How to Buy Tesla Stock in Canada (Step by Step Guide)

Are you finding it daunting to know how to buy Tesla Stock in Canada? Well, don’t worry, this is a problem faced by many others.

Instead of paying a broker to oversee their investments, many Canadians turn to do-it-yourself stock trading.

The rise of online investment services such as Questrade and Wealthsimple has greatly contributed to this development.

This article will explain the details on how to buy Tesla Stock in Canada. We’ve covered everything from a general Tesla review to traditional online trading options.

The Business History of Tesla:

After launching its IPO in June 2010 for US$17 per share, Tesla has become the most successful EV IPO in history.

Musk decided to expand to Texas in late 2020 to lower his tax burden. SpaceX’s headquarters are located in Texas, as is the Tesla Gigafactory.

Additionally, Ford Motor Company and General Motors Company (both of which are publicly traded on the New York Stock Exchange under the symbols “F” and “GM”), both of which produce electric cars, are Tesla’s main competitors.

A pioneer in autonomous driving technology, Tesla faces competition from Apple (AAPL) and Google (GOOG).

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Steps by Step Guide to Follow to Buy Tesla Stock in Canada:

Step 1: Account Opening is the First Step:

You must open an account with a broker to buy Tesla stock or any other stock. Brokers connect you to the market, allowing you to make and receive trades. This is what you should be looking for:

Trading without paying any fees: Commissions on trades are unnecessary. Thanks to apps like Uphold and large brokers like TD Ameritrade, it is now possible to trade for free.

Trading stocks in fractions: The price of a single TSLA share puts it out of reach for many small and beginning investors. With fractional stocks, you can buy a fraction of a TSLA stock, allowing you to participate in the price movement while diversifying your portfolio.

A virtual trading account for practicing with virtual money: Look for brokers that allow you to test out their platform before opening an account. Interactive Brokers, for example, offers this feature, which isn’t common in the current crop of investment apps.

Low fees for accounts: Inactivity fees, account fees, and transaction fees are all things to watch for. Pick a broker who is willing to give you the best price.

Trading on the margins: Margin trading allows you to leverage your account’s capital. If your account has $500 in it, you can trade $3,000 worth of TSLA stock using a leverage ratio of 6:1.

Keep in mind that if Tesla stock prices fall, you may be forced to put up an additional maintenance margin. Because of the inherent risk, margin trading is not recommended for novices.

Charts and real-time data are available: Charts are available on all trading platforms, but their display data is typically delayed by up to 15 minutes. Real-time data is available for a reasonable subscription fee from brokers.

Step 2: Fund Your Trading Account:

Set up an account with your broker and fund it using a wire transfer or debit card transaction to purchase Tesla stock.

But keep in mind that your first deposit and withdrawal may take up to two weeks to appear in your account. Before your account can be opened, the broker must verify your personal information, taking up to two weeks.

Step 3: Decide How Much Money You’re Going to Put in:

What would you do if you discovered that you were about to lose all of your hard-earned money tomorrow? In that case, it’s probably not a good idea to put all of your hard-earned cash into a trading account.

Begin with a small investment that you can live without. As with any skill, trading takes time and practice to master.

However, putting all of your money on the line is a risky move as a novice trader. Keep a cool head when it comes to managing your risks.

Step 4: A Stock or an ETF is the Next Logical Step:

Tesla stock can be purchased as stand-alone security or as part of an exchange-traded fund (ETF) along with securities from other companies.

Trading in exchange-traded funds is less risky because it protects investors from the large price swings in any one stock.

A professional asset manager oversees the ETF stock selection and performance, distributing your risk across multiple stocks in a weighted basket. As a new investor, ETFs are a great option.

Several ETFs have exposure to Tesla, including Invesco QQQ Trust, SPDR S&P 500 ETF Trust, iShares Core S&P 500 ETF, Vanguard S&P 500 ETF, and ARK Autonomous Technology & Robotics ETF.

Step 5: Configure Your Order:

It’s time to set your order after selecting the best vehicle for your business.

In the market:

You can purchase Tesla stock using a market order at the next available price in the order book.

However, there is a problem with this type of order because of the amount of time it takes to complete it. If you buy at $600, but the broker only fills you at $610, you’ve made a mistake. “Slippage” is the term used to describe the extra $10.

Limit order:

You can’t absorb fill slippage with a limit order. Filling you at this price is what you’ll enter as a limit order. If you’re an experienced day trader, this is your best bet.

Stop limit:

When your transaction hits your profit target, the stop-limit order allows you to take profit. Suppose you buy Tesla stock at $600 and set a target price of $630. Your broker will then sell your stock if it reaches that price.

Stop Loss:

This order type is critical for inexperienced traders as it serves as a means of reducing their exposure to risk. At US$600, your stop-loss order should be at US$580, based on your risk tolerance level.

To prevent you from suffering an unaffordable loss, the broker will close out your position if the price falls to this level.

Step 6: Place Your Order:

Now that your broker’s trading platform is set up, you’re ready to place an order.

The ticker, limit price, stock size, and order type will all have their fields on your platform. Fill out the required fields and click the buy button when you’re ready to purchase.

Step 7: Monitor the price of Tesla’s stock:

Earnings reports cause Tesla stock to fluctuate in price. Although the price may be affected by market developments such as lithium-ion market limitations or reports of fatal car crashes involving drivers using autopilot,

Elon Musk, Tesla’s CEO, frequently tweets about the company’s shares, which causes the stock price to fluctuate.

Musk tweeted that he planned to take the company private at US$420, with “funding secured,” causing the stock to rise 14 percent intraday.

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How to Buy Tesla Stock in Canada (Tesla’s Stock Price Performance):

With Tesla’s recent success, the company’s stock price has increased dramatically in the last two years.

The stock had a year-end price of around $400. While trading at a low point in June 2020, the stock was trading at a high point of $4,000. At this point, the pricing is somewhere about $700.

It may appear that Tesla stock has declined by nearly 50% since June 2020 at first sight, but this is not the case. Tesla chose to split its stock, resulting in each shareholder receiving an additional 5 Tesla shares for everyone they had before the split.

The stock’s price had risen unreasonably, prompting this action. High prices, as previously said, restrict individuals with less money from investing.

Like fractional shares and exchange-traded funds (ETFs), share splitting is a means to make investing in a firm more affordable for a larger number of people. Stock splits don’t alter the value of a firm, but investors should be aware of this fact.

Where Can you Buy Tesla Stock in Canada?

Online Stockbroker:

The most convenient and cost-effective method of purchasing Tesla stock is through an online discount broker.

If you have a social security or social insurance number, a home address, and the address of your employer, you can open an account in the comfort of your own home and in the shortest amount of time.

This option requires little to no initial investment, and if you are short on funds, it will benefit you greatly to investigate this option.

Stockbroker:

This is the more costly method for any investor, as the stockbroker will charge you for the professional input and service provided in trading Tesla stock on the investor’s behalf.

Through a Robo-advisor:

Additionally, the investor can engage a Robo-advisor, which will decide how to invest and allocate the investor’s funds based on some factors like his or her self-identified risk tolerance, financial goals, and time horizon.

One can buy through:

QuestWealth
Wealthsimple
ModernAdvisor
Justwealth
Nest Wealth

Stock Market Risks to Consider Before Investing in Companies:

Investing in the stock market carries several hazards that should never be overlooked since they have the potential to cause you to lose a significant amount of money in a flash. There are a few pros that occur when you invest in the stock market:

A company’s financial performance is affected by the volatility of commodity prices.
Inflation and geopolitical or economic crises can also cause stock or security volatility.
A corporation’s credibility is put at risk when negative news is widely disseminated on social media.
Legislative risk is when government laws affect a company’s stock market growth or development.
To prevent market volatility and downside risks, it is important to assess the timing of investments.
The risk of obsolescence is still another. As a result, the corporation won’t be able to hold its position in the market for long.
You must always avoid reporting fake financial and stock data to reduce detection risk.

Conclusion:

Putting money into investments is a big step, and there are many unknowns when it comes to whether or not you will see a return on your investment. Tesla’s growth has been electrifying in recent years, and it is all over the stock market right now.

The company also introduced several excellent energy solutions to create sustainable energy ecosystems.

To summarize, there is an equal risk of investing in these platforms. A team of financial advisors can help you figure out what to invest in and where to put your money.

Awesome one, I hope this article answered your question.

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The Business History of Tesla:

Steps by Step Guide to Follow to Buy Tesla Stock in Canada: