Fabletics, the activewear brand co-founded by actress Kate Hudson, is expected to go public. The company’s stock is not yet available to purchase on any exchange. But it’s expected to go public soon. Here’s what we know — and how to buy in from Canada when it launches.
Note: all dollar amounts on this page are in US dollars unless otherwise stated.
Fabletics is an e-commerce subscription company that sells luxury athletic clothing. It also has six physical locations. The company was founded in 2013 by Hudson with Adam Goldenberg and Don Ressler. Fabletics has six physical locations in the United States, but it also ships to Spain, Canada and the Netherlands.
You won’t be able to buy Fabletics 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. Specifically, you’ll need a brokerage that provides access to US exchanges, given that Fabletics is a US-based company.
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
Once Fabletics 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.
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.
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.
To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score the better the platform - simple.
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