Best Brokers for IPO Access

An IPO is often a complex process in which a group of "underwriters" (typically large investment banks) buy all of the shares of the new company and then resells them to ordinary investors.

However, some companies bypass the conventional IPO process by going public through a direct listing or a special-purpose acquisition company (SPAC).

A company that is going public through an IPO will announce a price range and IPO date in advance. At that time, interested investors will be able to purchase shares through a brokerage account. Most brokers warn that you may not be allocated the number of shares you request; in fact, in some high-demand scenarios, you may not be allocated any shares at all.

Keep in mind that the published offering price is unlikely to be the share price that's available to retail investors — once the stock begins trading, its share price swings with the rest of the market just like every other public company. Often, IPOs spike in price in the early hours or days, then quickly fall.

You may celebrate getting in early on the latest IPO if it proves to be a long-term success, but you’ll be cursing that same stock if it blows up your portfolio. No investment is a sure thing, and IPOs are no exception.

While IPOs may appear to offer a tantalizing get-rich-quick opportunity, there have been some famous flops over the years. Take Pets.com, which liquidated less than a year after its IPO. According to an analysis from Nasdaq of IPOs between 2010 and 2020, two-thirds were underperforming the overall market three years after their initial offering day[12].

To mitigate some of the risks, take the same approach to investing in IPOs as you would to buying any other stock:

If an IPO is what gets you excited about investing in the stock market for long-term growth, that’s great. Just remember that individual stocks on their own aren’t the only way to get in on the action — there are other diversified investments like the aforementioned index funds that allow you to buy a large selection of stocks at once.

Major stock exchange websites like Nasdaq and NYSE often have lists of upcoming IPOs. And there are often rumors published in the media about companies that may go public in the near future, but it’s pure speculation until a company makes a formal announcement of its intentions.

It can be several months, or even years, until an IPO is finalized. To prepare, investment bankers estimate the company’s valuation to decide the price per share of stock and how many shares will be offered to investors.

All of that information and more becomes available to the public when the company files a registration statement — typically a Form S-1 — with the Securities and Exchange Commission. This preliminary prospectus provides a lot of background information about the company and its business, management team, sources of revenue and financial health.

A company’s initial filing is typically a draft and may be missing key information, such as the final offering price and the date the upcoming IPO is expected to launch. Keep checking back for amendments to the Form S-1 on the SEC’s EDGAR database so you’re making investment decisions with the most up-to-date IPO information.

An IPO enables a growing company to raise a lot of cash quickly. The money investors pay to buy shares can be used to fund projects, pay down debt and help the business expand operations or hire more workers.

A stock market launch also triggers a broader swath of changes a company must make, not least of which is issuing reports on its financials to the public quarterly and annually and allowing shareholders to vote on some business decisions, such as who sits on the company’s board of directors.

For investors, IPOs can be an attractive and lucrative opportunity to purchase a small stake in a company they believe will increase in value. But buyer beware: Some stocks that are now considered runaway successes struggled for months or even years after their IPOs. Consider that after going public in 2012, Meta (then known as Facebook) took more than a year to trade above its IPO price.

You can still purchase shares of the stock on the open market following the IPO. In fact, this is a common scenario — for most investors, investing in an IPO means buying the stock once it begins trading, not before. That means the price you pay will reflect the demand for the stock on the day you purchase it, and that price could differ — sometimes dramatically — from the offering price.

Once the stock is public, the mechanics of purchasing shares are pretty straightforward. Here’s a brief guide on how to buy stocks, including information on how to navigate your broker’s website and place an order. All of the brokers on this list are good choices for stock trading, in addition to the IPO access they provide.

No. Some IPOs are unavailable to retail investors in general, and those that are available to retail investors may be exclusive to a specific set of brokers. For example, the SpaceX IPO was only available on Robinhood, Charles Schwab, Fidelity, SoFi and E*TRADE.

OpenAI and Anthropic have both filed S-1 forms with the Securities and Exchange Commission, and may go public as early as fall 2026. Both are valued at nearly $1 trillion as of their most recent fundraising rounds, but most other IPO details — such as their exact IPO dates, valuations, share prices, and which brokers might participate in their IPOs — are unknown at the time of last update.