XEQT Market Order vs Limit Order: How to Place Your First Buy in Canada

When I placed my first XEQT order, I stared at the screen for 10 minutes trying to figure out which order type to pick. The buy screen on my brokerage app had two options – “Market Order” and “Limit Order” – and I had absolutely no idea which one I was supposed to choose. I kept googling things like “market order vs limit order Reddit” and “what happens if I pick the wrong order type” while the buy button sat there, patiently waiting for me to stop overthinking everything.

I ended up picking market order almost by accident. My finger tapped before my brain had fully committed. The order filled in about two seconds, I owned shares of XEQT, and absolutely nothing catastrophic happened. I paid roughly the price I saw on screen, and I moved on with my day.

Looking back, I wasted more time worrying about order types than on any other part of the buying process. The truth is, for most people buying XEQT on a regular basis, this decision is way less consequential than you think. But I also understand the anxiety – when it is your real money on the line, even a small decision feels enormous.

So let me save you the panic. This guide covers everything you need to know about market orders and limit orders when buying XEQT in Canada, with step-by-step instructions so you can place your first order with confidence.

If you are brand new to XEQT, you might want to start with our XEQT for Beginners guide first. If you already know what XEQT is and you just need to understand order types, keep reading.

1. What Is a Market Order?

A market order is the simplest way to buy (or sell) an ETF. When you place a market order for XEQT, you are telling your brokerage: “Buy me shares of XEQT right now, at whatever price the market is currently offering.”

That is it. No conditions. No price targets. No waiting. Your brokerage takes your order, finds a seller on the Toronto Stock Exchange, and completes the trade – usually within seconds during market hours.

Here is what you need to know about market orders:

• Speed: Your order fills almost instantly during market hours (9:30 AM to 4:00 PM ET on weekdays).
• Price certainty: You do not choose the exact price. You get the current ask price when your order hits the exchange. For a liquid ETF like XEQT, this is almost always within a penny or two of what you see on screen.
• Execution guarantee: As long as the market is open and XEQT is trading, your order will fill. No risk of it sitting unfilled.
• Simplicity: Enter the number of shares (or dollar amount on platforms with fractional shares), tap buy, done.

Think of a market order like walking into a grocery store and grabbing a carton of milk off the shelf. You pay whatever price is on the tag. You do not negotiate. You do not wait for a sale. You just buy it and leave.

2. What Is a Limit Order?

A limit order gives you more control over the price you pay. When you place a limit order for XEQT, you are telling your brokerage: “Buy me shares of XEQT, but only if the price is at or below the specific number I set.”

For example, if XEQT is currently trading at $35.50 and you place a limit order at $35.40, your order will only execute if the price drops to $35.40 or lower. If the price stays above $35.40, your order sits there waiting – and it might never fill at all.

Here is what you need to know about limit orders:

• Price control: You set the maximum price per share. You will never pay more than your limit price, though you might pay less.
• No execution guarantee: If the price never drops to your limit, your order will not fill. It expires at end of day or remains open for a set period, depending on your settings.
• Time settings: Most brokerages let you choose “Day” (expires at market close) or “Good Till Cancelled” (GTC), which stays active for 30-90 days.
• Partial fills: If you order 100 shares but only 60 are available at your limit price, you get a partial fill. The rest of the order stays open.

Think of a limit order like telling someone at a yard sale, “I will give you $20 for that lamp, but not a penny more.” If they agree, you get the lamp. If they want $25, you walk away empty-handed.

3. Market Order vs Limit Order: Side-by-Side Comparison

Here is a quick reference table comparing the two order types when buying XEQT:

For most people buying XEQT in a normal market environment, the practical difference between these two order types is measured in pennies. But there are specific situations where each one shines – let me walk you through those next.

4. When to Use a Market Order for XEQT

Market orders are the right choice for XEQT purchases most of the time. Here is why.

XEQT is one of the most heavily traded ETFs on the Toronto Stock Exchange. On a typical day, hundreds of thousands of shares change hands. This high liquidity means there are always buyers and sellers, and the bid-ask spread is extremely tight – usually just one cent.

When the spread is that narrow, a market order will get you a price virtually identical to what you see on screen. On a $500 purchase, the difference is maybe 15-20 cents. That is the price of a fraction of a single Timbit.

Use a market order when:

• You are buying a small to medium amount (under $10,000)
• The market is open and trading normally
• You are doing your regular dollar-cost averaging purchase
• You want your shares immediately and do not want to babysit an order
• You are investing on payday and just want the transaction done
• You are new to investing and want the simplest possible experience

I use market orders for 95% of my XEQT purchases. I invest a set amount every payday, place a market order, and go back to my life. The difference between the displayed price and what I actually pay has never mattered over my investing horizon.

5. When Limit Orders Make Sense for XEQT

Even though market orders work great most of the time, there are a few situations where a limit order is the smarter choice.

Large Orders ($10,000+)

If you are investing a significant lump sum – say a tax refund, bonus, inheritance, or windfall – a limit order gives you more price certainty. A large market order could theoretically move the price slightly against you. For XEQT this is unlikely unless you are buying a truly massive position, but setting a limit order a couple of cents above the current ask costs you nothing and eliminates the concern.

Volatile Market Days

During periods of high volatility – a surprise Bank of Canada rate decision, geopolitical news, or a broad market selloff – the bid-ask spread on XEQT can widen. On a volatile day, it could stretch to $0.05 or even $0.10. A limit order ensures you do not overpay during those moments.

After-Hours or Pre-Market Orders

If you are placing an order outside of market hours (before 9:30 AM or after 4:00 PM ET), a limit order is strongly recommended. Market orders placed before the open execute at whatever the opening price happens to be, which can differ significantly from the previous close. A limit order sets a price ceiling so you avoid surprises at 9:30 AM.

When You Want a Specific Entry Price

Maybe you have done some analysis and decided you want to buy XEQT only if it dips to a certain price. A limit order lets you set that target and walk away. If the price drops to your level, the order fills automatically. If it does not, no harm done.

That said, trying to time your entry on a broadly diversified ETF like XEQT is usually a losing game. Time in the market beats timing the market. But if setting a limit order helps you feel more comfortable deploying a lump sum, that is a valid reason to use one.

6. Step-by-Step: How to Place a Market Order on Wealthsimple

Here is the exact process for placing a market order for XEQT on Wealthsimple. If you do not have an account yet, check out our how to buy XEQT step by step guide for the full setup walkthrough.

1. Open the Wealthsimple app on your phone or log in at wealthsimple.com on your computer.

2. Search for XEQT. Tap the search icon and type “XEQT.” Select “iShares Core Equity ETF Portfolio” from the results. Make sure it shows “TSX” – you want the Canadian-listed version.

3. Tap “Buy.” On the XEQT page, tap the green “Buy” button.

4. Select your account. If you have multiple accounts (TFSA, RRSP, non-registered), choose the one you want to buy in. If you are not sure which account to use, our TFSA vs RRSP for XEQT guide can help.

5. Choose “Market Order.” Wealthsimple defaults to market orders, so you may not even need to change anything. If you see an order type selector, make sure “Market” is selected.

6. Enter your amount. You can enter a dollar amount (e.g., $500) or a number of shares. Wealthsimple supports fractional shares, so you can invest any dollar amount – you do not need to buy whole shares.

7. Review the order. Wealthsimple will show you the estimated number of shares, the current price, and the total cost. Double-check that everything looks right.

8. Confirm the purchase. Tap “Buy” to confirm. Your order will fill within seconds.

9. Check your portfolio. After the order fills, you will see XEQT appear in your portfolio with the number of shares you purchased and the average cost per share.

That is it. The entire process takes under two minutes once you have done it a couple of times.

7. Step-by-Step: How to Place a Limit Order on Wealthsimple

If you want more price control, here is how to place a limit order for XEQT on Wealthsimple.

1. Open the app and search for XEQT the same way as above.

2. Tap “Buy” on the XEQT page.

3. Select your account.

4. Change the order type to “Limit.” Look for the order type selector (usually near the top of the order screen) and switch from “Market” to “Limit.”

5. Set your limit price. This is the maximum price you are willing to pay per share.
   • To fill immediately with price protection, set the limit at or slightly above the current ask (e.g., $35.52 if XEQT is at $35.50).
   • To wait for a dip, set the limit below the current price – but know the order might never fill.

6. Enter the number of shares. Unlike market orders, limit orders on Wealthsimple typically require whole shares – you may not be able to use fractional amounts with limit orders.

7. Set the time in force. You will usually have two options:
   • Day order: Expires at the end of the trading day if not filled.
   • Good till cancelled (GTC): Stays active until it fills or you cancel it, up to a maximum of 90 days.

8. Review and confirm. Check your limit price, number of shares, and total estimated cost. Tap “Buy” to submit the order.

9. Monitor the order. Unlike market orders, your limit order may not fill right away. You can check the status of your order in the “Activity” or “Orders” section of your account. If it says “Pending,” the order has not filled yet.

Pro tip: If you set a limit order and it has not filled after a day or two, ask yourself whether the limit price is realistic. Sometimes it makes more sense to adjust the limit price upward or switch to a market order rather than waiting indefinitely for a price that may never come.

8. Common Mistakes Beginners Make with Order Types

I have seen a lot of new investors trip up on the same handful of mistakes when placing their first ETF orders. Here are the ones that come up most often – and how to avoid them.

Placing Market Orders Outside of Market Hours

The TSX is open 9:30 AM to 4:00 PM Eastern Time, Monday through Friday. If you place a market order at 8:00 PM on a Tuesday, it queues up and fills at Wednesday’s opening price – which can be noticeably different from the previous close, especially if global markets moved overnight. If you place orders outside market hours, use a limit order to cap the price you pay.

Setting Limit Prices Too Far Below the Current Price

Some beginners set their limit price 5-10% below the current price, hoping to catch a big dip. For a diversified ETF like XEQT, that kind of single-day drop is extremely rare. What usually happens is the order never fills, the price moves higher, and you end up not investing at all. That is a far worse outcome than paying an extra $0.02 per share with a market order.

Overthinking the Decision

I know this one well because I made it myself. The difference between a market order and a limit order on a typical $500-$1,000 XEQT purchase is measured in cents. Meanwhile, every day you spend researching order types instead of investing is a day you are not in the market. Over 20 years, a few pennies per share today is irrelevant. What matters is that you actually buy and hold.

Forgetting to Cancel Unfilled Limit Orders

If you place a “Good Till Cancelled” limit order and forget about it, you could get a surprise fill weeks later when the price finally drops to your limit. Maybe you have already invested that money elsewhere, or your cash balance has dropped. Always keep track of your open orders and cancel any that are no longer part of your plan.

Using Limit Orders with Fractional Shares

On some platforms, limit orders only work with whole shares, not fractional shares. If you are used to investing a dollar amount and getting fractional shares with a market order, switching to a limit order might require you to calculate whole shares manually. Minor, but it catches people off guard.

9. The Bid-Ask Spread and Why It Matters Less for XEQT Than You Think

If you have been reading about order types online, you have probably come across warnings about the “bid-ask spread.” Let me explain what it is and why it is largely a non-issue for XEQT.

The bid price is the highest price a buyer is currently willing to pay for XEQT. The ask price is the lowest price a seller is currently willing to accept. The gap between them is the bid-ask spread.

When you place a market order to buy, you pay the ask price. When you place a market order to sell, you receive the bid price. The spread is essentially the cost of executing a trade immediately rather than waiting.

For XEQT, the bid-ask spread is typically $0.01 – literally one penny. Here is why:

• High daily trading volume: XEQT regularly trades hundreds of thousands of shares per day, creating deep liquidity on both sides.
• Market makers: Large financial institutions are contractually obligated to provide continuous buy and sell quotes for XEQT, keeping the spread tight.
• Underlying liquidity: XEQT holds four highly liquid iShares ETFs (XIC, XUU, XEF, XEC), which themselves hold thousands of liquid stocks. Multiple layers of liquidity support a tight spread.

To put numbers on it: if XEQT has a bid of $35.50 and an ask of $35.51, the spread is $0.01. On a $500 investment (roughly 14 shares), the spread cost is about $0.14. Compare that to less liquid ETFs or small-cap stocks, where spreads can be $0.10, $0.50, or more.

For a deeper dive into XEQT’s liquidity characteristics, check out our full breakdown of XEQT’s bid-ask spread.

Bottom line: The bid-ask spread on XEQT is so narrow that it should not be a factor in your decision between market and limit orders for typical purchase amounts. If you are buying under $10,000, the spread cost is negligible.

10. What About Questrade and Other Brokerages?

While I have used Wealthsimple for the step-by-step instructions above, the mechanics of market and limit orders work the same way on every Canadian brokerage.

On Questrade, ETF purchases are also commission-free. The interface gives you more order type options and granular time-in-force settings, but fractional shares are not available – you will need to buy whole shares.

On bank-owned brokerages (TD Direct Investing, BMO InvestorLine, CIBC Investor’s Edge, etc.), you will typically pay $5-$10 per trade. That changes the math: if you are paying $9.99 per trade, you want each order to count, so lean toward less frequent, larger purchases. The order type mechanics are identical.

If you are comparing platforms, our best broker for XEQT guide breaks down the fees and features across all major Canadian brokerages.

11. My Honest Recommendation: Market Orders Are Fine for Most XEQT Buyers

After years of buying XEQT regularly, here is my straightforward take: for the vast majority of Canadian investors buying XEQT, market orders are perfectly fine.

• XEQT is extremely liquid with a one-cent bid-ask spread
• The price you see on screen is almost exactly what you will pay
• The time saved by not fussing with limit prices adds up over hundreds of purchases
• The risk of not investing (because your limit order did not fill) is far greater than the risk of paying an extra penny per share
• Commission-free platforms like Wealthsimple make frequent market orders cost-effective

The exception: If you are deploying a large lump sum (over $10,000), placing orders outside market hours, or trading during volatile conditions, use a limit order set a few cents above the current ask price.

Here is a simple decision framework:

• Buying under $10,000 during market hours? Market order.
• Buying over $10,000? Limit order, set 1-3 cents above the current ask.
• Buying outside market hours? Limit order, set at a price you are comfortable with.
• Volatile market day? Limit order, set at or slightly above the current ask.
• Regular DCA purchase on payday? Market order, every single time.

The most important thing is not which order type you use. It is that you actually invest. Every dollar you put into XEQT – whether via market order or limit order – is a dollar working for your future. The order type is a rounding error compared to the impact of investing consistently over decades.

12. Wrapping Up: Stop Overthinking, Start Investing

If you are reading this article, there is a good chance you are at the same crossroads I was a few years ago – money ready to invest, XEQT on the screen, and a nagging question about which order type to pick.

Here is what I wish someone had told me: it does not matter nearly as much as you think it does. Pick market order. Tap buy. Move on.

The gap between knowing you should invest and actually doing it is where most people lose the most money – not from order types, not from spreads, not from getting in at $35.50 instead of $35.45. It is from waiting. From reading one more article. From telling yourself you will do it tomorrow.

So do it today. Your future self will thank you for every XEQT share you buy, regardless of whether it was a market order or a limit order.

For a complete walkthrough of the entire buying process from account setup to your first trade, head over to our how to buy XEQT step by step guide.