In the field of stock exchange in Canada, TSX or also known as the Toronto Stock Exchange is the largest stock exchange market in Canada. It is also the home of the “the Big Five” where it houses the five successful banks in Canada which makes it the center of banking in Canada. There are a few things to take note of when buying stocks on TSX.
- Choose a brokerage firm. Find one on the list of licensed brokerage accounts of TSX. This will give you access to TSX stock. Choose a stock broker that will charge a minimum commission for their services. Be wary of hidden fees during your evaluation as well.
- Create your account. Get a list from your local bank or brokerage or TSX of all publicly traded Canadian companies. Ask your broker to create a trading account for your stock investments.
- Choose the investment. Research for stocks you want to invest in TSX. Not only is TSX the center of banking in Canada, it is also the home of natural resource companies such as oil, mining and energy which are good companies to invest in specially when inflation is up. There is a wide array of stocks to choose from. Consult a financial adviser or broker or you can seek advice from people who have invested on certain stocks that performed well.
- Know your investment. Once you have decided on where to invest in, update yourself with the current news in the stock market. Be knowledgeable on how the business is running. Realize that stocks are a different form of investment compared to others. The reality is your investment will actually make you a part-owner of the company hence; it would be wise to investigate if the company is really worth its weight in gold.
- Work with your broker. It is essential that you establish a good trading relationship with your broker. They are licensed to buy or sell stocks on your behalf. He will also be responsible for keeping your investment portfolio up to date with new policies and acquisitions.
- Accomplish what is required. Fill out the necessary application forms with your broker to gain access to the TSX stocks. This will give you more information on the details of transferring funds to your brokerage to pay for the TSX trades.
- Keep tabs with your broker. Find out how you can get in touch with your broker when doing the trades. Most brokerage companies have online trading systems that should be easier however phone communications should be more than enough for most people. Get to know the responsibilities of your broker with regards to your investment. This way, you will know your boundaries when it comes to communicating with your broker regarding your stock trades.
To summarize, your broker plays a huge part in your stock trading but they are only there to guide and assist you. Your decision will still be their top concern. As a future investor, keep in mind that in the world of stocks, risk plays a big part of the trade. And, yes, it all applies even the TSX.