Regardless of how much you have to invest, whether $ 500 or $ 500,000, there are proven methods, based on years of study and analysis, for picking the winners and reducing risks in today’s volatile economic environment. Not only this, but throughout the investing process, there is proven guidance for everything from picking a broker to diversifying your portfolio to making a million owning mutual funds or looking for a good stock pick. (more…)
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Sunday, May 15th, 2011How US Investors can buy Canadian Stock
Friday, November 19th, 2010
After the meltdown in US economy and Real Estate downfall, many portfolios suffered. Many US investors have focused on the major markets – Dow, NASDAQ … However, now it is important to start looking at other investment alternatives and maybe look at other markets to diversify one’s investments better. Canadian Stock offers such alternative. By buying and selling Canadian Equities US investors will achieve a different level of investing, a more diversified way of looking at maximizing investments.
Many times, this Canadian venue is unknown to US investors. Natural resources stocks, such as mining stocks offer a great way to diversify a portfolio, and US investors can take the opportunity by investing in Canadian mining stocks. A majority of mining companies have their bases in Canada. They can be found at the Toronto Stock Exchange or TSX – and the TSX Venture Exchange.
It is important to note that the vast majority of stocks trading on the Canadian market, TSX or TSXV, have a corresponding symbol on the US side. This allows US investors to easily purchase Canadian securities. For most Canadian securities, the corresponding US symbol has 5 letters and end with the letter ”F” (ex: Argex Mining, Canadian symbol: RGX – tsxv, American sumbol: ARGEF-otc). However, certain Canadian companies do trade under a regular symbol on the NASDAQ exchange. (Ex: Neptune Biotech, Canadian symbol: NTB-tsxv, American symbol: NEPT-q).
Basically, US residents who want to purchase Canadian securities need to find the corresponding symbol on the American side. Investors can verify with their broker, or find the symbol themselves by checking the company’s website.
A few US based trading companies that deal with this type of Canadian stock can be found in Colorado, Denver, and Idaho. However, this might affect trading volume prices for US investors, which can get a better deal by trading in Canada. Many junior companies are not in the US OTC bulletin board, so this becomes another issue as these are only traded in Canada. However, US investors can put some phone orders through their brokers, which will be more costly.
To be able to have a brokerage account in Canada, US citizens must have a residence there; if not, trading is a bit more difficult and will require a full service broker that has the ability to trade in the Canadian side and the ability to clear the transaction on the US side as well, to be able to comply with US laws and regulations. Few brokers have both abilities, so a US investor must rely in finding a good full service broker that can do both. Canaccord is one broker that US investors not residing in Canada can use as a full service broker.
Some discount brokers in the US can do both as well. To name a few – Penn Trade, TD Ameritrade, Interactive Brokers, and Scottrade. Due to the nature of these tradings, they might come at a higher price than regular US tradings. Other online stock traders that have the ability to trade in US and Canada are good options, but investors should do their due diligence and check out companies before they invest. Investors will also have to pay capital gain taxes in Canada, so it is important to monitor the investments very well.
Canadian oil stocks are another source of diversification for US investors. These usually trade on the TSX and the CNSX (Canadian National Stock Exchanges). Some Canadian public companies also have a stock on the traditional US exchanges.
With the Canadian resource sector experiencing record highs, it is the perfect time for American investors to take advantage of the opportunities that Canadian natural resources offer.
After the meltdown in US economy and Real Estate downfall, many portfolios suffered. Many US investors have focused on the major markets – Dow, NASDAQ … However, now it is important to start looking at other investment alternatives and maybe look at other markets to diversify one’s investments better. Canadian Stock offers such alternative. By buying and selling Canadian Equities US investors will achieve a different level of investing, a more diversified way of looking at maximizing investments.
Many times, this Canadian venue is unknown to US investors. Natural resources stocks, such as mining stocks offer a great way to diversify a portfolio, and US investors can take the opportunity by investing in Canadian mining stocks. A majority of mining companies have their bases in Canada. They can be found at the Toronto Stock Exchange or TSX – and the TSX Venture Exchange. (more…)
