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How to Buy Stocks in Canada With RBC [2024]

How to Buy Stocks in Canada With RBC
Bogdan Stojkov

Summary: Investing in the stock market can be an excellent way to grow wealth over time. Investors with accounts at The Royal Bank of Canada (RBC) can deposit their funds to several regulated online brokerages, such as Interactive Brokers, and buy stocks and other financial instruments in no time.

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*

About RBC

The Royal Bank of Canada (RBC) is one of the largest financial institutions in Canada. With a history dating back over a century, RBC has built a reputation for providing a wide range of financial services, including banking, investing, and wealth management.

Royal Bank of Canada homepage. Source: www.rbcroyalbank.com

Can you buy stocks with RBC?

The Royal Bank of Canada offers its own brokerage platform, RBC Direct Investing. Hence, it allows investors to access a diverse range of investment opportunities, including stocks listed on Canadian and international stock exchanges.

Nevertheless, this might not be the best option for everyone. Investors seeking low-cost trading and a wider range of options can deposit funds from their RBC bank account to regulated standalone brokerages and continue their investment journey from there.

Our brokerage of choice in Canada is Interactive Brokers. Besides being fully licensed and regulated due to it being a member of the Investment Industry Regulatory Organization of Canada (IIROC) and Canadian Investor Protection Fund (CIPF), it also offers:

  • Low commissions and financing rates to maximize returns;
  • Global access to stocks, futures, bonds, and funds;
  • Trading efficiency with advanced technology;
  • Secure trading experience.

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*

How to buy stocks in Canada with RBC: Step-by-step

In case you’re interested in buying stocks in Canada with RBC, you can follow our simple step-by-step guide, and you’ll be ready to trade in no time.

Step 1: Choose a brokerage

As mentioned, RBC has its own brokerage platform—Direct Investing. However, it doesn’t suit all types of investors. For some, choosing a standalone brokerage is a better option, due to lower transaction fees and more advanced trading options.

If you’re that type of investor, you should first search for a reputable brokerage that allows depositing funds from an RBC bank account. Note that there are many of these out there, and each of them offers its advantages and considerations. So, choose accordingly.

Step 2: Open a brokerage account

Once you pick a brokerage platform, you’ll need to register and create an account. This process is pretty straightforward; however, it’s not the same on all platforms. You’ll typically need to provide information such as your name, address, Social Insurance Number (SIN), and once you verify your account, you’ll be able to move on to the next step.

Step 3: Fund your account

With an approved account, the next step will be to fund it. You can transfer funds from your existing RBC bank account in just a few clicks. Most brokerages offer various funding options, including electronic funds transfer, wire transfer, and even check deposit, so you can choose the option that suits you best.

Step 4: Research and select stocks

Before purchasing any stocks, it’s essential to do thorough research and only then select the stocks you want to invest in. The good news is that most brokerages provide research tools and resources to help you make informed decisions.

However, don’t forget to consider factors such as the company’s financial performance, industry trends, and growth potential. Once you do your research, make a list of stocks you’re interested in so that you keep an eye on their performance over time.

Step 5: Place your order

The next step is to place an order. So, with your aim set on certain stocks you want to buy, log in to your brokerage account and navigate the trading platform to enter the stock symbol for the company you’re interested in.

You can choose the type of order you’d like to place, such as:

  • Market order: Buy at the current market price;
  • Limit order: Set a specific price at which you’re willing to buy.

Step 6: Monitor your investments

After you’ve purchased stocks, monitoring your investments regularly is crucial. Luckily, various brokerages provide tools to track the performance of your portfolio. Therefore, keep an eye on market trends, stock market news, and any changes that may impact your investments. If the need arises, you can make adjustments to your portfolio as needed to align with your investment strategy.

What to avoid when buying stocks in Canada

One of the most common mistakes novice investors make is to overlook research. Nevertheless, you should avoid buying stocks without conducting proper and thorough research. It allows you to understand the companies you’re investing in, helping mitigate risks. Still, there are other pitfalls to avoid, including:

  • Emotional trading: Don’t let emotions drive your investment decisions. Market fluctuations are normal, so avoid making impulsive moves based on short-term trends;
  • Neglecting diversification: It’s wise to diversify your portfolio by investing in different industries and sectors. This helps spread risk and potentially increase returns;
  • Ignoring fees: Be aware of any trading fees or commissions associated with buying and selling stocks, as these costs can impact your overall returns;
  • Timing the market: Trying to time the market perfectly is challenging and often leads to poor outcomes. Instead, focus on your long-term investment goals instead.

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 stocks in Canada with RBC

Are there any fees associated with using RBC Direct Investing?

Yes, RBC Direct Investing charges fees for trades and account maintenance. Be sure to review the fee schedule on their website or contact customer support for more information.

Can I trade stocks on RBC Direct Investing using a mobile app?

Yes, RBC Direct Investing offers a mobile app that allows you to trade stocks, access account information, and research investments on the go.

Is there a minimum amount required to open an RBC Direct Investing account?

Yes, there is typically a minimum funding requirement to open an account. Check the RBC Direct Investing website for the current minimum funding amount.

Can I get assistance if I need help with my investments?

Yes, RBC Direct Investing provides customer support and access to investment professionals who can assist you with your investment decisions.

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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