Breaking Down The Canadian Stock Markets

First Phase Media


Canada was the only G7 country that showed constant growth in the aftermath of economic downturns. The nation rebounded quickly after the recession of 1990-1992 and 2008-2009.


Given its history of Canada’s resilience and rank among the top ten economically competitive nations globally, it makes it ideal for foreign investors, even post COVID-19.


Stock Exchanges In The Canadian Market

In recent years, the Canadian Stock market is one of the most valued stock markets in the world. As of now, there are eight stock exchanges in total. The Toronto Stock Exchange (TSE), the TSX Venture Exchange (TSE-V), and the Canadian Stock Exchange (CSE) are the most prominent among other stock exchanges in Canada.

Benefits of Investing in Canadian Markets

  • Extensive natural resource base
  • Stable inflation rate
  • Flexible long-term outlook and economic stability
  • U.S. based enterprise capitalists are shifting to Canada.
  • Canadian markets include ADRs, ETFs, and direct purchase of bonds and stocks.

What Is The Toronto Stock Exchange (Tsx)?

Founded in 1861, the Toronto Stock Exchange (TSX) is the eleventh-largest stock exchange with listed companies and organizations valued at over $3 trillion.

A recent tweet revealed that the top companies under the TSX saw an appreciation of 302% in the average three-year share price.

In addition to equity shares, you can also trade income trusts, closed-end funds, and structured notes at the Toronto Stock Exchange. There are over 3950 issuers listed at TSX.

What Is The Tsx Venture Exchange (Tsxv)?

TSXV is the second most well-known stock exchange in Canada. The merger of the Vancouver Stock Exchange and the Alberta Stock Exchange in 1999 led to the foundation of the TSX Venture Exchange(TSXV).

With over 2200 companies listed at TSXV, the market capitalization accounts for more than $22 billion. It was formerly known as the Canadian Venture Exchange. It is a public venture capital marketplace for emerging companies too small to be listed on the TSX.

What Is The Canadian Securities Exchange (Cse)?

The Canadian Securities Stock is one of the newer stock exchanges in the Canadian Market. Formerly known as the Canadian National Stock Exchange (CNSE), it is an efficient and modern alternative for Canadian companies looking to go public. 

CSE is smaller than the other two prominent exchanges in Canada and lists over 200 equities, government bonds, and other structured products. The majority of the issuers listed under CSE are in the mining and cannabis business.

Other Stock Exchanges In Canadian Exchange

Montreal Exchange (MX)

The Montreal Exchange is the oldest stock exchange in Canada. It is mainly composed of equity and index-related derivatives, futures contracts for interest rates, and currency options on the US dollar. It is also the primary choice of investors for derivatives and thus offers speculation and helps limit the risks associated with various asset classes.

Nasdaq CXC Exchange

Nasdaq CXC Exchange is the Canadian equivalent of NASDAQ. It is a subsidiary of the American NASDAQ Stock Market Inc. A unique thing about this market is that it does not list its own companies. Instead, it trades securities of the companies listed under other stock exchanges like TSX, TSXV, etc.

NEO Exchange 

Founded in March 2015, the Neo Exchange (formerly Aequitas Neo Exchange) is the most recent addition to the list of stock markets in Canada. It houses over 125 unique public companies, ETFs, Special Purpose Acquisition Companies (SPACs), Growth Acquisition Corporations (G-Corps), and Closed-End Funds (CEFs). 

Tsx Alpha Exchange And The Ice Ngx Canada Exchange

These are some of the least known stock exchanges in Canada. The Alpha Exchange provides trading of TSX and TSXV securities, and the NGX Exchange provides features like electronic trading, central counterparty clearing, and data services to the North American natural gas and electricity markets.

Trading Value Of The Stocks In Canadian Market


Exchange

Traded Value

TSX

58.2%

NASDAQ CXC 

12.9%

NEO

6.8%

TSX Alpha

5.7%

CSE

2.6%


Major Companies In The Canadian Stock Exchange

The Canadian stock exchange has various major firms in domains like finance, energy, technology, real estate, mining, and retail. Some of the famous companies under the Canadian Stock exchanges include:

  • Shopify (C$ 171.8 Billion)
  • Royal Bank Of Canada (C$ 166.1 Billion)
  • Scotiabank (C$ 95.5 Billion)
  • Brookfield (C$ 85.5 Billion)
  • Canadian Pacific Railway (C$ 63.2 Billion)
  • Canadian Imperial Bank of Commerce ( C$ 56.8 Billion)
  • Thomson Reuters (C$54.1 Billion)
  • Fortis Inc. (C$25 Billion)

What Are The Most Popular Online Stock Brokerages In Canada?

Questrade

It is the most popular online stock brokerage in Canada. Questrade has a smooth and clean UI and provides a seamless end experience to the clients. It is also famous for its low fee and charges per transaction and excellent customer service support.

Qtrade Investor

Qtrade Investor has a more basic UI compared to Questrade but has a detailed portfolio of the companies. It is rich in portfolio analysis and stock research tools. It also charges a fixed amount for every trade you make and hence, is beneficial to use when investing in quantity.

Interactive Brokers

Interactive Brokers is a leading brokerage in the international market due to its low transaction charges and the Trader Workstation (TWS) platform. However, it’s not the best for casual investors because of extensive portfolios and advanced analytics tools.

TD Direct Investing

Although expensive, TD Direct Investing provides a vast set of trading and analysis tools such as its WebBroker and its Advanced Dashboard Platform, making it one of the most in-demand online brokerages in Canada.

CIBC Investor’s Edge

CIBC for casual investors. It provides low-cost trades and is relatively easy to set up and start investing with base amounts. The reason behind CIBC’s popularity among other online stock brokerages is transparency and low transaction charges.

How Can Retail Investors Get An Online Brokerage Account?

The process for opening an online brokerage account in Canada is quite simple. You can follow these simple steps to open an online brokerage account.

  • Decide on a brokerage account type and a brokerage.
  • Fill out a new application and submit your documents.
  • Fund the account.
  • Start investing.

What Are The Most Popular Investment Firms In Canada?

Suppose you are a business or an individual who trades a lot of money but isn't generating good returns on your investment or is skeptical about making trading decisions. In that case, you can choose capital management services from investment firms in Canada. 


Investment firms and Capital Managers are the professional players in the market and understand it way beyond everyone else. They also charge a commission fee to manage your funds and assets. Some of the leading investment firms are:


  • Haywood Securities
  • PI Financial
  • Research Securities
  • Wolverton Securities
  • Beacon Securities

How Do Retail Investors Buy Stakes Through Investment Firms?

Retail investors can go for either of the three types of investment firms:

  • Closed-end funds: Has fixed shares through one IPO (Initial Public Offering)
  • Open-end funds (mutual funds): Ideal for individual or small investors to access bonds and equities.
  • Unit investment trusts (UITs): Offers fixed portfolios to investors of bonds and stocks for a time period.

Conclusion

Some of the largest global firms are listed on the stock exchanges in Canada. The Canadian Stock Market mainly consists of two sectors, finance, and energy. But it doesn’t mean that the market in Canada lacks diversity. 


There are about 3950 companies listed only in the TSX and the TSXV. Almost all the major listed companies have shown good returns in the post-pandemic period, displaying the excellent potential of the market.


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