Author Topic: What is the best way to buy Stocks?  (Read 2818 times)

Siecje

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What is the best way to buy Stocks?
« on: January 02, 2013, 06:19:31 PM »
I am a Canadian and I am wondering how do you buy stocks and what is the best way to buy stocks.

Ishmael

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Re: What is the best way to buy Stocks?
« Reply #1 on: January 03, 2013, 06:22:19 AM »
  • Open an account with a reputable financial instituition, like one of the major banks. Decide whether it should be RRSP, TFSA or regular, based on your personal circumstances. (Max the TFSAs or RRSPs first before the latter) Make sure it is a self-directed one, and the fees are low. Fees are the killer!!!
  • Get a copy of the book "Don't Buy Mutual Funds!!!" from the library and read it.
  • Start with low-cost index funds, until you research and find individual stocks you are comfortable with.
  • Check out Norm Rothery's periodic articles in MoneySense magazine. He generally follows the value approach to investing, and his choices do pretty well over time.
  • Check out Derek Foster (stopworking.ca). He retired at 34 with an all-stock portfolio. He talks about the types of stocks he likes, and although it's not very in depth, its a good perspective.
  • Invest regularly (i.e. every month or when you have a reasonable amount accumulated, like $2000) and don't try to time the market other than following Warren Buffet's advice of "Be brave when others are fearful and fearful when others are brave".
  • Diversify! Base this on your appetite for risk, though.
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Siecje

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Re: What is the best way to buy Stocks?
« Reply #2 on: January 06, 2013, 08:12:21 AM »
So I have to go to a Bank to buy Stocks?

smedleyb

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Re: What is the best way to buy Stocks?
« Reply #3 on: January 06, 2013, 08:38:39 AM »
So I have to go to a Bank to buy Stocks?

TD Ameritrade is an excellent Canadian brokerage company.  It's what I use (although I have negotiated my transaction fees below the advertised rate for stock and option trades).

Alan2

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Re: What is the best way to buy Stocks?
« Reply #4 on: January 06, 2013, 11:59:20 AM »
I buy my stocks through Motley Fool's Sharebuilder service - they pool everyones orders and buy about once a week so getting economies of scale.  Cost is 2 per buy (plus taxes), and it allows you to own shares in fractions, useful when, like me, you are investing small sums in individual shares that cost a lot each.  This http://www.fool.com/shop/newsletters/19/e5897286-78a3-4fd5-983d-dedad4d003fd.aspx explains it better than I have just done.  I don't know if they run this service in Canada, but I'd be surprised if you couldn't find an equivilent service.

I use it mainly to buy ETFs and Investment Trusts.
United Kingdom

Budget_Ninja

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Re: What is the best way to buy Stocks?
« Reply #5 on: January 07, 2013, 07:27:26 PM »
I am a Canadian and I am wondering how do you buy stocks and what is the best way to buy stocks.

How to buy stocks:  Open an account with one of the major discount brokerages.  I am with TD and while I wouldn't 'recommend' it, I am not switching to anything else.  My next best choice might be Virtual Brokers.  Once you open the account, put some money in it and start buying... 

What is the best way to buy stocks...
Opinion:

  • Not individually, especially if you have a small amount of capital to invest or not much experience.  Index funds are a good way to start (and I am not ever leaving them)
  • If your going to make frequent but small contributions, consider mutual funds with low MER's.  I recommend TD eFunds.