U.S investors find Canada an important investment destination due to the legalization of medical and adult use marijuana. Canada, the only G20 country to legalize the use of cannabis nationwide. Investing in Canada will give investors the opportunity of investing in licensed products. It is difficult for U.S investors to access the Canadian exchanges many companies use using traditional brokerage accounts. The Canadian shares offers the best liquidity for U.S investors. This article talks about How U.S investors can Purchase Canadian Cannabis Stock and some vital considerations when investing in Canadian stock exchange.
U.S. Brokers who trade Canadian Stocks provide an opportunity for U.S Investors to buy Canadian Stocks. A lot of U.S Brokers are not given the permit on trading international stocks. The Canadian Stocks allows U.S brokers to trade on international stocks.
Some brokerage accounts allow online trading to take place in the traditional markets. InteractiveBrokers is the most famous U.S brokerage that is available for the international traders. InteractiveBroker has fixed and tiered pricing which investors can use to maximize their profits and minimize their fees. The other easy-to-use U.S brokerage for international traded are PennTrade and Questrade.
There are important considerations that are to be considered by the U.S investors when trading on international stock exchanges such as TSX. Prices are expressed in Canadian dollars, and it may shift to a value relative to U.S dollars. Brokers who offer ways of converting Canadian dollars to U.S dollars are present today.
All the options available for liquidity should be considered when trading on international stock exchanges. American Depositary Receipts and Over-the-counter versions of shares are some of the preferred liquidity terms present. The OTC version is of great importance if you don’t want to worry about trading fees or the movement of the Canadian dollars.
When trading on an international stock exchange, you should ensure you consider the payment of foreign taxes on international capital dividends and gains. A deal has been struck between Canada and the United States of America to avoid double taxation cases, and this is good to the side of U.S investors. If you want to know how investing in Canadian stock exchange will impact your taxes, you should ensure you consult your financial tax advisor.
The last way through which U.S investors can purchase Canadian Stocks is by due diligence tips. A lot of the Canadian stocks don’t file with the U.S Stock exchange, and this can bring about problems to investors. If investors conduct due diligence tips, they will be able to look up common fillings such as quarterly and annually reports.
Investors looking for exposure the Canadian stocks have a lot of options which they should consider carefully.