How to buy Canadian stocks in the UK

Why invest in Canadian stocks?

Canada's stock market has a distinctive composition that makes it different from both the US and UK markets. Financials, energy and materials account for the largest share of the TSX by market cap, giving the index an income-oriented, resource-heavy character that can act as a useful complement to a portfolio already weighted toward UK domestic equities or US technology stocks. In some ways, this makes it similar to the ASX (Australian Securities Exchange).

For UK investors, Canadian stocks offer a different sectoral mix to the London market, meaningful dividend income from the country's large financial and pipeline companies, and a growing technology sector anchored by global names such as Shopify.

The S&P/TSX 60 Index ETF (TSX: XIU) has delivered annualised returns of roughly 16% since 2021, including a strong 28% return over the preceding 12 months. This is partially due to elevated commodity pricing, which has been cyclical. Past performance is not an indicator of futures returns.

The main reasons UK investors look to Canada include:

• High dividend yields from established banks, pipeline operators, utilities and telecoms companies
• Exposure to global commodity cycles through Canada's significant mining, oil sands and energy infrastructure sectors
• A growing technology sector, with Shopify among the most widely followed global technology stocks listed outside the US
• Political and regulatory stability relative to other resource-rich markets
• The GBP/CAD currency relationship, which can offer diversification benefits when sterling is under pressure

Source: TMX Group press release, September 2025

How to buy Canadian stocks in the UK

Buying Canadian stocks from the UK follows the same basic process as buying any international shares. Here is how to do it:

1. Choose a brokerage platform that provides access to the Toronto Stock Exchange (ours does). Not all UK platforms offer international market access, so check whether TSX-listed stocks are available before opening an account
2. Open a share dealing account or stocks and shares ISA. Canadian stocks listed on the TSX are generally not ISA-eligible directly, since the TSX is not a recognised exchange for UK ISA purposes under current rules. However, some Canadian companies that are dual-listed in the US (such as Shopify on the NYSE) may be accessible via an ISA.
3. Search for the stock by name or ticker. TSX tickers are typically short letter codes followed by '.TO' or similar suffixes on data platforms. Examples: Royal Bank of Canada is TSX: RY, Shopify is TSX: SHOP.
4. Place your order. You can place a market order (at the current available price) or a limit order (specifying a maximum price you are willing to pay). Be aware that the TSX trades in Canadian dollars, so your trade will involve a currency conversion.
5. Monitor currency exposure. Your Canadian stock holdings will be affected by movements in the GBP/CAD exchange rate. If the Canadian dollar weakens against sterling, the sterling value of your holding falls even if the stock price is unchanged in CAD terms.
6. Manage ongoing costs and tax obligations. Dividends from Canadian stocks are subject to a 15% Canadian withholding tax for UK residents under the UK-Canada double taxation treaty. This is reduced from the standard 25% Canadian withholding rate and may be partially offset against UK income tax liability.

Canadian stocks to watch in 2026

The following profiles cover some of the most widely watched stocks on the TSX as of mid-2026. All market caps are approximate and in Canadian dollars unless stated. Note that while these are among the most prominent TSX names, this is not a recommendation to buy or sell any individual stock.

1. Royal Bank of Canada (TSX: RY / NYSE: RY)
2. Shopify (TSX: SHOP / NYSE: SHOP)
3. Toronto-Dominion Bank (TSX: TD / NYSE: TD)
4. Enbridge (TSX: ENB / NYSE: ENB)
5. Canadian Natural Resources (TSX: CNQ / NYSE: CNQ)
6. Brookfield Asset Management (TSX: BAM / NYSE: BAM)

Royal Bank of Canada (TSX: RY / NYSE: RY)

Canada's largest bank by market capitalisation, Royal Bank of Canada (RBC) has a market cap of approximately CA$228 billion and is one of a small group of North American banks designated as globally systemically important (G-SIB). RBC provides services across personal and commercial banking, wealth management, insurance, capital markets and treasury operations in 36 countries, with over CA$1 trillion in assets under management. It consistently ranks as Canada's most valuable company and is a core holding for income investors, offering a dividend yield of around 3.5%.

Shopify (TSX: SHOP / NYSE: SHOP)

Shopify is Canada's most prominent technology company, dual-listed on both the TSX and NYSE, and holds approximately a 16% share of the global e-commerce platform market. Founded in Ottawa in 2004, the platform now powers over 4.8 million merchant websites across 175 countries. Shopify is a constituent of the S&P/TSX 60 and has been expanding into AI-enhanced merchant tools and financial services. Its NYSE listing means it can be accessed through UK ISA accounts.

Toronto-Dominion Bank (TSX: TD / NYSE: TD)

Canada's second-largest bank, TD reported adjusted revenue of CA$16.0 billion in Q2 2026 (fiscal year ending October), up 5.9% year-on-year, and raised its quarterly dividend by 3.7% to CA$1.12 per share in May 2026. TD has a significant US retail banking presence, operating more than 1,100 branches across the eastern United States.

Enbridge (TSX: ENB / NYSE: ENB)

Enbridge is one of North America's largest energy infrastructure companies, operating the world's longest crude oil and liquids pipeline network. Its regulated asset base provides stable, predictable cash flows, and the company has a long track record of dividend growth, with a current yield of approximately 6-7%. Enbridge's network transports a significant portion of Canadian oil exports to the US.

Canadian Natural Resources (TSX: CNQ / NYSE: CNQ)

One of Canada's largest independent oil and gas producers, CNQ benefits from low-cost, long-life oil sands assets that generate strong cash flows even at moderate oil prices. The company has a track record of consistent dividend growth and share buybacks. CNQ is widely cited by analysts as a core Canadian energy holding for investors seeking commodity exposure with capital discipline.

Brookfield Asset Management (TSX: BAM / NYSE: BAM)

Brookfield Asset Management is a global alternative asset manager with approximately $1 trillion in assets under management across infrastructure, real estate, renewable power, private equity and credit. Dual-listed on the TSX and NYSE, it is one of Canada's most internationally recognised financial companies and is accessible through UK ISA accounts via its NYSE listing.

Currency risk: GBP/CAD

One of the most important considerations for UK investors in Canadian stocks is the currency relationship between sterling and the Canadian dollar. Your returns in GBP terms are affected not only by the performance of the stock in Canadian dollars but by how the CAD/GBP exchange rate moves over your holding period.

If the Canadian dollar falls 10% against sterling over a year, a stock that rose 10% in Canadian dollar terms would deliver a roughly flat return in sterling terms after currency conversion. Managing this risk, particularly for larger or longer-term holdings, is worth considering carefully. However, the converse is also true.

For a detailed breakdown of the tools available, including forward contracts, options and currency-hedged ETFs, our guide to protecting your portfolio from currency risk covers the key strategies for UK investors with international exposure.

The GBP/CAD rate in 2026 has been trading in a range approximately between 1.67 and 1.77 (i.e.: £1 buys approximately 1.67 to 1.77 Canadian dollars), influenced by Bank of England rate policy, oil price movements as a result of the ongoing conflict in the Middle East, and US-Canada trade dynamics following the 2025 tariff developments.

Tax considerations for UK investors in Canadian stocks

UK investors buying Canadian stocks need to consider two layers of taxation: Canadian withholding tax on dividends, and UK income tax and capital gains tax on returns.

1. Canadian withholding tax on dividends
2. UK income tax on dividends
3. UK capital gains tax

Canadian withholding tax on dividends

Canada charges a standard 25% withholding tax on dividends paid to non-resident investors. However, under the UK-Canada double taxation treaty, this rate is reduced to 15% for UK residents. Your broker will typically deduct this automatically before the dividend reaches your account. The withheld 15% may be available as a foreign tax credit against your UK income tax liability on the same dividend, but this depends on your individual tax position and is worth confirming with a tax adviser.

UK income tax on dividends

Dividends received from Canadian stocks held outside an ISA or SIPP are subject to UK income tax above the £500 dividend allowance for 2026/27. The rates are 10.75% (basic rate), 35.75% (higher rate) and 39.35% (additional rate). The 15% Canadian withholding tax already deducted may be partially credited against this liability. Dividends held within a SIPP are sheltered from UK dividend tax during the accumulation phase.

UK capital gains tax

Gains made on the disposal of Canadian stocks held outside an ISA or SIPP are subject to UK capital gains tax. For 2026/27, the CGT annual allowance is £3,000, and the rates for shares are 18% (basic rate) and 24% (higher rate). Canadian stocks carry no UK stamp duty on purchase, since stamp duty reserve tax only applies to UK-listed shares. Currency gains or losses on the GBP/CAD conversion may also affect your CGT calculation.

How to research Canadian stocks and new listings

Beyond the established large-cap names, the TSX also features a significant number of growth companies, particularly in mining and technology, that attract investor attention for different reasons. New listings and IPOs on the TSX can be monitored via the TMX Group website. For UK investors who follow IPO activity more broadly, it is worth noting that some of the most anticipated upcoming listings are on UK and European exchanges rather than the TSX. Recent examples include the Shawbrook Bank IPO, Revolut's anticipated IPO and the Verisure IPO. Understanding the research process for any new listing, whether on the TSX or elsewhere, involves reviewing the company's prospectus, sector outlook and valuation relative to comparable listed peers.

For established TSX stocks, key sources of data include the TMX Group's own market data tools, company investor relations pages and financial data providers such as Bloomberg, Reuters and Morningstar. The S&P/TSX Composite Index is the primary benchmark and its composition is reviewed quarterly.

Costs of buying Canadian stocks from the UK

UK investors should factor in the following costs when buying Canadian stocks:

• Dealing commission: varies by platform. Many UK platforms charge per-trade fees for international shares, though some offer commission-free access to US-listed Canadian ADRs (ours offers zero commission on all stocks and ETFs traded within a UK GBP GIA, ISA and SIPP account).
• Currency conversion fee: typically 0.25% to 1.5% of the trade value, charged when converting GBP to CAD (ours is 0.7%). Some platforms allow you to hold a CAD cash balance to avoid repeated conversions.
• Ongoing platform fee: most UK platforms charge a percentage-based or flat annual fee for holding international shares, but ours doesn’t.
• Bid/offer spread: for less liquid TSX-listed stocks, the spread between the buy and sell price can be wider than for FTSE 100 or S&P 500 stocks.
• Foreign exchange risk costs: if you choose to hedge currency exposure using forwards or options, there are additional costs involved. These are covered in more depth in the portfolio-level discussion of  currency risk protection.

Buying Canadian stocks – the advantages and risks

How to buy Canadian stocks in the UK: FAQs