Investing in Canada starts with three decisions: which account to use, where to open it, and what to buy inside it. This guide walks through each step for someone starting from zero, from the account types to placing a first order and keeping it going. It is the starting point of our investing basics guides; for a longer plan that puts investing in order with debt and an emergency fund, see how to build wealth in Canada.
Why invest rather than save
| Option | Typical return (assumed) | $10,000 after 30 years |
|---|---|---|
| Savings account | 2% | $18,114 |
| Diversified stock portfolio | 7% | $76,123 |
Money in a savings account is safe from market drops, but a return close to the inflation rate barely grows its purchasing power. Invested money compounds; the compound interest calculator shows how the gap widens over time and why starting earlier matters more than starting bigger.
Step 1: Choose an account type
| Account | Tax treatment | Typically used for |
|---|---|---|
| TFSA | Tax-free growth and withdrawals | Any goal, short or long term |
| RRSP | Deductible contributions, taxed withdrawals | Retirement, especially at higher incomes |
| FHSA | Deductible contributions, tax-free withdrawals for a first home | First-time home buyers |
| RESP | Government grants on contributions (RESP guide) | A child’s education |
| Non-registered | No tax shelter | After registered room is used |
The TFSA annual limit is $7,000 for 2026, and someone who has been eligible every year since 2009 has $109,000 of total room. Withdrawals are added back to your room the following year. Which account to fill first depends on your tax rate now and later; TFSA vs RRSP for beginners walks through it.
Step 2: Open the account
| Where | How it works | Costs |
|---|---|---|
| Robo-advisor | Picks and manages a portfolio for you | Management fee plus fund fees |
| Online brokerage | You choose and buy the investments | Trading commissions (often $0 for ETFs, as at Wealthsimple) plus fund fees |
| Bank branch | An advisor sells the bank’s funds | Usually higher fund fees |
Opening an account online takes about as long as opening a bank account: choose the provider and account type, complete the application, verify your identity, link a bank account and deposit money. Our online brokers hub compares platforms, and robo-advisors in Canada compares the managed options.
Step 3: Understand what you can buy
| Type | Risk | What it is |
|---|---|---|
| Savings and GICs | Low | Deposits with guaranteed interest |
| Bonds | Low to medium | Loans to governments or companies |
| Stocks | Higher | Ownership shares in companies |
| ETFs | Depends on holdings | A basket of stocks, bonds or both that trades like a stock |
All-in-one ETFs
An all-in-one ETF holds several index ETFs covering Canadian, US, international and emerging-market stocks, plus bonds in fixed proportions, and rebalances automatically. The main difference between them is the stock-to-bond mix:
| Mix | Examples | Risk level |
|---|---|---|
| 40% stocks / 60% bonds | VCNS, XCNS | Conservative |
| 60% stocks / 40% bonds | VBAL, XBAL | Balanced |
| 80% stocks / 20% bonds | VGRO, XGRO | Growth |
| 100% stocks | VEQT, XEQT | Aggressive |
Their fees and holdings are compared in best all-in-one ETFs in Canada, and the XEQT review shows what one purchase holds. The mix that suits each stage of life is covered in asset allocation by age.
Step 4: Buy your first fund
In your brokerage account, search for the ticker, enter the number of units (or a dollar amount, if the platform supports fractional units), review the order and submit it. A market order fills at the current price; a limit order fills only at your price or better.
Step 5: Keep contributing
A first purchase is the start; the habit is what builds the balance. A common approach is a fixed contribution on payday, which also spreads purchases across high and low prices (the dollar-cost averaging calculator explains the effect). Setting it up to happen automatically is covered in how to automate your investments, and choosing the amount in how much to invest each month.
Fees
| Fee | Typical range |
|---|---|
| Trading commission | $0 (Wealthsimple) to $9.99 per trade (TD Direct Investing’s standard rate) |
| ETF management expense ratio (MER) | 0.05% (VCN) to 0.22% (VEQT) for the index and all-in-one ETFs in our reviews |
| Mutual fund MER | About 1% to 3% |
| Robo-advisor management fee | 0.20% (Questwealth, $100,000 and up) to 0.60% (CI Direct Investing, first $150,000), plus the funds’ MERs |
Fees come out of the return every year, so they compound too. $100,000 invested for 25 years at a 7% return grows to about $517,942 with a 0.2% annual fee, and about $338,635 with a 2% fee (each fee subtracted from the 7% return). The MER calculator runs the numbers for any fund.
Common beginner mistakes
| Mistake | Why it hurts |
|---|---|
| Waiting for the perfect time | Time invested usually matters more than the entry point |
| Putting everything in a few stocks | Concentrated risk; one company can fall a long way |
| Checking the account daily | Makes it harder to hold through normal drops |
| Selling after a fall | Turns a paper loss into a real one; see why your investment account is down |
| High-fee funds | Fees compound against you |
| Unsolicited “opportunities” | Common route for fraud; see investment scams |
Getting started checklist
| Task | Done? |
|---|---|
| Emergency savings and high-interest debt dealt with | ☐ |
| Account type chosen | ☐ |
| Account opened and bank account linked | ☐ |
| First deposit made | ☐ |
| First fund bought | ☐ |
| Automatic contributions set up | ☐ |
Next guides
- How to invest $10,000 if you are starting with a lump sum
- Investing in your 20s and investing in your 30s
- How to buy stocks in Canada
- How to buy ETFs in Canada
- TFSA guide, RRSP guide and FHSA guide
Sources
The figures and rules on this page come from these sources, last checked against them between August 29, 2026 and October 12, 2026. How we check facts.
- BlackRock iShares: iShares Core Conservative Balanced ETF Portfolio | XCNS
- BlackRock iShares: iShares Core Balanced ETF Portfolio
- BlackRock iShares: iShares Core Growth ETF Portfolio
- BlackRock iShares: iShares Core Equity ETF Portfolio | XEQT
- Canada Revenue Agency: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and the YAMPE
- cifinancial.com: Investment Account Pricing | CI Direct Investing
- GetSmarterAboutMoney.ca: Mutual fund fees | GetSmarterAboutMoney.ca
- questrade.com: Questwealth Portfolios | Questrade
- TD: Pricing | TD Direct Investing
- Vanguard: Conservative ETF Portfolio | Vanguard Canada
- Vanguard: Balanced ETF Portfolio | Vanguard Canada
- Vanguard: Growth ETF Portfolio | Vanguard Canada
- Vanguard: All-Equity ETF Portfolio | Vanguard Canada
- Vanguard: FTSE Canada All Cap Index ETF | Vanguard Canada
- wealthsimple.com: Compare Generation, Premium, and Core Plans & Fees | Wealthsimple