I am just getting back into the market after a few years of very little investing. I have been focused on forex for the past few years and I am looking at getting back into securities.
As a Canadian citizen, I am entitled to a Tax Free Savings Account (TFSA) which I just opened and have decided to utilize. I have deposited my allowed limit in Canadian dollars so that I can start investing.
The catch is that if I choose to buy U.S. securities, I first have to exchange my CAD into USD. The other option is to trade on margin, which I would prefer not to do. Any stocks I purchase using U.S. dollars, when sold, would eventually have to be exchanged back into CAD if I choose to spend such money in Canada.
Another broker I have considered going with will automatically exchange the funds at the time you purchase a U.S. stock. Once again, it's a process required if I choose to use Canadian dollars and invest in U.S. markets. It adds one more layer of complication to buying and selling securities.
Does anyone have much experience with this? Is it recommended to primarily stick to investing in Canadian securities with CAD or might purchasing U.S. securities be the way to go?
I look forward to hearing from you.