How to buy GameStop (GME) stock from Canada

GameStop (NYSE: GME) has held an important position in video gaming as a place to buy and trade video games and consoles. It literally turned its usually mall-based stores into gamer hubs, where you could buy new releases. Its popularity was also attributable to enabling people to trade games with others and has helped GameStop remain competitive since it was something competitors like Amazon (NASDAQ: AMZN), Walmart (NYSE: WMT), and Target (NYSE: TGT) did not offer.

In early 2021, GameStop stock surged in popularity thanks to the notorious WallStreetBets subreddit. Here's how to buy GameStop stock from Canada.

Step 1: Choose a broker

Choose an online broker where you can trade stock listed on the US markets. There are a variety of options.

These are some of the features to take into consideration when selecting a broker.

US market access

It goes without saying that to buy GME, you need a broker with access to the US markets (NYSE specifically).

Commission-free trading

It's possible to buy US stock commission-free with a number of trading platforms. While some of the incumbent trading platforms still charge a fee per trade, most of the newer trading platforms don’t.

Fractional stocks

Instead of having to buy a whole stock, it’s possible to buy a fraction. This opens up the possibility of adding more expensive stocks to your portfolio that would otherwise have been unaffordable.

Clean and relatable user interface

It shouldn't be difficult to trade stock. While there are some clunky broker interfaces out there, newer brokers tend to have a polished, user-friendly interface that makes it easy to trade.

Tools for analyzing companies

Access to quarterly earnings reports, market updates, analyst notes, technical analysis, etc. makes it easier to come to an informed decision.

Step 2: Fund your trading accounts

Once you’ve selected a broker and opened your account, you’ll need to transfer funds before you can purchase stock. It is possible that you won't be able to trade immediately because your funds might take time to clear. Note that the range of funding options varies between brokers.

Step 3: Decide on a budget for investing

Stocks are a volatile asset. You should only spend money on stocks you can afford to lose. Fractional stock trading allows you to invest within your budget.

Step 4: Buy stocks or invest in an ETF

An ETF (Exchange Traded Fund) invests in a range of companies. They are regarded as a less risky way to invest as opposed to investing directly in a single company.

iShares Core S&P Mid-Cap ETF (IJH), SPDR S&P Midcap 400 ETF Trust (MDY), Vanguard Total Stock Market ETF (VTI), and others have exposure to GameStop.

Step 5: Configure your order

Several different order types exist, giving you flexibility when setting up an order.

Market order

Market orders mean your order will be filled at the next available price, which means the price you get might be different to what was quoted when you submitted the order.

Limit order

A limit order is not like a market order. It's executed at the specified price or less. It protects you from spending more than you want or can afford.

Stop limit

A stop limit combines the features of a stop and limit order, allowing you to automatically buy or sell stocks at a specific price. If the stock's stop price has been reached, a stop limit order automatically becomes a limit order that is executed at or below the specified price.

Stop loss

This type of order allows you to determine the price at which to sell. It can be used to protect your position from a drop in value.

Step 6: Place your order

After you have chosen a broker, funded your account, and decided what type of investment you want, it’s time to place an order.

GameStop’s stock price is highly volatile. What matters going forward is watching how GameStop weathers its challenges including weak fundamentals and finding a sustainable digital business model in the face of stiff competition.

Here are a few things you can do to keep on top.

Watch GameStop stock price trends and company performance

Keep a watchful eye for news of GameStop's next move. For example, their move into online commerce and NFTs could help the company reconnect with their customers and spur growth.

Watch GameStop competitors and their moves

While GameStop's direct competitors in retailing are BestBuy (NYSE: BBY) and Amazon (NASDAQ: AMZN), the company is also competing for digital gaming fans with a host of other digital gaming companies. These include Steam, Twitch, and Apple Arcade.

GameStop gains a significant portion of its revenues from selling not just games but gaming consoles for Microsoft (Xbox), Nintendo (Wii), Sony (PlayStation). The competition for digital gaming fans is going to get particularly severe if GameStop continues to close down stores thus blunting its competitive edge for direct consumer access. Any move towards online offerings will put it directly in competition against its current partners like Microsoft (NASDAQ: MSFT), Nintendo (OTC: NTDOY), and Sony (NYSE: SNE).