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How to Buy Canadian Natural Resources Stock [2024]

How to Buy Canadian Natural Resources Stock
Nemanja Curcic

Summary: Canadian Natural Resources is an established oil and natural gas company, and investing in it allows you to benefit from the most significant production of heavy crude oil in Canada. This guide will follow you through buying Canadian Natural Resources stock (CNQ) using a regulated brokerage like Interactive Brokers

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  • Highly trusted multi-asset broker with clients in over 200 countries

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  • Low commissions starting at $0 with no platform fees or account minimums

  • Easily fund your account and trade assets in 26 currencies

  • IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

About Canadian Natural

Founded in 1973 and headquartered in Calgary, Alberta, Canadian Natural (or CNRL) operates mainly in British Columbia, Alberta, Manitoba, and Saskatchewan, along with several offshore platforms near the UK, Côte d’Ivoire, and Gabon.

The company operates the most extensive undeveloped base in Western Canadian Sedimentary Basin. Being the largest producer of natural gas in Western Canada and the number one producer of heavy cruise oil in Canada, Forbes Global 2000 put Canadian Natural as the 218th largest company in 2023.

How to Buy Canadian Natural Resources Stock: Canadian Natural Resources homepage screenshot.
Canadian Natural Resources homepage screenshot. Source: cnrl.com

CNRL’s chief development areas include exploration, development, and production in the petroleum energy sector. According to its pledge to sustainable practices, the company utilizes innovative resource extraction management to minimize its environmental footprint.

With its diverse portfolio of assets, Canadian Natural Resources plays a dominant role in Canada’s energy market.

How to buy Canadian Natural Resources stock: Step-by-step

Canadian Natural Resources opened its doors to the general investing public on April 9, 1999, when it had its initial public offering. As it is listed on stock exchanges, you can invest in CNRL through a regulated brokerage in these five steps:

Step 1: Choose a broker

To gain access to the stock market, you need to use the services of a stock brokerage that enables you to buy and sell various stocks, Canadian Natural included.

To securely buy Canadian Natural Resources stock (CNQ), we recommend the following:

Interactive Brokers (IBKR)

  • Commission-free stock trading;
  • Global stock-trading on 90+ market centers;
  • Fractional shares available;
  • Extra income on fully paid shares;
  • Lowest financing rates for margin accounts in the industry;
  • No account minimum. 

Best Platform for Worldwide Stock Trading & Investing

  • Highly trusted multi-asset broker with clients in over 200 countries

  • Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

  • Low commissions starting at $0 with no platform fees or account minimums

  • Easily fund your account and trade assets in 26 currencies

  • IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

Every platform has its own strengths and weaknesses, but a couple of factors will play a role in your choice regardless of your investing style:

  • Range of offerings: Your platform should have CNQ, but verify the availability of other assets like different commodities, various stocks, forex, and derivative assets like options, CFDs, and futures. Having them available will come in handy when you decide to diversify your portfolio;
  • Cost: The investing industry standard is commission-free trading with no-minimum accounts for stocks and ETFs. Confirm this is the case with your choice;
  • Regulation and security: Ensure the investing platform complies with the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulations. Look for two-factor authentication (2FA) and similar security measures; 
  • Fractional stock trading: Platforms that enable fractional stock trading allow you to buy stocks by the dollar amount, which suits those with limited capital or traders seeking to pursue the dollar-cost averaging approach.

Step 2: Open and fund your account

Once you opt for an investment platform, you need to register and verify your account. Simply follow the instructions provided by the brokerage. Following that, you should transfer some funds to your account, which you will use to buy the CNQ shares. 

Payment options usually include a bank transfer, debit or credit card, and a third-party transaction service such as PayPal (PYPL). Go with whatever fits your investing style the most. 

Step 3: Decide how much you want to invest

While this step may seem redundant, deciding on the correct investment sum is crucial to the investing process. After all, overextending your budget can have dire consequences if your investment fails.

To help you decide, answer these two questions:

  • Will my living standards drop if I lose this investment?
  • Do I have enough remaining to cover at least three months of living expenses with no outstanding high-interest debt?


Besides these, the correct sum depends on your investing preferences, the level of risk you can tolerate, and the final goal of your investment endeavor.

Step 4: Place your order and buy Canadian Natural Resources stock

You must place a trade order to buy CNRL shares. These four simple steps lead you through the process: 

  • Step 1: Log into your exchange account and find the company’s ticker stock symbol CNQ;
  • Step 2: Type in the number of shares you want to buy;
  • Step 3: Select the order type (market order or limit order) and place it;
  • Step 4: Execute the trade order.

Step 5: Monitor and manage your investment

You should continuously observe and maintain your investment for higher chances of returning a profit. 

Make sure to regularly renew your research on the stock and the company’s fiscal status. Moreover, remain up-to-date on the current price of oil and natural gas, the petroleum market, the position of fossil fuels on the Canadian market, and the progression of renewable energy adoption worldwide. 

CNQ stock price today

Pros and cons of buying Canadian Natural Resources stock

Pros

Pros

  • Government subsidies: Canada dispensed over 20 billion CAD in 2022 in various forms of contribution to support responsible oil and natural gas companies, such as CNRL;
  • The #1 producer of crude oil in Canada: Canadian Natural Resources has vast reserves of oil and gas under its jurisdiction;
  • High ROI potential: Due to the cycle of supply and demand, the oil sector has periods with considerable boom in returns on investment;
  • Diversification: Adding oil company shares to your portfolio gives you indirect access to oil price speculation and additional diversification opportunity.
Cons

Cons

  • Price volatility: The oil price is unstable due to many factors that influence its price, like production disruptions, broken chains of supply, and the current geopolitical aspects; 
  • Uncertain future: Since society is increasingly embracing solar, wind, and other renewable power sources, the demand for hydrocarbon fuels remains uncertain;
  • Green energy transition: More and more companies decide to go green and announce plans to phase out fossil fuels, which can reduce demand and drive prices down.

Common mistakes to avoid when investing

Make sure to avoid these common investing mistakes:

  • Lack of research: Thoroughly research the commodity, global market, and industry tendencies before spending any money;
  • Lack of strategy: Clearly define your milestones before you invest;
  • Staking everything on one asset: Always diversify your portfolio;
  • Falling prey to scams: Avoid illegal platforms and suspicious deals.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about how to buy Canadian Natural Resources stock

How to buy CNQ stock?

The best method of investing in CNRL stock in Canada is to use a regulated investing platform such as Interactive Brokers.

Where to buy CNQ stock?

Since the TSX exchange publicly lists CNQ, you can purchase the stock through an online brokerage such as Interactive Brokers.

Should I invest in CNQ stock?

Several factors affect the answer, such as your investing habits, hydrocarbon fuels status, financial strategy, risk aversion, etc. Besides the stock, consider the performance of oil and gas commodities, as both determine the price of CNQ.

How do I sell my CNQ stock?

Log into your brokerage account, navigate to CNQ, type in how much stock you want to dispatch, and press the ‘sell’ button.

Best Platform for Worldwide Stock Trading & Investing

  • Highly trusted multi-asset broker with clients in over 200 countries

  • Trade on 150 markets globally from a single platform (stocks, ETFs, futures, currencies, crypto & more)

  • Low commissions starting at $0 with no platform fees or account minimums

  • Easily fund your account and trade assets in 26 currencies

  • IBKR pays up to 4.58% interest on cash balances of $10k or more

Up to 4.58% interest on balance*

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