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How to invest in the TSX
What you need to know to start trading stocks and ETFs on the Toronto Stock Exchange.
If you want to invest in Canadian stocks, the Toronto Stock Exchange (TSX) is the place to do it. From blue-chip companies and growth stocks to ETFs and mutual funds that track TSX market indexes, keep reading to find out how to invest in the TSX.
Key takeaways
- The TSX is the Toronto Stock Exchange, one of the world’s largest stock exchanges that features over 1,500 listed companies.
- There are two main ways to invest in the TSX: buying stocks of individual companies or buying shares of ETFs or mutual funds that track TSX indexes.
- You will need to open an account with an online broker to start investing in the TSX.
How to invest in the TSX
Ready to start trading stocks and ETFs on the TSX? Here’s what you need to do.
1. Choose a trading platform. Compare online brokers to find one that’s right for you. Look for a broker that offers low fees or commission-free stock trading, an easy-to-use trading platform, and access to all the markets you want to trade (including the TSX). Learn more about choosing a trading platform in our guide to the best stock trading apps in Canada.
2. Open an account and deposit funds. Provide your personal information, contact details and proof of ID to open an account with the broker of your choice. You will then be able to deposit money into your account by e-Transfer or electronic funds transfer.
3. Choose an investment. Research TSX stocks, ETFs and mutual funds to invest in. Look for an investment that suits your financial goals and your risk tolerance.
4. Place a buy order. Enter the number of stocks you want to buy. You can simply buy at the current market price or, if you’d prefer, set a limit order that will automatically execute when the price you want becomes available.
What is the TSX?
The Toronto Stock Exchange (TSX) is a stock exchange based in Toronto, Ontario. It’s Canada’s largest stock exchange, and one of the 10 largest exchanges in the world by market capitalization.
The TSX was founded in 1861 and became fully electronic in 1997. There are over 1,500 companies listed on the TSX, including those operating in the financial, energy and mining industries.
But when you see financial reports that mention the TSX, they’re often referring to the S&P/TSX composite index. This is Canada’s main stock index that tracks over 200 of the largest companies on the Toronto Stock Exchange.
What is the TSX Venture Exchange?
The TSX Venture Exchange (TSXV) is for smaller, emerging companies with market caps too small to be listed on the TSX. Many resource exploration and high-tech companies are listed on the exchange.
What are the largest companies listed on the TSX?
The Big Five banks feature prominently among the largest companies featured in the TSX. Check out the table below for details of the 10 largest TSX companies in terms of market capitalization.
| Company | Ticker | Stock price | Market cap | Buy now on CIBC Investor's Edge |
|---|---|---|---|---|
 | RY | $145.46 | $206.6 billion | Buy now |
 | SHOP | $152.41 | $226.7 billion | Buy now |
 | TD | $80.90 | $140.6 billion | Buy now |
 | ENB | $47.71 | $102 billion | Buy now |
 | BN | $45.81 | $103.6 billion | Buy now |
 | BAM | $53.27 | $87.5 billion | Buy now |
 | BMO | $122.93 | $89.3 billion | Buy now |
 | AEM | $161.41 | $81 billion | Buy now |
 | BNS | $65.50 | $81.7 billion | Buy now |
 | CM | $84.72 | $77.3 billion | Buy now |
Two ways to invest in the TSX
1. Buy stocks in companies listed on the TSX exchange
The first way to invest in the TSX is to buy stocks in individual companies that trade on the TSX. You’ll need to research a range of TSX-listed companies—blue-chip stocks are a good place to start — choose which ones you want to invest in, and then buy shares in each of those companies.
The benefit of this approach is that it allows you to pick and choose each investment in your portfolio. The downside is that it takes time, and unless your broker offers commission-free trading, brokerage fees can add up.
2. Buy shares of TSX ETFs or mutual funds
Your second option is to invest in an index fund ETF or mutual fund. Index funds track the performance of a “basket” of stocks on the TSX, so if the TSX rises, the value of your ETF or mutual fund units should too.
You could invest in an ETF that tracks the S&P/TSX 60 index of large-cap stocks, a mutual fund that tracks the 211 companies in the S&P/TSX Composite Index, or a fund that targets specific industries or companies of different sizes.
Investing in a basket of stocks is generally less volatile than investing in just one single stock, and it’s often less risky than riding the ups and downs of individual stocks.
As an example, both BCE Inc. and Royal Bank of Canada feature in the TSX 60. In the year to October 1, 2025, BCE’s stock price fell more than 30%, while RBC’s increased by over 22%. But during the same period, the TSX 60 increased by over 23%, demonstrating how an index fund can help you profit even when some individual stocks aren’t performing well.
Related: How to invest in the S&P 500
Examples of low-cost TSX ETFs and mutual funds
| Fund | Ticker | Type | Expense ratio |
|---|---|---|---|
| BMO Canadian Equity ETF Fund – Series A | BMO144 | Mutual fund | 0.62% |
| BMO S&P/TSX Capped Composite Index ETF | ZCN | ETF | 0.06% |
| iShares S&P/TSX 60 Index ETF | XIU | ETF | 0.18% |
| iShares Core S&P/TSX Capped Composite Index ETF | XIC | ETF | 0.06% |
| RBC Canadian Equity Fund | RBF609 | Mutual fund | 0.77% |
| Vanguard FTSE Canada All Cap Index ETF | VCN | ETF | 0.06% |
Other investment options to buy on the Toronto Stock Exchange
There are a number of other investment products available on the TSX besides the stocks and funds mentioned above.
Bonds
Bonds allow you to lend money to governments or corporations. The government or corporation you lend money to will then pay you back the principal along with interest at either a fixed or variable rate.
Bonds can provide a steady source of income and are less volatile than stocks. Find out more in our guide to bonds and how they work.
Options
An option is a contract that lets you speculate and bid on how an asset is going to perform. It gives you the right, but not the obligation, to buy or sell an underlying asset such as a stock at an agreed price before a certain date.
You can trade options through several major Canadian online brokers. Learn more in our full guide to options trading.
Commodities
Commodities are tradeable raw materials that come in many forms, from gold and oil to wheat and livestock. There are several ways to trade commodities in Canada, from investing in the stocks of companies that produce or harvest commodities to investing in commodity ETFs or mutual funds. Other options include futures contracts and CFDs, which are best left to experienced traders, as well as the typically inconvenient option of buying and storing the physical commodity.
Find out more in our guide to trading commodities in Canada.
Futures
When you enter into a futures contract, you agree to buy or sell an underlying asset (such as a stock market index or a commodity) at a specified price on an agreed future date. You can use futures to speculate on the price movement of assets or as a hedge in case the market moves against you.
Futures trading is available through a limited number of Canadian brokers. Find out how it works in our guide to futures trading in Canada.
Real estate investment trusts
A real estate investment trust (REIT) gathers funds from investors to create a portfolio of income-generating real estate investments. Units of REITs can typically be bought and sold on stock exchanges just like stocks, allowing you to gain exposure to real estate assets without actually having to buy physical properties and manage them.
Compare trading platforms to invest in the TSX
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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.
Is now a good time to invest in the TSX?
The S&P/TSX composite index hit a record high at the start of October 2025 and is up over 20% for the year so far. The index has been helped by a weak Canadian dollar and interest rate cuts, and financial and mining stocks have seen strong performances. At the same time, there’s still plenty of market uncertainty surrounding the ongoing trade war with the US.
With the TSX at all-time highs, some investors may be tempted to wait for a market correction before dipping their toe in the water. But timing the market perfectly is more or less impossible, so it’s worth remembering the old cliche that time in the market beats timing the market.
While it’s impossible to predict what will happen in the future, you may want to consider investing in strong stocks that are likely to withstand any future market fluctuations, like Canadian blue-chip stocks or ETFs that track the performance of large-cap companies.
Dive deeper: Best Canadian stocks to buy right now
Why should I invest in the TSX?
There are several good reasons why the TSX could be the right investment for you:
- Two ways to make money. When you invest in a stock or fund listed on the TSX, you can make money if you buy low and sell for a higher price. Many companies and funds also pay out dividends to investors, providing a passive source of income.
- Invest in Canadian companies. The Toronto Stock Exchange is the largest stock exchange in Canada and features the stocks of major Canadian companies.
- Stability. Canada offers economic and political stability, so the TSX doesn’t typically experience the same high volatility as markets in some other countries around the world.
- It’s easy to create a diversified portfolio. With ETFs and mutual funds that track the performance of the S&P/TSX Composite Index, it’s easy and affordable to invest in a diversified portfolio of stocks.
Risks of investing in the TSX
There are also a few disadvantages you should be aware of if you’re thinking about investing in the TSX:
- There’s no guarantee of making money. All investments come with some risk. There’s no guarantee that your TSX investments will increase in value.
- Smaller than the US market. You’ll find a wider range of companies to invest in if you’re willing to put your money into US stocks.
- Home country bias. Be wary of home country bias skewing your portfolio too heavily towards Canadian stocks. This could cause you to miss out on opportunities elsewhere, such as the growth of major stocks like Apple or Tesla over the past decade.
- Sector weighting. As of September 2025, over 32% of the S&P/TSX Composite Index weight is made up of companies in the financial sector. Energy (15.9%) and materials (14.8%) are the next two most highly weighted sectors. Tech and pharmaceutical companies make up much smaller percentages, so you may need to look to other markets to gain exposure to these sectors.
Bottom line
It’s easy to invest in the TSX with an online trading account. Compare online brokers to find the trading platform that’s right for you, then research TSX stocks, ETFs and mutual funds before deciding where to invest your money.
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