Brokerage that trades in Canadian stocks, ETF's

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DanL
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Brokerage that trades in Canadian stocks, ETF's

Post by DanL » Mon Feb 12, 2018 8:51 pm

I am an American interested in purchasing Canadian equities. I have checked around for brokerages here that trade Canadian equities and found few attractive options. Fidelity charges 100 basis points plus a flat fee - depending if it was on-line or broker assist.

TD Ameritrade owned by Toronto Dominion bank is the best I foound at $45 a broker assist trade.

Any suggestions on brokerages that trade cross border with our northern neighbor appreciated. Also comments about purchasing Canadian equities. Thank you.

n00b590
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Re: Brokerage that trades in Canadian stocks, ETF's

Post by n00b590 » Mon Feb 12, 2018 11:35 pm

Interactive Brokers

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Peculiar_Investor
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Re: Brokerage that trades in Canadian stocks, ETF's

Post by Peculiar_Investor » Tue Feb 13, 2018 8:02 am

To answer your specific question, many of the larger Canadian companies have their stock interlisted on US exchanges. Hence you could purchase them directly without needing to use a Canadian exchange. Check out Interlisted Companies | TMXmoney for the full list.

The broader (pun intended) question is why you would want to purchase a) individual stocks and b) Canadian ones at that. The Canadian equity market represents approximately 4% of the global equity market cap, and isn't overly diversified, with a significant market cap in just three sectors, financials, energy and materials. The Canadian sister forum, www.financialwisdomforum.org/forum has a wiki article that covers the issue, see Diversification - finiki, the Canadian financial wiki.

If you want Canadian equity exposure, why wouldn't you use an index mutual fund or ETF that follows or includes the S&P/TSX?
Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams

Rom1b
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Re: Brokerage that trades in Canadian stocks, ETF's

Post by Rom1b » Tue Feb 13, 2018 8:15 am

n00b590 wrote:
Mon Feb 12, 2018 11:35 pm
Interactive Brokers
I use that too.
Dr Bernstein - If You Can / free PDF, google it | 3Fund Portfolio www.bogleheads.org/forum/viewtopic.php?f=10&t=88005 | CollectiveThought www.bogleheads.org/forum/viewtopic.php?f=10&t=7353

TedSwippet
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Re: Brokerage that trades in Canadian stocks, ETF's

Post by TedSwippet » Tue Feb 13, 2018 9:50 am

DanL wrote:
Mon Feb 12, 2018 8:51 pm
I am an American ... Also comments about purchasing Canadian equities.
Holding stocks of individual Canadian companies should not lead to too many US tax headaches.

However, as a US citizen if you hold Canadian or any other non-US domiciled ETFs or mutual funds you will find yourself envying the dead at tax time, due to horrible US PFIC tax rules.

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Peculiar_Investor
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Re: Brokerage that trades in Canadian stocks, ETF's

Post by Peculiar_Investor » Tue Feb 13, 2018 9:57 am

TedSwippet wrote:
Tue Feb 13, 2018 9:50 am
However, as a US citizen if you hold Canadian or any other non-US domiciled ETFs or mutual funds you will find yourself envying the dead at tax time, due to horrible US PFIC tax rules.
Very good point. I was thinking that the OP would use US domiciled ETFs or mutual funds. The wiki has an article, Passive foreign investment company (PFIC) that covers the taxation concerns.
Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams

DanL
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Re: Brokerage that trades in Canadian stocks, ETF's

Post by DanL » Tue Feb 13, 2018 6:08 pm

Peculiar_Investor wrote:
Tue Feb 13, 2018 9:57 am
TedSwippet wrote:
Tue Feb 13, 2018 9:50 am
However, as a US citizen if you hold Canadian or any other non-US domiciled ETFs or mutual funds you will find yourself envying the dead at tax time, due to horrible US PFIC tax rules.
Very good point. I was thinking that the OP would use US domiciled ETFs or mutual funds. The wiki has an article, Passive foreign investment company (PFIC) that covers the taxation concerns.
Thank you! I find the Canadian banks and utility sector dividends attractive. After reading the wiki article on taxation - the best tax way is to acquire those equities individually. I haven't found a ETF that has S&P and TSX but will look harder. The ETF universe is getting larger by the day.

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Peculiar_Investor
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Re: Brokerage that trades in Canadian stocks, ETF's

Post by Peculiar_Investor » Tue Feb 13, 2018 6:14 pm

Peculiar_Investor wrote:
Tue Feb 13, 2018 8:02 am
If you want Canadian equity exposure, why wouldn't you use an index mutual fund or ETF that follows or includes the S&P/TSX?
DanL wrote:
Tue Feb 13, 2018 6:08 pm
I haven't found a ETF that has S&P and TSX but will look harder.
I might have confused you. The index I was referring to is the S&P/TSX Composite index, which as a Canadian I normally default as S&P/TSX. Sorry, eh :wink:
Normal people… believe that if it ain’t broke, don’t fix it. Engineers believe that if it ain’t broke, it doesn’t have enough features yet. – Scott Adams

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