Toronto Stock Exchange

TSX brokers provide a gateway to trade on the Toronto Stock Exchange. It is the eighth largest stock exchange in the world in terms of market capitalization and one of the biggest in North America. The Toronto Stock Exchange is listed under the name TSX and is part of the TMX Group. Read on for a brief history of the TSX, key information such as opening hours and some ideas and tips to start investing on the Toronto Stock Exchange. We also rank the best brokers with access to the Toronto Stock Exchange in 2024.

Top Toronto Stock Exchange Brokers

These are the 2 best brokers for trading on the Toronto Stock Exchange:

#1 - Interactive Brokers

Why We Chose Interactive Brokers

Interactive Brokers (IBKR) is a premier brokerage for experienced traders, providing access to 150 markets in 33 countries, along with a suite of comprehensive investment services. With over 40 years of experience, this Nasdaq-listed firm adheres to stringent regulations by the SEC, FCA, CIRO, and SFC, amongst others, and is one of the most trusted brokers for trading around the globe.

"Interactive Brokers is one of the best brokers for advanced day traders, providing powerful charting platforms, real-time data, and customizable layouts. Its superb pricing and advanced order options also make it highly attractive for day traders, while its diverse range of equities is still among the best in the industry."

- DayTrading Review Team
  • Instruments: Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, CFDs, Cryptocurrencies
  • Regulator: FCA, SEC, FINRA, CBI, CIRO, SFC, MAS, MNB
  • Platforms: Trader Workstation (TWS), Desktop, GlobalTrader, Mobile, Client Portal, AlgoTrader, OmniTrader, eSignal, TradingCentral
  • Min. Deposit: $0
  • Min. Trade: $100
  • Leverage: 1:50

Pros

  • There's a vast library of free or paid third-party research subscriptions catering to all types of traders.; plus, you can enjoy commission reimbursements from IBKR if you subscribe to Toggle AI.
  • The TWS platform has clearly been built for intermediate and advanced traders and comes with over 100 order types and a reliable real-time market data feed that rarely goes offline.
  • While primarily geared towards experienced traders, IBKR has made moves to broaden its appeal in recent years, reducing its minimum deposit from $10,000 to $0.

Cons

  • TWS’s learning curve is steep, and beginners may find it challenging to navigate the platform and understand all the features. Plus500's web platform is much better suited to new traders.
  • Support can be slow and frustrating based on tests, so you might find it challenging to reach customer service representatives promptly or encounter delays in resolving issues.
  • You can only have one active session per account, so you can’t have your desktop program and mobile app running simultaneously, making for a sometimes frustrating trading experience.

#2 - IG

Why We Chose IG

Founded in 1974, IG is part of IG Group Holdings Plc, a publicly traded (LSE: IGG) brokerage. The brand-US offers spread betting, CFD and forex trading across an almost unrivalled selection of 17,000+ markets, with a range of user-friendly platforms and investing apps. For 50 years, IG has maintained its position as an industry leader, excelling in all key areas for traders.

"IG continues to provide a comprehensive package with an intuitive web platform and best-in-class education for beginners, plus advanced charting tools, real-time data, and fast execution speeds for experienced day traders."

- DayTrading Review Team
  • Instruments: CFDs, Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting
  • Regulator: FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA
  • Platforms: Web, ProRealTime, L2 Dealer, MT4, AutoChartist, TradingCentral
  • Min. Deposit: $0
  • Min. Trade: 0.01 Lots
  • Leverage: 1:30 (Retail), 1:250 (Pro)

Pros

  • As a well-established broker, IG operates under strict regulatory guidelines in multiple jurisdictions, maintaining a high level of trust
  • IG offers an extensive collection of professional and engaging educational resources, including webinars, articles, and analysis
  • The ProRealTime advanced charting platform is free as long as certain modest monthly trading activity requirements are met

Cons

  • Stock and CFD spreads still trail the cheapest brokers like CMC Markets based on tests
  • While there is negative balance protection in the UK and EU, there is no account protection or guaranteed stop losses for US clients
  • Beginners might find IG’s fee structure complex, with various fees for different types of trades or services, potentially leading to confusion or unexpected charges

How To Compare TSX Brokers

So how can you get started? You will first need to find brokers that support trading on the TSX. You will also need brokers that offer all the tools, instruments and support needed to execute your strategy. If you are investing from outside of Canada, there are some extra considerations when comparing TSX brokers.

All TSX investment activities happen online. You can find companies that work directly with the TSX by looking at the official website, where you can identify registration numbers. If you cannot find your TSX broker of choice, do not panic, many brokerages around the world allow you to trade on the TSX.

Here are the key things to consider when comparing Toronto Stock Exchange brokers:

  • Regulation: Finding TSX brokers that are regulated in your country of residency will ensure you are guarded against scams or fraudulent activities. Look out for top-tier financial institutions with appropriate protection in place, including negative balance protection, access to compensation schemes and segregated client funds. Brokers registered with the IIROC (Investment Industry Regulatory Organization of Canada) are likely to offer TSX stocks. There are, however, some scams to look out for, such as TMX Timex Trading. Choose a trustworthy, reputable broker before investing any real capital.
  • Platform: The best platform for investing on the Toronto Stock Exchange will depend on your strategy and planned frequency of trades. The best TSX brokers will offer stable desktop investing as well as a mobile app that allows you to trade anywhere, anytime. If you are interested in long-term investing or swing trading in stocks, look out for TSX brokers that offer comprehensive analysis tools, including indicators, signals, bots, custom charting, and analysis features. Having access to a TSX API will also allow you to get live data and integrate it with your own analysis.
  • Fees: The Toronto Stock Exchange has its own fees for brokers and companies, including a fixed fee per share in odd lot and extended trading. These costs apply to both TSX and TSX Venture brokers. TSX brokers are likely to apply their own fees and spreads on top of this, so make sure you compare them thoroughly to get the best deal. Questrade, for example, offers an advanced level 1 and 2 data packages for Canadian stocks for a CAD $89.95 monthly fee. The best TSX brokers will provide a transparent fee structure, meaning you can review how costs will impact your P&L and if you have available funds to invest in upgraded stock information.
  • Products: Before you choose between TSX brokers, make sure that your desired financial products are available. When buying and selling stocks only, basic access to TSX will do. To trade with small-cap stocks (also known as penny stocks) you may need access to TSX Venture. If you are more experienced and looking to trade derivatives on the TSX, like futures or options, you will need to review the full service offering of TSX brokers to see if this is available. Interactive Brokers may be a good platform to consider as it provides several instruments including ETFs and individual stocks, with access to extended trading hours.
  • Accounts: Many TSX brokers will offer several account types, so choose one that suits your investment style and strategy. Some accounts will be spread-based, while others will be commission-based. Paper trading accounts are a good way to practice and access real-life market conditions within a simulated environment. You can essentially test new strategies risk-free. TSX also offers its own demo service, which includes stocks and options.
  • Customer Support: Stock and index investments are risky if large amounts of capital are traded. If you encounter an error, it is important to have a helpful and responsive customer support team. Good customer service can be gauged using online reviews and by testing it out yourself with any questions you may have. TD Direct Investing, for example, offers Monday to Friday customer support, available 7 AM to 8 PM (ET).

History

The Toronto Stock Exchange was officially created in the mid-1800s and incorporated in 1878 under the name Toronto Stock Exchange or TSE. Besides a three-month break during World War I, it has operated continuously since then. The Toronto Stock Exchange abandoned its trading floor in 1997, becoming a platform for electronic investing. In 2002, the abbreviation TSE was changed to TSX, as it remains today.

On the TSX centre, you can trade shares of listed companies and derivative products like options or futures. The section of the TSX that deals with smaller stocks is called TSX Venture and operates similarly to the Toronto Stock Exchange.

Recently, the TSX group has launched TSX Alpha, which works with fixed-income products like treasury and corporate bonds and acts as an alternative trading system.

Companies Listed On The TSX

Canadian stocks have a market capitalization of about USD 3.16 trillion, which accounts for 4% of the world’s market capitalization. In 2020, there were over 1,500 companies issuing shares on the TSX, many focusing on energy, materials and financial services. These include Suncor, an oil refinery that manages pipelines across the world, Barrick Gold, one of the world’s largest gold mining companies, and the Royal Bank of Canada. You can look up the symbols for each company at TSX brokers.

On the Toronto Stock Exchange, you can trade stocks for companies known around the world, like Blackberry, as well as small-cap stocks via the TSX Venture. You can also invest in bonds, exchange-traded funds (ETFs) and commodities. Check whether TSX brokers offer your instrument of choice before opening a live account.

When investing in TSX products, the tick size increment is measured in Canadian dollars (CAD) or cents. Stocks generally trade in one-cent tick size increments, while currencies have tick sizes in pips. The board lot sizes for TSX and TSX Venture are 100 for stocks priced at $1.00 and over, 500 for stocks priced at $0.10 to $0.99, and 1,000 for stocks priced under $0.10

TSX Opening Hours

TSX opening hours for 2024 are similar to other stock exchanges. The exchange is open for continuous trading from 09:30 to 16:00 Eastern Time (this corresponds to 07:30-14:00 in Mountain Time, 06:30 – 13:00 PST or 21:30 – 04:00 in Asian trading hours).

The TSX has a premarket investing period (early trading) from 07:00 – 09:30 ET, where orders can be entered but will not be executed until the market opens. You can also trade after hours (extended trading) on the Toronto Stock Exchange in the last session between 16:15 and 17:00 ET, though liquidity will be limited and prices will be less transparent. You can check the TSX website for after-hour quotes. Note, not all TSX brokers will offer this.

The TSX opening hours apply to all assets, including futures, stocks like BB and indices like the S&P. TSX Venture has the same market hours as TSX. However, TSX Alpha opening hours are slightly different – you can trade continuously from 08:00 to 17:00 ET, with an aftermarket session from 17:00 – 17:30 ET.

TSX Holidays

All three parts of the stock exchange close on weekends and some Canadian and US national holidays. The TSX market opening hours are reduced on Christmas Eve (24/12), closing at 13:00 ET, but remain unchanged on New Year’s Eve (31/12). Non-trading days on TSX include the Canadian and US Thanksgiving days and Canada Day.

If you are unsure or want to ask “is the TSX trading on Monday”, for example, check the Toronto Stock Exchange market opening schedule and calendar for more info on 2024 operating days, key dates and to see if TSX and other exchanges in the TMX group are trading today. TSX brokers will also reflect market closure dates, including public holidays, within their calendars.

TMX Halts

TMX sometimes implements short pauses, with each known as a trading halt or suspension. These can happen for the whole market or just particular stocks and can affect the TSX, TSX Venture or both. The Toronto Stock Exchange implements investment halts when important news that could significantly alter prices are about to be released to the public, giving investors time to reflect before executing any positions. This will be reflected across all TSX brokers.

The TSX trading halt rules also state that a stock can be suspended if there are fast unexplained fluctuations in price. If trading on the TSX is stopped or halted today, you will receive a notification via your broker before it starts and another before the halt has ended. Very rarely, TMX exchanges will close trading early due to technical problems.

Understanding The Market

To maximize your profits, it is important to track the evolution of TSX stocks. Consider looking at the following:

  • Indices: Indices are groups of assets that you can trade together. In Canada, the S&P/TSX Composite Index is the headline index, comprising around 250 companies. Tracking the performance of this index is important for understanding the state of the Canadian market. You can find some of the most important stocks on the TSX centre by looking at the S&P/TSX 60. Index charts are available within the TSX website and on tools like TradingView. You can trade derivates on subindices like S&P/TSX 60 and sector-specific subindices like the S&P/TSX Capped Energy Index.
  • Trading Data And Reports: TMX regularly publishes data, including market summaries, statistics, volume charts and daily volumes for each symbol on the Toronto Stock Exchange. The TSX also publishes daily reports that will give you more information on the day-to-day changes in the market. The best TSX brokers will integrate this information into their platforms. You can see the price of individual stocks on the TSX, like BB or BMO.
  • Insider Trading: Insider trading occurs when executives trade shares in their own company. Looking at insider trading reports published by the Toronto Stock Exchange can give you an idea of where each company is headed. Insiders can trade on the TSX if they follow the insider policy, which stipulates those insiders should be registered on an insider list and report all their trades. Unregulated insider trading is illegal in Canada.
  • Education: There are plenty of resources on how to trade stocks, many of which focus on the TSX trading centre. You can find manuals and courses online, explore live TSX and S&P information on sites like Trading Economics and connect with other TSX investors via Reddit and social media. Top ranked TSX brokers will also provide free educational materials to their customers which may include key word glossaries, integrated YouTube video content and step-by-step guides. Furthermore, the TSX/TMX Equities Trading Conference provides an opportunity to learn about the Canadian market and TSX. Using a demo account is also a smart way to learn and practice; TMX regularly organises competitions using the TSX options simulator.

Strategies

These are some examples of strategies you can use at TSX brokers:

Day Trading

Day trading involves opening and closing positions within the same day. You must keep in mind the TSX market opening hours, including early and extended sessions. Note that there is a rule in the US that requires you to have a balance of at least $25,000 for what they call ‘pattern trading’. There is no minimum in Canada but, if you are investing on the TSX from the US or with US stocks, this may be required. The best stocks for day trading on the TSX are those that have strong daily price fluctuations.

Swing Trading

In swing trading, you hold a position for days or weeks until the trend changes and you reverse your position. This style is often based on technical analysis, so ensure you find TSX brokers with a wide range of tools. The best stocks for swing trading on the TSX will present medium-term trends.

News Trading

News announcements can strongly influence price movements on the Toronto Stock Exchange. Stay tuned into the news by looking at economic calendars and getting live notifications from TSX brokers so you can make a move before the rest of the market does.

Auto Investing

You can use bots or algorithmic software to trade automatically at brokers with access to the TSX. These programs will execute trades according to rules you have defined, allowing you to profit from market movements even when you are not looking, though be sure you manage your risk accordingly.

Using TSX Brokers Abroad

Trading on the TSX is carried out in the local currency, the Canadian Dollar (CAD). If you are investing with TSX brokers from abroad, you may need to convert your currency to Canadian Dollars before you begin, which might entail a conversion fee.

The best TSX brokers will provide competitive exchange rate fees, or provide this service free of charge for all international traders.

There is one exception to this: interlisted stocks. These are listed both on the TSX trading centre and a US-based exchange, like NASDAQ. The major advantage of interlisted stocks is that they can be bought with US Dollars. Over 180 TSX stocks can be traded in USD and over 75% of the S&P/TSX 60 stocks are interlisted.

Final Word On TSX Brokers

The Toronto Stock Exchange has some exciting companies and a solid performance record. You can trade the TSX from most North American brokerages, so compare TSX brokers thoroughly in terms of platforms, fees and other factors to find the best one for you. Remember to check the TSX opening hours and holidays, including how they convert to your time zone, and watch out for any investing halts. A solid strategy and robust risk mitigation steps are key to profitability when investing on the Toronto Stock Exchange.

If you are keen to get started, check out our recommended list of top TSX brokers.

FAQs

Is It A Good Idea To Trade On The Toronto Stock Exchange?

The Toronto Stock Exchange (TSX) trading centre is the eighth largest stock exchange in the world and one of the biggest in terms of mining and energy companies. It has a solid performance record and list well-known companies, both of which make it a good exchange to trade via online TSX brokers. You will need to trade with Canadian Dollars, which may require conversion fees, but you can also trade interlisted stocks in USD. Look out for brokers with access to the Toronto Stock Exchange that offer cheap or free currency conversion fees.

What Are The Best Stocks To Trade At TSX Brokers?

Some well-known companies are listed on the TSX, including Blackberry, Suncor, Barrick Gold and the Royal Bank of Canada. The best stocks to trade via TSX brokers will depend on your strategy – you might want to consider day, swing or penny stock trading.

Which Are The Best TSX Brokers?

Many Canadian and international brokers allow you to trade on the Toronto Stock Exchange but you will need to do some research to find the one that is best for you. Compare each broker’s fees, platforms and assets to make sense of the competition. Interactive Brokers and AvaTrade are some of the best-rated stockbrokers in Canada.

What Are The TSX Market Opening Hours?

The TSX is open for trading from 09:30 to 16:00 Eastern Time every day, except weekends and holidays. Early hours investing is allowed from 07:00 – 09:30 ET and extended trading occurs between 16:15 and 17:00 ET. Check your broker’s published calendar including market closures and upcoming public holiday dates.

Can I Trade On TSX Using USD?

The only valid currency on the TSX trading centre is the Canadian Dollar. However, some stocks on the TSX are interlisted, which means they are also available on a US exchange and can be traded with USD. TSX brokers may permit free currency conversions if you are an international day trader.

Can I Access TSX Reports?

Yes – the Toronto Stock Exchange publishes daily reports, statistics and data with the latest information about the market. You can also access insider reports through the exchange. The best TSX brokers will provide key financial metrics and exchange updates too.

Where Can I Find Out More About TSX Trading?

The exchange’s official website offers a wealth of information on all things TSX. Here, you can find out about insider and NCIB rules, daily trading volume and alternative trading systems. You can also login to the TMX simulator.