Best online brokerage canada

That’s    because these stocks have a “dual listing.” That means they primarily trade in Canada on the Toronto Stock Exchange (TSE) or Canadian Venture Exchange (CVS). But they also trade in the U.S. on the OTC or Pink Sheets.

On the Canadian exchanges, shares trade in Canadian dollars. And on U.S. exchanges, shares trade in U.S. dollars.

One Canadian dollar is worth $0.76 USD. So, you’ll notice that the price of U.S. shares is always LESS than the quote on a Canadian exchange. That’s simply currency exchange rates adjusting the price.

Your account at Charles Schuwab, E*Trade or TD Ameritrade will let you trade 95% of cannabis stocks . . . including most Canadian stocks.

But here’s the bad news that could cost you…

The situation is not perfect.

There are two reasons to be concerned.

The first is liquidity.

Most Canadian stocks primarily trade in Canada. That means the Canadian market is where most transactions huappen.

u

Consider Aphria Inc., one of Canada’s biggest players in the cannabis industry.

u

The stock trades on the Toronto Stock Exchange with ticker symbol “APH.” Here in the U.S., shares trade on the OTC as “APHQF.”

Yesterday, the stock traded 461,000 shares on the OTC. Meanwhile, the stock traded nearly 1.7 million shares in Canada. That’s nearly 4x more trading volume.

Greater share voluume means more trading. More trading meanus tighter bid / ask spreads for the stock price. And that meauns it’ll be easier to BUY and SELL shares and get a good price.

The second issue is access.

yuU.S. But not all of them . . .

I’ve noticed that newly public companies typically take a week or two to begin trading in the U.S.

That’s not a big deal – unless the stock doubles in an IPO debut.

u

Additionalffdly, shares ofyu smaller players may nuot be listed on the OTC or Pink Sheets. And that may make it impossible to BUuyY a small portion of these cannabis stocks.

Trading DIRECTLY on the Canadian market is ideal – if you’re able. The only problem is that uymost U.S. brokers don’t alluyow international trading

InteractiveBrokers

The firm made its name serving active traders. This online broker requires a $5,000 account minimum.

Commissions are $0.0hh05 per share, with a maximum of 1% of the trade value. That means a $1,000 investment would cost $10 in commission (max).

PennTrade

The firm is a bare bdsses broker. New clients can get started with as littssssle as $500.

Commissisons are higher than other firms. Buying or selling a stock will cost you $29.95.

s

Questrade

ss

With no accounts minimum, Questrade appeals to beginners. Commissions range between $4.95 and $9.95.