How to Buy Your First ETF in Canada (Step by Step)
Buying your first ETF in Canada is simpler than most people expect. The hardest part is usually getting started — once you understand the basic steps, the whole process takes less than a week and costs almost nothing to set up.
This guide walks you through every step from zero: choosing a brokerage, opening an account, picking an ETF, and placing your first trade.
Step 1: Choose a Brokerage
For most Canadian beginners, the choice comes down to two platforms: Questrade and Wealthsimple Trade. Both are excellent, regulated, and free to open.
- Wealthsimple Trade — $0 commissions on Canadian ETFs and stocks. Best app experience. Great starting point.
- Questrade — Free ETF purchases, small fee to sell. More powerful platform for when you grow into it.
For a first-time investor buying Canadian ETFs, either works well. We slightly favour Wealthsimple for beginners due to its simplicity, but you can't go wrong with either.
Step 2: Open the Right Account Type
Before you buy anything, you need to decide which account type to use. For most Canadians, the answer is a TFSA (Tax-Free Savings Account). Any growth or income inside a TFSA is completely tax-free — you don't pay tax on dividends, capital gains, or withdrawals.
If you've already maxed your TFSA, an RRSP is the next logical step — contributions reduce your taxable income, and growth is tax-deferred until withdrawal.
When you sign up for Questrade or Wealthsimple, you'll be prompted to open an account type. Choose TFSA unless you have a specific reason not to.
Step 3: Fund Your Account
Both platforms let you connect your bank account and transfer funds electronically. Transfers typically take 1–3 business days to settle. You can start with as little as $1 — there's no minimum deposit required at either Wealthsimple or Questrade.
Most beginners start with whatever they're comfortable with — $500 to $1,000 is a common starting point, but the amount matters far less than just getting started.
Step 4: Choose an ETF
For a beginner, the simplest and most effective choice is an all-in-one ETF — a single fund that holds thousands of stocks from around the world, automatically rebalanced for you.
The most popular options for Canadians are:
- XEQT (iShares Core Equity ETF Portfolio) — 100% equities, global diversification. Best for long time horizons.
- VGRO (Vanguard Growth ETF Portfolio) — 80% equities, 20% bonds. Slightly more conservative.
- XGRO (iShares Core Growth ETF Portfolio) — Similar to VGRO, 80/20 split.
- XBAL (iShares Core Balanced ETF Portfolio) — 60% equities, 40% bonds. More conservative again.
If you're under 40 and investing for the long term, XEQT or VGRO are the most commonly recommended starting points in the Canadian investing community.
Step 5: Place Your First Trade
In your brokerage app, search for the ETF ticker (e.g. "XEQT"). You'll see the current price. Select "Buy," enter the number of shares you want to purchase, and choose a market order (executes immediately at the current price) or a limit order (only executes if the price hits your target).
For beginners buying long-term, a market order is perfectly fine. Click confirm, and you're an investor.
Step 6: Set Up Automatic Contributions
The most powerful thing you can do after your first purchase is automate future contributions. Both Wealthsimple and Questrade allow you to set up automatic transfers from your bank on a schedule — weekly, biweekly, or monthly.
This removes emotion from the equation and ensures you're consistently buying regardless of whether markets are up or down.
What to Do After You Buy
Honestly? Not much. The whole point of an all-in-one ETF is that you don't need to actively manage it. Check in a few times a year, keep contributing, and let compounding do its work. Resist the urge to sell during market dips — time in the market beats timing the market.