International students in Canada can invest in stocks on the Toronto Stock Exchange (TSX) and the TSX Venture Exchange (TSXV) using a non-resident trading account with a Canadian brokerage firm. Popular stocks for investment include Royal Bank of Canada, Canadian National Railway, and Brookfield Renewable Partners.
International students in Canada are allowed to invest in stocks, just like any other resident or citizen of the country. However, there are certain legal requirements and regulations that international students must follow in order to invest in the Canadian stock market.
Legal Requirements:
Tax Identification Number (TIN):
International students must obtain a TIN from the Canada Revenue Agency (CRA) in order to invest in stocks. This number is used for tax purposes and is necessary for opening a brokerage account.
Social Insurance Number (SIN):
International students are also required to have a SIN in order to invest in stocks. This number is used for identification purposes and is necessary for opening a brokerage account.
Proof of Residency:
International students must also provide proof of their residency status in Canada in order to invest in stocks. This can be done by providing a valid study permit or work permit.
Stock Options:
Canadian Stocks:
International students can invest in Canadian stocks, which are stocks of companies that are listed on a Canadian stock exchange such as the Toronto Stock Exchange (TSX) or the TSX Venture Exchange. Examples of Canadian companies that are publicly traded include Royal Bank of Canada, Canadian National Railway, and Brookfield Renewable Partners.
U.S. Stocks:
International students can also invest in U.S. stocks, which are stocks of companies that are listed on a U.S. stock exchange such as the New York Stock Exchange (NYSE) or the NASDAQ. Examples of U.S. companies that are publicly traded include Apple, Amazon, and Coca-Cola.
International Stocks:
International students can also invest in international stocks, which are stocks of companies that are listed on a stock exchange outside of Canada and the U.S. Examples of international companies that are publicly traded include Nestle, BMW, and Toyota.
Brokerage Accounts:
Opening a brokerage account:
International students can open a brokerage account with a Canadian investment firm in order to invest in stocks. This can be done online or in person. International students will need to provide their TIN, SIN, and proof of residency in order to open an account.
Types of accounts:
International students can choose from different types of brokerage accounts, such as a registered retirement savings plan (RRSP), a tax-free savings account (TFSA), or a non-registered account.
Trading fees:
International students should be aware of the trading fees that are associated with buying and selling stocks through a brokerage account. These fees can vary depending on the investment firm and the type of account.
International students can invest in Canadian, U.S., and international stocks, and can choose from different types of brokerage accounts. It is important for international students to consider the trading fees associated with buying and selling stocks through a brokerage account and to be aware of the risks associated with investing in the stock market.