Full-service brokers Haywood Securities, Raymond James, Ltd. and Richardson GMP plus online brokers Fidelity Investments, Interactive Brokers, PennTrade and Charles Schwab let U.S. clients buy stocks on the TSX, lists Casey Research. Scottrade routes trades to American exchanges when it believes that's best, while TD Ameritrade doesn't have direct trading.
Full-service brokers create personalized investment plans based on age, income, lifestyle and risk tolerance in exchange for a fee, as Investopedia describes. In contrast, online brokers charge less but do nothing besides facilitating trades, so they're best for investors who either want to minimize spending or have the skills to invest on their own.
TSX stocks are bought using the Canadian dollar, which fluctuates in value relative to the U.S. dollar, notes Zacks Investment Research. Some brokers exchange them automatically when trades are executed, while others let clients control currency exchanges, which creates further opportunities. For example, they can buy in Canadian money when they expect its value to rise.
Not all brokers let clients trade directly on the TSX, meaning that they're actually trading proxies of TSX stocks called ADRs, according to About.com. They still have similar risks in the forms of exchange rates, Canadian inflation rates and Canadian political crises. However, their prices aren't perfectly synchronized with TSX stock prices because they're proxies.