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If you're a noob investor, consider this your cheat sheet on the best way to invest money in Canada.

Your grandparents had a stockbroker. Your parents had a mutual fund advisor. You have robo-advisors, online brokers, and newfangled investing apps. Thanks to technology and the democratization of investing, it has never been easier for Canadians to start investing today and avoid the many mistakes made by previous generations of investors.

If you’re new to investing, then you’ve come to the right place. This article will teach you how to invest in Canada and build a low-cost, globally diversified, and risk-appropriate portfolio – the best investing approach for long-term, reliable outcomes.

Why start investing

Why do we even invest in the first place?

Valid question! Usually, it’s because we have specific goals to achieve and investing helps us get there.

The obvious one is retirement. We need to save a bunch of money to support ourselves when we’re no longer collecting a paycheque.

But we’re also concerned about inflation. As the cost of living rises, it decreases the purchasing power of a dollar. As a recent example, the annual inflation rate in Canada was 2.2% in March 2021. So if you keep your cash stashed under the mattress for 20 years, it will lose value over time.

Investing our money today helps us beat inflation and prevent it from watering down the potency of the dollar. It lets you take advantage of the magic of compound interest, and thereby grow your savings so your future self can enjoy the same (or better) purchasing power tomorrow.

Choose the right investing style

Before you jump into investing with both feet, it’s important to take a step back and establish your goals and priorities. Here are a few things to consider.

Decide how much to invest

Deciding how much to invest isn’t simple, but your age is a good place to start.

A Fidelity study estimates that you need 10x your pre-retirement income saved by age 67 to maintain your lifestyle in retirement. Here’s a breakdown by age:

Age milestoneAmount saved for retirement
301x your income
403x your income
506x your income
608x your income

A general rule is to invest 10% of your gross income per year for retirement. But this depends on your income, too. Young investors living on a budget may only be able to afford to invest 3-5% of their gross income. Whereas late starters with higher incomes can more aggressive, investing 15-25% of their salary to make up for lost time.

Obviously, if you start investing early, your money will have more time to compound and grow. If you’re in your 20s, you have time on your side and can start investing with very little money. For instance, an initial investment of $4,000 at age 23 may balloon to as much as $522,576.11 in 30 years’ time (assuming 8% growth compounded monthly).

Determine Your Risk Tolerance

Here’s the million-dollar question: how much risk are you willing to take?

Every type of investment comes with a certain level of risk, which is often linked to the potential return. Generally speaking, the more risk you’re willing to take, the greater the return. A few examples:

  • GICs are considered the safest investments in Canada, but the best GIC rates usually range between 1 to 3%, depending on the term.
  • Bonds are considered a low-risk option that helps balance out your portfolio from tumultuous times.
  • Stocks are more volatile, going through “bear” and “bull” markets where the market rides a rollercoaster of ups and downs. We saw this most recently during the stock market crash during the COVID crisis. As a result, on average, the stock market returns around 9-10% per year.
  • Cryptocurrency is one of the most volatile investments you can make. Case in point: the value of Bitcoin increased by more than 90% during the COVID-19 crisis. But in May 2021, the Bitcoin price plummeted 40% simply because China decided to crack down on crypto.

Investing is a balancing act: the goal is to build a “risk-appropriate portfolio” — meaning a set of investments that match your risk tolerance. But how do you determine your risk tolerance?

Do some self-reflecting. Do market ups and downs make you feel pukey and panicked? Do you sleep better at night with a bond buffer in your portfolio? Or are you game to go “all-in” and build a portfolio of 100% stocks? Be realistic!

Consider your financial goals and your timeline to take risks. A recent university graduate’s portfolio will look different from a person who is close to retiring. In your 20s, you have decades to recover from a market crash, whereas a retiree could stand to lose their livelihood.

Determine Your Asset Allocation

Once you’ve figured out how much loss you can stomach and afford, it will shape the make-up of your investment portfolio. Specifically, how much of it to allocate towards stocks and how much to allocate towards bonds. Here are some examples:

  • Low risk: Typically contains 40% stocks and 60% bonds or other fixed-income securities.
  • Medium risk: Typically contains 60% stocks and 40% bonds.
  • High risk: Typically contains as much as 100% stocks.

When constructing and rebalancing your portfolio, always remember that diversification is key. Never let your portfolio rely too heavily on a particular industry or bond type. A well-diversified portfolio is more sustainable and hedges you against unforeseen changes in the economy.

If you have no clue or your eyes are glazing over, don’t worry. There’s an easy solution. Just hand over the task to a robo advisor.

A robo advisor is a digital investment platform that can build a balanced investment portfolio to match your risk tolerance and goals. With a robo advisor like Wealthsimple, all you have to do is answer an online questionnaire, and it will put together a risk-appropriate, diversified investment portfolio. It also does the work of managing your portfolio.

Get $100 when you open your first Wealthsimple Invest account!

Choose Between Active vs. Passive Investing

Next question: how hands-on do you want to be with investing?

With a passive investing approach, you’re buying the entire stock market, which will deliver average market returns minus a small fee charged by the index funds or ETFs. It’s the “set it and forget it” approach: you’re stashing your cash into an investment portfolio and leaving it there for the long term.

An active investing approach means hiring a fund manager (in a mutual fund or ETF) to actively manage your portfolio and try to beat a benchmark, but it means paying more in fees. Alternatively, you can act as your own fund manager and pick your own individual stocks or ETFs using an online brokerage.

Passive investingActive investing
Simple, hands-off, evidence-based, and reliable way to earn market returns minus a small feeComplex, expensive, hands-on, emotion-driven, strong possibility of underperforming a broad market index
Tracks broad market indexes by owning the underlying stocks in the indexBuild your own portfolio of stocks and/or ETFs, or invest with an active fund manager
Rules-based approach to allocation and rebalancingGoal is to outperform a benchmark index (beat the market)
Little to no effort or research requiredHigher fees typically lead to underperformance

But which approach performs better?

The jury is out: research strongly supports that passive investing outperforms active investing. While active investing can outperform the market over shorter periods of time, it is impossible to pick winning stocks with any long-term consistency and reliability. Unless you’re psychic, that is.

The bottom line: taking a “lazy” approach to investing pays off and timing the market usually doesn’t work. Building a risk-appropriate portfolio of low-cost, globally diversified, index funds or ETFs is the best and most reliable way to achieve long-term investment returns.

It may seem boring, but “getting rich the slow way” does work. 80-95% of active investment strategies fail to outperform their benchmark over the long term. Plus, active funds cost more than passive funds, which eats into your returns.

But we don’t want to be a total buzzkill. You might get excited by the opportunities presented by a hot new IPO or the thrills that come with trading cryptocurrency. That’s okay!

One way to enjoy the best of both worlds is to take a “core and explore” approach. Keep 90-95% of your portfolio invested in low-cost passive index funds (core) and use the remaining 5-10% of your portfolio to scratch your stock picking itch (explore). Just do your research and use value investing as an approach.

Decide what to invest in 

Once you decide on an investing style, how do you know what to invest in?

You’ve got a buffet of options: from individual stocks, index funds, ETFs, mutual funds, bonds, GICs, and alternatives such as cryptocurrency or gold. Take a look at the best investments in Canada, as well as a brief overview of the options:

Stocks

Stocks are the shares (parts) of a company listed on a stock market for people to purchase. Buying shares in a company means owning a small share of the company’s future earnings. With ownership come voting rights and a portion of the profits earned by the company.

Most stocks today are available as common stocks. Common stocks give the holder the right to vote and elect the board members of a company, (i.e. the individuals in charge of major decision-making). Common stocks also represent a portion of profits distributed by the company in the form of dividends. Payment of these dividends takes place annually or semi-annually, depending on the company’s policy.

Owning individual stocks is risky since there’s a chance the company loses money and even goes out of business in the future. That’s why it’s important for investors to diversify their portfolios by holding many different stocks.

Risk level: Medium to high

First, the risk depends on the stock. Mature, profitable businesses with distinct competitive advantages are less risky than a small start-up that has yet to establish its profitability.

Think of Tesla: it’s one of the most valuable companies in the world, even though it sells fewer cars than most if not all other automakers. Tesla would be considered a risky “growth stock,” with big potential for gains but also a strong chance of losing money. On the flip side, a blue-chip company like Microsoft has been around for decades and established itself as a profit-generating machine. Microsoft’s future earnings are much more predictable than Tesla’s and so investors can expect to earn steady and reliable returns.

Risk also depends on your asset allocation. For instance, investing in a single stock and nothing else leaves you with little to buffer the blow from a market crash.

Average return: 9-10% per year

READ MORE: How to Buy Stocks.

Index Funds

Speaking of diversification, an index fund is a mutual fund that holds all of the stocks in a particular market index (like the S&P 500). That’s right, an index fund tracking the S&P 500 would hold all 500 stocks in proportion to their size and track their performance. The index fund’s performance would mirror the S&P 500’s performance, minus the small fee charged by the index fund manager.

Index funds can track all kinds of markets, from Canadian stocks, U.S. stocks, international stocks, and emerging markets. You can even buy bond index funds that hold thousands of government and corporate bonds.

Risk level: Low to medium

It depends on your portfolio allocation. An index fund that is 100% invested in stocks will still be inherently riskier than a balanced portfolio that contains bonds and/or cash. But an index fund can still lose money in a short period of time, such as during the coronavirus market crash.

But index investors buffer this risk through diversification. Instead of betting on a few companies, they spread out their investments and own all of the companies in a particular index.

Average returns: 6.2% and 7.8% per year

ETFs

An exchange-traded fund (or ETF) is an investment fund that lets you buy a large pool of individual stocks or bonds in one purchase. It can track stock indexes like the S&P 500, different commodities, bonds or a bunch of assets grouped together. ETFs trade like a standard stock on the stock market with price fluctuations being observed as they’re traded. It distributes ownership of the whole pool of assets into a single share ready to be traded like a common stock.

Besides making capital gains on ETFs, investors also benefit from profits distributed in the underlying ETF asset pool, such as dividends and interest.

ETFs are a good option for people looking to invest in a low-cost, diversified portfolio. Such folks can invest in well-known stock indexes without worrying about individual company stock prices or performance.

Risk level: Low to medium

ETFs hold baskets of stocks and/or bonds just like index funds. So they help diversify your portfolio and balance the risk of owning too few securities in your portfolio. Again, this doesn’t mean that ETFs are less risky than stocks when it comes to short-term performance. ETFs can lose money over the short-term if the market they are tracking falls in price.

Average returns: 6.2% and 7.8% per year, depending on which market(s) they are tracking.

READ MORE: Top ETFs in Canada.

Mutual funds

A mutual fund is a pool of various stocks and bonds grouped together in a single investment portfolio. The managers of the fund assimilate the different assets into shares and calculate the share price daily under the price fluctuations of each asset within the pool.

Investing in a mutual fund differs from stocks or bonds as the pool represents a collection of various assets. Investors earn money when the stocks within the pool generate dividends and on interest payments from the bonds. Assets sold by the fund at a higher price also create a capital gain distributed by the fund to its shareholders.

Mutual funds can be active or passive. An actively managed mutual fund has a manager at the helm making investing decisions and trying to beat a benchmark (i.e. “the market”). A passively managed mutual fund, also known as an index fund can track all kinds of markets, from Canadian stocks, U.S. stocks, international stocks, and emerging markets.

Canadian investors have nearly $2 trillion invested in mutual funds as their investment of choice. Unfortunately, Canadians pay some of the highest mutual fund fees in the world, with costs ranging from 2-3%.

Risk level: Low to medium

Mutual funds typically hold a wide variety of stocks and/or bonds. So from a diversification standpoint, they are less risky than owning a few individual stocks.

However, like with ETFs, the risk of a particular mutual fund depends on the underlying holdings (or what’s in the basket). A 100% stock mutual fund is riskier than a balanced fund with a mix of stocks and bonds. But a bond mutual fund is considered a low risk investment.

Average returns: 6.2% to 7.8% per year without fees. If a Canadian equity mutual fund charges a MER of 2.2%, then expect between 4% and 5.6% per year (net of fees).

Bonds

Bonds are issued mainly by companies, governments, and municipalities (provinces/cities) to raise cash in exchange for timely payment of interest on a fixed rate. Bonds are a form of debt, and as an investor, you are lending money to a government or corporation in exchange for a fixed interest rate (or coupon). Investors can purchase federal government bonds (the safest), provincial government bonds, corporate bonds, and “junk” bonds issued by riskier companies.

Bonds are generally considered a safer option than the stock market and act as the ballast that steadies the investing ship when waters get rough. People who don’t want to take risks or have heavily invested in the stock market can consider diversifying their portfolio with the purchase of bonds. You can also diversify your bond holdings by purchasing a bond mutual fund or bond ETF, which will hold many hundreds of individual bonds in one basket.

A downside: since bonds are considered less risky, their returns are also significantly lower than the stock market.

Risk level: Low

A bondholder is a loaner, not an owner, and should expect to receive interest payments plus the return of their principal investment when the bond matures. Federal government bonds are among the safest investments, followed by provincial bonds, high-quality corporate bonds, then lower quality corporate bonds.

Bonds are also sensitive to interest rate movements. When interest rates rise, bond prices fall (and vice versa). Bonds with a longer duration, such as long-term federal government bonds, are more sensitive to rate movements than short-term bonds.

Average returns: 2.7% per year

GICs

A Guaranteed Investment Certificate (GIC) is a type of investment that pays you a guaranteed interest rate. In exchange for your principal investment, a GIC pays a fixed annual interest rate for the duration of a fixed-term (often 1-5 years).

GICs offer the safest form of investing, albeit with the lowest expected return. GICs are best used for short-term goals – a way to keep your principal investment safe while earning enough interest to hopefully keep pace with inflation.

Risk level: Very Low

GICs offer guaranteed returns, making them a safe haven for short-term investing needs.

Average returns: 2% or less. 

Cryptocurrency

Cryptocurrency is a digital, alternative form of currency not regulated by any central bank. Instead, it’s managed by the people who use it and buy it. Cryptocurrency trading is gaining more attention as an alternative to traditional investments, with Bitcoin and Ethereum being among the largest and most popular cryptocurrencies to invest in.

The good news: it’s never been easier to invest in crypto. There are crypto exchanges and indexes popping up, and you can even invest your TFSA or RRSP in the Bitcoin ETF. FinTech giant Wealthsimple even launched Canada’s first regulated cryptocurrency trading platform called Wealthsimple Crypto, an online platform that allows investors to buy and sell crypto for free.

The bad news: the world of cryptocurrency is largely unregulated and highly volatile. There are no perfect indicators for predicting the price of cryptocurrencies. It’s purely based on individual demand and supply speculation. For instance, the value of Bitcoin has increased by more than 90% during the COVID-19 crisis. But in May 2021, the Bitcoin price plummeted over 40% after China banned Bitcoin.

The bottom line: expect extreme ups and downs and dedicate a small percentage of your portfolio to crypto investing rather than your entire life’s savings. Otherwise, you risk losing some – or all – of your money.

If you have the stomach to play a higher-stakes game, investing in cryptocurrency could be for you. Just reduce your risk by trading on a reputable cryptocurrency exchange and diversifying your investments.

Risk level: Very high

Cryptocurrency offers casino-like odds where investors can lose most (if not all) of their money in a short period of time.

On the other hand, we’ve seen incredible returns in the 1000%+ range, depending on how long you HODL.

If you buy and hold for the long term, your patience and grit may pay off.

Average returns: N/A — investing in cryptocurrency is pure speculation. 

Choose an investment vehicle

Which account should you invest in?

We have RRSPs, TFSAs, and RESPs, as well as taxable (non-registered) accounts. In general, it’s best to focus on using up all the available contribution room in your RRSP and TFSA before you start investing in a non-registered account. And you should start with your TFSA if you’re earning an entry-level salary or your salary is below $50,000. Higher-income earners should prioritize their RRSP first before their TFSA. For a detailed look, read this TFSA vs. RRSP article.

RRSP

An RRSP is a type of retirement savings plan that allows you to grow your savings in a tax-deferred manner. You can hold a range of investments inside an RRSP: stocks, bonds, ETFs, mutual funds, GICs, and more. In 2021, the maximum RRSP contribution is 18% of your gross income or $27,830, whichever is lower.

The benefit is that you receive a tax deduction on any RRSP contributions, which reduces your taxable income for that year. However, you will pay taxes on any withdrawals. Ideally, it’s best to contribute to an RRSP during your high income-earning years and withdraw in retirement when your income is lower.

READ MORE: A Guide to RRSPs

TFSA

A Tax-Free Savings Account is a registered account in Canada that offers special tax benefits. Like an RRSP, a TFSA allows you to grow your savings tax-free and can hold most investment assets, including cash, GICs, mutual funds, stocks and bonds.

You won’t ever pay taxes on TFSA withdrawals, and you won’t pay any taxes on your investment growth, dividends, or interest. On the flip side, you won’t receive a tax deduction when you contribute to your TFSA. For 2021, the annual contribution limit is $6,000. Canadians who were at least 18 years of age in 2009 can have up to $75,500 total in a TFSA.

TFSAs are an ideal place to park your short-term savings because the funds can be withdrawn at any time tax-free. For long-term investments, TFSAs are a good savings vehicle if you are young, earn a lower income, and/or expect to be in a higher tax bracket down the road. That’s because the taxes you’d save now by making an RRSP contribution would be minimal. In that case, it might be better to make TFSA contributions instead, and save your RRSP contribution room for higher income-earning years.

RESP

An RESP is a tax-sheltered investment account specifically to save for a child’s post-secondary education or training. You won’t pay income tax on the earnings generated on cash or investments held within an RESP, including bank interest, dividends, capital gains, or any other investment income. But you also won’t receive any tax deduction on your contributions. A good reason to invest in an RESP is that the Canadian government provides a 20% Canadian Education Savings Grant (CESG) on annual RESP contributions, up to $500 annually and $7,200 in total per child.

If the child doesn’t attend an eligible post-secondary institution or training program, then the sponsor of the RESP will get back their original contributions tax-free (since RESP contributions are made with after-tax income). The sponsor may be able to transfer the investment earnings to their RRSP tax-free (if they have enough contribution room); otherwise, they will pay income taxes on the investment earnings at their marginal rate. All grant money, however, must be repaid to the government.

Many Canadians grapple with whether to save for their child’s education or their retirement, so read our article on RESP vs. RRSP.

Non-registered

A non-registered account is often called a taxable account, a cash account, a trading account, or a margin account (depending on the investment platform you use). Whatever you call it, know that investments held inside this account aren’t sheltered from tax, so you’ll pay capital gains tax when you sell an investment for more than you paid for it, plus you’ll pay tax on any dividends or interest received inside this account each year.

Decide where to invest money in Canada

The two easiest ways to invest today are a digitally managed account with a robo advisor, or an online brokerage account to self-manage your investments. The robo advisor is hands-off, since your portfolio is automatically selected, invested, and rebalanced for you by an algorithm. The online broker is hands-on and allows investors to build their own portfolio on the cheap.

Robo Advisors: for first-time investors

A robo advisor is a great way for new investors to start building a portfolio while keeping costs low. All you have to do is answer an online questionnaire and the computer algorithm builds a personalized portfolio of low-cost ETFs and index funds geared to your risk tolerance and financial goals.

Our top choice is Wealthsimple—the largest robo advisor in Canada. Bonus Offer: Get a $100 cash bonus when you open your first Wealthsimple account with $1,000!

Aside from having the most user-friendly platform in the biz, you’ll pay a minimal management fee—between 0.40% to 0.50%, plus the cost of the ETFs used to build your portfolio (approximately 0.15%). Once you’ve funded your account, Wealthsimple will build you invest in a globally diversified, risk-appropriate, and automatically rebalanced portfolio of ETFs. It also offers socially responsible investing and Halal funds.

Another robo advisor option includes Questwealth Portfolios —which offers the lowest fees overall, but it’s less user-friendly than Wealthsimple.

 Online Brokers: for DIY investors

Do-it-yourself investors can skip the robo-advisor management fees and invest on their own for a song. All you have to do is go online, open a discount brokerage account, and pick your own investments.

For first-timers, the easiest way to do this is with Wealthsimple Trade, a platform that offers commission-free trading. Plus, you can take advantage of our exclusive promo offer: open a new Wealthsimple Trade account, and get a $50 cash bonus + $0 commission trades. All you have to do is deposit and trade at least $250.

For more comprehensive needs, including more available account types, research, and real-time quotes, go with Questrade – our top online broker where you can purchase ETFs for free. As a bonus, you get $50 in free trades when you start investing with Questrade. Read our round-up of the best online brokerages in Canada.

The big banks also have their own discount brokerage arms, so if you prefer to stay within the environment of a big bank then BMO InvestorLine is a sensible choice.

Next steps

Putting this all together, you’ve carved out a reasonable portion of your paycheque to dedicate towards building your long-term investments.

You’ve taken a good look at yourself in the mirror, determined your capacity for risk, and decided on an appropriate asset mix of stocks and bonds. You’ve chosen an investment style that fits your personality and long-term goals.

You’ve determined the appropriate investments to buy, and which account to buy them in.

Finally, you’ve decided on a suitable investment platform that ticks all the boxes for your investing needs.

Now you’re ready to take the plunge. Want someone else to handle the investing for you? Open an RRSP or TFSA account at a robo advisor and make that first deposit to get started.

Or if you’re a hands-on investor, open an online broker account, deposit your funds, and buy your first stock or ETF.

Remember, someone’s sitting in the shade today because someone planted a tree a long time ago. Go plant that tree!

Article comments

19 comments
Kamie says:

I heard that you can invest fractional shares in Interactive Brokers with a small fee…they don’t allow this in registered accounts but investing in expensive stocks like amzn, goog, tsla, bkng is so much easier this way. What do you think? Thanks

Jenny says:

Typo in the first line. But otherwise decent content. You seem to be pushing wealthsimple and questrade super hard. Can we assume a kickback?

zoia sherman says:

Thanks for the detailed review
I am in my early 60’s and want to learn to invest on my own- unhappy with my financial advisors and returns over time
Is there a short course I can take to figure how to start?

Lisa Jackson says:

Hi Zoia,

We are in the middle of developing a course! In the meantime, Wealthsimple has developed a great video series that may help:

https://www.wealthsimple.com/en-ca/class/investing-master-class/

Karina says:

Hi!! I live in Honduras but i travele to Canada for bussiness.. as a foreigner is there a way to invest in stock in Canada?

Robb Engen says:

Hi Karina, I’m not familiar with the investment options in Honduras but I doubt that it would make sense for you to invest directly in Canadian stocks. Best to go through a local investment advisor and see what options you have for foreign equity allocation. Also, I highly recommend reading Millionaire Expat by Andrew Hallam as he talks about investing in different countries around the world.

Chris says:

Hi i am from Philippines, but i am indian citizen. i want invest in Canada approximately 50k to 80k dollars for a future now i am 34 years old. suggest me thanx

Robb Engen says:

Hi Chris, I can’t recommend specific investments for you. It’s best to speak with an investment advisor to determine what your options are for investing in Canada.

Arun says:

Hi, I’m a newcomer to Canada and I maxed out RRSP, TFSA limit and some cash in saving account for emergency. Also put RESP 2500 for current year.. Any suggestion for next investment? – Invest in Questrade Margin account or buy home?

Robb Engen says:

Hi Arun, congrats on being able to max out your RRSP, TFSA and RESP. That’s an amazing accomplishment and something to now keep striving for every year. What are your other priorities? Do you have any short-to-medium term goals that may require some cash (renovation, big trip, new car, etc.)? Keeping some cash on hand is not a bad strategy.

Buying a home is such a personal decision and one that depends on where you live and how much you’re looking to spend. If you’re thinking about buying then it can’t hurt to squirrel away cash for a while until you know for sure if and when it’s the right time to buy. And, if you change your mind, you’ll have a good chunk of change to put into a taxable investing account.

VDR says:

I heard that in the U.S. – fundrise investment plan for passive income – but it’s not available in Canada, did you know is there any same investment plan in real estate Canada. where I can start with CAN $500.00 to CAD $1,000 to get passive income.

Robb Engen says:

Fundrise hasn’t made its way to Canada, yet, so you might be better off starting with a REIT investment.

There is a similar business here called NexusCrowd. Unfortunately, the minimum investment starts at $10,000.

Jbang says:

Good article, thanks for the advice…
P.S I think your symbols are backwards in the brokerage chart you put up. It appears if you have greater then ( > ) $25000 in Qtrade you will then get $0 annual fees not the other way around which is how you have it written.

Robb Engen says:

Hi Jbang, you’re right – the symbols are backwards in the chart and we’ll get those fixed asap. To be clear, with many of the brokerages if you have less than $25,000 invested they will charge you a $100 fee.

Suzette says:

Can I have a joint account? If yes, How do I set that up?

Robb Engen says:

Hi Suzette, of course you can. In Questrade you would select “joint margin” instead of “individual margin” (note, this is a non-registered or taxable account).

In Wealthsimple you log into your Wealthsimple account, click the ‘Add another account’ button on the right side of your screen. Select Joint Account and click “Submit”. Fill out the information about your joint applicant and click submit and sign. Sign the account opening e-agreement, and you’re done.

JUAN PABLO CANCELADO CARO says:

Hi Robb, I’m a student immigrant from Colombia , I’ve been living here for approximately 6 months, how can I invest in stocks? Are there a different procedure in my case?

Robb Engen says:

Hi Juan Pablo, probably the best way to do this is by opening a TFSA (tax free savings account) and invest inside of that account. You are eligible to open a TFSA if you are:

– a Canadian resident
– a Permanent resident/landed immigrant
– a Foreign worker
– an International student

Eligibility requirements:

– Have reached age of majority in your province of residence (18 or 19)
– Have a Social Insurance Number

The reason why a TFSA is likely your best choice is because you don’t need to have earned income to be able to contribute to a TFSA. As long as you’re the age of majority in your province (18 or 19) then you’ll get $6,000 per year in TFSA contribution room.

Lena says:

Hi Robb, thank you so much for this article!
How do I know what it my contribution room in TFSA with circa $90 000 per year before taxes? And I noticed that the interest is not high at all in TFSA, how do I start investing from there?