Toronto Stock Exchange

Toronto Stock Exchange (TSX) brokers facilitate online trading on the largest exchange in Canada and the third-largest in North America after the Nasdaq and New York Stock Exchange. The TSX is home to 1500+ company listings with a market value of more than $3.3 trillion. This review ranks the best Toronto Stock Exchange brokers, considering software, fees, market data, and more.

Choosing Toronto Stock Exchange Brokers

Brokers with access to the TSX act as the intermediary between retail investors and the Canadian stock market. Yet with trading software, prices, and reliability varying between brands, it’s important to assess brokerages in several key areas:

Fees

Commissions are the most prominent cost to look out for. These will typically be a flat fee and sometimes vary depending on your account status. Saxo Bank, for example, offers a tier-based commission structure when trading on the Toronto Stock Exchange. A 0.03 CAD fee applies per share for individuals trading with the Classic profile. This is reduced to 0.015 CAD per share for those with VIP account status.

In-built spreads may also be applied. It is also important to consider non-trading fees, including for deposits and account inactivity. Additionally, as the TSX is denominated in the Canadian Dollar, UK investors may be liable for conversion fees at some brokers.

Vehicles

The top TSX brokers today offer direct share dealing plus CFDs and ETFs. Contracts for difference are popular with short-term traders while exchange-traded funds may suit longer-term investors.

IG Index, for instance, offers the iShares S&P TSX 60 Index ETF which focuses on the 60 largest and most heavily traded stocks on the exchange.

Platform

Some Toronto Stock Exchange brokers provide access to third-party software such as the MetaTrader 4 (MT4), while others offer proprietary trading systems. Interactive Brokers, for example, provide TSX trading on their bespoke Trader Workstation as well as MetaTrader 4 and MetaTrader 5.

Importantly, you will need a stable and reliable interface. Also look for mobile app compatibility so you can invest in the Toronto Stock Exchange on the go. The best trading platforms offer live price data, algo bots, integrated economic calendars, plus customisable charts and signals.

Regulation

The best Toronto Stock Exchange brokers in the UK are authorised by the Financial Conduct Authority (FCA). This provides a layer of protection for British traders with licensed firms required to ensure that customer data and personal capital are protected against fraud, scams, and business misconduct.

Also review whether the TSX broker provides additional account protections, such as two-factor authentication (2FA), one-time passwords for withdrawal requests, and biometric verification for mobile app entry.

Customer Service

Access to a reliable customer support team during TSX trading hours is helpful in case you encounter issues and problems. A good customer service team can also provide TSX trading information, including halts and upcoming market holidays and closures.

The top Toronto Stock Exchange brokers, such as Pepperstone, provide 24/7 guidance and help.

Education

The best TSX brokers provide trading resources and learning materials, including simulators and paper trading profiles. You may be able to find manuals and online courses available via their official websites, with information on how to trade stocks and indices.

Also make use of additional resources offered by TSX brokers, including analyst insights for the biggest risers and fallers, company news announcements, swing trading strategy tips and ideas, plus daily trading volume history and data.

Note that while UK investors won’t be able to attend annual conference meetings in Canada, there is plenty of trading numbers and price history data available online.

Live Chart

What Is The Toronto Stock Exchange?

The Toronto Stock Exchange was established in 1861, though was not recognised as the TSX until 2002 following a rebranding.

The TSX is operated by TMX Group Limited, which also operates several other Canadian exchanges, including the TSX Venture Exchange (TSXV).

The stock exchange closed its trading floor and moved to a fully online service in 1997, though it still operates from a head office in Toronto’s Financial District.

There were 1751 companies listed on the TSX in 2022, 6% of which were non-domestic companies. Around 20% of all global oil and gas companies are listed on the TSX and TSXV, and around 45% of the world’s mining organisations are listed on these exchanges.

The Toronto Stock Exchange is also home to Canada’s biggest commercial banks, including the Canadian Imperial Bank of Commerce (CIBC), the Bank of Montreal (BMO), and the Royal Bank of Canada (RBC).

As the largest stock exchange in Canada, trading opportunities span multiple vehicles, including exchange-traded funds, futures, options, shares, and investment trusts.

Note that transactions are typically completed in the Canadian Dollar.

History

• 1852 – A group of Canadian businessmen gathered in 1852 to form an ‘Association of Brokers’, which essentially created the original structure for the Toronto Stock Exchange
• 1861 – Formal creation of the Toronto Stock Exchange was approved and trading began in the following years. Volumes were small in the offset, with a maximum of three transactions per day
• 1913 – The Toronto Stock Exchange built and moved into a registered office building and saw the development of a print-out-ticker that had the technology to transmit trade pricing and bid/ask quotes
• 1914 – Operations were ceased for three months due to financial unrest following World War I
• 1934 – The Toronto Stock Exchange merged with a major competitor, The Standard Stock and Mining Exchange, and became North America’s largest exchange as of 1936
• 1958 – The exchange’s board of governors put rules in place to require all listed companies to release any alterations to standard company affairs which could cause share price fluctuations
• 1977 – The Toronto Stock Exchange launched the first Computer Assisted Traded System in the world. The exchange also created the TSE Composite Index
• 1995 – The exchange became the first exchange in North America to introduce decimal point trading
• 1999 – A repositioning programme saw the Toronto Stock Exchange become Canada’s main exchange for the trading of senior equities
• 2001 – The S&P/CDNX Index was launched in December
• 2002 – The exchange underwent a rebranding and saw the adoption of the acronym TSX. The TSX Group Inc became a publicly listed company with shares listed on its exchange
• 2007 – Montreal Exchange Inc. and TSX Group Inc merged to create the TMX Group, which completed in 2008

Markets

The TMX Group is home to several markets:

• Toronto Stock Exchange – The primary Canadian market for senior issuers. Listing firms are categorised into three key sectors; mining companies, oil and gas companies, and industrial firms
• Toronto Venture Exchange – TSXV focuses on early-stage companies looking to access growth capital but are too small to be listed on the main market. There are around 1700 firms listed on the TSX Venture Exchange
• Montreal Exchange – The country’s oldest exchange is all electronic and focuses on trading derivatives. It currently lists equity derivatives, currency options, index derivatives, and interest rate derivatives

Indices

Many of the well-known Canadian indices are available for trading at Toronto Stock Exchange brokers. The most commonly traded is the TSX Composite Index, though some platforms also offer access to some of the others listed below:

• TSX Composite – The S&P/TSX Composite Index, previously known as the TSE 300 Index, trading symbol TXCX, represents around 70% of the Toronto Stock Exchange market capitalisation tracking around 250 listed companies. It is the equivalent of the US S&P 500 index, and as it is comprised of some of Canada’s most prominent companies, it is often used as a benchmark for the health of the country’s economy. In 2022, the index had a total market cap of $2.75 trillion with almost one-third of the index’s members associated with the financial services industry.
• TSX 60 – The index consists of 60 of the largest organisations listed on the Toronto Stock Exchange. The index includes firms from nine industries including finance, energy, telecommunication, healthcare, and industrials. Combined with the TSX Completion index, they form the TSX Composite index. AvaTrade offers the TSX 60 index with leverage up to 1:20 and trading hours between 6 am at 8:30 pm GMT.
• TSX Completion – The Completion index is comprised of the remaining firms that are not included in the S&P/TSX 60 Index. It tends to list midcap and smaller firms. Combined with the TSX 60 index, they form the TSX Composite index.
• TSX Smallcap – Home of the Canadian small-cap market stocks. These are usually less mature organisations that are in the development or growth stage.
• TSX Venture – The exchange mostly contains small-cap Canadian stocks providing companies with access to capital. There are around 1,700 companies listed on the TSX Venture Exchange, primarily in the mining and energy industries.

Major Stocks

Some of the largest companies by market cap listed on the TSX include:

• Royal Bank of Canada – market capitalisation of $130 billion
• Toronto Dominion Bank – market capitalisation of $106 billion
• Canadian National Railway – market capitalisation of $77 billion
• Enbridge – market capitalisation of $75 billion
• Canadian Pacific Railway – market capitalisation of $71 billion
• Bank of Montreal – market capitalisation of $61 billion
• Thomson Reuters – market capitalisation of $60 billion
• Canadian Natural Resources – market capitalisation of $58 billion
• Scotiabank – market capitalisation of $58 billion
• Spotify – market capitalisation of $58 billion

Listing Requirements

Companies applying to list on the Toronto Stock Exchange must complete a formal application. Companies are split into three categories: industrial companies, mining companies, and oil and gas companies, and then into their relevant development stages.

For example, an industrial company with ‘exempt’ development standards must meet the following requirements:

• Have over CAD 7.5 million in net tangible assets
• Earnings from operations of at least CAD 300,000 before taxes
• Have a pre-tax cash flow of CAD 700,000 in the year before filing for the listing
• Have an average pre-tax cash flow of CAD 500,000 in the two years before filing for the listing
• Have adequate working capital to complete ongoing business activities

Trading Units

When investing with TSX trading brokers, tick size increments are generally measured in Canadian dollars (CAD).

The board lot sizes for the TSX and TSX Venture exchanges are 100 shares priced at $1.00 and over, 500 shares priced between $0.10 and $0.99, and 1000 shares for those priced under $0.10.

Orders with a volume less than a standard trading unit are considered odd lot trading and will not be executed.

Trading Hours

The Toronto Stock Exchange (TSX) market is open for trading for 6 hours and 30 minutes per day. The exchange’s trading days and times are Monday through Friday from 9:30 am to 4:00 pm (GMT -4), though some TSX brokers offer extending trading sessions.

The Canadian exchange does not offer premarket trading, though an extended trading schedule (aftermarket) does operate up to 5 pm (GMT -4). Overnight trades will be executed the following day at the market opening price.

The best TSX trading brokers will publish details of opening hours today, last trading sessions, non-trading days, and start times on their websites. You should also be able to view public holidays and upcoming halts.

The IIROC reserves the right to implement trading halts and pause trading following the release of company and financial affairs. The rules stipulate these materials must seriously affect the price of the security to justify a market close.

The insider trading policy for the Toronto Stock Exchange prohibits listed companies from using such information to trade in a company’s securities before the information is disclosed to the public.

Market Regulation

The Investment Industry Regulatory Organisation of Canada (IIROC), a non-profit organisation, oversees all trading activity on the country’s exchanges and marketplaces to promote healthy competition, fairness, and integrity.

The regulatory authority uses sophisticated surveillance tools and alerts to ensure transactions are executed properly, and in compliance with market integrity rules.

Note, TSX brokers may also have restrictions against certain strategies and alternative trading systems.

Bottom Line On TSX Brokers

Traders can invest in the Toronto Stock Exchange through a number of UK brokers. The top platforms offer direct share dealing plus derivatives like CFDs and ETFs. Compare trading fees, tools and apps, plus regulatory oversight before opening an account. Alternatively, see our ranking of the best brokers with access to the Toronto Stock Exchange.

FAQ

Article Sources

• TMX
• IIROC
• Saxo Bank
• Interactive Brokers