Canadian stocks make up around 3% of the global market, so international investing is a simple way to gain exposure to a much wider range of wealth-building opportunities. The good news is that there are multiple ways to buy international shares in Canada.
Whether you want to learn how to buy Chinese stocks, Japanese stocks, European stocks or investments in other markets, keep reading to find out how to buy international stocks in Canada.
There are many different account options to choose from, and it’s worth comparing them to choose the best one for you, like you would any other financial product. You’ll want to consider things like:
To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score the better the platform - simple.
Once you’ve chosen an online broker, you can open a share trading account. To open an international trading account, you’ll generally need to meet the following eligibility criteria:
As part of the application process, be prepared to provide:
Depending on the account options the investment platform supports, you’ll be asked to choose whether you’ll be trading as an individual, with a joint account (for example, with your partner), as a business or on behalf of a trust. You’ll also need to provide basic personal and employment details.
Once you’ve confirmed everything and double-checked your details, you’re ready to load your cash management account and start trading.
Fund your account to start international trading. Transfers may process the same day or within several business days, depending on the method.
In your account, expect to see a dashboard with features like current share prices and past performance and tools to buy, sell or research. To get started, simply search for a stock or ETF ticker code, enter how many shares you want to buy and place an order.
When trading shares, you can choose to do so domestically or internationally.
Trade shares and ETFs listed on Canadian stock exchanges. Trade within certain business hours and access only Canadian investment options, which make up about around 3% of the global market. Major Canadian stock exchanges include the Toronto Stock Exchange (TSX), Montreal Stock Exchange (MSE) and Canadian Securities Exchange (CSE).
Trade shares and ETFs from global markets around the world 24 hours a day, subject to local market hours, including big global brands and household names. International investing gives you access to more options but also exposes you to more risks and challenges.
International stock exchanges include the New York Stock Exchange (NYSE), the London Stock Exchange (LSE), the Nasdaq and many others. Compared to domestic trading, there are both advantages and disadvantages to international trading.
The Canadian government requires you to disclose information about any foreign assets you hold so that gains and dividends can be taxed appropriately. The taxes you may incur will depend on the country in which you are investing and the type of asset(s) you are invested in.
Profits from stock investing—including international investing—are generally subject to capital gains tax. According to the CRA, you pay income tax on half your capital gains. But there are some exceptions. Holding investments in a tax-sheltered account like a TFSA or RRSP lets you avoid or defer paying income tax on stock profits. Speak with an investment or tax professional to find out what account type is best for you.
If you want to invest in international stocks, you’ll need to choose the right brokerage platform. Look for a stock trading platform that provides access to international markets as well as Canadian exchanges.
This will allow you to invest in stocks and ETFs traded on markets in the USA, Europe, Asia and other locations around the world. At the same time, you’ll also be able to invest in Canadian companies and ETFs from Canadian fund issuers. Learn more about buying stocks here.
If you want to know how to invest in the Indian stock market in Canada, the first step is to open an account with a broker that provides access to Indian exchanges like the Bombay Stock Exchange and National Stock Exchange.
However, there are complicated rules and limits regarding foreign investment in Indian companies, so you’ll need to check whether you qualify as a non-resident Indian (NRI) or person of Indian origin (PIO).
To keep things simple, invest in an Indian stock-themed ETF listed on the Toronto Stock Exchange. Options include the iShares India Index ETF (XID) and the BMO India Equity Index ETF (ZID). To buy shares in an ETF, log in to your brokerage account and search for the ETF’s ticker code. You can then place a limit order or market order to purchase ETF shares.
To invest directly in Japanese stocks, you’ll need to open an account with a broker that offers access to the Tokyo Stock Exchange. The good news is that because this is a major exchange, it’s supported by a range of brokers.
However, you’ll also need to have a Japanese yen currency account and deal with the hassle of currency conversion costs eating into your profits.
That’s why the easiest way to gain exposure to Japanese equities is to invest in an ETF that’s traded on the Toronto Stock Exchange but which tracks the Japanese market, such as the BMO Japan Index ETF (ZJPN). To do so, open your brokerage account and search for the ETF ticker code, then place a buy order.
Major European stock exchanges include Euronext, the Frankfurt Stock Exchange and the SIX Swiss Exchange. If you want to invest in European stocks traded on those exchanges, open an account with a broker that provides direct access to those markets.
But the simplest approach is to invest in ETFs that provide exposure to European shares, such as the Vanguard FTSE Developed Europe All Cap Index ETF (VE). These ETFs are listed on the Toronto Stock Exchange, so you can invest with Canadian dollars and you don’t have to worry about the cost of currency conversion.
To invest, log in to your trading account, search for the ticker code of the ETF you want to purchase and then place a buy order.
The Australian Securities Exchange (ASX) is one of the world’s 20 largest stock exchanges. While some Canadian brokers allow you to invest directly in ASX-listed stocks and ETFs, many don’t.
So if you’re looking for the easiest way to gain exposure to Australian stocks, look for a TSX-listed ETF that tracks the performance of the Australian market or a specific Australian market sector. One popular example is the Hamilton Australian Bank Equal-Weight Index ETF (HBA).
To buy shares in an ETF, log in to your brokerage account and search for the ETF’s ticker code. Choose a market or limit order and buy the number of shares you want.
If you want to invest directly in companies listed on the Hong Kong Stock Exchange, there are some Canadian brokers that will allow you to do so.
Unfortunately, there are no TSX-listed ETFs that track the performance of the Hong Kong market. However, if your broker offers US market access, you may want to consider investing in a US-traded ETF that tracks Hong Kong shares. One popular option is the iShares MSCI Hong Kong ETF (EWH).
To invest, log in to your account and search for the ticker code of the stock or ETF you want to buy. You can then specify the amount of shares you want to buy and finalize your purchase.
The London Stock Exchange is one of the world’s major exchanges. There are several Canadian brokers that allow you to trade the London Stock Exchange, so compare your options before signing up for an account.
You can invest in an individual company such as AstraZeneca or consider an ETF that tracks the performance of the UK market, for example the Vanguard FTSE 100 UCITS ETF (VUKE) or the iShares FTSE 250 UCITS ETF (MIDD).
You can invest by logging in to your brokerage account, searching for the stock or ETF you want to purchase and placing a buy order.
If you want to invest in South Korean stocks directly, you’ll need to obtain an investment registration certificate from the Financial Supervisory Service (FSS). However, Korean exchanges aren’t widely supported by Canadian brokers, so the easiest option is to look into ETFs that invest in South Korean stocks.
In Canada, one example is the Vanguard FTSE Developed Asia Pacific All Cap Index ETF (VA), which tracks the performance of equities in developed Asia Pacific markets including South Korea.
If you want to invest in an ETF that tracks 100% South Korean stocks, one option is the iShares MSCI South Korea ETF (EWY), which is traded on the New York Stock Exchange.
While there are some brokers that allow you to invest directly in markets like the Shanghai Stock Exchange and Shenzhen Stock Exchange, an easier option is to invest in TSX-listed ETFs that track Chinese shares.
One popular example is the BMO MSCI China ESG Leaders Index ETF (ZCH), which aims to replicate the performance of the MSCI China ESG Leaders Index.
To invest in an ETF, log in to your brokerage account and search for the relevant ETF. Enter how many units you would like to purchase and place a buy order. Find out more about investing in Chinese stocks.
Leading investment advisory firm Vanguard recommends that Canadian investors allocate around 30% of their portfolio to domestic equities and 70% to international equities. Dividing your investments this way will help minimize long-term volatility.
Nevertheless, most Canadians prefer domestic investments for around half of their equity portfolios. However you choose to allocate your investments, diversity is key. It’s wise to avoid relying on a single market if you want to protect your wealth from regional economic swings.
If you want to invest in international stocks, international ETFs offer an easier and more affordable way to do so than investing in a host of individual companies. Here’s why.
Making big trades? Look for lower exchange rates, research tools that allow you to make more reliable investments and flat broker fees rather than percentage rates. Where applicable, it may be worth accepting higher flat fees when buying shares in exchange for lower percentage rates. Avoid low maximum limits which might constrain your trading.
Making a lot of small trades? You may want to avoid flat fees that take a big chunk out of the potential profits of each trade and stick to percentage rates that will cost you less. Low maximums are less of an issue, but high minimums might be a problem when trading international stocks.
How will you diversify your portfolio? Not all accounts will give you the same options to invest in stocks in Canada, so plan what kind of trades you want to make. Consider whether a given account will let you trade ETFs as well as buying shares, and if you are able to do forex trading through the same platform.
Looking for US stocks? Check out our guide to buying US stocks.
| Response | Prefer Not To Say | Middle Income | Lower Income | High Income |
|---|---|---|---|---|
| I would not invest in companies based in any of these countries or regions | 38.1% | 28.01% | 37.18% | 21.38% |
| US | 35.71% | 49.3% | 41.03% | 59.66% |
| Europe (EU) | 30.95% | 26.61% | 28.53% | 39.31% |
| UK | 23.81% | 25.77% | 26.28% | 36.21% |
| Australia | 21.43% | 20.17% | 19.87% | 25.17% |
| China/Hong Kong | 14.29% | 12.61% | 18.27% | 21.72% |
| India | 14.29% | 8.12% | 11.86% | 13.79% |
| Singapore | 14.29% | 15.69% | 10.26% | 17.59% |
| Japan | 11.9% | 24.37% | 19.87% | 29.31% |
| Africa & Middle East | 7.14% | 9.8% | 11.86% | 10% |
International investing is a great way to diversify your portfolio. As long as you are using a broker that supports international exchanges, you can buy international shares with ease. You will need to be mindful of the exchange rate, as this will impact your return on investment.
If trading is new to you, you might want to start with the basics of share trading. If you already know how to buy international stocks, you can simply compare brokers and open an account.
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