Where I’d Put My $7,000 TFSA Contribution If I Were Starting Fresh This Year

Add this Canadian tech giant to your self-directed TFSA portfolio to unlock potentially years of tax-sheltered wealth growth.

Key Points
  • TFSA is a powerful tax‑free wealth‑building tool—don’t leave room sitting as cash; use it to hold high‑quality growth stocks for long‑term compounding.
  • Shopify (TSX:SHOP) is a top TFSA candidate—$215.66B market cap and down ~34.7% from its 52‑week high, yet it remains a dominant e‑commerce platform with strong merchant adoption (≈14% U.S. share).
  • With ongoing e‑commerce expansion and AI integrations boosting its product moat, Shopify is a compelling buy‑and‑hold growth pick for TFSA investors.

Calling the Tax-Free Savings Account (TFSA) a savings account feels more than unfair for the account type that the government introduced in 2009. The account is great for parking your money and letting it make you more through interest income without incurring taxes. However, it has the potential to do so much more for you.

The TFSA is one of the most powerful wealth-building tools available to Canadians. Those eligible for one and not having it are wasting so much potential. Canadians using it solely to hold cash are almost just as guilty. Each dollar of growth inside this registered account is free from taxes because you contribute to it using after-tax dollars.

The TFSA isn’t limited to cash. You can use the account to hold other assets like Guaranteed Income Certificates (GICs), if you’re into fixed-income options. My favorite way to use the TFSA is to allocate some space to hold high-quality growth stocks due to a significantly greater potential for returns than with fixed-income assets or interest income.

The best stocks to hold in a TFSA share the common trait of being well-positioned to grow for years, potentially decades. The right growth stocks can turn the most modest contributions into far more meaningful amounts in the long run. Today, I will discuss a TSX tech stock that fits the bill perfectly for an ideal TFSA holding.

moving into apartment

Source: Getty Images

Shopify

Shopify Inc. (TSX: SHOP) is a $215.7 billion market-capitalization giant in the Canadian tech space, particularly the e-commerce industry. As of this writing, the stock is down by 34.7% from its 52-week high. Despite the recent pullback suggesting danger for investors, I think Shopify warrants a place in any self-directed TFSA portfolio geared for long-term wealth growth.

Major industry player

Placing Shopify in the Canadian e-commerce space doesn’t do it justice. The company offers a platform that lets merchants of all sizes create an online presence, wherever they are in the world. It helps with everything from building their stores, managing inventory, processing payments, fulfilling orders, and selling across multiple channels. The company’s payment platform lets merchants accept and process payments without involving third parties.

It has become massively popular among merchants, providing a significant boost to the booming e-commerce industry worldwide. The company even has 14% e-commerce market share within the US, second only to the global giant Amazon. Securing that portion of the market share despite competing with Amazon says a lot about the demand for Shopify’s platform and the value it offers to end-consumers and retailers.

Foolish takeaway

The e-commerce space currently accounts for less than a fifth of total retail sales worldwide, but the number has been growing significantly over the years. With the rise of Artificial Intelligence (AI) integration, particularly with agentic AI, the growth of e-commerce might accelerate further.

Shopify has already captured the initial buzz surrounding agentic AI in the e-commerce space and is well-positioned to continue benefitting from it. In turn, the company’s investors are also set to leverage potentially outstanding growth in the coming years. If you still have unused contribution room in your TFSA, I would advise considering leaving some of it to hold Shopify stock in your portfolio.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.

More on Tech Stocks

The RRSP (Canadian Registered Retirement Savings Plan) is a smart way to save and invest for the future
Dividend Stocks

Can You Have a TFSA, RRSP and FHSA at the Same Time? Yes. Here’s How They Fit Together

These three accounts can work together, with the FHSA serving a home purchase, the TFSA offering flexibility, and the RRSP…

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

BlackBerry Stock Jumped 8% On Tuesday: What’s Going on ­– and Is It a Buy?

A growing QNX royalty backlog provides a solid base for future growth and is likely to support BlackBerry’s business.

Read more »

A shopper makes purchases from an online store.
Tech Stocks

What Investors Need to Know About Owning U.S. Stocks in a TFSA

Do you own U.S. stocks in a TFSA? Learn how the 15% dividend withholding tax works, why Amazon pays none,…

Read more »

The virtual button with the letters AI in a circle hovering above a keyboard, about to be clicked by a cursor.
Tech Stocks

I’d Keep Constellation Software Stock Despite its 3% Organic Growth: Here’s Why

Constellation Software's acquisition strategy has driven the company's success. The growth runway remains strong.

Read more »

data center server racks glow with light
Tech Stocks

AI Data Centres Need Power: This Canadian Stock Just Won a 1GW Contract

Enerflex has landed substantial data centre equipment work. The opportunity now depends on what reaches shareholders after delivery.

Read more »

man makes the timeout gesture with his hands
Tech Stocks

The Tax Rules Canadians Should Know Before Starting a Side Hustle

A side hustle can fund investments, but taxes, business expenses, and sales-tax obligations determine how much money is actually yours.

Read more »

atomic particle
Tech Stocks

This TSX Tech Stock Trades About $1,000 Below Its Consensus Target

Constellation's consensus target sits about $1,038 above its dated share price, while acquisition-driven growth determines whether the optimism is earned.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

Celestica Raised Its 2026 Revenue Outlook to US$20.5 Billion: I Think the Stock Is a Buy Now

Here’s why Celestica’s growing role in AI infrastructure and its recent pullback make it one of the top Canadian stocks…

Read more »