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How to buy Starlink stock in Canada when it goes public

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

Elon Musk has confirmed that Starlink—a satellite broadband internet provider developed by his company SpaceX—will eventually go public. The exact details of the IPO have not been announced. Here's how investors in Canada can prepare for the big event.

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What we know about the Starlink IPO

SpaceX (which owns Starlink) has started accepting preorders for its satellite internet service, Starlink. In a tweet on February 8, CEO Elon Musk said that the company will go public once it can "predict cashflow reasonably well."

But it can take a while for businesses with new products to start seeing regular, predictable cashflow. So an IPO could still be a ways out.

On October 8, 2021, it was revealed that SpaceX has a market valuation of over $100 billion. An agreement was reached allowing existing investors to sell private stock in SpaceX for $560 each. Up to $755 million in stocks can be sold. Back in February, private stocks were worth 33% less at $419.99 each.

We'll update this page as soon as we know more.

Will SpaceX have an IPO?

In September 2021, rumours resurfaced that Starlink's parent company, SpaceX, might go public. This came after Elon Musk responded to a tweet that revealed an email he had sent to SpaceX employees back in 2013.

In the email, Musk explained why it would not be in the company's best interest to go public. His reasons included the volatility of the tech industry, his belief that the company's valuation had not yet peaked and the risk of lawsuits prompted by stock price drops.

Musk's short, cryptic response to the tweet—"A lot has happened in 8 years"—aroused speculation that his attitude towards taking SpaceX public had changed. An IPO could bring some much-needed capital into the company, which has recently suffered significant financial setbacks due to production problems and a turnover in senior management.

The rumours that SpaceX may go public have yet to be confirmed, but the event may not be ruled out.

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

How to buy Starlink stock when it starts trading

Once Starlink 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 stock trading platforms. Use our comparison table to help you find a platform that fits your needs.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of stocks with a market order or use a limit order to delay your purchase until the stock reaches a desired price.

Will I be able to buy Starlink stock in Canada?

You won't be able to buy Starlink stocks on a Canadian stock exchange like the TSX. Instead, you need a Canadian broker that provides access to international stock exchanges.

You can access US exchanges like the NYSE and the NASDAQ using Canadian trading platforms like Qtrade, Wealthsimple, Scotia iTRADE and CIBC Investor's Edge.

Interactive Brokers 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).

How do similar companies perform?

It's impossible to predict how any stock will perform — and IPOs can be particularly volatile. Looking at the performance of similar companies can help you decide if now is a good time to buy Starlink stock.

See how the following stocks are performing, and view details like market capitalization, the price-to-earnings (P/E) ratio, price/earnings-to-growth (PEG) ratio and dividend yield.

Tax implications of buying US stocks in Canada

Canadians who earn dividends from US stock investments must pay the US Internal Revenue Service (IRS) a 15% withholding tax on their earnings. The rate goes down to 10% for bonds and other interest-yielding US investments.

An exception is made for stock investments held in trusts designed to provide retirement income. This includes RRIFs, LIRAs, LIFs, LRIFs and Prescribed RRIFs. RRSPs that hold US stocks, bonds or ETFs are also exempt from US withholding tax. RESPs, TFSAs and RDSPs are not exempt.

Canadian and international investment income must be declared on your Canadian tax return. Unless your US earnings are exempt from withholding tax, this means you'll be taxed by both the IRS and the CRA. 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 in your circumstances.

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

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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.

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