Self-directed investing means managing your own investment portfolio without a financial advisor or robo-advisor. It's cheaper and simpler than most people think — here's how to start.
A 1% fee difference on a $100,000 portfolio over 30 years at 7% growth = approximately $190,000 less in savings. That's the cost of having an advisor.
Before investing, maximize registered accounts: TFSA first (fully tax-free growth and withdrawals), then RRSP (tax-deductible contributions, taxed on withdrawal). Both shelter investment gains from tax, making them far superior to non-registered accounts for most investors.
Choose between Wealthsimple Trade (commission-free, easiest) or Questrade (free ETF purchases, more features). Both support TFSA, RRSP, and FHSA. Open online in about 15 minutes.
For most Canadians, a simple one-fund approach works: buy XEQT (iShares) or VEQT (Vanguard) in your TFSA and RRSP. These hold thousands of stocks globally and rebalance automatically. MER is around 0.20%.
Set up automatic contributions — even $100–$200/month. Dollar-cost averaging (investing fixed amounts at regular intervals) removes the temptation to time the market and builds wealth consistently.
Markets will fall. History shows the long-term trend is upward. The biggest mistake is selling during a crash. Stay the course, keep contributing, and let compounding do its work.
| Scenario | Recommended Priority |
|---|---|
| Income under $50,000/year | TFSA first (RRSP deduction less valuable) |
| Income $50,000–$100,000 | TFSA then RRSP |
| Income over $100,000 | RRSP first for tax deduction, then TFSA |
| Buying a home within 5 years | FHSA first ($40K lifetime, tax-free for home purchase) |
| Portfolio | ETF Ticker(s) | MER | Description |
|---|---|---|---|
| One-fund (aggressive) | XEQT or VEQT | 0.20–0.24% | 100% global equities |
| One-fund (growth) | XGRO or VGRO | 0.20–0.25% | 80% equities, 20% bonds |
| One-fund (balanced) | XBAL or VBAL | 0.20–0.25% | 60% equities, 40% bonds |
| Three-fund (Canadian Couch Potato) | VCN + VXC + ZAG | ~0.15% | DIY rebalancing required |
Using regulated Canadian brokerages (Wealthsimple, Questrade, bank brokerages) that are CIPF members means your account is protected up to $1 million if the broker fails. Investment risk (market volatility) is always present regardless of who manages your money.
Wealthsimple Trade has no minimum. Questrade requires $1,000 to start. You can buy a single share of XEQT for around $30–$35. Starting with even $500–$1,000 and contributing regularly is far more important than starting with a large amount.
The TFSA contribution limit for 2025 is $7,000. If you've never contributed, your total cumulative room (for someone eligible since 2009) is approximately $95,000 in 2025. Check your CRA MyAccount for your exact available room.
One-fund ETFs (XEQT, VEQT, XGRO) rebalance automatically — you never need to do anything. Three-fund portfolios typically need annual rebalancing to maintain target allocations. Many investors rebalance once per year or when allocations drift by more than 5%.
Yes. Buying a single one-fund ETF like XEQT in a TFSA requires no investing knowledge beyond knowing what you're buying. Many Canadians with no financial background have successfully invested this way for years. Resources like Canadian Couch Potato (canadiancouchpotato.com) provide excellent free guidance.