The Cheapest Way to Invest in Stocks in Canada: Comprehensive Guide

Investing in the Canadian stock market can be an excellent way to grow your wealth, but the cost can vary significantly depending on the approach. For those seeking the most cost-effective option, selecting a commission-free broker is often the best choice.

Why Choose a Commission-Free Broker?

Unlike online shopping, where discounts are common, stock prices remain constant across brokers. This means that savings in the stock market are primarily achieved by avoiding commission fees. One of the best options in the Canadian market is Wealthsimple, known for offering commission-free trading. By choosing Wealthsimple, investors do not have to pay any commission on buying or selling stocks. Additionally, to encourage new investors, Wealthsimple offers a bonus of $25 (or equivalent) with the code PGVORW.

Using Online Brokerage Accounts for Cost-Effective Investing

Using online brokerage accounts is an easy and affordable way to invest in stocks in Canada. These platforms allow you to buy and sell thousands of shares from the comfort of your home, often at affordable or even free rates if you use a commission-free stockbroker like Wealthsimple.

Young and Thrifty, for example, provides a wide selection of the best investment apps in Canada, which can help you invest in your future. Here are the key steps to take to start investing in the stock market:

1. Open an Online Brokerage Account

The first step in any investment journey is to open an online brokerage account. This account will allow you to buy, hold, and sell stocks, as well as manage your investment portfolio.

2. Choose an Investment Account Type

Cash and Asset Management APC (Asset Protection and Control) are investors who buy shares directly through a broker. In Canada, you can choose between registered or unregistered investment accounts:

Tax-Free Savings Account (TFSA): TFSA offers the flexibility to invest and earn tax-free income, perfect for both short and long-term savings, including retirement. Registered Retirement Savings Plan (RRSP): RRSP is designed to help you accumulate retirement savings, allowing you to defer taxes on your earnings until withdrawal. Registered Educational Savings Plan (RESP): This account is specifically used for saving for a child's post-secondary education, offering tax breaks and bonuses. Unregistered accounts can also be used for personal or business purposes.

3. Choose Your Investment Approach

Once you have an account, it's time to decide on your investment strategy. Here are some popular approaches:

Index Investing: Investing in index funds, which track a specific market index, can provide a low-cost way to gain exposure to a diverse range of stocks. Dividend Investing: Focus on stocks that pay regular dividends, as they can provide steady income and long-term growth. Growth Investing: Seek out companies with strong growth potential, looking for capital appreciation over the long term.

4. Fund Your Account

After you open your account and choose your investment type, the next step is to fund it. You can make an initial deposit to start your investments and set up automatic monthly or bi-weekly deposits to continue your investment journey.

5. Explore Stocks and ETFs to Buy

Once your account is funded, it's time to choose what to invest in. Carefully examine the financial performance of the stocks and ETFs you are considering. Use the following link for a more detailed guide on buying shares in Canada. Ideally, take the time to research and make informed decisions to maximize your returns.

For more detailed information, visit to learn how to buy shares in Canada.