $9.95
Buy and sell a select group of Canada’s most popular ETFs without paying commissions.
An easy-to-use online trading platform with access to research, tools, and the option to access InvestorLine adviceDirect for additional professional support.
Scotia iTRADE
Bonds, Options, Mutual Funds, ETFs, GICs, International Equities
$4.99-$9.99
$9.99 + $1.25 contract ($4.99 + $1.25 contract if completed 150 trades or more a quarter)
$0
$9.99 ($4.99 if completed 150 trades or more a quarter)
Pay no annual account fees.
Buy, sell and trade ETFs, Equities, Options and more with competitive commissions.
CIBC Investor's Edge
Stocks, Bonds, Options, Mutual Funds, ETFs
$4.95 - $6.95
$4.95 - $6.95 (+$1.25 per contract)
$0 if conditions met, otherwise $100/year
$6.95
$4.95 - $6.95 is applicable for online stock, ETF and option trades only. Pay $4.95 when you qualify as an Active Trader (trade 150+ times per quarter).
An intuitive and easy-to-use platform with access to a variety of tools that help you make smart decisions and trade with confidence.
Questrade
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals
$4.95-$9.95
$9.95 + $1 per contract
$0
Free
Get $50 in free trades when you fund your account with a minimum of $1,000.
Opt for self-directed investing and save on fees or get a pre-built portfolio and take some of the guesswork out.
OFFER
Qtrade Direct Investing
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
$6.95 - $8.75
$6.95 - $8.75 + $1.25 per contract
$0 if conditions met, otherwise $25/quarter
$0 - $8.75
Get up to 50 free trades. Be one of the first 100 new Qtrade clients to use the promo code 50FREETRADES and deposit a minimum of $10,000 (or top up to $15,000 to get $150 transfer fees waived). Valid until December 31, 2021.
Qtrade Direct Investing offers low trading commissions and an easy-to-use platform with access to powerful tools and a wide selection of investment options. Trade 100 ETFs free of charge and thousands more for $8.75 or lower.
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Compare up to 4 providers

What is the TSX?

The Toronto Stock Exchange (TSX) is a stock exchange based in Toronto, Ontario. It’s Canada’s largest stock exchange, and the ninth largest exchange in the world by market capitalization. There are over 1,500 companies listed on the TSX, including a high proportion of those specializing in the financial and extractions industries.

You can use the TSX to trade shares in companies, investment trusts and exchange-traded funds (ETFs). As a more advanced trader, you can also use it to dabble in bonds, commodities, futures, options and other derivative products. Just be aware that any trades you make on the TSX will be carried out using the Canadian dollar.

What is the TSX Venture Exchange?

The TSX Venture exchange (TSXV) is for smaller, emerging companies with market-caps too small to be listed on the TSX. Many resource exploration and high-tech companies are listed on the exchange.

How much does it cost to invest in the TSX?

The amount you’ll pay to buy a TSX stock will depend on which broker or trading platform you use to make your trades. Each one will have its own fee structure for executing trades (in addition to an account fee, in some cases). These extra charges can have a big influence on the cost of investing.

Broker trading fees

Some of the most popular brokers in Canada to buy TSX stocks are listed below, along with a price breakdown for making trades on Canadian stocks. The one you choose will be based on your unique preferences and budget.

Broker

Stocks (price per trade)

ETFs (price per trade)

Account fee

Wealthsimple Trade

Free

Free

Free

Go to site

Interactive Brokers

Min. $1.00, Max. 0.5% of trade value

Min. $1.00, Max. 0.5% of trade value

$0

Go to site

CIBC Investor’s Edge

Between $4.95 and $6.95 (or $5.95 for students)

Between $4.95 and $6.95 (or $5.95 for students)

$25 per quarter

Go to site

BMO InvestorLine

$9.95

$9.95

$25 per quarter

Go to site

Questrade

Between $4.95 and $9.95

Between $4.95 and $9.95 (but free to buy)

Free

Go to site

Scotia iTRADE

Between $4.99 and $9.99

Between $4.99 and $9.99 (but free to buy)

Free (but inactivity fee)

Go to site

Qtrade

Between $6.95 and $8.75

Between $6.95 and $8.75 (or pick from 100 free ETFs)

$25 per quarter

Go to site

TD Direct Investing

Between $7 and $9.99

Between $7 and $9.99

$25 per quarter

Read Review

RBC Direct Investing

$6.95 to $9.95

$6.95 to $9.95

$25 per quarter

Read Review

Virtual Brokers

Between $1.99 and $7.99

Between $1.99 and $7.99 (but free to buy)

$25 per quarter

Read Review

*Account fees for most brokers are waived if you keep a minimum of $15,000 in your account.

Popular TSX stocks to buy

It’s easy to find some of the most popular stocks being traded on the TSX by looking at the S&P/TSX 60 Index. This lists out 60 of the largest companies on the exchange by market capitalization. Examples of popular stocks in Canada include:

Our list of best Canadian stocks to buy is also a good way to find the top 20 TSX stocks of the month, determined by Finder’s algorithm.

Other investment options to buy on the Toronto Stock Exchange

There are a number of other investment products available on the TSX besides equities:

  • Index funds. These track the performance of a “basket” of stocks on the TSX, and let you earn money on the average gains of all the shares put together.
  • Exchange traded funds. ETFs are similar to mutual funds, except they can be traded on the stock exchange and typically come with much lower trading fees.
  • Options. Options are a type of contract that let you speculate and bid on how an asset is going to perform on the stock market.
  • Bonds. Bonds allow you to lend money to governments or corporations so that you can collect a set rate of interest on your loan.
  • New issues. New issues give you the change to invest in a company going public for the first time so that you can get in on the ground floor before share prices go up.

Popular TSX ETFs to buy

You can earn money on the cumulative average value of a number of TSX stocks when you invest in several of Canada’s most popular ETFs. These include the following:

  • Ishares S&P TSX 60 Index (XIU-T)
  • Ishares S&P TSX Global Gold Index (XGD-T)
  • Ishares S&P TSX Capped Financials (XFN-T)
  • Ishares Core S&P TSX Capped Comp (XIC-T)
  • Ishares S&P TSX Capped Energy Index (XEG-T)
  • BMO S&P TSX Equal Weight Banks Index (ZEB-T)

Why should I invest in the TSX?

The Toronto Stock Exchange is the largest stock exchange in Canada and features stocks from several major Canadian companies. It even offers access to certain stocks and securities that aren’t listed in other markets. In particular, it attracts some of the world’s largest natural resources companies, which makes it popular with international investors.

The TSX may be a good fit for you if you want to invest in Canadian banks, oil and gas companies or large Canadian corporations with at at least $7.5 million in net tangible assets. To invest in smaller Canadian companies, you’ll need to head over to the TSX Venture Exchange (also known as the TSX-V).

Is now a good time to buy TSX stocks?

Many stocks on the TSX suffered significant drops as a result of COVID-19, but the stock market has bounced back since then. While it’s impossible to predict what will happen in the future, you may want to consider investing in strong stocks that are likely to withstand any future market fluctuations.

To find these stocks, you’ll need to do some research and be aware of what’s going on in particular sectors. You can also make better decisions by tracking the historical trends of stocks and forecasting which companies have fared well throughout the pandemic, as well as which stocks could be on the verge of making a comeback.

Bottom line

The TSX lists stocks from over 1,500 Canadian companies, making it Canada’s largest stock exchange. You can use many different online brokerages to trade on the TSX, depending on your budget and preferences. Use this post to find out more about how to invest in the TSX and how to buy TSX stocks online.

Frequently asked questions about the Toronto Stock Exchange

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