Investing 101 for Canadians

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Part 1: What is the stock market?

When you buy a share, you own a small part of a company. If the company grows in value, the share can be worth more. If it struggles, it can be worth less.

The stock market isn't one building. It's a group of exchanges and trading systems where people buy and sell shares. The Toronto Stock Exchange is one you've probably heard of. A trade happens when a buyer and a seller agree on a price, which is why prices move all day.

Prices go both ways, and nobody can promise you a return.

What if your investment firm goes under? If a CIPF member firm becomes insolvent and cash or securities it held for you are missing, CIPF can cover them, up to $1 million for all your general accounts combined (cash, margin, TFSA and FHSA accounts, for example). Retirement accounts like RRSPs have their own separate $1 million limit. CIPF doesn't cover a drop in the value of your investments.

Watch the original: Wealthsimple, Lesson 1: What is the Stock Market?

Part 2: How do I start investing?

Before you put money in, check four things.

Who you're dealing with. Anyone selling investments or giving investment advice generally has to be registered with a provincial securities regulator. Look them up before you send money.

Which account. For 2026, the TFSA adds $7,000 of new room on top of any unused room. RRSP room is 18% of last year's earned income, up to $33,810, minus any pension adjustment. The FHSA gives you $8,000 a year, with a $40,000 lifetime limit. Your own numbers are in your CRA account. More detail: TFSA, RRSP and FHSA limits for 2026 and our FHSA guide.

What it costs. Commissions, fund fees (the MER), account fees and currency conversion all come out of what you keep. Ask what you'll pay to buy, hold and sell.

What's protected. CDIC covers eligible deposits, like savings and GICs, up to $100,000 per insured category at a member institution. Stocks, bonds, ETFs, mutual funds and crypto aren't covered by CDIC.

Watch the original: Wealthsimple, Lesson 2: How Do I Start Investing?

Part 3: Should I save or invest?

Start with one question: when will you need this money?

If you might need it soon, keep it somewhere easy to reach, like a savings account. Cash and bank accounts are easy to get money out of. Investments can be down on the very day you need to sell.

If the money is for goals years away, investing gives you a better shot at growth that keeps up with inflation, but it comes with more risk. Savings interest is often lower than inflation, so cash can slowly lose buying power.

Investments can fall below what you put in. Nothing is guaranteed.

Watch the original: Wealthsimple, Lesson 3: Should I Save or Invest?

What's next in the series

Coming up, in this order: the rules of investing, getting your finances in order, automating, working with an advisor, socially responsible investing, picking stocks, and retirement. Each part gets added here when it's published.

Related guides

• FHSA guide
• TFSA, RRSP and FHSA limits for 2026
• Wealthsimple fees explained
• Start here: all guides