Canadian online brokerages Wealthsimple and Questrade Inc. are joining a growing wave of companies that promise to provide access to firms planning initial public offerings, as startup funding rounds gain momentum. Traditionally, investing in IPOs at the offer price in Canada has been reserved for institutional and high-net-worth investors, but these fintechs are now opening the door to ordinary investors.
Wealthsimple Leads the Charge
Wealthsimple announced on Thursday that it will allow its clients to participate in both U.S. and domestic IPOs as soon as they launch. The Toronto-based fintech will collaborate with investment banks, which will allocate shares to the platform for client purchase. There is no minimum order requirement, making it accessible to a broader range of investors.
However, Wealthsimple cautions that clients may not receive all, or any, of the shares they request if demand exceeds the available supply. Additionally, clients who sell or transfer their IPO shares within the first 90 days will be permanently barred from future IPO access—a policy similar to that of U.S. brokerages. U.S.-only IPOs will be restricted to accredited investors, who meet specific income or asset criteria.
A Wealthsimple spokesperson declined to disclose the names of the banks or specific IPOs available, including the highly anticipated SpaceX IPO, which is expected in the coming weeks. The company states on its website that it can only offer deals it is invited to participate in.
Questrade's Private Markets Platform
Toronto-based Questrade is planning to launch a private markets platform this summer, initially featuring pre-IPO opportunities and institutional-grade private credit, with plans to expand into other private assets later. Chief Product Officer Hwan Kim confirmed that Questrade will not offer access to the SpaceX IPO, emphasizing that the company is building a long-term platform rather than capitalizing on a single headline.
Kim noted that secondary markets for high-profile pre-IPO names can attract significant noise, which may lead to unintended consequences during lock-up periods. Questrade aims to provide fair pricing and focus on mature, late-stage companies with clear paths to potential liquidity. Client eligibility will depend on the offering and must comply with Canadian regulations.
While Questrade did not specify how it will secure access to these assets, Kim stated that the company will work with large, respected industry players to source high-quality private market investments and broker the necessary deals.
Growing Retail Appetite for Pre-IPO Exposure
Retail demand for pre-IPO exposure has surged in the U.S. ahead of high-profile offerings, including SpaceX. Investment vehicles such as Destiny Tech100 Inc., Robinhood Ventures Fund I, and Fundrise Innovation Fund LLC have seen their shares soar well above the underlying value of their investments. This trend highlights the intense interest from everyday investors seeking early access to promising companies.
In Canada, The Hiive Company Ltd., based in Vancouver, already offers online trading for shares of venture-backed companies, further expanding access to private markets. Venture firms using special purpose vehicles to invest in fast-growing businesses have also grown in popularity, though they have recently faced scrutiny. For instance, Anthropic PBC identified several secondary marketplaces as unauthorized sellers of its shares.
This development marks a significant shift in the Canadian investment landscape, potentially democratizing access to high-growth opportunities that were once out of reach for most retail investors.
