A common misconception in Canada is that you need thousands of dollars to start investing. The truth? You can begin with as little as $100. With modern platforms, commission-free trading, and low-cost ETFs, even small amounts can grow into meaningful wealth over time. Here’s how to get started.
Many Canadians are eager to start investing but feel overwhelmed by the options available. It’s essential to take the first step and learn how to start investing wisely.
Why Starting Small Works
Understanding the basics of how to start investing can help demystify the process.
How to Start Investing with Just $100
- Compound growth: $100 invested consistently can grow significantly over decades.
- Low barriers: Many Canadian brokers and apps now allow fractional shares or commission-free ETF purchases.
- Habits matter more than initial size. Building the routine of investing is the real win.
Step 1: Choose the Right Account
For Canadians, where you put your money matters almost as much as what you buy.
- TFSA (Tax-Free Savings Account)
- Growth is 100% tax-free.
- 2025 annual limit: $7,000; lifetime total (since 2009): $95,000 (if you’ve never contributed).
- RRSP (Registered Retirement Savings Plan)
- Contributions are tax-deductible; growth is tax-deferred until withdrawal.
- Great if you earn a higher income now and expect a lower tax rate in retirement.
- Non-registered account
- No tax shelter, but flexible with no withdrawal rules.
- Best after TFSA/RRSP room is maxed out.
Step 2: Pick a Platform
Beginner-friendly Canadian platforms that let you start with $100:
- Wealthsimple Trade – commission-free stocks & ETFs, fractional shares available.
- Questrade – free ETF purchases (small fee on sales).
- Qtrade / National Bank Direct Brokerage – growing commission-free ETF lists.
- Robo-advisors (Wealthsimple Invest, Questwealth) – automatic ETF portfolios for small fees (~0.25–0.40% MER).
Tip: If you want pure simplicity, start with a robo-advisor. If you’re curious and willing to learn, open a TFSA with Wealthsimple Trade.
Step 3: What to Buy with $100
Option A: All-in-One ETF
- Example: VGRO (80% stocks / 20% bonds), XEQT (100% equity), VBAL (60/40).
- Pros: Diversification, automatic rebalancing, low cost.
- Cons: Must buy in whole units (unless platform allows fractional).
Option B: Fractional Shares of Stocks or ETFs
- Wealthsimple Trade allows you to buy a slice of big ETFs like VCN, XAW, or even global companies.
- $100 can get you started immediately without waiting to save more.
Option C: Robo-Advisor
Take the knowledge you’ve gained and apply it as you start investing.
- Deposit $100, the robo spreads it across ETFs for you.
- Higher fee than DIY, but beginner-proof.
Step 4: Make It a Habit
- Automate: Set a $100 monthly transfer into your TFSA/RRSP.
- Reinvest dividends (DRIP) so every payout buys more shares.
- Ignore noise: Markets swing—focus on long-term consistency.
Example Growth: $100/Month
If you invest $100 per month at 6% annual return:
| Years | Contributions | Approx. Value |
|---|---|---|
| 1 | $1,200 | $1,236 |
| 5 | $6,000 | $6,977 |
| 10 | $12,000 | $16,388 |
| 20 | $24,000 | $46,204 |
| 30 | $36,000 | $100,451 |
That’s the power of compounding—even small amounts add up.
Common Mistakes to Avoid
- Waiting to “have more” → time in the market beats waiting.
- Not using a TFSA → losing tax-free growth.
- Chasing hot stocks → stick to diversified ETFs.
- Stopping during downturns → keep buying, downturns are when you get discounts.
TL;DR Action Plan
- Open a TFSA with Wealthsimple Trade (or your preferred broker).
- Deposit your first $100.
- Buy a diversified ETF (fractional if needed).
- Automate $100 every month.
- Let compounding work.
Once you have a plan in place, it’s time to start investing. Make your moves with confidence. Staying informed and focused on your goals will help you successfully start investing. When you decide to start investing, remember to stay disciplined and stick to your strategy. This example illustrates how starting to invest early can yield significant returns over time. Don’t be afraid to start investing; every journey begins with a single step. As you gain more experience, you’ll feel more comfortable with how to start investing. Many beginners ask themselves how to start investing and what strategies to follow. Make a habit of reviewing your investments to ensure you’re on track as you start investing. In summary, don’t hesitate to take that leap and start investing today.