Anderson was born in The Mearns, Scotland. Orphaned at the age of ten, he started his career appearing on the stage with a travelling dramatic company in 1830. At seventeen, he began performing magic and in 1837, at the age of twenty-three, he performed at the castle of Lord Panmure, whose endorsement of Anderson inspired him to put a touring show together which lasted for three years. In 1840, Anderson settled in London, opening the New Strand Theatre. Sir Walter Scott is said to have given him the stage name, The Great Wizard of the North.