You don’t need a fortune to begin building wealth. In Canada, the rules and modern tools let a person start investing with very little. This post gives a simple, step-by-step plan you can follow today with $100. No jargon. Less risk. More clarity.
What you’ll learn
- Where to put your first $100 (TFSA vs. non-registered).
- Low-cost tools that work for beginners.
- How to reduce risk and stay consistent.
- Clear next steps and a free consultation CTA.
1. Decide your goal first
Short goals change choices. Long goals change them more.
Ask: Why am I investing? Retirement, a car, or income? Write a one-sentence goal. That will guide when you withdraw and how much risk you can take.
2. Use the right account: TFSA first (if eligible)
For most Canadians, a TFSA (Tax-Free Savings Account) is the best place to start. Money grows tax-free and withdrawals are penalty-free.
Why TFSA with $100?
- Gains aren’t taxed.
- Easy to open at major banks and discount brokers.
- You keep control and flexibility.
TFSA vs RRSP vs Non-registered
3. Choose a beginner-friendly investment vehicle
With only $100, individual stocks are risky. Choose one of these low-cost options:
A. Robo-advisor (recommended for beginners)
- Low minimums.
- Automated diversification.
- Rebalancing and tax optimization.
B. Low-cost ETFs
- Buy a broad market ETF (one ticker) and hold.
- Many brokers allow fractional shares or low minimums.
C. High-interest savings or GICs (if you want minimal risk)
- Slower growth but very low risk.
4. Practical allocation for your $100
Here are three simple options depending on comfort with risk:
- Conservative (no risk appetite): $100 → High-interest savings or short GIC.
- Balanced: $60 → Broad market ETF, $40 → High-interest savings.
- Growth (comfortable with volatility): $100 → Broad market ETF or robo-advisor growth portfolio.
Keep costs low. Fees eat returns.
5. How to buy with $100 (step-by-step)
- Open a TFSA with a broker or robo-advisor that serves Canadians.
- Verify ID and link your bank.
- Deposit $100.
- Choose the portfolio or ETF recommended by the platform.
- Place the buy order (or set an automatic transfer).
6. Reduce mistakes — rules to follow
- Automate monthly contributions even if small.
- Avoid timing the market. Use dollar-cost averaging.
- Watch fees. Prefer ETFs with low MERs or robo portfolios with transparent fees.
- Keep emotion out. Review your plan quarterly, not daily.
7. Tax and withdrawal basics to remember
- TFSA withdrawals are tax-free but recontribution rules apply in the following year.
- RRSP contributions reduce taxable income — useful if you expect a lower tax rate in retirement.
- Keep emergency cash separate from investing money.
8. Next steps (action plan)
- Write your investing goal.
- Open a TFSA at one of the recommended brokers or a robo-advisor.
- Deposit your first $100 and pick a simple ETF or portfolio.
- Set an automatic $25–$50 monthly transfer.
- Book a free planning session if you want personalized help.
Book your free session: Book Free Consultation Session
FAQs
Q: Can I really start investing with only $100?
A: Yes. Modern brokers and robo-advisors let you invest small amounts in diversified funds.
Q: Is TFSA better than RRSP for beginners?
A: It depends on your income and goals. For flexible, tax-free growth, TFSA is often best for small, early investments.
Q: What if the market drops after I invest?
A: Short term drops are normal. Focus on long-term consistency and your plan.
