Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

How to buy Klarna stock in Canada when it goes public

Here's everything we know so far about the Klarna IPO.

Klarna, a buy now, pay later e-commerce fintech company, is expected to conduct an initial public offering.

There's no news yet about how much the stock will cost when it goes public. No date has been set for when the stock will be publicly available. Here's how investors in Canada can prepare to buy in.

What we know about the Klarna IPO

The buy now, pay later e-commerce giant Klarna is expected to go public. It has not yet filed a viewable form S-1 with the US Securities and Exchange Commission. But we'll update this page as information as it becomes available.

Klarna is a Swedish fintech company that lets customers purchase products from major retailers and then pay for those items in four zero-interest payments. As of December 2020, it has reached more than 11 million customers in the US.

It partners with major brands such as Macy’s, Adidas and Sephora.

On March 1, the company announced a new funding round had raised $1 billion and valued the company at $31 billion, Bloomberg reported.

According to its website, Klarna is the most highly valued fintech company in Europe and the fourth-highest in the world.

Klarna is among the latest buy now, pay later companies to emerge.

What we know about Klarna's balance sheet

Officially known as Klarna Bank, this alternative to credit card issuers now has more than 190,000 merchant partners worldwide. In the quarter ending September 2020, the company reported net operating income growth of $742 million, a 37% increase from the previous period. The quarter has other highlights as well.
  • 160% growth in year-over-year mobile app downloads and 2 million monthly active app users by the end of October
  • 21 million new customers worldwide
  • 57,000 new retail partners including Etsy, Ralph Lauren and Express.

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

Finder's top picks on where to buy Klarna stock when it goes public

How to buy shares in Klarna when it goes public

Once Klarna goes public, you'll need a brokerage account to invest. Consider opening a brokerage account today so you're ready as soon as the stock hits the market.

  1. Compare share trading platforms. 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.
  2. 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.
  3. Search for Klarna. Find the stock by name or ticker symbol. Research its history to confirm it's a solid investment against your financial goals.
  4. Purchase now or later. Buy immediately with a market order or use a limit order to delay your purchase until Klarna reaches your desired price. To spread out your purchase, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
  5. 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 Klarna, depending on your broker.
  6. Check in on your investment. Congratulations, you own a part of Klarna. 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.

Will I be able to buy Klarna stocks from Canada?

You won't be able to buy Klarna stocks on a Canadian stock exchange like the TSX or CSE. Instead, you'll need a Canadian broker that provides access to stocks sold on international exchanges. However, some Canadian brokerages don't offer access to international investments at all or only provide access to a limited range of investment opportunities.

You can access US exchanges like the NYSE and the NASDAQ using Canadian trading platforms like Questrade, Wealthsimple Trade, Scotia iTRADE and Interactive Brokers. Interactive Brokers also provides access to many stock exchanges outside North America like the Hong Kong Stock Exchange (SEHK), Korea Stock Exchange (KSE), National Stock Exchange of India (NSE), Frankfurt Stock Exchange (FWB) and London Stock Exchange (LSE).

The process of buying stocks listed on international exchanges is basically 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 international stocks.

How to buy international stocks in 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. However, the CRA may allow you to claim foreign tax credits for any taxes you've already paid to the IRS.

Speak with a tax professional to find out what rules and exceptions apply to your circumstances.

Compare online stock trading platforms

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

Name Product Finder Rating Stock Trading Fee Account Fee Available Asset Types Offer
FREE TRADES
Wealthsimple Trade
Finder Rating:
★★★★★
3.9 / 5
$0
$0
Stocks, ETFs
Get 2 free stocks when you deposit and trade $150.
Scotia iTRADE
Finder Rating:
★★★★★
3.8 / 5
$4.99 - $9.99
$0
Bonds, Options, Mutual Funds, ETFs, GICs, International Equities
Interactive Brokers
Finder Rating:
★★★★★
4.1 / 5
Min. $1.00, Max. 0.5%
$0
Stocks, Bonds, Options, ETFs, Currencies, Futures
OFFER
CIBC Investor's Edge
Finder Rating:
★★★★★
4 / 5
$4.95 - $6.95
$0 if conditions met, otherwise $100/year
Stocks, Bonds, Options, Mutual Funds, ETFs
Get up to $2,000 cash back. Conditions apply. Offer ends March 1, 2022.
Questrade
Finder Rating:
★★★★★
4.2 / 5
$4.95 - $9.95
$0
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals
Get $50 in free trades when you fund your account with a minimum of $1,000.
Qtrade Direct Investing
Finder Rating:
★★★★★
4.1 / 5
$6.95 - $8.75
$0 if conditions met, otherwise $25/quarter
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
Get a $50 bonus when you open a new RRSP, TFSA or RESP and start pre-authorized contributions of $200+/month. Valid until March 1, 2022.
loading

Compare up to 4 providers

Online stock trading
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

More on investing

More guides on Finder

Ask an Expert

You must be logged in to post a comment.

Go to site