How to invest in the TSX

The Toronto Stock Exchange (TSX) is a major global stock exchange based in Canada.

It deals primarily with energy and financial companies, such as Canada's largest banks and a number of oil and gas companies. Find out what makes the TSX unique, and learn more about how you can use this stock exchange to make trades.

What is the TSX?

The Toronto Stock Exchange (colloquially known as the TSX) is a stock exchange based in Toronto, Ontario. It's Canada's largest stock exchange, and the ninth-largest exchange in the world by market capitalisation.

There are over 1,500 companies listed on the TSX, including a high proportion of those specialising in the financial and extractions industries.

You can use the TSX to trade shares in companies, investment trusts and exchange-traded funds (ETFs).

As a more advanced trader, you can also use it to dabble in bonds, commodities, futures, options and other derivative products. Just be aware that any trades you make on the TSX will be carried out using the Canadian dollar.

Who is the TSX best for?

The TSX may be a good fit for you if you want to invest in the Canadian market and want to make trades using the Canadian dollar. It's a good fit for investors with a major interest in the Canadian and global financial industry as well as in oil and gas. It may not be a good fit for investors looking to make their money in industries like tech or healthcare.

It's also important to note that companies listed on the TSX must have more than US$7.5 million in net tangible assets. To invest in smaller Canadian companies, you'll need to head over to the TSX Venture Exchange (also known as the TSX-V).

How to invest in the TSX

Investing in Canada from Australia is relatively simple and can be done in just 4 steps.

1. Choose a broker or trading platform. You'll need to choose a broker or trading platform that gives you access to the TSX, or at least lets you buy and sell the TSX stocks that you're interested in. You should also try to compare at least 3 to 4 brokers to find the cheapest option before you decide on a service.

2. Open a share-trading account. Once you've landed on the right broker or platform, you'll have to open a trading account with them. This can usually be done by filling out a quick online application with the provider you've settled on.

3. Deposit funds. When your account is up and running, you'll have to load funds into your "wallet" to start trading. Some platforms require you to have a minimum balance of US$1,000 to get started and you may also be required to pay a quarterly account fee.

4. Buy stocks on the TSX. Once your money is loaded into your account, you'll be ready to start trading. You can buy and sell stocks as well as a number of other financial products (such as bonds, exchange-traded funds and derivatives) on the TSX. This will cost you different amounts, based on which broker or platform you use.

Compare stock trading platforms

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Name	Product	Standard brokerage fee	Inactivity fee	Markets	International
eToro (global stocks)		US$0	US$10 per month if there’s been no login for 12 months	Global shares, US shares, ETFs	Yes	Zero brokerage share trading on US, Hong Kong and European stocks with trades as low as $50. Note: This broker offers CFDs which are volatile investment products and most clients lose money trading CFDs with this provider. Join the world’s biggest social trading network when you trade stocks, commodities and currencies from the one account.	Go to site More Info	Compare	loading Fetching your data...
ThinkMarkets Share Trading Exclusive		$8	No	ASX shares	No	Exclusive: Sign up through Finder and get 3 months of free trading up to 50 trades. Offer available to new customers only. Following your first three months, enjoy $8 flat fee CHESS sponsored brokerage as well as free live stock data all from the convenience of an easy-to-use mobile app	Go to site More Info	Compare	loading Fetching your data...
IG Share Trading		$2.50 for July + August ($5-$8 standard fee applies thereafter)	No	ASX shares, US shares, UK shares, ETFs, and more	Yes	For the months of July and August, trade Aussie shares from $2.50 and international shares from $0. T&Cs apply. Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, plus get access to 24-hour customer support.	Go to site More Info	Compare	loading Fetching your data...
Tiger Brokers Exclusive		$6.49	No	ASX shares, Global shares, Options trading, US shares, ETFs	Yes	Exclusive to Finder: Sign up to Tiger through Finder and on completion of your first deposit of any amount or transfer of shares receive 4 extra free grab shares. T&Cs apply. Get started with $0 brokerage on ASX and US stocks for the first 3 months upon completion of your first qualifying deposit. Also receive a free Apple share if you deposit $3,000 or more.	Go to site More Info	Compare	loading Fetching your data...
SelfWealth (Basic account)		$9.5	No	ASX shares, US shares	Yes	Trade ASX and US shares for a flat fee of $9.50, regardless of the trade size. New customers receive free access to Community Insights with SelfWealth Premium for the first 90 days. Follow other investors and benchmark your portfolio performance.	Go to site More Info	Compare	loading Fetching your data...
CMC Markets Invest		$0	No	ASX shares, Global shares, mFunds, ETFs	Yes	$0 brokerage on global shares including US, UK and Japan markets. Trade up to 35,000 products, including shares, ETFs and managed funds, plus access up to 15 major global and Australian stock exchanges. Plus, buy Aussie shares for $0 brokerage up to $1,000. (Limited to one buy order per stock per trading day).	Go to site More Info	Compare	loading Fetching your data...
GO Markets Share Trading		$7.70	No	ASX shares, Forex, CFDs, ETFs	No	Zero brokerage on your first 20 trades Trade 2,500 ASX listed shares from desktop or mobile and enjoy $0 brokerage on your first 20 trades, $7.70 trades after.	Go to site More Info	Compare	loading Fetching your data...
Saxo Capital Markets (Classic account)		$5	No	ASX shares, Global shares, ETFs	Yes	Access 22,000+ stocks on 50+ exchanges worldwide Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.	Go to site More Info	Compare	loading Fetching your data...
Bell Direct Share Trading		$15	No	ASX shares, mFunds, ETFs	No	Invest in Australian shares, options and managed funds from the one account with no inactivity fee. Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.	Go to site More Info	Compare	loading Fetching your data...
Superhero share trading		$5	No	ASX shares, US shares, ETFs	Yes	Sign up & fund your account with A$100 or more and receive US$10 of Tesla stocks on Superhero. T&Cs apply. Enjoy $0 brokerage on US stocks and buying ETFs as well as a flat $5 fee to trade Australian shares.	Go to site More Info	Compare	loading Fetching your data...

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Important: Share trading can be financially risky and the value of your investment can go down as well as up. Standard brokerage is the cost to purchase $1,000 or less of equities without any qualifications or special eligibility. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

How much does it cost to invest in the TSX?

The amount you'll pay to buy TSX stocks will depend on which broker or trading platform you use to make your trades. Each will have its own fee structure for executing trades (as well as for using its software in some cases). These extra charges can have a big influence on the cost of investing.

Some brokers in Australia charge annual account maintenance fees while others charge high commissions on individual trades. A handful of brokers even offer commission-free trades but may cut corners in other areas to make up the difference. It's up to you to find the best solution for your investing needs, at a price point that meets your budget.

Other ways to invest in the TSX

For most investors in Australia, stock exchanges are designed for trading equities over all other types of investments. Equities let you purchase shares in a particular company and may allow you to collect a portion of revenue (also known as dividends) when that company performs well. That said, there are a number of other investment products available on the TSX.

Other investment options on the TSX

If you want to invest in the TSX without having to buy stocks directly, you can take advantage of the following options:

• Index funds. These track the performance of a "basket" of stocks on the TSX, and let you earn money on the average gains of all the shares put together.
• Exchange-traded funds. ETFs are similar to mutual funds, except they can be traded on the stock exchange and typically come with much lower trading fees.
• Options. Options are a type of contract that lets you speculate and bid on how an asset is going to perform on the stock market.
• Bonds. Bonds allow you to lend money to governments or corporations so that you can collect a set rate of interest on your loan.
• New issues. New issues give you the chance to invest in a company going public for the first time so that you can get in on the ground floor before share prices go up.

Why should I invest in the TSX?

The Toronto Stock Exchange is the largest stock exchange in Canada and features stocks from several major Canadian companies. It offers access to certain stocks and securities that aren't listed in other markets. In particular, it attracts some of the world's largest natural resources companies, which makes it popular with international investors.

It's easy to find some of the most popular stocks being traded on the TSX by looking at the S&P/TSX 60 Index. This lists out 60 of the largest companies on the exchange by market capitalisation. You might also like to invest in this index to earn a net profit based on the average price movements of these 60 stocks.