The Toronto Stock Exchange (TSX) is a major global stock market based in Canada. It deals primarily with energy and financial companies, including 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 stocks online.
How to invest in the TSX
You can follow the steps below to set up an account and buy TSX stocks:
Open a stock trading account. Compare different brokers in the table below. Once you’ve landed on the right broker or platform, open an online trading account with them. This will require you to supply personal information such as your full name, address, email and phone number.
Deposit funds. Load funds into your stock trading wallet to start trading. You may need to link your bank account to your trading account to initiate a transfer, while other platforms may allow you to pay with a credit card or Interac e-Transfer.
Buy stocks on the TSX. 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.
Keep fees in mind. 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 much does it cost to buy TSX Stocks?
The amount you’ll pay to buy a TSX stock will depend on which broker or trading platform you use to make your trades. These extra charges can have a big influence on the cost of investing.
*Account fees for most brokers are waived if you keep a minimum balance in your account, though this minimum balance differs per platform. Read our reviews for more on this.
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 to buy TSX stocks: compare trading platforms
1 - 4 of 4
Populatr TSX stocks to buy
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.
It’s also 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:
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 TSX Stocks?
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).
Investing in a basket of stocks (an ETF) is generally less volatile than investing in just one single stock. The graph below shows a good example of this using the BMO Equal Weight Banks Index ETF – a collection of equally-weighted Canadian bank stocks including TD and CIBC in addition to 4 others. Comparing the return on investment between the ETF and some individual stocks over the past 11 years, you can see that TD outperforms the ETF while CIBC underperforms compared to it. That’s why investing in a basket of stocks is often less risky than riding the ups and downs of individual stocks.
Is now a good time to buy TSX stocks?
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, like Canadian blue chip stocks.
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.
Investing in TSX FAQs
You can buy TSX stocks online by signing up for an online brokerage account such as Questrade or Wealthsimple. These accounts will let you invest in TSX stocks using your desktop or mobile phone. You can also sign up with a robo-advisor if you'd like to invest in TSX stocks online but you would rather not have to manage your account actively.
Unfortunately, no. You can't buy US stocks through the TSX market. That said, you can buy US stocks through Canadian trading platforms if you pay a currency exchange fee. This is because many trading platforms offer access to several different Canadian and global markets at one time.
The best way to invest in the TSX is to sign up for an online brokerage account or a robo-advisor. You can also invest in TSX stocks using a financial planner, though this often costs more in management fees than you'll have to pay to manage your investments on your own.
Our guide to the Best Canadian stocks to buy right now, which is updated every month, can point you in the right direction. To choose our Top 10 TSX stocks we used Finder's proprietary algorithm to rate TSX stocks based on price, performance, profit, revenue and dividends—only featuring companies with a market cap of more than CAD $200 million.
Claire Horwood is a writer at Finder, specializing in credit cards, loans and other financial products. She has a Bachelor of Arts in Gender Studies from the University of Victoria, and an Associate’s Degree in Science from Camosun College. Much of Claire’s coursework has focused on writing and statistics, with a healthy dose of social and cultural analysis mixed in for good measure. In her spare time, Claire enjoys rock climbing, travelling and drinking inordinate amounts of coffee.
A failed SPAC deal pulled the plug on this vertical farming company’s plans to go public. But you can buy stock in other sustainable farming companies.
Wealthsimple offers zero-fee trades and a super user-friendly mobile app. But there are some drawbacks.
Feedback
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
