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.
Trading commission fees
Broker | Stocks (price per trade) | ETFs (price per trade) | Account fee | ||
|---|---|---|---|---|---|
 | min $1.00, max 0.5% | min $1.00, max 0.5% | $0 | ||
 | Between $4.95 and $6.95 (or $5.95 for students) | Between $4.95 and $6.95 (or $5.95 for students) | $25 per quarter | Go to site | |
 | Between $4.95 and $9.95 | Between $4.95 and $9.95 (but free to buy) | Free | ||
 | Between $6.95 and $8.75 | Between $6.95 and $8.75 (or pick from 100+ free ETFs) | $25 per quarter | ||
 | Free | Free | Free | ||
 | $0 | $0 | $100 per year | ||
 | Between $4.99 and $9.99 | Between $4.99 and $9.99 (but free to buy) | Free (but inactivity fee) | ||
 | $9.95 | $9.95 | $25 per quarter | ||
 | Between $7 and $9.99 | Between $7 and $9.99 | $25 per quarter | ||
 | $6.95 to $9.95 | $6.95 to $9.95 | $25 per quarter | ||
 | between $1.99 and $7.99 | 1.5% of principal value | $24.95 per quarter | ||
*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
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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:
Company Name | Stock Code | Industry | Buy Now |
|---|---|---|---|
| Air Canada | AC | Airline | Buy on Interactive Brokers |
| Lightspeed POS | lSPD | Software | Buy on Interactive Brokers |
| Absolute Software | ABST | Software | Buy on Interactive Brokers |
| Suncor Energy | SU | Oil and gas | Buy on Interactive Brokers |
| Tourmaline Oil | TOU | Oil and gas | Buy on Interactive Brokers |
| Enbridge | ENB | Oil and gas | Buy on Interactive Brokers |
| Shaw Communications | SJR.B | Telecommunications | Buy on Interactive Brokers |
| Telus | T | Telecommunications | Buy on Interactive Brokers |
| goeasy | GSY | Financial | Buy on Interactive Brokers |
| TD Bank | TD | Banking | Buy on Interactive Brokers |
| Scotiabank | BNS | Banking | Buy on Interactive Brokers |
| Bank of Montreal | BMO | Banking | Buy on Interactive Brokers |
| Royal Bank | RY | Banking | Buy on Interactive Brokers |
| Canadian Imperial Bank of Commerce | CM | Banking | Buy on Interactive Brokers |
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
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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.
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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.
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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.
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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.
More on investing
Best Canadian stocks to buy
Here is Finder’s list of the 20 best TSX stocks to buy now — generated by our unique algorithm.
Best stocks to buy now: Top US stock picks
These are the 20 best US stocks to buy right now, trading on the Nasdaq and NYSE.
How to buy US stocks in Canada
Before you buy US stocks in Canada, find the platform with the cheapest brokerage fees and a range of flexible trading features.
I'm a financial expert with a deep understanding of the Toronto Stock Exchange (TSX) and investment strategies. My experience in the financial market allows me to provide comprehensive insights into investing in TSX stocks and navigating the associated processes.
Let's break down the key concepts mentioned in the article:
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Opening a Stock Trading Account:
- To invest in TSX stocks, you need to open a stock trading account with a brokerage.
- Compare different brokers based on factors like fees, services, and user experience.
- Personal information, such as your name, address, email, and phone number, is required to set up the account.
-
Funding Your Account:
- Deposit funds into your trading account to start trading.
- Linking your bank account or using other payment methods, such as credit cards or Interac e-Transfer, may be necessary.
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Buying TSX Stocks:
- Once your account is set up and funded, you can buy TSX stocks.
- Different brokers/platforms may have varying fees for trades, and account maintenance fees may apply.
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Cost of Buying TSX Stocks:
- Trading commission fees vary among brokers. The article provides a comparison of fees for different brokers.
- Account fees may be waived based on maintaining a minimum balance in your account.
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Overview of the TSX:
- The Toronto Stock Exchange (TSX) is the largest stock exchange in Canada and the ninth largest globally.
- It lists over 1,500 companies, with a focus on financial and extraction industries.
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TSX Venture Exchange (TSXV):
- The TSX Venture Exchange is for smaller, emerging companies with market caps too small for the TSX.
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Popular TSX Stocks:
- The article lists popular TSX stocks, including companies in airlines, software, oil and gas, telecommunications, and finance.
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Other Investment Options on TSX:
- Index funds, ETFs, options, bonds, and new issues are mentioned as alternative investment products on the TSX.
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Investing in ETFs:
- ETFs allow investors to earn money on the cumulative average value of a basket of TSX stocks.
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Reasons to Invest in TSX Stocks:
- The TSX offers access to major Canadian companies, including those in banking, oil and gas.
- Investing in a basket of stocks (ETFs) is considered less volatile than individual stocks.
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Timing for TSX Investments:
- While predicting the future is uncertain, the article suggests considering strong stocks likely to withstand market fluctuations.
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Conclusion:
- The TSX is a diverse exchange, and investors can use various online brokerages to trade based on their preferences and budgets.
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FAQs on Investing in TSX:
- Answers to common questions about buying TSX stocks online, buying US stocks through TSX, and the best ways to invest in TSX are provided.
Feel free to ask if you have more specific questions or if there's anything else you'd like to know about investing in the TSX.
