How to Start Investing: A Step-by-Step Guide to Buying Your First ETF

Investing can feel overwhelming when you are just getting started, but it does not have to be. In this guide, we will walk you through everything you need to do to go from zero to owning your first ETF — step by step. No jargon, no fluff, just a clear path to getting your money working for you.

By the end of this guide, you will have a funded investment account and own shares of one of Canada’s most popular all-in-one ETFs.

Why Start Investing?

Every year you wait to invest, you miss out on the power of compound growth. Even small amounts invested early can grow significantly over time. For example, $200 per month invested at a 7% average annual return grows to over $120,000 in 20 years — and you only contributed $48,000 of that. The rest is growth.

The hardest part of investing is simply getting started. That is exactly what this guide will help you do.

If you want to see the impact of compound growth on your own numbers, try our compound interest calculator.

Step 1: Open a Wealthsimple Account

Wealthsimple is a Canadian online brokerage that makes investing simple and affordable. There are no trading commissions on Canadian-listed ETFs like XEQT, no account minimums, and the app is beginner-friendly.

How to Sign Up

1. Visit Wealthsimple using our referral link to get a $25 bonus
2. Click “Sign up” and enter your email address
3. Create a password and verify your email
4. Enter your personal information (name, date of birth, address)
5. Provide your Social Insurance Number (SIN) — this is required by Canadian securities regulations for any investment account
6. Answer a few questions about your employment and investment knowledge
7. Verify your identity — you will either upload a photo of your government-issued ID or answer verification questions

The sign-up process typically takes about 5 to 10 minutes. Wealthsimple may take 1 to 3 business days to fully verify your account.

Already Have a Wealthsimple Account?

If you already have a Wealthsimple account but did not use a referral code when you signed up, you can still claim the $25 bonus. Here is how:

1. Open the Wealthsimple app on your phone
2. Tap your profile icon in the top-left corner
3. Scroll down and tap “Enter a referral code”
4. Type in the code WZ0ZTA
5. Tap “Submit”

That’s it — you will receive the $25 bonus once you meet the promotion’s requirements (typically depositing and holding a minimum amount). The bonus is usually credited within a few days.

What You Will Be Buying: XEQT

Now that you have your account, let’s cover what we are buying and why.

XEQT (iShares Core Equity ETF Portfolio) is an all-in-one equity ETF that holds over 9,000 stocks from around the world. When you buy a single share of XEQT, you instantly own a piece of companies across Canada, the United States, Europe, Asia, and emerging markets.

Here is why XEQT is a great choice for beginners:

• Instant diversification — One purchase gives you exposure to thousands of companies
• Low cost — The management expense ratio (MER) is only 0.20% per year
• Hands-off — BlackRock automatically rebalances the fund for you
• No stock picking — You do not need to research individual companies
• Growth-focused — It is 100% equities, designed for long-term growth

XEQT is ideal if you have a long time horizon (10+ years) and are comfortable with the normal ups and downs of the stock market.

Step 2: Choose Your Account Type

Once your account is set up, you need to choose which type of investment account to open. Wealthsimple offers several options, but the three most common are:

Our recommendation for most beginners: start with a TFSA. Your investment gains grow completely tax-free, and you can withdraw your money at any time without penalty. If you are not sure what your TFSA contribution room is, you can check it through your CRA My Account.

To open an account in the Wealthsimple app:

1. Tap “Add account” from the home screen
2. Select “Self-directed investing”
3. Choose TFSA (or your preferred account type)
4. Follow the prompts to confirm

Step 3: Fund Your Account

Now you need to deposit money into your new investment account.

1. From the home screen, tap on your new account (e.g., “TFSA”)
2. Tap “Add funds” or “Deposit”
3. If you have not linked a bank account yet, you will be prompted to connect one — Wealthsimple supports most major Canadian banks
4. Enter the amount you want to deposit
5. Confirm the transfer

Instant deposits: Wealthsimple offers instant deposits for smaller amounts (typically up to $1,500 for new accounts), meaning you can start buying right away without waiting for the transfer to settle. Larger amounts may take 3 business days to arrive.

You do not need a large sum to get started. Even $100 is enough to begin investing and learning.

Step 4: Buy Your First ETF

This is the exciting part — you are about to make your first investment. Here is exactly how to buy an ETF on Wealthsimple. We will use XEQT as an example, but these steps work for any ETF or stock.

1. Open the Wealthsimple app
2. Tap the search icon (magnifying glass) at the top of the screen
3. Type the name or ticker of the ETF you want to buy (e.g., “XEQT”) in the search bar
4. Tap on the ETF from the results (e.g., “iShares Core Equity ETF Portfolio (XEQT)”)
5. You will see the current price, a chart, and details about the ETF
6. Tap the green “Buy” button
7. Choose whether to buy by dollar amount or number of shares
   • Dollar amount is easiest for beginners — enter how much you want to invest (e.g., $100) and Wealthsimple will calculate the shares for you, including fractional shares
   • Number of shares lets you specify exactly how many shares to buy
8. Select which account to buy in (your TFSA, RRSP, etc.)
9. Review the order summary — you will see the estimated number of shares, the price per share, and that the commission is $0
10. Tap “Buy” to confirm

That’s it — you are now an investor. Your shares will appear in your account within seconds.

Market Orders vs. Limit Orders

By default, Wealthsimple places a market order, which buys at the current market price. This is perfectly fine for a highly liquid ETF like XEQT. If you want to specify an exact maximum price you are willing to pay, you can switch to a limit order before confirming your purchase.

Step 5: Set Up Recurring Investments (Optional but Recommended)

One of the most effective investing strategies is dollar-cost averaging — investing a fixed amount on a regular schedule regardless of what the market is doing. This removes the stress of trying to time the market and helps you build wealth consistently.

To set up automatic recurring investments on Wealthsimple:

1. Go to your account (e.g., TFSA)
2. Tap “Manage” or “Recurring deposit”
3. Set the amount (e.g., $100)
4. Choose the frequency (weekly, bi-weekly, or monthly)
5. Select the source bank account
6. Enable “Auto-invest” and choose XEQT as the investment

With this set up, Wealthsimple will automatically deposit money and invest it in XEQT for you on your chosen schedule. You can change or cancel it at any time.

What to Expect After You Invest

Now that you own XEQT, here are a few things to keep in mind:

Your Portfolio Will Go Up and Down

This is completely normal. The stock market fluctuates daily. Some days your investment will be worth more, other days less. What matters is the long-term trend. Historically, global stock markets have returned approximately 7-10% per year on average over long periods. Do not panic and sell during a dip — that is the single biggest mistake new investors make.

You Will Receive Distributions

XEQT pays distributions (similar to dividends) quarterly. If you hold XEQT in a TFSA, these distributions are tax-free. On Wealthsimple, you can choose to have distributions automatically reinvested to buy more shares through a DRIP (Dividend Reinvestment Plan), which helps accelerate your growth.

Keep Contributing

The most important thing you can do after making your first investment is to keep investing regularly. Consistent contributions over time matter far more than trying to pick the perfect moment to invest.

Summary

Here is your investing journey at a glance:

1. Open a Wealthsimple account using our referral link (or enter code WZ0ZTA in an existing account) and get a $25 bonus
2. Choose a TFSA as your first investment account
3. Deposit money into your account
4. Search for XEQT and buy it
5. Set up recurring investments to build wealth on autopilot

Investing is one of the best decisions you can make for your financial future. The most important step is the first one — and you have just taken it.

If you want to explore how your investments could grow over time, head over to our investment calculator to run the numbers.