The legalization of the use of marijuana in Canada has made it become an essential investment place for U.S investors. Canada is the only G20 country to legalize the use of marijuana nationwide. Investing in Canada will give investors the opportunity of investing in licensed products. Many companies trade on the Canadian exchanges which U.S investors find difficult to access through the traditional brokerage accounts. U.S investors will find the best liquidity for them by acquiring Canadian Shares. In this article, the Means by Which U.S investors can buy Canadian Cannabis Stock are discussed.
One way U.S investors can purchase Canadian stocks is by U.S Brokers who trade on Canadian Stocks. For many U.S brokers, it is always difficult for them to participate in international trading. The Canadian Stocks allows U.S brokers to trade on international stocks.
There are some brokerage accounts which allows online trading in the traditional markets available. InteractiveBrokers is the most famous U.S brokerage that is available for the international traders. Investors can maximize their returns and reduce their fees using the fixed and tiered pricing of InteractiveBrokers. There are other easy-to-use U.S brokerage for international traders, and they are PennTrade and Questrade.
When trading on international stock exchanges, there are many important factors U.S investors should consider. The first important consideration to remember is that the prices expressed are in Canadian dollars which will fluctuate at times. Brokers who offer ways of converting Canadian dollars to U.S dollars are present today.
All the options available for liquidity should be considered when trading on international stock exchanges. Some preferable liquidity terms available are American Depositary and over-the-counter versions stocks. If you don’t want to worry about trading fees or the movement of the Canadian dollars, you should go for considering the OTC version of security.
Payment of foreign taxes on international capital gains and dividends should be considered when trading on an international stock exchange. 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. Many of the Canadian stocks do not march up with the U.S security exchange, and this may bring about issues to an investor. Investors are able to look up common filings such as quarterly and annual reports if they conduct due diligence tips.
Investors who are seeking for exposure to the Canadian stocks have several options, but they should carefully consider their decisions.