How to buy Canadian Solar shares (CSIQ)

By:

Charlie Hancox

Charlie is a Financial Writer for Invezz. He covers commodities, cryptocurrencies, and breaking news. Prior to joining Invezz he helped grow Crux Investor into the fastest-growing... read more.

Updated: Jul 6, 2023

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This page contains all of the key information you need to successfully invest in Canadian Solar stock. Read on to discover what the company is, what it does, and what its potential is as an investment.

Compare the best Canadian Solar trading platforms

The following platforms are the best places to buy Canadian Solar shares online. Simply click on the relevant link to sign up, or scroll down to keep reading about Canadian Solar.

Most Popular

1

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$ 10

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10

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77% of retail CFD accounts lose money.

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Min. Deposit

$ 100

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9.8

Trade +2000 CFDs on Shares, Options, Commodities & more

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Payment Methods:

American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill

Full Regulations:

ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

How to buy Canadian Solar stock, a step-by-step guide

The process of getting shares in Canadian Solar is quick and easy, so don’t worry even if you’re new to stock investing. These are the steps to follow in order to complete your investment:

1. Choose a broker. You need to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
2. Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
3. Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Canadian Solar shares.
4. Place an order for CSIQ stock. Search for Canadian Solar’s ticker symbol (CSIQ) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to own and place your order.
5. Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Canadian Solar shares will be listed in your account. Congratulations, you’ve just bought shares in Canadian Solar.

What is Canadian Solar? And should I invest?

Founded in 2001 and based in Guelph, Canada, it is a growing player within the solar power sector. Canadian Solar is involved in the production of solar cells, modules, wafers, and ingots via its Module and System Solutions (MSS) division, and large scale solar projects like power plants and solar farms via its Energy division.

Led by Xiaohua Qu PhD, the mid-cap company has expanded its footprint rapidly in recent years, with operations in North America, South America, Europe, South Africa, the Middle East, Australia, Asia, and elsewhere around the world. In fact, CSIQ now has 20 manufacturing facilities in Asia and the Americas, and active buying customers in over 150 countries, shipping more than 59 GW of solar modules to developed and emerging markets.

Given the company’s dealings in the residential, commercial and utility sectors, it has diversified revenue streams that could become more lucrative as the renewable energy sector grows in the coming years, and solar power comes to the fore. With distributors, project developers, installers and system integrators all buying Canadian Solar products, this stock could be a good investment if you buy into the solar energy macro story.

How has the company performed in recent years?

In short, rather well. While the company has not always had the easiest of times commercially since its IPO in 2006, the last 5 years have seen strong, consistent share price growth, underpinned by annual revenue totalling around $3.5 billion. However, this only translates to around $150 million in profits thanks to the elevated operational and R&D costs associated with solar energy products and projects.

In addition, Canadian Solar currently has around $4 billion in debt, though this is not disproportionate for a company of its type. With upwards of 13,000 employees at Canadian Solar and influence in a large number of different regional markets, the company could be primed to take advantage of any shift by various national governments towards solar power.

In the wake of COVID-19, countries are attempting to rebuild their economies, and a widespread drive towards green sustainable infrastructure could be on the cards. In such an environment, CSIQ may have the technology and strategic partnerships to take advantage of subsidisation packages and new capital flowing into the sector.

Is it a good time to buy Canadian Solar shares now?

That largely depends on what kind of investor you are. If you are a long-term holder with an eye on future value generation, Canadian Solar could be an excellent stock to add to your portfolio. That is because its green, high-tech solutions are likely to experience increased demand as time passes and we head towards a carbon-neutral future.

Meanwhile, for short-term traders, Canadian Solar has the interest and resulting liquidity necessary to generate trading opportunities. In essence, because this is a popular stock in a segment with lots of interest, there are plenty of opportunities to buy low and sell high.

Regardless of how to choose to invest in CSIQ shares, you need to make sure you are informed about the latest developments concerning the company and the solar sphere. That is why we have listed our most recent top news stories about Canadian Solar below; click on one to check it out.

Buying, selling and trading Canadian Solar shares for beginners

What to do before buying shares

You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment. 

With that in mind, here’s a checklist to run through before you start.

1. Research the company. You should always examine the fundamentals of a company first. What is Canadian Solar? How did the company get its start? How did it grow? Does Canadian Solar’s balance sheet look like it’s in a good place? Is the company innovating? The more you know about Canadian Solar, the better positioned you’ll be to make smart investment decisions.
2. Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
3. Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
4. Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
5. Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our broker reviews can help you find the right platform for you.
6. Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Follow the latest news to keep on top of movements in the financial markets.

What is the difference between buying, selling, and trading shares?

If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Canadian Solar shares. Here’s a quick run-through of what’s involved in each.

Buying Canadian Solar

This process involves finding a broker and placing an order for Canadian Solar stock, as outlined in the steps further up this page. Ideally, you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.

Selling Canadian Solar

When you sell any Canadian Solar shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit. 

When you sell is up to you. You might decide to hold for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that Canadian Solar’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.

Trading Canadian Solar

Trading is the same process, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.

You can trade Canadian Solar shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.

Share dealing vs CFD trading

When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.

Here’s a quick summary of the two approaches, and the pros and cons of each.

Share dealing 

Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.

When investing your money this way, it is important to do a thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.

Pros

• Can build wealth over time to achieve financial goals
• Don’t need to be very reactive to short-term market movements
• Some stocks will give you an income through regular dividend payments

Cons

• Takes a long time to realise any profits
• Your capital is tied up in stocks and cannot be used for other investments

CFD Trading 

If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.

One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into CSIQ shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.

When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.

Pros

• Can generate fast profits if you read the market right 
• Some platforms allow you to trade with leverage
• Prevents your capital being tied up so you can take advantage of investment opportunities

Cons

• Trading with leverage is risky and can lead to big losses
• Doesn’t necessarily generate growth over the long term

Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our course on how to trade stocks.

How to choose a broker

With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:

• Range of stocks available. The most important thing is that you can actually use the broker to find the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as cryptocurrency and forex.
• Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
• Regulation. You should only use regulated brokers. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
• Payment methods available. You might want to fund your trading account using a specific payment method, such as PayPal. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
• Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
• Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.