What to Invest in Right Now in Canada [2025] | Top 5 Stocks

Summary: In this guide, we explore what to invest in right now in Canada. The most convenient way to do so is through a reputable brokerage platform, Interactive Brokers, which offers a wide range of investment opportunities.

Investing: Why it matters

Investing is all about putting your money to work so that it has the potential to grow over time. Instead of letting your savings sit idle, investing allows you to take advantage of the power of compound interest and beat inflation. Therefore, by carefully selecting where you invest, you can build wealth and achieve your financial goals.

Who can invest in Canada?

The good news is that investing in Canada is not restricted to a select few. In fact, anyone who has a desire to grow their wealth can invest in stocks on Canadian exchanges like the Toronto Stock Exchange and the Venture Exchange.

• Canadian residents: Individuals residing in Canada have unrestricted access to a wide array of investment possibilities. They are eligible to establish accounts such as Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), and non-registered investment accounts;

• Permanent residents: Immigrants holding legal permanent residency status in Canada can also enjoy investment opportunities. They can open diverse investment accounts, including RRSPs and TFSAs, and can invest in assets like stocks, bonds, mutual funds, and REITs, among other options;

• Non-residents: Irrespective of Canadian residency or citizenship, it’s possible for individuals who are non-residents to invest funds in Canada. Hence, non-residents have the ability to acquire Canadian stocks, engage in investments within Canadian businesses, and explore alternative investment avenues.

What to invest in right now in Canada: Top 5 stocks

After careful research, we have concluded that these five stocks will be all the rage among Canadian investors in 2025.

Royal Bank (RBC)

Royal Bank of Canada (RBC) stands as a beacon of stability and innovation within the banking sector. With a legacy spanning generations, RBC has established itself as a household name, offering a myriad of financial services to individuals, businesses, and institutions. By buying its stock (TSX: RY), you not only align yourself with a formidable financial institution but also position yourself to reap the rewards of its enduring success.

Pros and cons of investing in the Royal Bank of Canada (RBC)

Canadian Natural Resources

Canadian Natural Resources (TSX: CNQ) is a significant player in the energy sector. What’s more, it’s perfect for those with an appetite for the dynamic world of oil and natural gas. It stands as a key participant, offering potential investors a chance to partake in the vast potential of energy resources. Still, it’s key to tread with awareness, as the energy domain is renowned for its volatility, often swayed by the capricious dance of commodity prices.

Pros and cons of investing in Canadian Natural Resources

Loblaw

A robust contender within the vibrant retail sector, Loblaw (TSX: L) beckons to those intrigued by the intricacies of consumer goods. With a network encompassing supermarkets and pharmacies, it stands as a cornerstone of Canada’s retail landscape.

For potential investors, it offers a gateway into the world of consumer goods and the allure of potential dividends. Nevertheless, navigating this landscape requires a discerning eye, as the retail industry dances to the tune of diverse market forces.

Pros and cons of investing in Loblaw

TFI International

In the ever-expanding tapestry of commerce, TFI International (TSX: TFII) occupies a crucial position, orchestrating the movement of goods across the North American landscape. For prospective investors, it unveils a realm intertwined with the growth of e-commerce and global trade. However, venturing into this realm necessitates a discerning perspective, as the transportation and logistics sector navigates multifaceted challenges.

Pros and cons of investing in TFI International

Dollarama

With a chain of dollar stores catering to a diverse array of shoppers, Dollarama (TSX: DOL) stands as a focal point within the retail sector. For potential investors, it unravels the opportunity to gain insights into the retail landscape and the intricacies of consumer behavior. Yet, treading these retail aisles requires a discerning perspective, as the retail sector dances to the rhythm of diverse market forces.

Pros and cons of investing in Dollarama

How to invest in Canada: Step-by-step process

In case you’re interested in buying any of the stocks above, you can follow our simple step-by-step guide on how to invest money in Canada below.

Step 1: Educate yourself and set clear goals

Before you start investing, it’s important to understand the basics of investing, different investment types (stocks, bonds, ETFs, etc.), and the risks involved. Nevertheless, you should define your investment goals. For example, are you investing for retirement, a major purchase, or wealth accumulation? With research on investing and your goals set, you’ll be able to better guide your investment decisions.

Step 2: Choose a brokerage

Next up, you’ll need to select a reputable brokerage platform to facilitate your investments. Namely, there are numerous brokerages out there. Nevertheless, you should look for those that have access to your desired stock. But besides that, it’s also key to opt for one that offers low fees, a user-friendly interface, and access to the Canadian stock market.

When it comes to our go-to brokerage for investing in Canada, it’s Interactive Brokers. The reason is actually pretty simple. IBKR provides a diverse range of investment opportunities and other features, including:

• Low commissions and financing rates to maximize returns;
• Global access to stocks, futures, bonds, and funds;
• Trading efficiency with advanced technology;
• Secure trading experience.

Step 3: Diversify your portfolio and start small

Although technically not a step, we must mention that you shouldn’t put all your eggs in one basket. Diversification involves spreading your investments across different asset classes and industries to reduce risk. So, begin with a small amount that you’re comfortable investing, and as you gain confidence and knowledge, you can gradually increase your investments and potentially make bigger profits.

Step 4: Invest in companies you understand

Although all the previously-mentioned companies are well-known, it’s key not to underestimate doing research on them. The thing is—when starting out, you must consider investing in companies whose products or services you are familiar with. This can make it easier to evaluate their potential for growth and make informed decisions.

Step 5: Monitor and adjust

Smart investing doesn’t end once you buy a stock. In fact, it’s just the beginning of the journey. What we’re on about is regularly reviewing your investments and making adjustments in case they are needed. As such, make sure that you follow any news related to the companies that you’re a shareholder in, as it may turn out essential in garnering profit.

Common mistakes to avoid when investing in Canada

Regardless of which company you pick to invest in, it’s key not to rush things and be wary of common investor mistakes. Some of these include:

• Emotional investing: Making investment decisions based on emotions can lead to poor choices. Stay objective and stick to your investment strategy;

• Chasing fads: Avoid investing in companies or sectors solely because they are popular at the moment. Trends can change quickly, impacting your returns;

• Neglecting research: Failing to research and understand a company before investing can lead to unexpected losses. Always conduct due diligence.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about what to invest in right now in Canada

Can I invest with a small budget?

Yes, many brokerages allow you to start investing with a relatively small amount of money.

What are dividends?

Dividends are a portion of a company’s earnings distributed to its shareholders as a form of income.

Is investing risky?

All investments carry some level of risk. Therefore, it’s important to assess your risk tolerance and invest accordingly.

Should I invest for the short term or the long term?

Both options have their merits. Short-term investing involves higher risks but offers quicker returns, while long-term investing aims for steady growth over time.