Finder makes money from featured partners, but editorial opinions are our own.

How to buy Databricks stock in Canada when it goes public

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

Databricks Inc, best known for its unified data analytics platform, is reportedly considering an IPO later this year. According to a Bloomberg report, the company was valued at $6.2 billion in 2019. But the company announced new funding on Feb. 1, 2021 from investors including Amazon and Alphabet that valued the company at $28 billion, CNBC reported.

Here’s what we know so far about the IPO — and how to invest when the stock goes public.

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

Latest updates

Monday, February 1: Databricks announced the close of a $1 billion round of funding, bringing its valuation to over $28 billion.

What we know about the Databricks IPO

Databricks is expected to go public. Databricks has not yet filed a viewable Form S-1 with the US Securities and Exchange Commission. We’ll update this page with information as it becomes available.

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.

Will I be able to buy Databricks shares from Canada?

You won’t be able to buy Databricks shares on a Canadian stock exchange like the TSX or CSE, but you can from a Canadian-based brokerage that offers international access to companies listed on stock exchanges outside of Canada. Given that Databricks is based on California, you’ll need a brokerage that provides access to US exchanges.

Some of the Canadian online trading platforms that provide access to US-listed stocks include Questrade, Wealthsimple, Interactive Brokers and Scotia iTRADE.

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 US stocks from Canada

How to buy shares in Databricks when it goes public

Once Databricks 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 Databricks. 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 Databricks 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 Databricks, depending on your broker.
  6. Check in on your investment. Optimize your portfolio by tracking how your stock — and the business as a whole — performs in the long term. You may be eligible for dividends and shareholder voting rights on directors and management decisions that can affect your stock.

Best for Lowest Commissions

Go to site
Low margin rates
  • Access to international stock exchanges
  • Low margin rates
  • Powerful research tools

Best for Low Fees

Go to site
CA & US trading
  • $1,300 cash reward or $1,200 Apple gift card
  • Low transaction fees
  • Easy-to-use app

Best for Beginners

Go to site
Easy to use app.
  • Easy-to-use platform
  • Low fees
  • Student and young investor discounts

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.

Compare trading platforms that provide access to Canadian and US stocks

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

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

1 - 5 of 5
Name Product Finder Rating Available Asset Types Stock Trading Fee Account Fee Signup Offer Table description
Interactive Brokers
Finder Score:
★★★★★
4.2 / 5
Stocks, Bonds, Options, Index Funds, ETFs, Currencies, Futures
min $1.00, max 0.5%
$0
N/A
Winner for Best Overall Broker in the Finder Stock Trading Platform Awards.
Moomoo Financial Canada
Finder Score:
★★★★★
3.9 / 5
Stocks, Options, ETFs
$0.014/stock
$0
Get up to $1,300 or a $1,200 Apple gift card
Trade US stocks for up to 90% less and access free real time stock quotes and level 2 market data. T&C's Apply.
CIBC Investor's Edge
Finder Score:
★★★★★
3.7 / 5
Stocks, Bonds, Options, Mutual Funds, ETFs
$6.95
$0 if conditions met, or $100
100 free trades + up to $4,500 cash back
An easy-to-use platform with access to a variety of tools to help you trade with confidence.
Questrade
Finder Score:
★★★★★
3.9 / 5
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals
$4.95 - $9.95
$0
Get $50 in free trades when you fund your account with a minimum of $1,000.
Opt for self-directed investing and save on fees or get a pre-built portfolio to take out some of the guesswork.
Qtrade Direct Investing
Finder Score:
★★★★★
3.6 / 5
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
$6.95 - $8.75
$0 if conditions met, otherwise $25/quarter
Get up to a $150 sign-up bonus. Use code OFFER2024. Ends October 31, 2024.
Low trading commissions and an easy-to-use platform with access to powerful tools and a wide selection of investment options.
loading
Online stock trading
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, 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 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 a Question

You must be logged in to post a comment.

Go to site