International students can invest in stocks in Canada. A valid SIN number (starts with any number) is a requirement to own stocks in Canada. Most investing platforms may require clients to be a resident of Canada for tax purposes (live more than 183 days on a calendar year).
There might be a limit on the percentage of a business an international student can own. This will likely not be an issue as it only applies when investing more than $1 million in stocks.
Anyone, citizens, permanent residents, and international students are allowed to buy and sell stocks in Canada.
As long as you are in the age of majority (18-19), and have a SIN number (begins with any number), you are allowed to invest in stocks. A bank account may also be required to transfer funds to and from an investing account.
Requirements
- SIN number (begins with any number)
- Be at least 18 or 19 years old (age of majority, depends on every province)
- Resident of Canada for tax purposes (will stay in Canada for more than 183 days on a year)
The age of majority in Canada differs in every province. For example, the age of majority in British Columbia (BC) is 19 years old while Ontario has a minimum age of 18 years old to enter a legal contract.
Stock Investing Platforms in Canada
| Investing Platform | Commission Fees (Stock Buy or Sell Trade) |
| RBC Direct Investing | $9.95 per trade (Lower pricing of $6.95 for active traders, 150+ trades every 3 months) |
| TD Direct Investing | $9.99 per trade (Lower pricing of $7.00 for active traders, 150+ trades every 3 months) |
| Wealthsimple Trade | $0 free commission fees for CAD stocks 1.50% exchange rate fee for US stock trades |
| Questrade | Around $5 for most trades (Lower pricing available for active traders) |
Wealthsimple Tutorial – How to Trade Stocks
Questrade – How to Buy and Sell Stocks
Investing Platforms for International Students in Canada
1. Wealthsimple Trade – Stocks & ETFs
You can buy or sell stocks in the United States and Canada through Wealthsimple Trade. Thousands of stocks and ETFs (Exchange Traded Funds) can be traded through Wealthsimple Trade. Also, fractional trading is available on popular stocks such as Tesla and Apple stock.
- No minimum requirement. Anyone can start with $150 or less.
- $0 commission fees on stock trades
- Invest in Stocks & ETFs listed on stock exchanges in the United States and Canada
- 1.50% exchange rate fee for US dollar trades
- Fractional Trading (Example: Let us say a stock like Tesla is worth $300 per share. With fractional trading, a person can buy $30 to get 0.10 of a Tesla stock.)
- More than 2 Million People have a Wealthsimple account
Visit wealthsimple.com for more details. To get started, visit wealthsimple.com. A $25 bonus may be applied after trading at least $150 of any stocks.
Wealthsimple Tutorial – How to Trade Stocks
2. Questrade – Stocks, ETFs, Bonds, Options, etc.
- Minimum of $1,000 to open an account
- $4.95 commission fees for every stock trade (buy or sell)
- 2% US dollar exchange rate fee
- Questrade is operating for more than 20 years. More than 200,000 new accounts every year
- Platform is a bit more complicated than Wealthsimple Trade
The tutorial video is done on a Questrade Margin account. The process of how to buy and sell stocks in a Questrade TFSA is the same.
Questrade – How to Buy and Sell Stocks
Types of Accounts for International Students
The best types of accounts for international students are TFSA and Personal (Cash) or Margin accounts. RRSP may not be ideal since RRSP is designed for retirement investments.
Both Questrade and Wealthsimple Trade have TFSA and Personal or Margin accounts. These investing accounts can hold stocks, ETFs, and possibly other assets.
Personal/Margin and TFSA accounts offer the most flexibility since you can add or withdraw funds anytime. Also, there is no limit on the number of trades in personal and margin accounts.
| TFSA | Personal or Margin |
| Profits are Tax Free | Gains are taxable |
| Funds can be withdrawn anytime | Funds can be withdrawn anytime |
| Deposit limited up to TFSA contribution limit | No limit on the amount of deposits |
TFSA (Tax-Free Savings Account)
Profits from stocks inside a TFSA account are tax-free. Also, losses are not tax deductible. TFSA accounts have a contribution limit of about $6,000 every year.
Personal
Personal account on Wealthsimple Trade is more commonly known as a cash account. Profits on stocks inside a Personal account are taxable when it is sold. At the same time, losses may be tax deductible for future gains.
Personal account have the most flexibility since there is no limit on the amount of deposits or withdrawals to a Personal account. Also, there is no limit on the amount of trades a person can do inside a Personal account.
RRSP (Registered Retirement Savings Plan)
RRSP accounts may not be ideal for International Students since RRSP is designed for retirement. RRSP accounts are commonly used to take tax deductions from employment income and withdraw funds from RRSP as a source of retirement income.
Resident of Canada for Tax Purposes (Keeping an Investing Account while outside Canada)
According to canada.ca, you may be considered a non-resident for tax purposes if you do not have residential ties in Canada, and you stay in Canada for less than 183 days in the tax year. (A tax year runs from January 1 to December 31)
Even if you no longer live in Canada, you may have residential ties in Canada to be considered a factual or deemed resident of Canada.
Residential ties include:
- a home in Canada
- a spouse or common-law partner or dependents in Canada
- personal property in Canada, such as a car or furniture
- social ties in Canada
Other ties that may be relevant include:
- Canadian driver’s license
- Canadian bank accounts or credit cards
- hospitalization and medical insurance coverage from a province or territory of Canada
For the full details, here is the canada.ca article on Determining an Individual’s Residence Status.
Overall, renting and being in Canada for more than half of a tax year (Jan. 1 – Dec. 31) may be a strong case to be considered a resident of Canada.
Most investing platforms require an address in Canada where you can receive mail. For the most part, a bank account in Canada may be required to transfer funds to and from an investing account.
Can an International student trade stocks while overseas?
As long as the SIN is still active, accessing an investing or trading account is possible. Most platforms are online and a decent internet connection is more than enough.
The US and Canadian stock markets (NYSE, TSE, NASDAQ) are open 9:30 am to 4:00 pm Eastern Time, Mondays to Fridays. These are the times when people can buy or sell stocks.
When having a vacation in other countries, check the time zone on how it differs from Eastern Time.
International students outside of Canada for less than half of a year (less than 183 days) may still be a resident of Canada for income tax purposes.
What are the investment options for international students?
The kinds of investments depend on every trading platform. Each platform may base its requirements to open an account on the kinds of investments that it can hold. Also, platforms are required to comply with federal laws.
Is temporary SIN okay?
A temporary SIN is enough to open an investing account. It is recommended to close an investing account 1-2 weeks before a SIN expires.
What is the minimum capital to get started?
Each investing platform may require a different minimum amount to start trading stocks. Some platforms may require at least $1,000 to open an account to trade stocks in US and Canada.
How to Close an Investing Account
Stocks and ETFs inside an investing account will have to be sold and converted to cash. Then, you can transfer the cash to your bank account. Once the balance of the trading account is zero, you can close the account.
Lastly, you can send an email or call the customer service of a trading platform to close an account.