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. Investors will have the opportunity of investing in licensed producers if they invest in Canada. Many companies trade on the Canadian exchanges which U.S investors find difficult to access through the traditional brokerage accounts. The Canadian shares offers the best liquidity for U.S investors. This article discusses the Ways in Which U.S Investors can Purchase Canadian Cannabis Stock.
The U.S. Investors can buy Canadian Stocks through U.S. Brokers that trade on 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. The most popular U.S brokerage available for international traders is InteractiveBrokers. Investors can maximize their returns and reduce their fees using the fixed and tiered pricing of InteractiveBrokers. PennTrade and Questrade are some of the other easy-to-use U.S brokerages for international traders.
When trading on international stock exchanges, there are many important factors U.S investors should consider. It is important to know that Prices are expressed in Canadian dollars and it may fluctuate to a value relative to U.S dollars. Brokers who offer ways of converting Canadian dollars to U.S dollars are present today.
The next factor you should consider is all the available options available when trading on international stock exchanges. Some of the preferable liquidity terms that are available are American Depositary Receipts and over-the-counter versions of stocks. 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. It is important to consult your financial advisor for them to elaborate on how your tax situation will be affected if you invest in the Canadian stock exchange.
By due diligence, U.S investors will be able to buy Canadian shares. A lot of the Canadian stocks don’t file with the U.S Stock exchange, and this can bring about problems to investors. Investor can conduct due diligence tips to look up common filings such as quarterly reports.
Investors who are seeking for exposure to the Canadian stocks have several options, but they should carefully consider their decisions.