How to Invest $1,000 in Canada (2025): A Step-by-Step Guide
How to Invest $1,000 in Canada
You don't need a financial advisor. You don't need to pick stocks. Here's exactly how to invest your first $1,000 and start building real wealth.
Turn $1,000 Into Your First Investment
Open a Wealthsimple account and get $25 towards your first XEQT purchase. Zero commissions, zero complexity.
Claim Your $25 BonusThe Short Answer
Here’s what to do with your $1,000:
- Open a TFSA on Wealthsimple (free, takes 5 minutes)
- Deposit your $1,000
- Buy XEQT (one ETF that holds the entire global stock market)
- Don’t touch it for at least 10 years
That’s it. No stock picking. No timing the market. No expensive advisors.
Why This Works
XEQT holds 9,000+ stocks from around the world. You get instant diversification with a single purchase. The stock market has historically returned ~7% annually after inflation. Your $1,000 invested today could be worth $2,000 in 10 years without adding another penny.
What Your $1,000 Could Become
Assuming a 7% average annual return (the historical stock market average):
Your $1,000 Growing Over Time
Now imagine adding just $100/month on top of that initial $1,000:
| Timeframe | Just $1,000 | $1,000 + $100/month |
|---|---|---|
| 10 years | $1,967 | $19,350 |
| 20 years | $3,870 | $56,677 |
| 30 years | $7,612 | $125,320 |
Start Growing Your $1,000 Today
Open your TFSA, deposit $1,000, buy XEQT. Get $25 free to kickstart your portfolio.
Get Started + $25 BonusStep-by-Step: Investing Your First $1,000
1 Open a Wealthsimple Account
Go to Wealthsimple and sign up. You'll need:
- Your SIN (Social Insurance Number)
- A piece of ID (driver's license or passport)
- About 5 minutes
Choose a TFSA when asked what account type. This means your investment gains are 100% tax-free.
2 Deposit Your $1,000
Link your bank account and transfer $1,000. Options include:
- Instant deposit — Use debit card for immediate access (small fee)
- Bank transfer — Free but takes 1-3 business days
The money will land in your Wealthsimple cash account first.
3 Buy XEQT
Once your money arrives:
- Search for "XEQT" in the app
- Tap "Buy"
- Enter $1,000 (or your full balance)
- Review and confirm
Wealthsimple supports fractional shares, so you can invest every dollar—no leftover cash sitting around.
4 Set Up Automatic Investing (Optional but Recommended)
The real magic happens when you invest consistently. Set up automatic deposits:
- Go to Funding → Recurring deposits
- Choose an amount ($25, $50, $100/week—whatever you can afford)
- Enable "Auto-invest" to automatically buy XEQT
Now your wealth builds automatically without thinking about it.
5 Leave It Alone
This is the hardest part. Your $1,000 will go up and down. Some days it'll be worth $950. Other days $1,100. Don't sell.
The stock market rewards patience. Check your account quarterly at most. Preferably yearly.
Why XEQT for Your First $1,000?
What is XEQT?
XEQT is an all-in-one ETF from iShares (BlackRock). One purchase gives you: 45% US stocks, 25% Canadian stocks, 25% developed international stocks, and 5% emerging market stocks. It rebalances automatically. You just buy and hold.
Why Wealthsimple for Your First $1,000?
| Feature | Wealthsimple | Traditional Banks | Other Brokers |
|---|---|---|---|
| Commission | $0 | $9.99/trade | $5-10/trade |
| Minimum deposit | $1 | Often $1,000+ | Varies |
| Fractional shares | Yes | No | Rarely |
| Account fee | $0 | $0-25/quarter | $0-100/year |
| App experience | Excellent | Clunky | Outdated |
With $1,000, fees matter. A $9.99 commission means you lose 1% immediately. With Wealthsimple, every dollar goes to work.
Ready to Invest Your $1,000?
Join thousands of Canadians building wealth with XEQT on Wealthsimple.
Claim Your $25 Bonus →Takes 5 minutes. Zero commissions. Your future self will thank you.
Common Mistakes When Investing $1,000
Don't Make These Errors
1. Waiting for the "right time" — There's no perfect moment. Time in the market beats timing the market.
2. Checking daily — You'll see red days and panic. Check quarterly or yearly.
3. Selling during dips — Downturns are when you should buy more, not sell.
4. Paying high fees — A 2% annual fee on mutual funds destroys returns over decades.
Before You Invest: The Checklist
Make sure you have these in place first:
- Emergency fund — 3-6 months of expenses in a high-interest savings account
- High-interest debt paid off — Credit card debt at 20% interest beats any investment
- Stable income — Don’t invest money you might need in the next 5+ years
- TFSA room — Check your contribution limit on CRA My Account
No Emergency Fund Yet?
Consider splitting your $1,000: $500 in a high-interest savings account for emergencies, $500 invested in XEQT. You can always add more to investments once your emergency fund is complete.
Frequently Asked Questions
Is $1,000 enough to start investing?
Absolutely. Many successful investors started with less. The key is starting early and staying consistent. Your $1,000 today, plus regular contributions, can grow to six figures over time.
Should I use a TFSA or RRSP for my $1,000?
For most Canadians, start with a TFSA. Growth is tax-free, and you can withdraw anytime without penalty. Use an RRSP later when you're in a higher tax bracket or if your employer matches contributions.
What if I need the money in 2 years?
Don't invest it. The stock market can drop 30% in a year and take years to recover. Money you need within 5 years should stay in a high-interest savings account.
Why XEQT instead of individual stocks?
Diversification. One company can go bankrupt. XEQT holds 9,000+ companies—if 100 fail, you barely notice. Plus, you don't need to research companies or time purchases.
How long until I see significant gains?
Patience is key. Year 1 might show 10% gains or 10% losses. But over 10-20 years, the stock market has historically always gone up. Focus on decades, not days.
What if the market crashes after I invest?
Don't panic. Market crashes are temporary. Every crash in history has eventually recovered to new highs. If anything, a crash is a buying opportunity—your next $100 buys more shares at lower prices.
Your $1,000 Is Waiting to Grow
Stop letting your money sit idle. Open a commission-free Wealthsimple account, buy XEQT, and start building wealth today.
Get Your $25 Bonus →The best investment you can make is in your future