How to buy JFrog stock (FROG) in Canada

It's possible to buy JFrog stock through a Canadian trading platform that provides access to international stock exchanges.

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As of September 16, JFrog stock began trading on the Nasdaq Global Select Market. There has been a lot of interest in this promising software-as-a-service (SaaS) company, however, there’s no guarantee that its upward trajectory will continue.

US-based JFrog is listed on the Nasdaq Global Select Market — a US stock exchange. So, if you want to buy into JFrog, you’ll need to use a brokerage that provides access to international stocks. You should note that not all Canadian trading platforms offer access to US IPOs. Some platforms don’t offer access to international investments at all or only provide access to a limited range of investment opportunities.

But don’t worry — you still have options. We’ll walk through what you need to know about buying JFrog stocks from Canada.

Note: all dollar amounts on this page are in US dollars unless otherwise stated.

Can I buy JFrog shares from Canada?

You can’t buy JFrog shares on a Canadian stock exchange like the TSX or CSE, but you can from a Canadian-based brokerage that offers international access to US companies listed on US stock exchanges. Specifically, you’ll need a brokerage that provides access to the Nasdaq Global Select Market, the stock exchange on which JFrog shares are traded.

Two Canadian online trading platforms that provide access to stocks listed on the Nasdaq exchange are Questrade and Wealthsimple. View our reviews of each to learn more.

The process of buying stocks in a US company while living in Canada is the same as buying stocks in a Canadian company. You buy and sell using your online trading account or through an investment broker who handles US stocks.

How to invest in the Nasdaq from Canada

Tax implications of buying US stocks in Canada

Agreements between Canada and the US require Canadians holding US stock investments to pay the US Internal Revenue Service (IRS) a 15% withholding tax on any dividends earned on their US stocks. Interest earned from bonds or other interest-yielding US investments are similarly taxed at a rate of 10%.

An exception is made for stock investments held in trust exclusively designed to provide retirement income. Such trusts include RRIFs, LIRAs, LIFs, LRIFs and Prescribed RRIFs. RRSPs are also exempt from US withholding tax if you own US investments in the form of US stocks, bonds or ETFs.

Investment accounts that do not qualify for this exemption include RESPs, TFSAs and RDSPs.

All income from investments, including foreign investments, must be declared as part of your income on your Canadian tax return. Unless your US earnings are exempt from withholding tax, this means you’ll be double taxed on those earnings — first by the IRS, then by the CRA.

How to invest in US stocks from Canada

How to buy shares in JFrog

Here’s what to expect of the JFrog investment process:

  • Compare share trading platforms in Canada. If you’re a beginner, look for a platform with low commissions, expert ratings and investment tools to track your portfolio. Narrow down top brands with our comparison table.
  • Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and bank information. Fund your account with a bank transfer, credit card or debit card.
  • Search for JFrog. Find the stock by name or ticker symbol: FROG. Research its history to confirm it’s a solid investment against your financial goals.
  • Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until JFrog stock reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  • Decide on how many to buy. Weigh your budget against a diversified portfolio that can minimize risk through the market’s ups and downs. You may be able to buy a fractional share of JFrog, depending on your broker.
  • Check-in on your investment. Congratulations, you own a part of JFrog. Optimize your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

What we know about the JFrog IPO

On September 16, JFrog’s stock launched on the Nasdaq Global Select Market under the ticker symbol “FROG.” Initially, around 11.6 million shares were up for grabs, including 8 million shares from JFrog and 3.6 million shares from selling shareholders.

The stock launched at a price of $44 per share, and the deal was underwritten by Morgan Stanley, J.P. Morgan and BofA Securities. Investors interested in purchasing shares must be ready with a brokerage account.

What we know about JFrog’s balance sheet

In 2018, JFrog raised a sizable $165 million from private investors. TechCrunch reports that this Series D funding round resulted in a company valuation of $1.2 billion.

So, how are its financials? JFrog states that 85% of its revenue comes from multi-product subscriptions and that it’s experienced 50% year-over-year revenue growth for the six months ending June 30, 2020.

In 2018, the company reported a net loss of $26 million on $63.5 million in revenue. And in 2019, JFrog experienced a net loss of $5.3 million on $104.7 million in revenue.

JFrog isn’t profitable — yet. But this is common in the SaaS sector where growth is prized over profit. And based on its financial reports, JFrog is increasing its revenue and decreasing its losses — exactly the type of promising trend investors like to see.

JFrog investment risks

JFrog isn’t the only software company to announce its IPO this quarter. It enters the market amid a crowd of other software providers, including Unity, Asana, Snowflake and Sumo Logic. With the launch of so many IPOs in the SaaS industry, it may be difficult for JFrog to attract the attention of investors.

Speaking of which — the tech sector is renowned for its fast-paced nature and highly competitive environment. Another concern for investors to consider is whether JFrog has the staying power to edge out its competitors and turn a profit in the years to come. Growth is no indication of future profitability, and JFrog is far from a risk-free investment.

JFrog compared

JFrog is a software-as-a-service (SaaS) company that helps businesses deliver application updates. It was founded in 2009 and is headquartered in Sunnyvale, California. It boasts over 5,000 customers and millions of users worldwide.

In 2018, it earned the IDC Innovators Award, and in 2019, it was named one of the best 100 private cloud companies by Forbes. The company doesn’t have a Better Business Bureau page or Trustpilot presence.

How are similar stocks performing?

Not many of JFrog’s direct competitors — including GitLab, Harbor and Framer — trade publicly. But taking a look at some other SaaS companies may help you gauge the market. That said, these stocks aren’t an indicator of how JFrog will perform.

Compare online trading platforms in Canada

To buy stock, you’ll need to open a brokerage account. Compare your options using the table below to find the best fit. Take a look at our guide to opening a stock trading account to learn more.

Note: The dollar amounts in the tables below are in Canadian dollars.

Name Product Available asset types Stock Fee Option Fee Account Fee ETF Transaction Cost
Questrade
Stocks,Bonds,Options,Mutual funds,ETFs,GICs,International Equities,IPOs,Precious Metals
$4.95 - $9.95
$9.95 + $1 per contract
$0
Free
Opt for self-directed investing and save on fees or get a pre-built portfolio and take some of the guesswork out.
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Name Product Minimum deposit to invest Funding methods Management fee Available asset types
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