How to buy Pfizer (PFE) stock from Canada

Pfizer Inc (NASDAQ: PFE) is a US-based multinational pharmaceutical and biotechnology corporation. It was established in 1849 and is headquartered in Manhattan, New York City.

If you’re looking to buy Pfizer stock from Canada, this is how to do it.

Pfizer is part of Big Pharma and was the second-largest pharmaceutical company in 2020, by revenue. It is best known for products such as Advil, Viagra, Xanax and Zoloft.

Pfizer’s pipeline includes treatments for a number of important therapeutic areas including Inflammation and Immunology, Oncology, Vaccines, Internal Medicine and Rare Diseases.

Subsidiaries of Pfizer include Pfizer Japan, Pfizer Australia and Hospira.

Step 1: Select a broker

Find an online broker that allows you to access the US markets. There are many options that you can access from Canada. Next, consider the features that you want from a broker.

Listed below are some features you should consider:

Zero commission trading

This feature is offered by many platforms that offer access to US stocks. You can save money on stock trading by not paying commissions.

Fractional stock investment

Fractional stock investment means that you can buy a portion of a stock, rather than the entire thing. This is something you might consider because Pfizer stocks can be very expensive.

A simple trading interface

It doesn't have to be difficult to trade stocks. Make sure you choose a platform that is easy to use. New investors can benefit from educational guides and the ability to open a demo account.

Research and reporting

A platform with a strong research and reporting section will provide you with important information about Pfizer such as company overview, recommendations, and forecasts.

Step 2: Fund your account

To buy Pfizer stocks, you will need to fund the account. Keep in mind that your funds may take some time to clear, which means you will probably not be able to trade immediately.

Step 3: Determine how much to invest

It might be a good idea to start with fractional stocks as a first step. You can also make a profit regardless of stocks dropping, as you can buy in at the average stock price.

Step 4: Decide whether to buy stocks or invest in an ETF

An Exchange Traded Fund (ETF) is regarded as a diversified investment and safer than investing in a single stock.

ETFs with exposure to Pfizer include iShares U.S. Pharmaceuticals ETF (IHE), Invesco Dynamic Pharmaceuticals ETF (PJP), and Global Beta Smart Income ETF (GBDV) among many others.

Step 5: Set up an order with your broker

You can choose from a variety of order types to customize when and how much you want to buy each stock. These are the different order types:

Market order

Market orders are orders that can be purchased or sold at the current market price. However, the price that you are looking for may not match the one you receive. You may order Pfizer stock at US$42. The price of the Pfizer stock may drop to US$40 or rise to US$46 by the time the trade is executed.

Limit order

Execution-only orders for buy limit orders are executed at the price quoted or less. You may wish to buy Pfizer stocks at US$40 per stock. You can submit a limit order for this amount. It will only be fulfilled if the Pfizer stock prices fall below US$40.

Stop limit

This type of order allows you to sell your stocks at a certain price if the stock price starts dropping. Let's suppose you want to sell your Pfizer stocks if the price falls to US$38 per stock. Your stop limit order is executed if the stocks drop to this price.

Stop loss

Another mechanism aimed at preventing you taking a hit on your stocks if the price drops. You nominate a price at which you want to sell your Pfizer stocks - say US$37 per stock. Your stop loss order will be executed if the price falls to that level but your order will be filled at the next available market price.

Step 6: Place your order

After you've chosen a broker and decided how you want to invest, you can place your order through that broker.

When you invest in stocks it becomes a necessity to observe stock price movements and to watch company performance. Here's how:

Track Pfizer’s stock price and company performance

This is important whether you are buying stocks with the goal of holding them long term or for speculative purposes.

The news that Pfizer-BioNTech COVID-19 vaccine has received full FDA approval is of pivotal importance for the company. With pharmaceutical companies like Pfizer, you must pay attention to how its drug pipeline performs over time.

Pfizer’s competitive field

Pfizer’s competitors include Moderna (NASDAQ: MRNA), AstraZeneca (NASDAQ: AZN), GlaxoSmithKline (NYSE: GSK), and Johnson & Johnson (NYSE: JNJ). Roche Holding (RHHBY), Eli Lilly (NYSE: LLY), AbbVie (NYSE: ABBV), Novartis (NYSE: NVS), and Merck (NYSE: MRK).