How to Start Investing With $100 in Canada
You don't need thousands of dollars to start investing in Canada. Here is how to put $100 to work right now through your TFSA with zero commissions.
The Myth of the High Minimum
A decade ago, investing in Canada typically required $500-$2,500 minimums for mutual funds, high brokerage fees, and a bank branch visit. That barrier is essentially gone in 2025.
You can buy one unit of a globally diversified ETF on the TSX for $25-$100, via a commission-free account, in under 15 minutes.
The Best Way to Invest $100 in Canada
Option 1: Buy an all-in-one ETF through Questrade or Wealthsimple
- Open a Questrade TFSA account (free, takes 10-15 minutes)
- Deposit $100
- Buy 1-3 units of VEQT, XEQT, or similar all-in-one ETF
On Questrade, buying ETFs is completely free (no purchase commission). Selling has a $4.95-$9.95 fee, but you won't be selling for decades.
All-in-one ETF options for small investors:
| ETF | Price/unit | MER | Description |
|---|---|---|---|
| XEQT | ~$35-$40 | 0.20% | iShares all-equity global ETF |
| VEQT | ~$40-$45 | 0.24% | Vanguard all-equity global ETF |
| VBAL | ~$35-$40 | 0.25% | Vanguard balanced (60/40) |
| ZGRO | ~$25-$30 | 0.20% | BMO all-equity ETF |
With $100 you can buy 2-3 units of XEQT or VEQT. That represents fractional ownership of thousands of companies across Canada, the US, and internationally. It is real, legitimate investing.
Option 2: Wealthsimple Trade (Commission-free)
Wealthsimple Trade offers zero-commission trading on both Canadian and US stocks/ETFs. The interface is extremely user-friendly — designed for beginner investors. Accounts can include a TFSA, making interest and gains completely tax-free.
Minimum: $1. Fund by Interac e-Transfer within 30 minutes.
Option 3: Wealthsimple Invest (Robo-Advisor)
Wealthsimple Invest manages a diversified portfolio for you automatically. You answer risk questions and they invest in ETFs:
- Minimum: $1
- Fee: 0.40-0.50%/year on assets under management
Higher than buying ETFs directly, but extremely simple for those who prefer a hands-off approach. Good for building the habit before moving to self-directed.
Option 4: Tangerine Investment Funds
Tangerine's index portfolios require no brokerage account setup. Minimum $25. Automatic rebalancing. MER is ~1.07% — higher than DIY ETF investing but very accessible for beginners who bank with Tangerine.
Put It in a TFSA First
Whichever platform and ETF you choose, hold the investment inside a TFSA. This means:
- All investment gains are completely tax-free
- Dividends and distributions are tax-free
- Withdrawals are tax-free and penalty-free
- No need to report the investment on your tax return
Using a TFSA for your first investment maximizes every dollar of growth. The 2025 TFSA limit is $7,000. If you have never opened a TFSA and were 18+ in Canada before 2025, you have up to $95,000 in contribution room.
The Math That Motivates
| Monthly Investment | Annual Return | After 30 Years |
|---|---|---|
| $100 | 7% | $121,997 |
| $200 | 7% | $243,994 |
| $500 | 7% | $609,985 |
These figures assume all growth is tax-free inside a TFSA. These are modest contributions, life-changing outcomes.
Why Starting Now Matters
Consider two Canadians:
- Sam invests $100/month from age 25 to 65 at 7% → $263,000
- Alex waits until 35 and invests $200/month from 35 to 65 → $243,000
Sam invested $48,000 total. Alex invested $72,000 total. Sam ends up with $20,000 more — by starting 10 years earlier at half the monthly amount.
Time is the most powerful variable in building wealth. $100 today is worth vastly more than $100 in ten years — not because of inflation, but because of compounding.
Your First 3 Steps
- Open a Questrade TFSA or Wealthsimple Trade TFSA — both free, both online
- Deposit $100 via Interac e-Transfer
- Buy XEQT or VEQT and set up a monthly automatic contribution — even $50-$100
The hardest part is making the first trade. After that, it becomes routine. And routine is where wealth is built.
