Working hard is something that everyone acknowledges. However, being wise with your investments and having your money work as hard for you as you do for yourself is frequently the key to financial success. Perhaps become a shareholder in one of Canada’s largest corporations? Take advantage of their expansion and develop long-term riches that will transform your family’s financial situation.
The range of tax-advantaged accounts accessible to Canadian citizens, as well as accessibility to stock exchanges such as the Toronto Stock Exchange, might make investing in Canada appealing to prospective buyers (TSX). Many advisors also provide low-cost Canadian investment alternatives. The great news is that the fundamentals of investing can be learned by anyone. If you’re not sure where to start, here’s a primer on how to get started investing in Canada.
Best Canadian brokers for stock trading
There are a number of options for people looking to invest in Canada. Online brokers in Canada offer a range of services, from deep discounts to specialising in research and development. The Toronto Stock Exchange (TSX), the twelfth largest in the world, is often used as the benchmark. Canadian online brokers top 5 in rankings for trading are:
- Questrade: This is the leading online broker for trading not only on the Canadian stock market but the US stock market as well. Canadian residents are provided transparent pricing, discounts for active traders and NO annual fees. (Commission-$ 0.1 per share – $4.95min/$9.95 max).
- Qtrade Investor; Just like Questrade, Qtrade is also known for its all-round customer satisfaction and user friendly website. If Questrade is best overall for trading, Qtrade has a robust research center and tools for portfolio analysis (Commission:$8.75 per trade)
- Interactive brokers: This agency leads the industry in international trading and charges low commission which traders prefer. There is no other broker which can match Interactive brokers in trading tools.(Commission: $0.005 per share-$1 min/0.5% of trade value,max)
- TD Direct Investing: This is the most expensive broker under review as it offers a diverse set research and tools on its two platforms, Advanced Dashboard and WebBroker.Their own app, TD app is also known for its good experience.(Commission:$9.99 per trade)
- CIBC Investor’s Edge: For investors looking for casual investments in low-cost trading, CIBC Investor’s Edge is worth considering. Low trading charges and transparency in account fees are the hallmark of this company.
Since every stock trading platform is unique, in the end it boils down to overall trading experience and ease of use when choosing a broker. A summary of some of the other good online brokers in Canada are:
- Wealthsimple: As a top robo advisor, Wealthsimple leads the pack by a distance. With the launch of their mobile trading platform, Wealthsimple Trade, they have carved a niche for themselves in the discount broker space also. Its main selling point is one can buy and sell stocks on any North American exchange, free of charge.This makes it ideal for new investors, who make frequent but small contributions, without having to pay trading fees everytime.
- Virtual Brokers: This is another competitive discount brokerage company at par with Questrade and Qtrade. Virtual Brokers has several trading platforms to choose from, with a huge research center to help you stay ahead of the trends when making trades.
- Scotia iTrade: An arm of the Bank of Nova Scotia, Scotia iTrade is popular with investors who want a good financial institution to keep their money in. For large deposits, over $50,000 there are no account fees to be paid. Scotia iTrade ETFs are commission free.
Robo advisors for passive investment
A robo advisor is basically a service which involves making use of highly specialized software to decide what you should invest in. In other words, it takes over the role of a real life wealth manager, and invests your money on auto-pilot mode in broad areas of the stock market on its digital platform. This diversification is extremely beneficial because if one your investments turn sour, you know that your balance investment portfolio is safe.
After you have answered a few questions to determine how much risk you can afford to take, they use proprietary algorithms to spread your money in appropriate stocks, with the liberty to make adjustments as and when the situation may demand. A robo advisor will then charge you a fee which will be around 1% less than a personal investment advisor, once you open an account.This makes robo advisors a good choice for passive investors or the professional trader who wants to save money on fees.
Top three tax tips
Some simple ways to limit tax exposure in Canada is possible provided you know the current rules and can take advantage of these three tips.
- Borrow money to invest
- Max out your registered retirement savings plan (RRSP)
- Marriage manoveirs: income splitting with spouse.
Top ten Canadian stock picks
Finding the best Canadian stock to buy in a market which is constantly changing is not an easy task. Having said that, there is money to be made in the Canadian stock market, provided you know where to look. The top ten stocks listed here have been picked keeping growth focus in mind, with a few blue chips which look too cheap to pass up.
# 10- TELUS:
A subsidiary of the Big 3 telecom companies in Canada, Telus is the stock you should buy if you want to invest in a telecom company. A combination of yield @4.72% and five year dividend growth @8.18% makes it the best.
# 9- POLLARD BANKNOTE
The number 2 producer of instant lottery tickets, Pollard Banknote is expected to hold on to its competitive position. Though the dividend is a modest 0.33% it is expected to grow a lot.
# 8- DOLLARAMA
This stock has been a gold mine for long term investors who have put their money in Canada’s dominant dollar store.
# 7- REAL MATTERS Inc.
One of the best stocks to buy in Canada if you want to invest in the technology sector, mortgage lending and insurance industry services.
# 6- SHOPIFY
A top Canadian stock, Shopify provides an e-commerce platform to SMEs globally in merchant solutions and subscription solutions. With a revenue growth of around 70%, the company is expensive and you will have to pay a premium for buying stock.
# 5- NUVEI
With a share price surge of 36% in nine months, Nuvei has done well for those who invested early. Since going public last August, Nuvei expects a 21% revenue growth in 2021.
# 4- GOEASY
One of the best Canadian stocks in the finance sector. With a growth rate of 31%, $10,000 invested in 2001 would be worth $1 million today.
# 3- AGNICO EAGLE
With inflation and interest rates expected to rise, an exposure to gold is vital. Being the second largest gold producer, the company is contemplating a 25% increase in production by 2022.
#2- TFI INTERNATIONAL
A trucking and logistics company, analysts expect the revenue to grow 64% in 2021. While the current yield is 1.28% it has plenty of chances to grow.
# 1- ROYAL BANK OF CANADA
Operating in Canada, the US and forty other countries, RBC sits behind just Shopify on the market capitalization list. With a dividend yield of 3.8% it is the best player in the country.
Peter Nguyen was born and raised in Arlington, TX and graduated from Texas Tech University with a bachelor’s in Finance. He has a background in construction and insurance adjusting and began investing in real estate in 2009. He has since purchased hundreds of homes/properties throughout DFW and brings years of real estate industry experience to the table. He loves real estate because it allows him to spend more time with his wife and their two young boys.
**The views and opinions expressed in this article are not from NuWire, and any investments discussed in this article are not being recommended by NuWire. Before making any investment decision, you should perform your own due diligence, and seek professional guidance. **