How to Buy Stocks and ETFs in Canada: A Beginner's Guide for 2026
Everything a Canadian beginner needs to buy their first stock or ETF: choosing between TFSA, RRSP, FHSA and cash accounts, picking a low-cost brokerage, placing orders, currency conversion and taxes.
By ForexCanada Editorial Team · Updated
3 min readKey takeaways
- ▸Pick the account first (TFSA, FHSA, RRSP or non-registered), then the brokerage.
- ▸Several Canadian brokerages now charge $0 commissions on stocks and ETFs; currency conversion is often the bigger cost.
- ▸For most beginners, a few broad, low-cost index ETFs beat stock picking.
- ▸Use limit orders, avoid trading at the open, and understand the difference between CAD and USD listings.
Buying stocks in Canada has never been cheaper or easier. The hard part isn't the mechanics — it's choosing the right account and avoiding a few costly habits.
Step 1: Choose the account
| Account | Best for | Key points |
|---|---|---|
| TFSA | Most Canadians | Growth and withdrawals tax-free; contribution room accumulates annually from age 18 |
| FHSA | First-time home buyers | Contributions deductible and qualifying withdrawals tax-free |
| RRSP | Higher earners saving for retirement | Contributions deductible; withdrawals taxed; no U.S. withholding on U.S. dividends |
| Non-registered (cash/margin) | After registered room is used, or for active trading | Gains taxable; losses deductible against gains |
Check your TFSA and RRSP room in CRA My Account before contributing — over-contributions are penalized.
Step 2: Choose a brokerage
In 2026, $0 stock and ETF commissions are available at Questrade, Qtrade, Wealthsimple, National Bank Direct Brokerage, Desjardins Online Brokerage and Webull Canada. Bank brokerages typically charge $6.95–$9.99 per trade but offer research and banking integration. Every CIRO-registered brokerage is covered by CIPF.
- #1
Interactive Brokers Canada
CIRO-registeredBest for: Experienced, cost-sensitive traders who want forex, futures, options and global stocks in one account
- Platforms
- TradingView
- FX pairs
- 100+
- Min. deposit
- $0
- CIPF
- Yes
9.5/ 10 - #2
Questrade
CIRO-registeredBest for: Canadians who want TFSA/RRSP investing and forex/CFD trading with one Canadian firm
- Platforms
- Proprietary
- FX pairs
- 100+
- Min. deposit
- $0
- CIPF
- Yes
9.4/ 10 - #3
Qtrade Direct Investing
CIRO-registeredBest for: Investors who want research tools and service without paying commissions
- Platforms
- Proprietary
- Markets
- Stocks
- Min. deposit
- $0
- CIPF
- Yes
9.2/ 10 - #4
Wealthsimple
CIRO-registeredBest for: New investors who want a simple app for TFSA/FHSA investing, plus regulated crypto
- Platforms
- Proprietary
- Markets
- Stocks, Crypto
- Min. deposit
- $0
- CIPF
- Yes
9.0/ 10 - #5
Desjardins Online Brokerage (Disnat)
CIRO-registeredBest for: Desjardins members and French-speaking investors
- Platforms
- Proprietary
- Markets
- Stocks
- Min. deposit
- See site
- CIPF
- Yes
8.9/ 10
Step 3: Fund the account
Link your bank account and transfer money by EFT or online bill payment. Transfers from another brokerage are done in-kind or as cash through the new broker (ask whether they'll reimburse the old broker's transfer fee).
Step 4: Choose what to buy
For most people, a small number of broad, low-cost ETFs — or a single all-in-one asset-allocation ETF — is hard to beat. Stock picking can be interesting, but research consistently shows that most active stock pickers underperform the index over time.
Canadian-listed ETFs that hold U.S. or global stocks let you get international exposure in Canadian dollars, avoiding conversion.
Step 5: Place the order
- Use limit orders, especially for ETFs and smaller stocks, so you control the price.
- Avoid the first minutes after 9:30 a.m. ET, when spreads are widest.
- Check the listing currency — "XYZ" on the TSX in CAD vs "XYZ" on NYSE in USD.
- Trades settle T+1 (next business day).
Currency: the cost nobody mentions
Buying a U.S.-listed stock in a CAD account usually triggers a 1.5–2% conversion charge — each way. If you'll hold U.S. securities, use a USD account and convert with Norbert's Gambit.
Taxes in a nutshell
In registered accounts, trades aren't taxed as they happen. In non-registered accounts, you'll report capital gains (50% taxable), dividends (Canadian dividends get the dividend tax credit) and interest. Keep your statements and your adjusted cost base records.
Market hours and holidays
The TSX trades 9:30 a.m.–4:00 p.m. ET on business days. See Canadian market holidays.
Frequently asked questions
What is the easiest way to buy stocks in Canada?
Open a TFSA with a low-cost online brokerage such as Wealthsimple, Questrade or Qtrade, fund it by bank transfer, and buy an ETF using a limit order.
How much money do I need to start investing in Canada?
Many brokerages have no minimum, and fractional shares are available at some. With $0 commissions, even $100 a month is practical.
Should I buy Canadian or U.S. stocks?
Many Canadians hold both through diversified ETFs. Buying U.S. stocks directly involves currency conversion and U.S. withholding tax on dividends (reduced in RRSPs).
Sources & further reading
ForexCanada Editorial Team
The ForexCanada editorial team researches Canadian broker registration, fees and platforms, and writes our guides and calculators. We check registration against CIRO's dealer list and the CSA National Registration Search, and we update broker profiles at least every six months or when a regulator announces a change.
This guide is general information, not financial, legal or tax advice. Rules and broker offerings change; check primary sources and consider speaking to a qualified professional about your situation.