How to Buy Stocks in Canada 2023 – With 0% Commission

The best investments for both long-term and daily trading are stocks. Unfortunately, if you’re a newcomer to the stock market, you may not know its benefits and pitfalls at first glance.

The commissions for buying stocks can be quite high on some platforms. This guide can tell you how to buy stocks in Canada.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

How to Buy Stocks in Canada – Quick Steps

If you are interested in learning how to buy stocks in Canada, you must have a good platform to work with. AvaTrade is an excellent place to buy stocks, and here you will be able to learn how to buy stocks in AvaTrade.

Step 1: Open an Account with AvaTrade

AvaTrade requires you to create an account by entering your name, email address, and password.

Step 2: Upload ID

Whether you created your account through Gmail,  Facebook, or from scratch, the next step is mandatory. All regulated platforms require a KYC procedure or verification of identity.

You will need to verify your account by providing private information and uploading a photo of your ID, driver’s license, or passport. AvaTrade may also request a copy of your bank statement to verify the accuracy of your application. Then you will be ready to invest.

Step 3: Deposit Funds

AvaTrade requires you to deposit funds once your account has been set up to buy stocks in Canada.

Step 4: Buy Stocks

As soon as your account has been funded, you can begin investing in stocks on AvaTrade. An example is BP. Our first stock trade will be placed after entering ‘BP’ into the search box and clicking ‘TRADE.’ Next, we will enter the amount of stock we wish to trade and click ‘OPEN POSITION.’

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Step 1 – Choose a Stock Broker

It can be difficult to find the time to research the ins and outs of an online stockbroker. However, the following are some of the best share dealing accounts that meet several minimum requirements and can act as investment managers for your stocks. Among these are the all-important Financial Conduct Authority license, support for Canada debit cards/credit cards, bank accounts, and the ability to buy and sell stocks in domestic and international companies.

How To Buy Stocks In Canada – Best Brokers List

1. AvaTrade – Best Stock Trading Platform to Trade with Leverage
2. Oanda – Best Trading Platform Canada for Leverage and Low Spreads
3. Qtrade – Best Broker Canada for Long-Term Investments
4. Interactive Brokers – Excellent Commission-Free Platform For Trading

Choose a Stock Broker

1. AvaTrade – Best Stock Trading Platform to Trade with Leverage

AvaTrade is one of the best investment platforms for traders looking to leverage their investment, making it very popular. AvaTrade operates in 150 countries and has over 200,000 registered users. It is popular among traders interested in different asset classes. Moreover, AvaTrade is licensed and regulated by numerous reputable authorities, including the Central Bank of Ireland.

AvaTrade is a CFD broker, so all costs are built into the spread. Depending on market conditions, spreads for liquid stocks such as Apple and Amazon can vary widely. Furthermore, AvaTrade offers a leverage of up to 1:5 for stock CFDs – although this does go up dramatically for traders outside of the EU.

AvaTrade offers a free initial deposit of £100, the minimum deposit required. Deposit funds into your account with a debit or credit card, bank transfer, or e-wallets, such as Neteller, Skrill, or Klarna. AvaTrade also allows withdrawals via credit/debit card, with funds reaching your account within around three days. Furthermore, AvaTrade offers a fantastic WebTrader platform available on your browser and mobile device, with a user-friendly interface and multiple order types to choose from.

AvaTrade fees

Your Money Is At Risk.

3. Oanda - Best Trading Platform Canada for Leverage and Low Spreads

As one of the most established online trading platforms in North America, Oanda was established in 1996. As a result, Oanda now has more than 200 countries represented among its customers, making it a good broker in the online brokerage scene. In addition, as a result of the platform license issued by IIROC, you now have access to a wide range of markets worldwide.

The list of currencies included here includes many currencies which can be traded against the Canadian dollar. CFDs can also be traded on a wide range of asset classes, including indices, metals, commodities, and bonds. However, one of the main disadvantages of Oanda's asset library is that it does not cover stocks.

However, Oanda stands out for us because its low trading fees are just one thing that makes it stand out from the crowd. Another thing that makes it stand out is the industry-leading spreads. For example, you can trade the SPX 500 from just 0.3 points, while you can trade the UK 100 and the German 30 for just 0.8 points and 0.9 points, respectively. In addition to that, Oanda offers two different account types that have different commission plans to choose from.

One account type available on Oanda offers the most competitive spreads, but you will have to pay a small commission for each trade you make. As a result, this account is most suitable for traders who trade large amounts. However, if you plan to trade more casually, you might be better off with a commission-free account. As a result, this account type has higher spreads than commission-based accounts.

OANDA's platform for trading is available both online and via the provider's iOS and Android devices for its online trading operation. There is also support for MT4 from the provider, which is also compatible with MT4. To open an account with Oanda, you do not have to make a deposit. Despite undergoing KYC first, you can fund your account with a debit card, credit card, or wire transfer.

Oanda fees

Your Money Is At Risk.

4. Qtrade - Best Broker Canada for Long-Term Investments

If you are a long-term investor, you will want a platform that offers traditional assets at competitive prices. We like the look of Qtrade in this respect. With this top-rated provider, you can access a wide range of investment options.

Furthermore, Qtrade provides access to the New York Stock Exchange (NYSE) and NASDAQ, enabling you to buy and sell Canadian stocks listed on the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSXV), Canadian Securities Exchange (CSE), and Aequitas NEO Exchange.

As a result, you will not purchase stocks listed on European or Asian exchanges. On the other hand, Qtrade supports hundreds of ETFs and thousands of mutual funds in addition to North American stocks. Qtrade allows you to buy both government and corporate bonds from Canada and the US is also a plus.

You can also access IPOs through Qtrade, which are great for investing in start-up companies. Qtrade also offers options trading for Canadian investors. Fees will vary depending on the asset you are interested in.

Stocks, for example, can be purchased for as little as $8.75 per trade. If you trade more frequently, the price drops to $6.95. You don't have to pay commissions when investing in mutual funds, and Qtrade offers 100 fee-free ETFs. ETFs will cost $1 per $1,000 face value, with a minimum and a maximum of $24.99 and $250. Trading options are somewhat expensive, at $8.75 per trade plus $1.25 per contract.

Qtrade is ideal for retail investors with no experience in online trading in terms of usability. You can choose between cash accounts, margin accounts, RRSP accounts, and TFSA accounts. In addition, Qtrade has no minimum deposit policy, so you can get started with as little as you like.

Qtrade fees

Your Money Is At Risk.

5. Interactive Brokers – Excellent Commission-Free Platform For Trading

A US-based free trading platform founded in 1978, Interactive Brokers is regulated by several financial authorities, including the Financial Conduct Authority of the UK, the Securities and Futures Commission of Hong Kong, and the Securities and Exchange Commission of the US. The firm is also a member of the NYSE FINRA SIPC.

Interactive Brokers is regulated by numerous authorities worldwide and is listed on NASDAQ under the ticker symbol IBKR with a market capitalization of $28.08 billion. Additionally, because Interactive Brokers is a publicly-traded company and publishes its financial statements, millions of traders regard it as a safe platform for trading.

New and experienced traders enjoy commission-free trades and no account minimums at Interactive Brokers. In addition, Interactive Brokers offers one of the most comprehensive product and market offerings available on the market. The discount broker offers stocks, ETFs, futures, CFDs, and forex trading on a low-cost, commission-free basis, allowing you to diversify your portfolio.

With Interactive Brokers, you can diversify your investment portfolio by investing in stocks listed on international exchanges. You can also trade fractional shares of stocks through this free trading platform. As a result, beginners and experienced traders alike can invest as much money as possible to meet their trading goals and time horizons and diversify their portfolios without calculating how many whole shares they can afford.

Interactive Brokers Fees:

Your Money Is At Risk.

Step 2 – Research on Stocks Investing

Thanks to Canada share dealing, you can buy global stocks with the click of a button. The only thing you need is an online stock broker account.

Hundreds of Canadian stock brokers compete for your business, so commissions and fees have never been lower. Moreover, it is possible to buy stocks on Canada share dealing platforms even without paying any dealing fees.

While learning how to buy stocks in Canada is important to learn how stocks work, the investment journey, and any tax rules versus tax benefits. Knowing the fundamentals increases your chances of avoiding costly mistakes. Additionally, after you buy stocks in a company, you must receive a share certificate within two months.

What is a Stock?

Being listed on a stock exchange means that an organization has gone public. Because of this, everyday investors can now own stock in the company. Accordingly, when you invest in a company, you will own a 'share' of that company proportionate to the number of stocks you hold.

The forces of the market determine the value of the stocks. As a result, the stock price will increase if more buyers than sellers are. Consequently, the value of your investment will also increase.

If there are more sellers than buyers, then it will result in a decrease in the value of your stock. However, there are several benefits that you are entitled to as a shareholder of the company.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Best Canadian Stocks

When investing in a company, you need to read their financial reports and consider factors such as how they earn their income, how they manage it, the risks they face, their market capitalization (or market cap), their net income, price-to-earnings (or P/E ratio), return on equity, their values, and who is running it.

Also, it's a good idea to get expert advice. So let's look at some of the best Canadian stocks to buy right now, especially for beginners.

Shopify

Because of the pandemic, shoppers went online like never before, making e-commerce one of the best stocks to invest in right now. Over 1,700,000 businesses in around 175 countries sell their products online through Shopify, an e-commerce platform.

With a market cap of $190.1 in September 2021 - Shopify is Canada's largest publicly-traded company. The company had revenues of $2.93 billion and a net income of $319 million in 2020. That isn't nearly as much as Amazon makes, but it often gets embroiled in controversy, so the stock price isn't as volatile as Amazon's.

Royal Bank of Canada

Bank stocks are generally considered relatively safe if you're looking for a long-term investment. As a result of banking regulations, stock prices are relatively stable, reducing the risk of falling interest rates and loan defaults. Since the bank is doing so well, RBC has some of the best Canadian stocks to buy and hold.

The Royal Bank of Canada, or RBC, as most Canadians commonly refer to it, not only is Canada's largest financial institution, but it is also the second-largest company in terms of market capitalization, which, in September, stood at $146.4 billion. RBC reported $37.36 million and a net income of $9.03 million in 2020. Founded in 1864, RBC got its current name in 1901. Though it has been in a few controversies over the years, it is also regarded as one of Canada's best customer service companies.

BCE

Companies that provide essential services are always a good investment: their stocks tend to grow steadily. Mobile services and the internet are essential services that we cannot do without, especially since many work remotely and from home.

Bell Canada is the country's largest telecom provider, owned by BCE. In September this year, its market cap was $47.25 billion, making it one of the country's 20 largest companies. In 2020, it had revenues of $18.97 billion and a net income of $2.52 billion. As a result, stocks of BCE are unlikely to experience a sudden, massive drop in value. Instead, their value has surged due to 5G's growth potential.

Descartes Systems Group

Global supply chain problems have highlighted the importance of management and logistics. The Descartes Systems Group is a Waterloo, Ont.-based company that provides logistics and supply chain management software to distribute goods from producers to stores.

The market cap of the company was $6.6 billion in September 2021. The company's revenue in 2020 was $349 million, and its net income was $52 million. The value of Descartes stocks hasn't shown huge increases, but with small rises and falls, their value has been steadily growing in the long run: an upward trend that is likely to continue.

Northland Power

Regarding carbon neutrality, energy is another essential whose future lies in renewable energy such as wind, solar, and natural gas. Thus, not only will you be able to find some of the most in-demand jobs in the green energy industry in 2025 and beyond, but you can also expect to see the value of your investment rise as more and more people make the switch.

A leader in the industry, Northland Power is based in Toronto. Energy sources used by the company include onshore and offshore wind, the sun, biomass, and natural gas in Ontario, Quebec, Saskatchewan, Germany, The Netherlands, and Colombia. Northland Power had a market cap of $7.44 billion in September this year. There was $1.63 billion in revenue and $276 million in net income last year.

Air Canada

As a new investor, it's tempting to buy cheap stocks if you don't have a lot of money. First, however, you need to ensure that the stock price will increase. For example, Air Canada operated at a loss during the pandemic, with revenue of $4.62 billion and a net income of $3.76 billion.

Although more people are getting vaccinated and traveling restrictions are easing worldwide, passengers are slowly returning to Canada's flagship carrier. Additionally, the airline has expanded its cargo network, which is less vulnerable to pandemics. As a result, although Air Canada stocks are cheap, they should appreciate significantly in the long run, making them some of the best stocks to buy right now in Canada. In September of this year, the airline's market cap was $6.92 billion.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Stocks Fundamentals

The fundamentals are key metrics, such as cash flow and return on assets (ROA). Fundamental analysis involves looking at the fundamentals of a stock. In fundamental analysis, any information that could affect a price or perceived value is considered. That is distinct from trading patterns. Fundamental analysis means getting back to the basics.

In fundamental analysis, a company's value is determined by its stocks, and the stock is purchased or sold based on its value. Among the indicators used to assess a company's fundamentals are:

• The cash flow
• Return on assets
• Conservative gearing
• History of profit retention to finance future growth
• Capital management for maximization of shareholder earnings and returns

Fundamental analysts analyze stocks from a conservative perspective. They consider several factors to determine the performance of a stock. These factors include the industry as a whole, the competition, a company's management structure, income and revenue, and its growth potential.

What Are Dividends in Stocks?

Stock dividends, also known as "scrip dividends," are distributed to existing shareholders instead of cash dividends. A company may make this type of dividend when it wishes to reward its investors but does not have the spare cash or preserve its cash for other uses.

Dividends are generally paid as fractions of existing stocks. For example, if a company offers a stock dividend of 5%, it will need to issue 0.05 stocks for every 100 stocks owned by shareholders, so the owner of 100 stocks will receive five additional stocks.

Stock dividends are tax-free for investors. Unless the company offers the option to take the dividend in cash or as stock, or if the investor sells the stock, the dividend is not taxed until it is sold. After receiving a dividend, the newly received stock may not be sold right away. Instead, stocks begin to hold dividends the day after purchase. Depending on the holding period, qualified dividends are taxed differently.

What Stocks To Buy Today?

Investing in stock can be quite profitable if the price is right, but buying the right stock without a proven strategy is incredibly difficult. So what are the best stocks to buy right now or add to your watch list right now? A few of the top candidates are Apple (AAPL), Datadog (DDOG), Wyndham Hotels (WH), Commercial Metals (CMC), and Dollar Tree (DLTR).

Apple Stock

Apple's stock is trading just below a new cup-and-handle entry-level. Accordingly, MarketSmith's analysis suggests that 176.75 is the best buy point.

Regaining the 50-day line will be an important short-term objective for AAPL stock. It fell below the key benchmark a week ago.

Apple stock, however, recently reached new highs on its relative strength line. That is a positive development, but it also indicates overall bad the market has been. Stocks with strong RS lines can be the first to break out of choppy markets.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Apple stock has risen to 93 out of 99 on the Composite Rating. In addition, Apple became the first company to reach a market capitalization of $3 trillion last month. However, the company has since fallen below this level.

Due to the Covid-19 pandemic, earnings growth has rebounded in recent quarters, according to IBD Stock Checkup. As Apple reported its first-quarter earnings for fiscal 2022, its stock rose.

Datadog Stock

Datadog has a deep cup-and-handle base with a price point of 184.80. The base shape isn't ideal since it has elements of a double bottom. Despite widespread negative action, it is currently testing support at its 50-day line.

Since then, the stock has lost ground despite nearly hitting its December highs, but that was part of a broader pullback.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

In addition, the relative strength line has risen recently, a notable achievement considering the difficult environment for stocks with high PE ratios.

Compared to other software names, it has supported around its 200-day moving average.

Wyndham Hotels Stock

Wyndham Hotels is trading below its buy zone after rising above a flat base buy point of 91.51. Shares are currently testing support.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

The stock of WH just posted an earnings beat. Wyndham's earnings per share increased by 886% to 69 cents. In addition, the company's revenue increased by 32% to $392 million.

US RevPAR for the quarter increased 58% compared to 2020, outpacing 2019 levels by 9%.

Commercial Metals Stock

After forming a consolidation pattern over the past 7 weeks, Commercial Metals shares are looking for a 38.82 buy point in the coming weeks.

There is a possibility that the companies will start to consider a handle that offers a slightly lower entry price. There is a possibility of making an early entry at Wednesday's high of 37.49 + 10 cents.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Currently, the stock has a perfect Composite Rating of 99. Additionally, the company has a perfect EPS Rating, meaning that its earnings are stellar.

Big money is also backing the stock. Its Accumulation/Distribution Rating is B+.

The MarketSmith data indicates that funds already own 60% of the company's stock. Thus, the impact of large market movements is heavily dependent on institutional support.

Dollar Tree Stock

On Friday, DLTR closed at 142.48 handles buy point. That is a second-stage base, which means it has a better chance of success.

The stock consolidated for 12 weeks after breaking out of a cup base. Currently, it is testing a support level.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

The stock's relative strength line is one of the most important reasons to pay attention. Recent lows on the RS line have spiked hard in the past few weeks, and it has just reached a new high.

Best Growth Stocks to Buy Now

The stocks most likely to grow in this environment have low debt levels and strong business models, which allow them to survive difficult times. These are best-in-class names. The combination is generally found in large-cap stocks, which have long supported markets, but smaller companies can also meet these criteria.

According to some experts, the process is more important than the stocks. Stocks that are outliers (regardless of market cap) possess three characteristics: strong fundamentals, excellent technicals, and a history of big money activity.

Big money buys a lot of outlier stocks. This is usually institutional activity. MAPsignals believes that Big Money Trading can alert you to the fundamental picture for the future. We want the odds to be on our side when searching for high-quality stocks.

It is imperative to focus on quality when markets are under pressure. We filtered the MAPsignals database for various quality metrics to identify good long-term investment ideas. GOOGL, ADBE, MSFT, GNRC, and INMD are smaller, riskier stocks with big upsides, while three stocks can withstand storms: ADBE, MSFT, GNRC, and INMD.

Is Worth Investing in Stocks

If you want to invest for the future - five, ten, or forty years down the road - now is the best time. Of course, a pullback in the stock market won't matter much if you have a long-term view. But, after 40 years, when your original investment has more than tenfold, how much difference will a 10% difference make?

Further, if you consistently invest over time, adding more cash to your investments every month or two, you will likely catch a correction or a crash. If you have the cash flow, you can invest even more than usual. Unfortunately, planning for the unexpected is not very feasible. For example, a crash in stock prices would never happen if predicted.

If you like to invest in stocks, you may have difficulty finding good buy opportunities when market valuations rise. The fact that fewer stocks will present value relative to their underlying fundamentals does not mean there won't be opportunities. When the rest of the market undervalues security, there is always a good time to invest.

Markets cannot be forecasted, according to Warren Buffett. So instead, it seeks out undervalued securities. Therefore, whatever the market does is irrelevant to it.

Stocks with a good price are worth buying. Despite short-term losses, you can trust your research to produce long-term results. However, don't ignore the company completely; confirm that you are on the right track.

Purchasing a growth stock near the peak of a bull market is far from a death sentence. Of course, growth stocks tend to fall more in price during a correction or crash, but these times can also be catalysts for growth. In addition, companies whose management teams are focused on long-term growth often benefit from economic events that cause the stock market to fluctuate. Therefore, it may come back even stronger even if the stock falls.

Investors may be scared of a slight price decline, believing that more losses are imminent. However, a market correction is more likely than a market crash, defined as a drop of more than 20%. Stock market corrections occur almost every other year or so. Stocks can be purchased at a discount while they are still available.

Step 3: Open Account & Invest with AvaTrade in Canada

After finding the stocks you need, you have to understand how to trade them. For our guide, we will use AvaTrade as an example. Several of the apps listed above can help you buy stocks, as well as several suggestions for your consideration. Each of them has the same basic setup process, so you won't have any difficulty getting started with any of them. Follow these steps to get started.

1. Create Your Account

You can create an AvaTrade account by visiting the website. However, you must have your brokerage account to trade stocks on any regulated broker platform, including AvaTrade. As a result, the first step is to create a trading account with AvaTrade, which you can skip if you connect your Gmail or Facebook account.

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

2. Verify Your ID

The next step is the KYC process, verifying one's identity, which is a prerequisite for all regulated platforms. Because users are able to prove they are who they claim to be, they are protected against identity theft. In addition, because traders are brought into the system, any shady activities are severely discouraged.

Verifying your account can be as simple as providing certain personal information and uploading a picture of your ID, passport, or driver's license. You may also be asked to provide AvaTrade with a copy of your bank statement to confirm your address matches the one listed in your application.

3. Deposit Funds

Next, you will proceed to the more practical step of depositing the funds you will use to buy stocks in Canada. This step is quite easy to follow; once you have logged into your AvaTrade account, you will see a button that says "Deposit Funds.".

You will then be redirected to a new window to select the payment method and amount you want to use. You are now ready to proceed to the final step of the process once you have completed the payment details.

4. Buy Canadian Stocks!

The stocks are now available for purchase. You can use the search feature on AvaTrade to enter a specific stock's name or ticker, and you will be taken directly to the page that contains that stock. On the AvaTrade stocks page, you can also view what AvaTrade offers regarding markets.

Conclusion

Stocks are a great investment, but you should try to lower their price as much as possible. The best way to do this is to buy stocks on platforms that don't charge commissions. In this guide, you'll discover how to buy stocks online with AvaTrade and which other platforms you might want to consider. Once you know where to buy stocks, all you have to do is research the best growth companies to invest in and, hopefully, make a wise investment decision based on your research.

AvaTrade – Buy Stocks With Low Commission in Canada

67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FAQs