How to invest in the FTSE 100

The FTSE 100 is an index of the 100 largest companies listed on the London Stock Exchange. Also known as the “footsie”, it features a host of globally recognizable brands. Keep reading to find out how to invest in the FTSE 100 from Canada.

How to invest in the FTSE 100 in Canada

1. Choose a trading platform. Compare the best stock trading apps and online trading platforms to find one that’s right for you. Look for a broker that offers low trading commissions and access to any assets and markets you want to trade, including the London Stock Exchange so you can trade FTSE 100 stocks and ETFs.
2. Open a trading account. You can open an online trading account by providing your personal information, contact details and proof of ID. You’ll also need to deposit funds before you can start trading, usually by Interac e-Transfer or electronic funds transfer.
3. Research investment options. Research FTSE 100 ETFs, mutual funds or individual companies to find the investment that suits your needs.
4. Place a buy order. You can place a market order to buy however many shares you want immediately, or place a limit order that will be executed when the price you want becomes available.
5. Monitor your investment. Check the performance of your investment regularly and make sure it still aligns with your financial goals.

What is the FTSE 100?

The Financial Times Stock Exchange 100 (FTSE 100) is a stock market index that features the 100 largest companies on the London Stock Exchange by market capitalization. This includes companies like AstraZeneca, HSBC, Shell, Unilever and BP.

What stocks are in the FTSE 100?

The FTSE 100 features several of the world’s largest companies and most recognizable brands. Check the table below for details of the 10 biggest companies in terms of market capitalization (as of the time of writing) that feature in the index.

How do companies make it into the FTSE 100?

To qualify for the FTSE 100, a company needs to meet the following requirements:

• Be listed on the London Stock Exchange.
• Be denominated in pounds (but from September 22, 2025, securities trading in euros or US dollars will also be eligible for the FTSE 100).
• Meet a minimum liquidity requirement.
• Be one of the top 100 companies on the London Stock Exchange in terms of market capitalization.
• Meet a UK nationality requirement (companies that are not incorporated in the UK are able to satisfy this requirement).

The constituents of the FTSE 100 are reviewed every quarter. The index is also market capitalization weighted, so a company’s weighting in the index is determined based on its market cap, with larger companies making up a bigger share of the index.

Two ways to invest in the FTSE 100 from Canada

It’s not possible to invest directly in the FTSE 100. However, there are two main ways to gain exposure to the companies featured in the FTSE 100.

1. Invest in a FTSE 100 ETF or mutual fund

You can get exposure to the index by investing in an exchange-traded fund (ETF) or mutual fund which tracks the performance of the stocks in the FTSE 100.

When you buy an FTSE 100 ETF or mutual fund, you are not investing directly in the companies in the index. Most FTSE 100 ETFs will hold shares in the companies in the index, but you won’t actually own company shares yourself simply for buying the ETF.

However, the ETF’s performance will generally aim to mirror the performance of the stocks in the index. For example, if the FTSE 100 increases in value by 2%, your ETF should also increase close to 2%.

To invest in an ETF or mutual fund, you’ll generally need to pay a fee of around 0.07% to 0.25% each year, as well as any trading commissions charged by the broker.

Types of ETF

Most FTSE 100 ETFs will fully track the performance of the FTSE 100, meaning the fund is weighted more towards the companies with higher market capitalization. However, there are some ETFs that invest in the companies in the index equally. This means the performance of smaller companies will have a larger impact on the ETF, relative to their size.

There are a couple of other ETF types to consider.

• Short ETFs. There are a number of short FTSE 100 ETFs, which effectively bet against the performance of the index. If the FTSE 100 goes down, the value of a short ETF should go up. Learn more about shorting stocks (or “short-selling”) in our guide.
• Leveraged ETFs. Leveraged ETFs multiply the gains and losses of the index, meaning you’ll get a higher or lower return relative to the size of your investment. You’re effectively borrowing extra capital to potentially increase your returns. For example, if you invest £1,000 in a FTSE 100 ETF with 10x leverage and it goes up 5%, you’d make £500 instead of £50. However, the same would apply to losses.

Examples of low-cost FTSE 100 ETFs and mutual funds

2. Buy FTSE 100 stocks individually

Your second option is to select individual companies from the FTSE 100 to invest in. This allows you to choose exactly which companies to add to your portfolio, and it’s easy to buy individual stocks from the FTSE 100 index using an online trading platform.

But this approach is a lot more time-consuming than investing in an ETF or mutual fund. You’ll also pay more in brokerage fees because you’ll need to make multiple trades — unless you can find an online broker that offers commission-free stock trading on the London Stock Exchange.

Are there any other ways to invest in the FTSE 100?

If you’re an experienced trader, you could consider trading FTSE 100 contracts for difference (CFDs). These financial derivatives allow you to predict the price movement of an underlying asset without ever taking ownership of that asset. However, CFDs are highly complicated and risky, so they’re not suitable for new investors.

Is now a good time to invest in the FTSE 100 in Canada?

It’s a good question. As of early September 2025, the UK economy is sluggish. With a weak economic outlook and political uncertainty, the Bank of England governor warned in June 2025 that UK economic growth would slow to a “more moderate pace” in coming times.

But at the same time, the FTSE 100 has recently been trading at all-time highs. This is in part due to the fact that around 80% of FTSE 100 company revenue is earned overseas, so domestic economic issues have less of an impact on the index than you might expect.

These all-time highs can also make investors hesitant to pull the trigger, instead waiting for a pullback and attempting to buy the dip. Of course, perfectly timing the market is more or less impossible, with the old cliché that time in the market is more important.

That said, whether or not now is a good time to invest in the FTSE 100 really depends on your own personal situation. What are your investment goals? What’s your time frame? How much risk are you willing to tolerate? Answering these questions will help you decide if FTSE 100 stocks or ETFs are right for you.

Compare FTSE 100 trading platforms

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Finder Score	Available Asset Types	Account Types	Stock Trading Fee	Monthly Account Fee
Promoted Finder Score 8.8 Great Interactive Brokers	Finder Score 8.8 Great	Stocks, Bonds, Options, Index Funds, ETFs, Forex, Currencies, Futures	RRSP, TFSA, Personal, Joint	min $1.00, max 0.5%	$0	Go to site More info Compare product selection Compare	loading
Finder Score 7.6 Great CIBC Investor's Edge	Finder Score 7.6 Great	Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, Precious Metals, IPOs	RRSP, RESP, RRIF, TFSA, Personal, Joint, Business, FHSA	$6.95	$0 if conditions met, or $100	Get 100 free online stock and ETF trades when you open a new account & get up to $15,000 in cashback when you transfer funds from outside CIBC to your new or existing account. Valid until March 31, 2026. T&Cs apply.	Go to site More info Compare product selection Compare	loading
Finder Score 7.4 Great Moomoo Financial Canada	Finder Score 7.4 Great	Stocks, Options, ETFs	RRSP, TFSA, Personal, FHSA	$1.49/stock	$0	Get up to $4,600 in trading perks. T&Cs apply.	Go to site More info Compare product selection Compare	loading
Finder Score 8.1 Great Qtrade Direct Investing	Finder Score 8.1 Great	Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, IPOs	RRSP, RESP, RRIF, TFSA, Personal, Joint, FHSA	$0	$0	Get 5% cash back on every dollar you invest up to $15,000 and 1% cash back on any amount above that. Plus, new clients receive unlimited free trades. Use code QTRADE2025. Valid until January 5, 2026. T&Cs apply.	Go to site More info Compare product selection Compare	loading
Finder Score 9.1 Excellent Questrade	Finder Score 9.1 Excellent	Stocks, Bonds, Options, Mutual Funds, Index Funds, ETFs, Forex, GICs, Precious Metals, IPOs	RRSP, RESP, RRIF, TFSA, Personal, Joint, FHSA	$0	$0	Get free contracts, no commissions and a 30 day free trial of Questrade Plus. Use offer code FREEOPTIONS. T&Cs apply.	Go to site More info Compare product selection Compare	loading

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Finder Score for stock trading platforms

To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score, the better the platform—it's that simple.

Read the full methodology

Why should I invest in the FTSE 100 from Canada?

There are several reasons why you might want to invest in FTSE 100 stocks and ETFs from Canada:

• Invest in major companies. From AstraZeneca and Unilever to Shell and Rolls-Royce, investing in the FTSE 100 allows you to add exposure to some of the world’s largest companies to your portfolio.
• Find new opportunities. Many Canadian investors focus on Canadian and US stocks, but investing in FTSE 100 stocks and ETFs provides you with access to new opportunities.
• Diversify your portfolio. Diversification allows you to spread your risk around so that you are not overly adversely affected by a downturn in a particular market or sector.
• Solid long-term performance. In the last 20 years, the FTSE 100 has delivered an average annualized return of 5%.
• Avoid US uncertainty. Investing in the FTSE 100 allows you to avoid some of the uncertainty surrounding US stocks brought about by the Trump administration’s trade wars.
• Decent average dividend yield. The FTSE 100 has a dividend yield of 3.36% at the time of writing, so your investments can also provide you with additional passive income.

Risks of investing in the FTSE 100

Before you invest in FTSE 100 stocks or ETFs, make sure you’re aware of the risks involved:

• Losing money. As with any investment, there is always the risk of losing money if you invest in the FTSE 100. There’s also the risk that the index may decline, so you may need to be willing to ride out any short-term losses and keep an eye on your long-term goals.
• Investing in what you don’t know. You need to be wary of investing in markets and sectors that you don’t follow closely or have any knowledge of.
• Currency risk. Fluctuations in the exchange rate can also impact your bottom line when investing in international markets. You’ll also need to factor currency conversion costs into your calculations.
• ESG concerns. Ethical investors may have concerns about investing in some prominent companies in the FTSE 100, including those that operate in the mining, fossil fuels and tobacco industries.

How much does it cost to invest in the FTSE 100?

The cost of investing in the FTSE 100 depends on a few factors, including:

• The broker you choose. While many brokers charge trading commissions, you may be able to find a platform that offers commission-free trading. Some brokers also have account maintenance fees if you don’t meet minimum balance requirements.
• How often you trade. Frequent traders will have higher brokerage costs than investors who buy and hold for the long-term.
• Any subscriptions you have. Your broker might offer paid subscriptions that allow you to access real-time market data, analyst ratings and research, and other features.
• Management fees. Investing in an ETF or mutual fund? Check the fund details to find out how much the management fee will be.
• FX fees. You’ll need to take exchange rate markups and currency conversion fees into account when converting from CAD to GBP and vice versa.

Bottom line

Investing in the FTSE 100 allows you to diversify your portfolio and gain exposure to some of the world’s largest companies. Even better, it’s easy to invest in FTSE 100 ETFs and stocks with an online trading account. Compare online brokerages to find the best platform to use to start trading.

FAQs about investing in the FTSE 100

• What other major stock indices are there?

  Other important stock indices include the S&P 500, the Dow Jones Industrial Average, the Nasdaq Composite Index, the EURO STOXX 50 and the Shanghai Composite.

• What is the best online trading platform?

  The best online trading platform for you will be easy to use, have low fees, and provide access to the assets and markets you want to trade. Make sure to compare a range of brokers before choosing a platform, and keep an eye out for the best brokerage signup bonuses when opening an account.

• What are the FTSE 100 trading hours?

  The trading hours for the FTSE 100 are the same as those for the London Stock Exchange: 8am – 4:30pm UK time.

• FTSE 100 vs FTSE 250 — what's the difference?

  Both the FTSE 100 and the FTSE 250 are indices made up of companies that trade on the London Stock Exchange. But while the FTSE 100 includes the 100 largest companies in terms of market capitalization, the FTSE 250 features the 101st to 350th largest companies on the exchange.

• Do the companies in the FTSE 100 always stay the same?

  No, the stocks in the FTSE 100 are the largest companies traded on the London Stock Exchange in terms of market capitalization. The constituents of the FTSE 100 are reviewed every quarter, so while some major names remain the same, other smaller companies will sometimes be replaced.

Written by

Tim Falk

Writer

Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio

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