How to buy stocks in Canada

Got an internet connection and a few bucks to spare? It's super easy to start investing through an online brokerage.

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Key takeaways

  • You need to open a stock trading account to buy stocks in Canada. This can be done online and you may not need a minimum deposit.
  • Market orders let you buy stocks now at the current price. Conditional orders let you place trades only when stocks reach a price you decide beforehand.
  • Each stock trade will cost you $0 to $9.99, depending on the brokerage you choose.
Wondering how to invest in stocks in Canada? Thanks to digital technology, it’s easy to create an online brokerage account and start trading shares from the comfort of your home. Let’s walk through how to buy stocks in Canada.

How to buy stocks in Canada: 4 easy steps

  1. Sign up for a stock trading account
  2. Set up a funding method to pay for the transaction
  3. Choose the stocks you want to buy
  4. Place your order

Step 1: Sign up for a stock trading account

While big brokers TD Direct Investing, CIBC Investor's Edge, BMO InvestorLine, RBC Direct Investing and Scotia iTRADE are still going strong, they’re not the only brokers in town anymore. There are now a number of online brokerages in Canada that offer user-friendly platforms, convenient features and low fees.

Our top picks for where to invest in stocks in Canada

Best for Beginners

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Easy to use app
  • Easy-to-use platform
  • Low fees
  • Student, young investor & active trader discounts

Low Margin Rates

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Low margin rates
  • Access to international stock exchanges
  • Low margin rates
  • Powerful research tools

Best for Low Fees

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CA & US trading
  • 6% cash rebate plus $4,600 in trading perks
  • Low transaction fees
  • Easy-to-use app
When looking for a brokerage, you’ll want to consider trade fees, account fees, the types of accounts and securities you want access to, customer service options and the research tools each platform offers.

The exact steps for creating an investment account online vary between platforms, but generally, you’ll need to choose an account type (TFSA, RRSP, cash, margin etc.) and enter personal, employment and financial information like your name, contact details, Social Insurance Number and income.

Upload a copy of valid ID, such as a driver’s licence or passport, to verify your identity. Submit your application and wait for approval, which often takes 1–2 business days.

Using a robo-advisor

If buying and selling stocks still seems intimidating, you could consider using a robo-advisor. Robo-advisors are algorithms that invest in a mix of stocks (and bonds) according to your risk tolerance, financial situation and investing timeline. This passive investing approach saves time too, as you don’t need to research what shares to buy and sell and when to do so.

Step 2: Set up a funding method to pay for the transaction

While you can open an account with most brokers without a minimum deposit, you can’t trade until you have sufficient funds in your account to cover the cost of the transaction.

One of the easiest ways to do this is to link your bank account and transfer funds via Electronic Funds Transfer (EFT). EFT transfers take between 1 and 3 business days to complete, but some brokers offer a feature called instant deposits, which allow you to trade before the funds have settled.

Other funding methods include wire transfer, cheque deposit and account transfers from other brokerage accounts. Credit cards are typically not permitted as a brokerage account funding method.

Step 3: Choose the stocks you want to buy

Where do you get investment ideas? In other words, how do you choose the best stocks to buy?

A good place to start is with an industry that interests you and then explore the different companies in that space. Identify key players and young companies with potential for growth but also figure out which companies are falling, or have fallen, out of favor. If you want to follow a Warren Buffett saying, “never invest in a business you cannot understand.”

Tools like stock screeners can help you narrow down stocks by sector, industry, price range and more. Search for companies by name or ticker symbol. If you’re on the fence about a purchase, add the stock to your watchlist to keep an eye on its performance. Analyst research reports can give you valuable insight into companies and guidance as to whether a particular company is a good investment.

At the end of the day, perform as much in-depth research as possible until you’re comfortable investing.

Step 4: Place your order

With a stock in mind and funding in place, it’s almost time to invest. But before you buy any shares, you should know how much money you want to invest in any particular stock.

Consider your budget, investment goals and your portfolio allocation. With the advent of fractional shares, you no longer need the entire share price to invest. Instead, you can invest specific dollar amounts in a stock. However, not every broker offers this feature.

How many stocks should I purchase?

The ideal number of stocks for your portfolio depends on your investment goals and level of desired diversification. Renowned value investor Benjamin Graham put this number between 10 and 30 stocks. New investors may hold fewer stocks, while experienced traders may feel comfortable monitoring a wider range of securities.

5 ways to invest in stocks

Almost anyone can invest in the stock market, and it’s possible to invest with as little as a few dollars. Here are some of the most popular methods for investing in stocks in Canada:

  1. Buy stocks through a trading platform: As outlined above, you can open a stock trading account with an investment platform and buy stocks online. Compare platforms here.
  2. Invest in ETFs or mutual funds: Purchasing shares of an exchange-traded fund or mutual fund lets you own part of a pool of stocks in different companies. This can be a great way to diversify your investments and reduce your risk.
  3. Use a micro-investing app: Round up everyday purchases to the nearest dollar and transfer the difference into an investment account. You’d be surprised how quickly small transfers can add up.
  4. Use a robo-advisor: Avoid the hassle of managing your own investments and the hardship of high professional management fees by letting a computer algorithmically invest for you based on your individual goals and risk tolerance.
  5. Use a wealth manager or financial advisor: Employ an advisor to buy stocks and manage your investments on your behalf. This can be costly, but you’ll benefit from trained professionals with years of experience and industry-leading tools at their fingertips.

Types of stock orders

There are two ways to purchase stock: placing a market order or a conditional order.

  • Market orders. Place a market order when you want to buy a stock immediately at the current market price. If you’re buying shares of a volatile stock, the price at which your order is executed could be higher or lower than the last traded price.
  • Conditional orders. Place a conditional order, such as a limit order or stop order, to invest only when a stock meets specific conditions. A limit buy lets you set a specific time frame, during which a trade will auto-execute if a prespecified maximum price is reached. If it’s never reached, the trade won’t execute.

Once you’ve entered details like the type of order you want to execute and the number of stocks you’d like to purchase, submit the order.

Compare more online brokerages in Canada

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Product Finder Score Available Asset Types Account Types Stock Trading Fee Monthly Account Fee Offer
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Stocks, Bonds, Options, Index Funds, ETFs, Forex, Currencies, Futures
RRSP, TFSA, Personal, Joint
min $1.00, max 0.5%
$0
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Stocks, Options, ETFs
RRSP, TFSA, Personal, FHSA
$1.49/stock
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Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, Precious Metals, IPOs
RRSP, RESP, RRIF, TFSA, Personal, Joint, FHSA
$6.95
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Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, IPOs
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$6.95 - $8.75
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Finder Score for stock trading platforms

To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score the better the platform - simple.

Read the full methodology

How much does it cost to buy stocks in Canada?

The cost to buy stocks depends on which trading platform you’re using, with trading commissions often ranging from $0 to $9.99.

Some online brokerages like Wealthsimple charge no fees or commissions to trade stocks, and some require a minimum deposit to open a trading account. Other brokers charge extra for specialized investment products. High-value trades are often charged as a percentage of the total trade value, rather than a fixed fee.

If you’re an active trader, you could qualify for discounted trading fees. Requirements vary between brokerages, but usually this involves placing around 150+ trades per quarter.

You can compare the fees and features of the best stock trading apps here.

What happens after I buy a stock?

Once the broker executes your order, you’re considered a shareholder. Congratulations! And now you can either hold the stock or sell it. Buy-and-hold investors hold on to stocks in the hopes that they will eventually increase in value. They may hold a stock for months or years before they decide to sell it—hopefully at a profit.

Active traders, on the other hand, may offload a stock quickly. Specifically, day traders buy and sell a stock over a single trading day. The aim is to take advantage of sudden price changes. This type of trading is complex, fast-paced and requires a deep understanding of the market, so it’s not suitable for beginners.

Ultimately, what you do with the assets in your portfolio depends on your investment goals, strategy and risk tolerance. Make sure to check in occasionally on your investments to track their performance and ensure your portfolio still aligns with your investment goals.

How dollar-cost averaging can lower your risk

Dollar-cost averaging is a strategy investors use to minimize losses from market volatility and maximize their long-term returns. Instead of investing a large sum of money all at once, investors gradually purchase stocks over time, often at regular intervals.

Say you have $1,000 to buy stocks online. Instead of investing the entire $1,000 at once, you dollar-cost average by investing $100 every month for 10 months. This means you purchase shares at various prices—some low, some high—which is better than buying at one time when the shares might be overpriced.

When should I sell my stocks?

The process of selling your shares is equally as important as buying them. But not every investor follows the same playbook.

Some experts say you should consider selling your stocks if the company’s fundamentals change for the worse or if the competitive landscape changes. For instance, you may decide to sell your stock in a company whose earnings continue to steadily decrease or whose performance has dramatically weakened compared to industry peers.

Another reason to sell might be that you need the money for a more attractive investment.

Ideally, investors want to sell when it will be the most profitable. But timing the market is incredibly difficult, if not impossible, and can be costly. This is why it’s important to develop a strategy and stick to it.

Do all of Canada’s Big Five Banks have stock trading platforms?

Yes, all of Canada’s Big Five Banks offer stock trading platforms and apps. Here’s a quick breakdown of the platforms each bank offers to help you narrow down your options for how buy stocks in Canada.

TD Direct Investing

TD offers Canadians a stock trading platform and app where you can put your investments into a variety of registered or non-registered accounts. TD Direct Investing also provides users a host of learning resources and research tools to help you make smart investments. Trading comes with reasonable commission rates, but you may find cheaper options depending on the type of investments you plan to make.

  • Stock trading fee: $7.00 - $9.99
  • Account fee: $0 if conditions met, otherwise $100/year
  • Minimum balance: $0 (but a $25 quarterly account fee applies if your total balance is less than $15,000)

RBC Direct Investing

RBC Direct Investing offers a robust investing platform and trading dashboard either online or through the RBC Mobile app. Active traders will save on commissions. RBC Direct Investing also offers margin trading and the ability to get real-time quotes for stocks and ETFs. One unique selling point for this platform is the option to use a demo account where you can practice stock trading in Canada without using real money.

  • Stock trading fee: $9.95 ($6.95 if you place 150+ trades per quarter)
  • Account fee: $0
  • Minimum balance: $0

CIBC Investor’s Edge

CIBC Investor's Edge is an online brokerage where you can choose to put your money in both registered and non-registered accounts depending on your investing goals. If you’re already a CIBC customer, the CIBC Investor’s Edge can be a great way to keep all of your finances under one roof while getting access to a user-friendly platform with a wide variety of securities.
  • Stock trading fee: $6.95
  • Account fee: $0 if conditions met, or $100
  • Minimum balance: $0

Scotia iTRADE

Scotia iTRADE offers a highly rated stock trading platform and app for Canadians. Its commission rates decrease when you trade more. Scotia iTRADE also offers a practice account with a fictional portfolio of $100,00 so you can learn how to buy stocks in Canada with what is essentially play money.

  • Stock trading fee: $4.99–$9.99
  • Account fee: $0 if conditions met, otherwise $100/yr
  • Minimum balance: $0 (but a $100 annual account fee applies if your total balance is less than $25,000 and you don’t place at least 12 commissionable trades per year)

BMO InvestorLine

BMO InvestorLine also provides users with both a web-based trading platform and app. You’ll only pay a fee per trade if you have less than a specified minimum in your account. A nice perk of using BMO InvestorLine is that it makes its investment research available to its users.

  • Stock trading fee: $3.95–$9.95
  • Account fee: $0 if conditions met, otherwise $50 - $100 per year
  • Minimum balance: $0 (but a fee amounting to $100 annually applies if your total balance is less than $15,000 for non-registered accounts or $25,000 for registered accounts)

National Bank Direct Brokerage

Unlike many other brokerages run by major Canadian banks, NBDB offers fee-free stock and ETF trades. But you’ll pay an exchange rate mark up when converting currencies to trade non-Canadian securities.

  • Stock trading fee: $0
  • Account fee: $0 if conditions met, otherwise $100/yr
  • Minimum balance: $0 (but a $100 annual account fee applies if your total balance is less than $20,000)

What are the benefits of buying stocks online?

  • Lower fees and faster trades. Online trading is cheaper and faster than broker-assisted trades, which can cost upwards of $25 or more per trade.
  • Convenience. Sign up for an account in minutes, and trade from anywhere with an internet connection.
  • More control. Online trading gives you complete control over your portfolio and investments. Do your own research, and place your own trades without influence from brokers or financial advisors seeking a commission.
  • Complimentary research and trading tools. Many online brokers provide free educational resources and research tools that can help you better understand the markets and investing.
  • Real-time updates. Monitor asset prices, stock market news and your portfolio from your phone, tablet or laptop.

Is it safe to buy stocks online in Canada?

Generally speaking, yes, it’s safe to buy stocks from an online brokerage in Canada. Most trading platforms employ safety measures like 24/7 infrastructure monitoring and two-factor authentication as standard protocols along with maintaining a membership or good standing with the IIROC. But, like with anything on the internet, there are still some things to watch out for:

  • Technical problems. Your ability to trade and invest depends on the underlying platform, its software and its servers. If you can’t access your account because of a server outage, you could miss an opportunity to buy or incur losses if you can’t sell.
  • Security concerns. Hackers constantly target online brokers, and a breach could result in the theft of personal and financial information.
  • Making rash investment decisions. Emotional investing and unfettered access to the market can lead to impulse trading, which can be costly. Traders can also get caught up in the excitement of fast-moving markets, investing too much too quickly and without first taking the proper time to understand the stock.

1 in 2 Canadians prefer stocks over other investment types

Over half of Canadians (51.05%) prefer investing in stocks over other types of investments, according to the Finder: Consumer Sentiment Survey January 2025. Mutual funds (39.86%) and GICs (36.76%) are the next most preferred types of investments. Crypto meme coins (4.1%) and crypto ETFs (5.69%) are the least preferred, suggesting that, where investing is concerned, most people are leaning towards safety and convention over the gamble of decentralized finance.

Bottom line

FAQs on how to invest in stocks in Canada

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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To make sure you get accurate and helpful information, this guide has been edited by Jaclyn Hurst and reviewed by Romana King, a member of Finder's Editorial Review Board.
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Written by

Investments editor

Matt Miczulski is an investments editor at Finder. With over 450 bylines, Matt dissects and reviews brokers and investing platforms to expose perks and pain points, explores investment products and concepts and covers market news, making investing more accessible and helping readers to make informed financial decisions. Before joining Finder in 2021, Matt covered everything from finance news and banking to debt and travel for FinanceBuzz. His expertise and analysis on investing and other financial topics has been featured on CBS, MSN, Best Company and Consolidated Credit, among others. Matt holds a BA in history from William Paterson University. See full bio

Matt's expertise
Matt has written 11 Finder guides across topics including:
  • Trading and investing
  • Broker and trading platform reviews
  • Money management

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