How to Start Investing in Canada: My Beginner's Step-by-Step Guide

This is how to start investing in Canada the way I did: I started in 2019, as soon as I realised these accounts were available to me as a new resident, and I have invested every month since. You don’t need to be wealthy or an expert. You need a safety net, the right account, a low-cost platform, simple investments, and the habit of investing automatically.

Step 1: build your financial foundation

Credit card balances and personal loans usually charge more interest than investments can reliably earn, so paying them off is like earning a guaranteed return. My 11 money moves as a new immigrant covers this foundation in more detail.

Step 2: know your goal and how much risk you can take

• Lower risk: GICs, government bonds, conservative ETF portfolios
• Medium risk: balanced ETFs, dividend stocks
• Higher risk: all-equity ETFs, individual growth stocks

Step 3: choose the right account

Account	Best for	Key rule
TFSA	Most beginners: flexible, any goal	Growth and withdrawals are tax-free. The 2026 limit is $7,000; newcomers build room only from the year they became residents. CRA: TFSA room
RRSP	Retirement, especially with a higher income	Contributions reduce your taxable income; withdrawals are taxed later. Room is 18% of last year’s earned income, up to $33,810 for 2026. CRA: RRSP limits
FHSA	First-time home buyers	Contributions are deductible and a qualifying home withdrawal is tax-free: $8,000 a year, $40,000 lifetime. CRA: FHSA
Non-registered	After your registered room is used	No contribution limit; gains, dividends and interest are taxable

The FHSA video explains why opening the account early in a year helps, even before you contribute much. The amounts can change each year; the idea stays the same.

Step 4: choose a platform (what I use)

I invest myself (self-directed). Both platforms also offer robo-advisor portfolios, where they build and rebalance an ETF portfolio for you. I don’t use them, and this is not a recommendation either way, but they are worth a look if you prefer to be hands-off.

When you compare platforms, look at:

• Trading commissions and any account or inactivity fees (check each platform’s current fee page: they change)
• Which accounts it offers (TFSA, RRSP, FHSA) and whether US dollar accounts are available
• An app and dashboard you find easy to use
• Access to the ETFs and stocks you want

If you buy US stocks often, my guide to Norbert’s Gambit shows how I convert currency without paying the usual 2% or so in exchange fees.

The platforms I use

These are my referral and affiliate links. If you sign up through them, I may earn a reward (and with referral links, you may get one too), at no extra cost to you. You can always go to the company's website directly instead.

• Online brokerage

  Questrade®: Questrade® is a Canadian online brokerage. If you open a Questwealth Portfolios (managed investing) account through my link, I may earn a commission at no extra cost to you.

  Visit Questrade® (affiliate link · I use this)

• Automated/Robo-investing

  Wealthsimple: I use Wealthsimple and have made several videos on it. If you use my refer-a-friend link, we both get rewarded when you open an account and deposit $100 within 30 days (check Wealthsimple's current conditions). You can also go to Wealthsimple directly, without this reward.

  Visit Wealthsimple (referral link · I use this)

Questrade® is a registered trademark and/or service mark of Questrade, Inc. Questrade, Inc. is a member of the Canadian Investment Regulatory Organization (CIRO) and a member of the Canadian Investor Protection Fund (CIPF).

Step 5: pick simple investments

• ETFs (exchange-traded funds): instant diversification, low management fees, little upkeep.
• Stocks: ownership in single companies; higher potential returns and higher risk, best if you are willing to research.
• GICs: guaranteed interest for a fixed term; good for money you need soon or for a conservative portion.

Step 6: automate and stay consistent

• Schedule an automatic contribution right after payday.
• Use dollar-cost averaging: investing the same amount every month spreads out the ups and downs.
• Turn on dividend reinvestment (DRIP) where your platform offers it.
• Prefer time in the market over timing the market: buy and hold beats frequent trading for most people.

How investments are taxed in Canada

• TFSA: no tax on growth or withdrawals.
• RRSP: tax-deferred; withdrawals are taxed as income.
• Non-registered: half of a capital gain is taxable (the proposed increase to two-thirds was cancelled; see the CRA update). Dividends and interest are taxed at different rates.

That’s why most people fill their TFSA and RRSP before a non-registered account.

Beginner mistakes to avoid

• Trying to get rich quickly, or chasing whatever is trending
• Selling in a panic when markets fall
• Trading too often
• Ignoring fees, which quietly eat returns over decades
• Waiting for the “perfect” time to start

Questions people ask

What is the best way to start investing in Canada as a beginner?

For most beginners: build an emergency fund, open a TFSA on a low-fee platform, buy one or two broad ETFs, and automate a monthly contribution.

How much money do I need to start investing in Canada?

Very little. Many platforms let you buy fractional shares and set up small automatic contributions, so you can start with a small monthly amount and increase it as your income grows.

Is a TFSA or an RRSP better for a beginner?

For most beginners the TFSA comes first, because it is flexible and withdrawals are tax-free. The RRSP becomes more valuable as your income, and your tax rate, rise.

Can beginners lose money investing?

Yes. Investments go down as well as up. Diversifying with broad ETFs, investing for the long term and not panic-selling reduce the risk, but never remove it.

Do I need a financial advisor to start investing?

Not necessarily. I invest on my own with simple, low-fee investments. If your situation is complex, a licensed, fee-only advisor can help.

My own experience, not financial advice. Rules, limits and fees change: check the CRA pages linked above and each platform’s site, and speak to a licensed professional for your situation.

What next

See how I convert CAD to USD with Norbert’s Gambit, or follow every step in my Personal Finance guide. Questions? Ask in the comments on my YouTube videos.