Tips for Newcomers Starting with Self-Directed Investing
Managing your own investments may be an appealing option for you as a newcomer to Canada. After all, with a self-directed investing account, you have the flexibility to make your own choices about where to put your money.
In this article, we’ll share what self-directed investing involves, some first steps to get started, and a few resources that may be helpful.
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How Self-Directed Investing Works
Self-directed investing[1] gives you the opportunity to make your own investment decisions, rather than relying on a financial advisor. You may choose which stocks, bonds, exchange traded funds (ETFs), or other products to include in your portfolio. This approach matches your investments to your risk tolerance and goals.
How Investing Can Work for You
Investing is a way to put your money to work, rather than letting it sit in a bank account with limited growth. By selecting investment products that suit your goals, you may see your money grow over time. This can help you plan for short-term or long-term financial needs, like homeownership, retirement, or building a safety net. For newcomers to Canada, taking small steps and learning along the way may help you feel more confident about managing your money and reaching your goals.
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Where to Start?
A little knowledge ahead of time goes a long way. You may wish to take some time to learn more about investing in Canada[2].
As you begin to do some research, consider your objectives and what you hope to achieve through investing.
Define Your Investment Goals
Identifying your goals may help you make the right choices when it comes to your investments.
Some common goals may include:
Retirement Financial Independence, Retire Early (FIRE): Save for the long-term to help fund your retirement goals.
Secondary Source of Income: Invest to potentially generate additional income beyond what is earned through your job or business.
Building Wealth: Grow your wealth to help you meet key milestones such as a child’s education, or their wedding.
Home Ownership: Use your investments to save for a down payment on a home in Canada.
Once your goals are clearly defined, it may also help to think about the level of risk you’re willing to accept and the timeline for your investments.
How to Set Up an Investment Account
To begin self-directed investing, the first step is creating your own investment account. This account will keep all your investments in one place. Many banks and investment platforms allow you to open an account online, and visiting a reliable provider like TD Direct Investing may give you a clear overview of your options and guide you through the process.
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Pick an Online Broker
Starting your investing journey means selecting an online broker – not a person, rather a service that allows you to trade and manage your investments online. Think about what matters most to you in an investing service before making a decision.
Choosing an Investment Account[3]
Self-directed investment accounts generally come in two types[4]:
Registered Accounts: These include options such as a First Home Savings Account (FHSA)[5], or a Registered Retirement Savings Plan (RRSP), which may provide tax benefits, like tax-free growth, reduction of taxable income or a blend of both.
Non-Registered Accounts: These accounts tend to be more flexible but don’t offer special tax advantages. You may need to pay taxes on any income or capital gains earned within the account.
Both types of accounts have pros and cons, depending on your personal financial goals and tax situation. It’s helpful to understand what these pros and cons may mean to you.
Choose a Platform that Works for You
When it comes to investing platforms, choose one that is easy to navigate and offers the features you need. Some brokers offer helpful features like research tools, tutorials, and access to support staff to assist with your investment choices. You may want to confirm that a variety of investment types are available so you can build a balanced portfolio.
Understand the Investment Options in Canada
Every investment option carries different risks and rewards, and the best fit may depend on your financial goals and tolerance for ups and downs in the market. Here are the most popular types:
Stocks: Buying shares lets you own a piece of a company. Stocks may be more unpredictable, but they may offer higher returns over time.
Bonds: Think of bonds as loans you give to a company or government. They may be more stable than stocks, but the potential returns may be lower.
Mutual Funds & ETFs: These funds pool money from many investors to buy a mix of stocks, bonds, or other assets. They may make it easier to diversify your investments, spreading out the risk
Learning Resources for Your Canadian Investing Journey
As you begin your self-directed investing journey, do your research and explore some reliable resources for newcomers to Canada that may help guide you before taking the first step. By educating yourself and making informed decisions, you may begin to build your confidence in shaping a financial future in Canada. Whether you’re investing for retirement, income or other goals, self-directed investing may be the answer that brings you flexibility and control over your financial decisions. Remember to take your time, educate yourself, and seek out helpful resources to guide you along the way.
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Why Choose TD?
More than 160 years of helping Canadians:
TD has a proud history of delivering financial solutions to Canadians for more than 160 years. TD also brings a century of experience helping newcomers navigate the unique challenges of the Canadian banking system.
With over a thousand branches, and the ability to also serve you in more than 80 different languages, TD has become one of the largest and most trusted banks in Canada, now serving 16 million Canadians.
TD offers online support and resources of interest to newcomers on topics such as banking basics, moving to Canada, credit score essentials, and more. TD is open longer hours for your convenience and has thousands of ATMs across Canada to help you take care of your everyday banking needs quickly and easily.
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[1] TD Canada Trust, Direct Investing, Toronto, TD Bank Group, 2025, https://www.td.com/ca/en/investing/direct-investing, (accessed 29 September 2025).
[2] TD Canada Trust, Investing in Stocks for Beginners, Toronto, TD Bank Group, 2025, https://www.td.com/ca/en/investing/direct-investing/articles/investing-in-stocks-for-beginners, (accessed 29 September 2025).
[3] TD Canada Trust, Accounts, Toronto, TD Bank Group, 2025, https://www.td.com/ca/en/investing/direct-investing/accounts, (accessed 29 September 2025).
[4] MoneyTalkGo, Registered vs Non-Registered Accounts, Toronto, MoneyTalkGo, 2025, https://www.moneytalkgo.com/registered-vs-non-registered-accounts, (accessed 29 September 2025).
[5] Refers to the TD Waterhouse Self-Directed Retirement Savings Plan, TD Waterhouse Tax-Free Savings Account, and the TD Waterhouse Self-Directed First Home Savings Account.
