I always wondered how to start investing in Canada, particularly in the stock market. Though I’ve read into it, I had doubt in my ability to do it safely and that uncertainty kept me from making my first move.
My First Spark of Interest
When I was 14 years old, I first heard of Warren Buffett who was the world’s wealthiest investor at the time. I chose to write about his biography for an English class presentation and learned that he began investing at just 11 years old and regretted not starting even sooner.
That stuck with me. I gained an interest in reading about beginner investing tips and stock market basics. By Grade 12, I was president of my high school’s investment club where we ran a stock simulation with a $100,000 starting amount. I invested heavily in Netflix, believing in its potential and I ended up with the second-highest return in a club of 40+ students.
Though that experience boosted my confidence, I still hesitated when it came to reality. Every investor’s golden rule kept ringing in my ears: “Only invest what you’re willing to lose.” As a teen with no income, I wasn’t willing to lose anything. That is especially not when trying to navigate investing for beginners in Canada without much guidance.
University Years and Missed Opportunities
Once I got into the Schulich School of Business, I went to every finance event I could, hoping to learn from people smarter than me to start investing in Canada. At one networking event, I spoke to an upper-year student who had landed a prestigious investment banking role at RBC. She confirmed that stock investments were risky but still recommended that I try investing with “just $1,000.”
But $1,000 was a lot to me. I had about $5,000 saved up from scholarships and my part-time job at Winners. I was planning to study abroad in China the next year and had to cover tuition and rent. I simply couldn’t risk playing with $1000 without knowing more about safe investments in Canada or how to actually begin.
Then COVID hit and my study trip was cancelled. Though I was upset, that disappointment saved me thousands. Still, without a job lined up, I felt like I couldn’t afford to lose anything and continued to save cautiously.
Working and Saving But Still Not Investing
Eventually, I landed a role as an Area Manager at Amazon Operations. I stayed there for over three years and managed to save over $100,000.
During that time, I listened in on coworkers talking about crypto. I asked for advice, but they told me I shouldn’t invest yet as it was too risky and I didn’t have the experience. Once again, I let doubt stop me.
Later, I met with a financial advisor who recommended I invest through mutual funds. I was doubtful yet again. The advisor was my age and surprised of my “great” savings, asking what I did for a living. If mutual funds were so great, why hadn’t they worked for him? Getting financial advice from someone who had less savings than me didn’t sit right.
Plus, I wanted to be hands-on and learn the process of investing myself or explore Canadian stocks for beginners directly; not pay someone else a fee to do it for me. So I didn’t invest, again.
How I Finally Started
Everything changed when I met my amazing husband. We got married within four months, and he formally introduced me to Wealthsimple. He already had an account and walked me through how to set it up and use it. I was hooked.
He helped me open a Wealthsimple TFSA account, which allowed me to invest tax-free which was something I hadn’t realized was so accessible. I watched the markets for hours, gradually investing up to $2,500. Within a year, I had made a 20% return on investment.
Now, I’m ready to invest more and want to share what I’ve learned so far for anyone who’s starting their journey, especially if you’re figuring out how to start investing in Canada and want to build confidence through real experience.
Step-by-Step: How to Start Investing in Canada with Wealthsimple
Here’s exactly what I did, and how you can do it too:
1. Create a Wealthsimple Account
Wealthsimple has no trading fees for Canadian stocks, and the interface is beginner-friendly.
2. Open a Wealthsimple TFSA Account
A TFSA (Tax-Free Savings Account) allows your investments to grow tax-free. It’s one of the best tools for investing for beginners in Canada. You can e-transfer funds from your regular bank account and start with any amount. Yes, with even $50 you can start investing in Canada!
3. Learn the Stock Page Metrics
Once inside your Wealthsimple account, search any stock and you’ll find helpful information below the 5 year stock price history graph:
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- Bid: The highest price someone is currently willing to pay for the stock.
- Ask: The lowest price someone is currently willing to sell the stock for.
- Last Sale: The price at which the stock was most recently bought/sold (i.e., the last transaction price).
- Open: The price of the stock when the market opened for the day.
- High: The highest price the stock has reached so far today.
- Low: The lowest price the stock has reached so far today.
- Exchange: The stock exchange where the stock is listed and being traded (e.g., NYSE, NASDAQ, TSX).
- Margin Req: The minimum percentage of the stock price you must pay in cash when buying the stock with borrowed funds from your broker (like Wealthsimple).
- Mktg cap: The total value of all a company’s shares of stock calculated by multiplying the share price by the total number of shares.
- P/E Ratio: A measure of how much investors are willing to pay per dollar of earnings which is calculated as share price divided by earnings per share.
- 52W high: The highest price the stock has traded at in the past 52 weeks (1 year).
- 52W low The lowest price the stock has traded at in the past 52 weeks.
- Volume: The total number of shares that have been traded so far today.
- Avg. volume: The average number of shares traded per day over a specific period (often over the past 30 or 90 days).
- Yield: The percentage of the stock price you earn back each year from cash payouts the company gives to its shareholders (dividends) calculated by annual dividend payment divided by current stock price (expressed as a percentage).
4. Read the News and Company Info
Every stock page includes news and summaries to help you make informed decisions.
Beginner Investing Tips I’ve Learned So Far
Here are some simple, actionable tips that helped me start investing in Canada:
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Stick to safe investments in Canada like large, well-known companies with steady long-term growth (e.g. TJX Companies, Walmart).
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Be aware that the lower the cost of each stock, the higher percentage risk in your investment (ie. penny stocks)
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If a major company that you trust like Walmart dips, it may recover if you hold for a while.
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Avoid investing in companies offering services or products you don’t understand, and new/unheard of companies.
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Watch out for stocks at their all-time highs and wait for a better entry point.
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Canadian stocks are best if you’re using a Canadian account to avoid currency exchange fees.
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Always diversify your portfolio and never put all your money in one stock or industry.
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Don’t fall for the “top gainers” list or day-trading hype because it’s often just gambling.
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Follow the news as company scandals or lawsuits can sink even good companies like Nike.
- Stocks that have dipped drastically can dip much further so be wary of news of company net losses.
Final Thoughts: You Don’t Need $1,000 to Start
I’m still learning and growing in my investing journey. I don’t read company annual reports (yet), and am not a professional trader but I finally started investing as a beginner in Canada and it is worth it.
I spent years hesitating, thinking I needed a lot of money, experience, or advice from “experts” to start investing in Canada. But all I really needed was the courage to begin. You can start investing with little money, even just $50, thanks to platforms like Wealthsimple TFSA Accounts with no minimum deposit required.
If you’re wondering how to start investing in Canada, the answer is to start small, learn as you go, and be intentional with your investments; it should make sense why it is a good buy based on your understandings of the updated company information. Investing doesn’t have to be intimidating.
Ready to Get Started?
Open a Wealthsimple TFSA account today and invest your first $50. Learn by doing (and with the tips I’ve shared of course), grow your knowledge, and take control of your financial future.
