# How to Start Investing in Canada (2026 Beginner's Guide) > How to start investing in Canada: what to do first, which account to use (TFSA, RRSP, FHSA), investment types, fees, risk and how much to invest monthly. Source: https://trykosh.com/learn/how-to-start-investing-canada Guide - Wealth and retirement # How to start investing in Canada Investing is how savings grow faster than inflation over the long run, but the order you do things in matters as much as what you buy. This guide covers the groundwork, the accounts, the main kinds of investments and the costs, without telling you which fund to buy. Updated October 31, 20264 min readBy the Kosh team On this page[Before you invest: three things to sort first](#before)[Which account should I invest in first?](#accounts)[What can you invest in?](#what)[How much risk should I take?](#risk)[Why fees matter more than they look](#fees)[How much should I invest each month?](#how-much)[Where can I open an account?](#where)[FAQs](#faq) ## Before you invest: three things to sort first 1. **Clear high-interest debt.** Paying off a credit card charging around 20% is a guaranteed return no investment reliably beats. See [getting out of credit card debt](/learn/how-to-get-out-of-credit-card-debt). 2. **Build an emergency fund** of three to six months of essential expenses in savings, so a job loss doesn't force you to sell investments at a bad time. See [how much emergency fund you need](/learn/how-much-emergency-fund-do-i-need). 3. **Know when you'll need the money.** Money needed within a few years usually belongs in savings or GICs. Money for goals 10 or more years away can take more risk for more expected growth. ## Which account should I invest in first? In Canada, the account you invest in often matters more than shaving a little off fees, because registered accounts shelter growth from tax. A common order: Account 2026 limit Tax treatment Usually first when Employer RRSP or pension match Per your plan Deductible; employer adds money Always, if offered: it's free money FHSA $8,000 a year, $40,000 lifetime Deductible in, tax-free out for a first home You might buy a first home TFSA $7,000 (up to $109,000 total if eligible since 2009) No deduction; growth and withdrawals tax-free Lower income now, or you want flexibility RRSP 18% of last year's earned income, up to $33,810 Deductible in, taxed out Your tax rate now is higher than you expect in retirement RESP $50,000 lifetime per child Government grant of 20% on up to $2,500 a year You have children Non-registered No limit Taxed on interest, dividends and capital gains Registered room is full The [RRSP vs TFSA guide](/learn/rrsp-vs-tfsa) explains how to choose between the two big ones. Each account is a container: inside it you can hold savings, GICs, funds or shares, depending on the provider. ## What can you invest in? - **Savings accounts and GICs:** no drop in value, deposit insurance on eligible deposits, low growth. Good for short-term money. - **Bonds and bond funds:** loans to governments and companies. Lower expected return and lower swings than stocks, though they can still fall in value. - **Stocks (equities):** part-ownership of companies. Highest expected long-run growth, and the biggest drops along the way. - **Mutual funds and ETFs:** baskets of many stocks and/or bonds in one purchase. Index funds track a market cheaply; actively managed funds try to beat it and usually cost more. - **All-in-one or balanced funds:** a single fund holding a fixed mix of stock and bond funds, rebalanced for you. - **Managed accounts (robo-advisors or advisors):** someone builds and rebalances a portfolio for an ongoing fee. ## How much risk should I take? Risk here means how far your investments might fall and how long they could stay down. Two questions decide your mix: how long until you need the money, and how you'd react to seeing it fall by a third. Longer timelines can generally hold more stocks. If a big drop would make you sell, hold a more conservative mix you can stick with, because selling after a fall is how losses become permanent. ## Why fees matter more than they look Funds charge an annual fee called the management expense ratio (MER), taken out of the fund's value, and some advisors and platforms charge on top. A difference of one percentage point a year compounds. As an illustration, $500 a month for 25 years growing at an assumed 5% reaches about $298,000; at an assumed 4% (the same return minus one point in fees) it reaches about $257,000. Always check the total annual cost, as a percentage and in dollars. ## How much should I invest each month? Start with an amount you can automate and keep going in bad markets, then raise it with every raise. Many people aim to save 10% to 20% of take-home pay across all goals; the [budgeting guide](/learn/how-to-budget-in-canada) shows how to fit it in, and the [retirement guide](/learn/how-much-to-save-for-retirement-canada) helps set a long-term target. Investing a fixed amount on payday also means you buy more units when prices are lower. ## Where can I open an account? Banks, credit unions, online brokerages, robo-advisors and advisors all offer registered accounts. Compare the account fees, the cost of the investments you'll hold, the minimums, and whether the provider offers the account types you need (not every provider offers an FHSA or RESP). Check that a firm and advisor are registered using the Canadian Securities Administrators' National Registration Search. [Free tool**Compound interest calculator**See how savings grow when interest earns interest, with a starting amount, monthly contributions and the compounding your account uses.](/tools/compound-interest-calculator)[Free tool**TFSA contribution room calculator**Add up every TFSA limit you've been eligible for since 2009, subtract what you've put in and add back past withdrawals to see the room you have today.](/tools/tfsa-contribution-room-calculator) **Where Kosh fits** Kosh doesn't pick investments: it's not registered with a securities regulator and doesn't recommend specific securities. What it does is work out how much you can invest each month from your statements, which of your RRSP, TFSA and FHSA room to fill first given your tax rate, and what fees you're paying on the statements you upload. ## Frequently asked questions How do I start investing in Canada as a beginner? Pay off high-interest debt, build an emergency fund, then open a registered account such as a TFSA, FHSA or RRSP and set up an automatic monthly contribution into a diversified, low-cost investment that matches your timeline and risk tolerance. Should I invest in a TFSA or RRSP first? If your tax rate is higher now than you expect in retirement, the RRSP deduction is usually worth more. If your income is lower now, or you want flexible access, a TFSA usually comes first. Always take any employer matching first. How much money do I need to start investing? Many providers let you start with small amounts. What matters more is making regular contributions and keeping costs low. Is investing in a TFSA tax-free? Yes. Interest, dividends and capital gains earned inside a TFSA are generally tax-free, and withdrawals are tax-free, although foreign dividends can have tax withheld by the other country. How do I check if an investment advisor is registered? Use the Canadian Securities Administrators' National Registration Search to check whether a firm or individual is registered to sell investments or give investment advice. ## Sources - [CRA: MP, DB, RRSP, DPSP, ALDA, TFSA limits, YMPE and YAMPE](https://www.canada.ca/en/revenue-agency/services/tax/registered-plans-administrators/pspa/mp-rrsp-dpsp-tfsa-limits-ympe.html) - [CRA: Before you contribute to a TFSA](https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/tax-free-savings-account/contributing/before.html) - [FCAC: Choosing a financial advisor (including the National Registration Search)](https://www.canada.ca/en/financial-consumer-agency/services/savings-investments/choose-financial-advisor.html) Written by the Kosh team and checked against the rules in force on October 31, 2026. This guide is general information, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not registered with any Canadian securities regulator as an adviser or dealer, does not recommend specific securities, and does not hold your money or execute trades. Tax figures are estimates; confirm with the CRA or a qualified professional before acting. Investing carries risk. ## Upload your statement and Kosh does this for you. Kosh reads your bank, card and investment statements, estimates your federal and provincial tax and turns guides like this one into your own numbers and next steps. [Start free](/signup?via=learn-how-to-start-investing-canada)