New to stock trading ready to start

[cavanagh]

Hi everyone, I have been following markets for a while and have been succesfully paper trading, I understand all taxes involved in capital gains for Canada so all I need to do is set up an account and trade.
I do have some questions before I get going.

First, it may sound noob but when trading stocks can you buy or sell any stock at anytime, or must there be a buyer or seller availible to you?

Second, I would like to buy/sell in american markets such as NASQAQ, NYSE, AMEX ect. can I do this from Canada easily ?

Third, must I find a brocker that deals in certain markets example TSX, NASDAQ, or can I buy from all markets through any broker?

Finally, If I earn capital gains/losses in american stocks are my capital gain taxes still to be paid only in Canada?

Thank you for your help and I can't wait to start tradding

 

[Charlton]

Hi everyone, I have been following markets for a while and have been succesfully paper trading, I understand all taxes involved in capital gains for Canada so all I need to do is set up an account and trade.
I do have some questions before I get going.

First, it may sound noob but when trading stocks can you buy or sell any stock at anytime, or must there be a buyer or seller availible to you?

It is possible to submit orders at any time, although depending on your broker there may be periods you cannot. For example Interactive Brokers have time on a sunday when you cannot submit orders. Submitting them is one thing, filling them is another. It is possible to have orders filled after hours i.e. after the market has closed, but you may not get a fill. For all practical terms you should think about trading only during market hours. Yes there has to be a buyer or seller to take the opposite side to your order. For the markets you quoted there is sufficient liquidity that it should not be a problem. However that does not mean that you will be filled at the limit price you want, but if you traded at market then you will get filled assuming that you are not trading enormous quantities.

Second, I would like to buy/sell in american markets such as NASQAQ, NYSE, AMEX ect. can I do this from Canada easily ?

Yes - very easily. I live in the UK and use brokers in the US trading those markets. It is completely transparent.

Third, must I find a brocker that deals in certain markets example TSX, NASDAQ, or can I buy from all markets through any broker?

Not necessarily - some brokers specialise in certain types of instruments, regions or markets, but you will see on the brokers website details of the markets and instruments they cover, so look for the main ones you want to trade. However bear in mind that, for each market you trade, you may have to pay market data feeds.

Here are details of two that I use which will give you something to compare others against

http://www.interactivebrokers.com/en/p.php?f=marketData&ib_entity=uk

TradeStation Securities - Market Data Services & Fees

Finally, If I earn capital gains/losses in american stocks are my capital gain taxes still to be paid only in Canada?

Thank you for your help and I can't wait to start tradding

You will be asked by your broker to complete a form

http://www.irs.gov/pub/irs-pdf/fw8ben.pdf

This exempts you from tax in the US and you will pay in your home country instead.

Charlton