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How To Buy Stocks On Toronto Exchange

The Exchanges have provided companies with access to equity capital for over 160 years. Our issuers list alongside their peers, and benefit from being listed on a leading global exchange with integrity, liquidity and opportunity.

American Depositary Receipts (ADRs) are negotiable securities issued by a bank that represent shares in a non-U.S. company. These can trade in the U.S. both on national exchanges and in the Over-The-Counter (OTC) market, are listed in U.S. dollars, and generally represent a number of foreign shares to one ADR. This gives U.S. investors exposure to foreign equities without having to trade on a local exchange in the local currency. Investors can trade ADRs during the U.S. market sessions.

ADRs can be issued as unsponsored without any involvement or approval by the foreign company or they can be issued as sponsored, where the underlying foreign company participates in the issuance of the ADR and also retains a controlling relationship. Only sponsored ADRs may be listed on a national exchange and they must meet certain qualifications, otherwise they trade in the U.S. OTC market. Unsponsored ADRs only trade in the U.S. OTC market.

If an ADR isn't available, you may be able to trade the company's foreign stock in the Over-The-Counter (OTC) market. This is known as trading \"foreign ordinaries.\" Many international companies' stocks trade on the OTC market in the U.S. These companies are listed on a foreign exchange and also trade in the U.S. The foreign ordinaries are priced and settled in U.S. dollars.

Virtually all Canadian stocks can be traded online at Schwab.com or through a broker via phone. Online quotes on most Canadian securities are provided by the Toronto Stock Exchange and are displayed in U.S. dollars. The majority of trades are sent to Canada and are not traded in the U.S. over the counter market, the trades however will use the U.S. 5 letter symbol ending in \"F\" and will be placed in U.S. dollars. Included in the execution is a dealer fee paid to the Canadian trader.

Securities trading in the local market tend to be relatively more liquid and have narrower spreads resulting in possible better executions than the U.S. OTC market.Additionally, many foreign companies that are not available as ADRs or foreign ordinaries on the U.S. OTC market can be bought on local foreign markets, providing investors with a potentially wider inventory of available international equities.You can generally place broker-assisted trades overseas in your Schwab One brokerage account in U.S. dollars and many Canadian stocks can be traded in your account online.

International stock exchanges operate under different rules and guidelines than those in domestic markets. Learning about and considering these differences can help you prepare a better investment strategy for your portfolio.

Your approach to investing globally depends on what type of investor you are. In addition to ADRs and foreign equities, investors seeking global diversification should consider exchange-traded funds (ETFs) and mutual funds with concentrations in international holdings as well as other non-traditional investments such as REITs.

You can invest in international stocks on your own with a Schwab One brokerage account or call our Global Investing Services team at 800-992-4685 to speak with a dedicated broker about foreign trading. Our team is available between 5:30 p.m. ET Sunday and 5:30 p.m. ET Friday.

Canadian investors can purchase stocks traded on the TSX-V directly using brokerage and self-directed brokerage accounts. U.S. investors can purchase stocks traded on the TSX-V directly using brokerage accounts that support such foreign trades. If you do not have a brokerage account call your bank and ask to set up a brokerage account and explain you are looking to purchase a company stock on an exchange.

Other types of exchange-listed securities such as rights, warrants, or different classes of stock (e.g., Class A, Class B) may not be available. Security type availability is subject to change without notice.

Order DetailsInternational orders can be entered at any time but will only be eligible for execution during the local market hours for the security. International orders are limited to common stocks with the following order restrictions:

International stocks use a different symbology than domestic stocks. To quote, research, or trade international stocks, enter the stock symbol, followed by a colon (:) and then the two-letter country code for the market you wish to trade in. For example, the company Fiat SPA Torino in Italy would trade under symbol F:IT for its ordinary shares. In Germany, it would trade under symbol FIAT:DE. This symbology can only be used to buy or sell stocks on the international trade ticket.

QuotesReal-time quotes1 are available for international stocks using the Get Quote Tool along the top of Fidelity.com or within your International Stock Trading page. Although the real-time primary market quote is displayed, international orders may execute on the primary exchange, or they may execute on ECNs, ATSs or regional exchanges within the market.

Note: International stocks must be bought and sold in the same market. For example, shares of a stock purchased in Germany could not be sold in France even though the company may trade on one or more exchanges in different markets.

There are additional specifications regarding share quantities imposed by some exchanges. These are also referred to as board lots. A board lot is the number of shares defined as a standard trading unit. All orders placed in Canada, Hong Kong, and Japan must be entered in quantities that are multiples of the board lot or standard trading unit.

For example, the required board lot size for Canadian stocks trading between $0.10-0.99 CAD is 500 shares. To place an order to buy a Canadian security offered at $0.75 per share, your order quantity would need to be a multiple of 500 (the board lot size); e.g., 500 shares, 1,000 shares, 1,500 shares, and so on.

Board lot sizes for Japanese exchangesThe required board lot size for Japan varies by security. Currently, the majority of securities trading on Japanese exchanges have board lot sizes of 1,000 shares. (In Japan, board lots are referred to as \"trading units\")

Currency prices are highly volatile. Price movements for currencies are influenced by, among other things: changing supply-demand relationships; trade, fiscal, monetary, exchange control programs and policies of governments; United States and foreign political and economic events and policies; changes in national and international interest rates and inflation; currency devaluation; and sentiment of the marketplace. None of these factors can be controlled by you or any individual advisor and no assurance can be given that you will not incur losses from such events.

Currency exchange feesIf you choose U.S. dollars as the settlement currency for your international stock trade, a foreign currency exchange fee (in the form of a markup or markdown) based on the size of the currency conversion will be charged when the foreign currency exchange executes.

For example, the EUR/USD rate represents the number of USD one EUR can buy. If the current rate for EUR/USD is 1.381683 and you are converting EUR to USD, you would receive approximately 1.381683 U.S. dollars for each euro you exchange (1 x 1.381683). Conversely, if you are converting USD to EUR, you would receive approximately 0.7237 euros for each U.S. dollar (1/1.381683).

With international trading, most common stocks and exchange-traded funds (ETFs) listed in Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Singapore, South Africa, Spain, Sweden, Switzerland, and the United Kingdom are available to trade online directly in the local market.

Foreign ordinaries are shares issued by a foreign corporation that trade on a foreign exchange. These shares can be traded in the over-the-counter (OTC) market through a U.S. market maker. Below are characteristics, including specific fee information, related to foreign ordinary share trading.

Orders can execute on the primary exchange, or they may also execute on ECNs, ATSs (automatic trading systems) or regional exchanges within the market which is determined by a local broker in each country.

An ADR is a security that trades in the U.S. and in U.S. dollars, but represents claims to shares of a foreign stock. The ADR is created by a bank that purchases foreign stock and then issues receipts of that company in the U.S. for trading on an exchange or over the counter (OTC) market.

Prices are real-time for all trades executed on Nasdaq exchanges. Prices are delayed for all trades executed on other exchanges as per the above table. 52-week high and low values are calculated from close price data.

Canadian consumer confidence fell to an all-time low apart from the last two economic crises, which increases the likelihood of a recession. Amid a chaotic market environment, notable equities listed on the Toronto Stock Exchange are trading at significant discounts. While investors usually pile into defensive names like The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO) in a volatile market, it is a good idea to jump into some TSX stocks for broader exposure.

In addition to The Procter & Gamble Company (NYSE:PG), Johnson & Johnson (NYSE:JNJ), and The Coca-Cola Company (NYSE:KO), Royal Bank of Canada (TSX:RY.TO) is one of the best stocks to consider for a balanced portfolio.

Bank of Montreal (TSX:BMO.TO), a diversified financial services firm primarily operating in North America, is one of the best TSX stocks to buy. The company provides personal banking products, cash management solutions, foreign exchange, specialized banking programs, treasury and payment solutions, and risk ma