Buy NEO stocks with ease as the NEO Exchange provides investors and traders with quality liquidity, efficiency and great customer service.
Want to know how to buy NEO stocks? Here you’ll find all the info you need to get started. The NEO Exchange primarily features companies at the cutting edge of breakthrough technologies.
NEO Exchange is the third most active marketplace in Canada. Close to 15% of all volume traded in Canadian-listed securities takes place on NEO.
What is the NEO Exchange?
The NEO Exchange is a relatively new arrival in Canada. Founded in 2015, the NEO Exchange was formed to provide traders with a fairer place to trade shares. The NEO trading platform includes speed bumps to discourage the destructive practice of high-frequency trading.
NEO is not a venture exchange. It lists companies with a track record, and NEO securities must meet stringent, disclosure-based listing requirements. This transparency and quality liquidity give investors peace of mind.
Equity markets today are much cheaper and more efficient than in the past, but they’re also more complex.
According to the NEO Exchange, it operates within a fair, liquid, efficient, and service-oriented environment. NEO puts investors first and provides access to trading across all Canadian-listed securities on a level playing field.
The Trouble with Liquidity
Liquidity is at the heart of NEO. It promises traders and investors access to quality liquidity to keep markets moving.
A liquid market means shares are bought and sold instantly at fair market value. In an illiquid market, the spread between the bid and ask grows, so shares are sold below fair value and bought above fair value. Illiquidity increases price volatility and erodes investor confidence in the stock.
Large-cap stocks tend to be highly liquid because many people own them, while small caps are prone to a lack of liquidity.
The timing of market orders can prevent liquidity from quickly drying up. That’s because simultaneous trades prevent quote fading (also known as latency arbitrage), which becomes a problem when market makers can see sequential trades coming down the line.
While electronic trading should, in theory, reduce liquidity problems, it can have the opposite effect.
The NEO Exchange prides itself on providing consistent liquidity and reduced volatility providing greater market certainty and increased investor confidence.
NEO Exchange Industries
Psychedelics, cannabis, and crypto-related firms all appear on the NEO exchange. NEO is a senior exchange that requires companies to comply with official listing requirements.
Other industries include electric vehicle (EV), space exploration, food service, web3, decarbonization, critical minerals, plant-based foods and more.
Trade NEO Stocks
NEO’s Crossing Facility supports the execution of trades that cross at the time of order entry in any of the securities traded on NEO Exchange free of charge.
The NEO Exchange also provides its market participants with access to free, real-time market data for retail investors and free data on NEO-listed securities for all investors.
Can a US-Resident Investor Trade on the NEO Exchange?
Yes, US residents can trade Canadian-listed securities on the NEO exchange.
You don’t need to live in Canada to trade on NEO. Many international brokers allow trading on the NEO exchange.
How to trade stocks listed on NEO
If you would like to purchase shares in a NEO-listed company, here are the steps to follow:
Choose Your Broker
NEO-listed securities are available to trade via many brokers. Some Canadian wealth management brokerages that have confirmed support for trading and real-time market data for securities listed on the NEO Exchange include:
- Canaccord Genuity Wealth
- National Bank Financial
- Raymond James
- Research Capital Corp
- Scotia McLeod
- TD Wealth
- Questrade
- Interactive Brokers
Additional platforms may be available to trade NEO-listed securities. If in doubt, ask your broker.
If you are an international investor, you can contact the NEO Exchange directly for more information on trading Canadian securities abroad.
Fees
To buy NEO stocks you will incur fees. The fees are quoted in Canadian dollars and are based on the total number of shares traded per month. See NEO’s trading fee schedule for up-to-date costs.
NEO-listed securities market data is available to all investors in real-time, at no cost.
Ask for help
Executing the NEO trade may differ slightly from broker to broker. If you require help, your broker’s customer service desk should be able to help you.
Buy your NEO stock
Like buying traditional stocks, you’ll have the option of market or limit orders when you place the trade. NEO also offers many more order types such as fill or kill, market on open and limit on close. Check with your broker for the different options available.