How Much Money Do You Need to Start Investing in Canada?
You can start investing in Canada with $1 today, and the only amount that truly matters is whatever you actually have right now.
The Short Answer
You need $1 to start investing in Canada. That is not a rounding down, that is the actual number.
You can open a Wealthsimple account for free, deposit any amount, and buy a fractional share of XEQT with as little as $1. There is no minimum balance requirement. The only barrier to starting is deciding to start.
Wealthsimple lets you buy fractional shares of ETFs including XEQT. That means you do not need to save up for a full share price before you invest. You put in $50, you own $50 worth of XEQT. Simple.
This page exists because the question of how much you need to start investing is one of the most searched personal finance questions in Canada, and the answer most people find online is buried in conditions, asterisks, and product pitches. Here is the honest version: start with whatever you have.
Why the Minimum Question Trips Beginners Up
Most people asking this question are not really asking about money. They are asking for permission to start.
The thought process usually goes like this: you want to invest, but you feel like you should wait until you have a real amount. Maybe $1,000. Maybe $5,000. Maybe after you pay off that credit card. The minimum question is often just a delayed starting line dressed up as a practical concern.
Here is why this matters. Every month you wait is a month your money does not compound. A 25-year-old who invests $200 per month starting today will end up with meaningfully more than a 27-year-old who waits two years before starting the same habit. Time in the market is not a cliche. It is math.
There is also a behavioural reason to start small and start now. People who invest even a tiny amount tend to pay more attention to their finances, build the habit of saving, and increase their contributions over time. Starting with $50 is not a consolation prize. It is the on-ramp.
Waiting until you have enough is one of the most expensive financial decisions you can make. There is no minimum that feels right. Start with whatever you have, and increase it as your income grows.
What Different Starting Amounts Actually Look Like
Here is a realistic look at what various starting amounts mean in practice for a Canadian investor.
| Monthly Contribution | Account Type | Estimated Value After 10 Years | Estimated Value After 25 Years | Notes |
|---|---|---|---|---|
| $25/month | TFSA (XEQT) | $3,900 | $14,700 | A coffee a week. Better than nothing. |
| $100/month | TFSA (XEQT) | $15,600 | $58,800 | Strong starting habit. Scale up over time. |
| $250/month | TFSA (XEQT) | $38,900 | $147,000 | Comfortable pace for most Canadians. |
| $500/month | TFSA (XEQT) | $77,900 | $294,000 | Wealth-building territory. |
| $1,000/month | TFSA (XEQT) | $155,800 | $587,000 | Serious investor. Retirement comes early. |
The numbers above use a 7% average annual return, which is a reasonable long-term estimate for a globally diversified equity fund like XEQT. Your actual returns will vary year to year, but the direction is clear: any amount invested consistently beats no amount invested perfectly.
Notice that $25 per month over 25 years turns into nearly $15,000. That is real money from a nearly painless contribution. The point is not to make you feel good about investing too little. The point is to make you feel good about starting at all, and then building from there.
A $100 monthly contribution held for 25 years at 7% grows to roughly $58,800. Waiting just 5 extra years before starting reduces that to about $35,000. The cost of waiting is not $6,000 in missed contributions. It is over $23,000 in missed growth.
TFSA Room and Why It Matters Here
Your TFSA is the best place to start investing in Canada, and you have more room than you probably realize.
The Tax-Free Savings Account lets your investments grow without triggering any tax on gains, dividends, or withdrawals. For a long-term investor in XEQT, this is significant because you reinvest everything and never hand a cut to the CRA when you eventually sell.
The annual TFSA contribution limit in 2025 is $7,000. If you have never contributed to a TFSA and you were 18 or older in 2009, your total accumulated room could be as high as $102,000. That means most Canadians can invest their entire savings inside a TFSA and never worry about tax on investment income.
This is especially relevant for new investors asking about minimums. There is no minimum TFSA contribution. You can contribute $1 today and $500 next month and $200 the month after. The CRA does not care how you use your room, only how much you put in across the year.
If you are just starting, open a TFSA on Wealthsimple, set up an automatic deposit from your chequing account on payday, and buy XEQT. You do not need to think about it again until you want to increase your contribution.
How to Put Your First Dollar to Work
Opening an account and buying your first XEQT takes about 10 minutes. Here is exactly how.
That is the whole process. You now own a globally diversified portfolio of thousands of stocks across Canada, the US, international developed markets, and emerging markets. You paid a 0.20% annual fee and you did not pick a single stock.
The One Mistake That Costs You More Than Anything
It is not investing too little. It is not picking the wrong ETF. It is waiting.
Every month you spend thinking about whether you have enough to start is a month the market moved without you. Some months it goes up. Some months it goes down. Over any 15-year period in Canadian market history, a broadly diversified equity investor made money. The risk of being in the market long-term is lower than most people think. The risk of staying out is higher than almost anyone accounts for.
The best investment strategy is one you actually follow. XEQT inside a TFSA on Wealthsimple, with automatic contributions on payday, is boring. It is also one of the most effective wealth-building approaches available to a Canadian with a regular income. You do not need a financial advisor. You do not need to understand bond yields or price-to-earnings ratios. You need to start, and then not stop.
If you are reading this page and wondering whether you have enough to start investing in Canada, you have your answer. You do. Open the account today. Deposit whatever you have. Buy XEQT. Set up an automatic contribution for next payday. Come back to this site in 20 years and let us know how it went.
The best time to start investing was yesterday. The second best time is right now. The best amount is whatever you actually have. Stop waiting for the perfect moment. There is no perfect moment. There is only today.
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Wealthsimple lets you invest with as little as $1, buy fractional shares of XEQT, and automate your contributions on payday. Use our referral link and get $25 free when you open your account.
Open Wealthsimple → Get $25 FreeThis article is for general informational purposes only and does not constitute personalized financial or investment advice. XEQT is a product of BlackRock/iShares. Not financial advice. This site maintains an affiliate relationship with Wealthsimple.