Only 10 short years ago, if you asked anyone what they thought about cannabis investments, most people would likely be strongly against it. This is not surprising, given how much different the industry was back then, and the fact that only a few places had Marijuana legalized at the time. With a situation like that, it is not surprising that most investors did not see cannabis stocks as a sound investment.
Obviously, things have changed since then, and today, more than half of US states have legalized it, and the idea is spreading to other regions, as well. With that said, it is now much more acceptable to buy cannabis stocks and diversify your portfolio. If you wish to learn how to do that, then this guide will tell you all you need to know about it.
In This Guide
If you only wish for us to provide quick instructions on how to buy cannabis stocks, then we can recommend using the eToro platform for accessing a number of these companies’ shares. Once you get to eToro’s platform, you need to do the following:
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67% of retail investor accounts lose money when trading CFDs with this provider.
78.77% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider.
83% of retail investor accounts lose money when trading CFDs with this provider.
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AvaTrade is a great option, if you want to trade forex, CFDs, and popular cryptos with competitively low spreads and no commissions then . Clients have unfettered access to a demo account as well as the MT4 and MT5 series of platforms.
If you want to learn about which other stock brokers are on offer, as well as learn a bit more about them, then we can recommend 5 different companies, including:
The first on the list is eToro, one of the top-ranking stockbrokers that can let you buy cannabis stocks quickly and easily. The company offers access to 2,400 global markets, a number of which are cannabis companies, and all of the offered stocks can be purchased at 0% commission.
eToro has been around since 2007, and in the nearly 15 years of its existence, it expanded across the world, currently serving over 20 million traders from over 140 countries. Most of the traders that it serves are retail traders — regular people, for which the platform was designed. There are some more experienced traders using it, and even some experts, although the platform was not tailored for experts, and so it doesn’t have advanced tools that they would need to conduct more complex trades.
However, experts are still on the platform due to its social trading. You see, eToro offers a highly popular copy trading feature that allows newcomers to the trading world to find these experts, and then copy their trading moves. That way, traders can do the same as experts do, and see similar results, instead of randomly trying to make the right move on their own without knowing what they are doing.
Thanks to copy-trading, they can make profits and learn on example, which is more likely to stick with them. And, since there are no commissions charged, they can enter as many small trades as they want. They still have to pay spreads – the difference between buy and sell prices – but they are quite affordable on eToro.
The platform is also very safe, regulated by some of the most reputable regulatory bodies in the world, such as CySEC, FCA, ASIC, and more. Plus, it also offers a very low minimum deposit of only $50, while minimum investment is half of that amount, so eToro remains quite affordable for everyone.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
In the next spot, we have Capital.com, a top broker platform that has over 3,000 trading instruments, including multiple cannabis stock CFDs. We should note right away that this platform only offers CFDs, meaning that you will not own the stocks if you trade them through this investment vehicle. Instead, they will simply be used as an underlying asset for your price betting.
Fortunately, that also means that you can bet that the price will go up or down, and if you are right, you will earn money even if the prices crash. With CFDs, all that matters is to accurately predict the outcome. The platform will help you do that by offering a variety of advanced analytics tools which will allow you to make expert predictions. Don’t worry, it is still very user-friendly, it charges no commission, it has low spreads and other benefits.
75.26% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
The third on the list is Libertex — a very popular platform that offers cannabis and other stocks at zero commission. LIke Capital.com before it, Libertex also deals in CFDs, but it offers industry-leading quotes, great stock selection, and a wide range of other underlying assets, if you decide to diversify your portfolio and go beyond cannabis stocks.
The platform also supports MT4, which makes it great for those who prefer to trade via a familiar platform on multiple brokers. And, it has plenty of educational materials for new traders who are still trying to find their way around the platform. Despite this, it is not difficult to use, and its minimum investment is only $100. However, if you want to invest in something, you will be glad to know that you can do so with as little as $10.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74,5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Given how popular copy trading is among new users, we wanted to find at least one more platform that offers it, other than eToro. We found it in Skilling, a Cyprus-headquartered online broker that was regulated by the FSC and CySEC. Like all others so far, the platform charges no commission on stock purchases, or other types of trades. It is compatible with trading platforms such as cTrader and MT4.
The platform offers CFDs on crypto pairs, energies, stocks, indices, metals, and alike, which makes its offering pretty diverse. It is also user-friendly, it has a demo account, trading with leverage, and more. Lastly, it has copy trading, as mentioned, meaning that you can use it for making expert trading moves simply by copying real experts.
Visit Skilling Now
Your capital is at risk when trading CFDs with this provider.
Last, but not least, we can recommend AvaTrade as another great platform to buy cannabis stocks. This platform stands as one of the best options for experts and those who wish to engage in trading with leverage — especially if you are looking for high leverage. AvaTrade’s leverage goes up to x400, although it varies from asset to asset and country to country.
Stock leverage, specifically, is fairly low — only around x10. But even so, this can lead to quite serious earnings. The platform is also compatible with other trading platforms, which is always a good thing for professionals, and it is heavily regulated and 100% safe.
71% of retail CFD accounts lose money with this provider.
Now that you know where you can turn to if you wish to buy stocks in cannabis, you may think that you are ready to start trading. However, we would recommend doing some research on cannabis and cannabis stocks first, whether you are looking for US or Canadian cannabis stocks to buy.
Let’s start with the obvious one:
Before investing in cannabis, the first step is to educate yourself about what it is.
Cannabis, also known as marijuana, and also under other names, is a substance — a psychoactive drug — that comes from the cannabis plant native to the Indian subcontinent and Central Asia. The plant and the drug have been around for centuries, during which it was used for recreational and entheogenic purposes alike.
Over centuries of usage, cannabis became quite popular among people, but also quite illegal in most parts of the world. Simply owning it is still against the law in a lot of places, but things are starting to change, and it is becoming more and more available and recognized as a legal substance.
Of course, just because you are ready to invest in cannabis stocks, it doesn’t mean that you can just buy any company’s shares and be done with it. Instead, you should go for those that have the best chance of securing you a profit.
According to experts, the best cannabis stocks to buy in 2022 include several companies, such as:
Of course, there are many more firms available, and it is possible that new opportunities might suddenly emerge, so keep an eye on the market if you wish to buy cannabis stocks.
Another thing that you need to remember is that cannabis firms are still relatively small, and their stock price is rather low. As mentioned, things are changing for marijuana in the world, but all of it is still in relatively early stages. This is why investments in cannabis stocks are a long-term thing, and as such, the best way to decide which companies to go for is to rely on fundamental analysis.
This kind of analysis focuses on aspects of the firm that may have an impact on the market sentiment. It includes things like new breakthroughs, unique products, partnerships, advanced technology, jurisdiction, and local laws, the reputation of the firm and its executives, mentions in the news, but also things like scandals and incidents, positive and negative reviews, and alike.
Make sure to do your research in this regard about the company you are interested in before you invest in its stock, as it might show you what to expect from it in the future.
For the most part, cannabis companies do not generate enough profit to pay dividends, and people tend to know this at some level, so dividends are not something that they are likely to expect. However, the are a few firms out there that do pay dividends, including Altria Group, Imperial Brands, and Innovative Industrial Properties.
So, if you wish to buy stocks and earn some money from owning them over time, these firms are a pretty good place to start.
According to recent reports, there are several cannabis stocks that experts recommend buying for December 2021. The first one is Advanced Flower Capital Gamma (AFCG), which accesses the issue that has been bugging many cannabis firms, which is poor access to financing. With cannabis still not being legal on a federal level, banks do not wish to open their doors to such firms, but AFC Gamma has been offering loans to marijuana businesses since it was founded in July 2020. While not a marijuana company itself, it became extremely popular among cannabis businesses, hence its sudden surge.
The next one is a bit of an underdog, a company called Jushi Holdings, which is about to wrap 2021 in a rather impressive fashion. It is a on the retail end of the cannabis industry. The company has roots in several states where marijuana is likely to be legalized in the near future, which will lead to the continuous growth of the company’s stock once it happens.
Finally, there is Planet 13 Holdings (PLNH.F), which has a few marijuana dispensaries in several states, but the real thing that separates is from other firms is the fact that it wishes to provide marijuana users with an experience. It offers products such as dried cannabis, derivatives, paraphernalia, and more, with quite a large selection of interesting products.
As far as top US cannabis companies go, there are several worth investing in, and we have already mentioned most of them, including:
For years, marijuana companies were seeing little to no growth. Then, in 2020, after the global stock market crash, their prices started surging, with some firms reaching their all-time highs. Most of them hit a limit and even corrected since then, which even led some of them right back where they started.
However, this only means that they are at the bottom. Meanwhile, at least a portion of their potential for growth is now known to us. In other words, yes, there are plenty of cannabis companies worth investing in, especially since the movement to legalize marijuana globally is becoming bigger and stronger and is likely not going to end, or even slow down anytime soon.
Now that you know where and why to buy cannabis shares, all that remains is to tackle the question of how to buy cannabis stocks. The procedure is very easy, and for our example, we will go through the steps on eToro. Of course, you can choose one of the other platforms or some other platform entirely, if you so desire. Just remember to carefully research the platform before using it, for your own safety. As for what to do once you select one, here are the steps.
The first thing to do is to go to eToro’s platform and create a free account. This can be done with nothing more than an email and a password if you wish to make a new account from scratch. However, there is an even easier way, which is to log in with your Facebook or Google account.
The next step is to verify your ID, also known as completing the KYC procedure. This is done for your own protection, so that your identity can’t be used by third parties, but also in order to ensure that everything is done in accordance with regulations.
Verifying your ID only includes filling out a form with your personal information and uploading a photo of a government-issued ID, driver’s license, or passport.
Once you get full access to the platform, the third step is to deposit money that you will use to buy cannabis stocks. On eToro, the minimum deposit is $50, although this can vary from platform to platform.
You can deposit funds via a variety of payment methods by clicking the “Deposit Funds” button in the bottom-left corner of the dashboard. After that, a new window will pop up, allowing you to select the amount, payment method, and enter payment details.
Finally, once you make sure that the money has arrived to your account, you can buy stocks in cannabis. To do this, you can simply use eToro’s search feature to find the stocks that you are interested in. Click the Trade button, and fill in the details of your trade. Once you are done, check that everything is in order, and then click the trade button again to complete the process.
Cannabis has seen a big change in attitude towards it in several regions of the world, and especially the US. If you wish to buy cannabis stocks now before their price skyrockets, all you need to do is go on one of the top platforms like eToro and find the best cannabis stocks to buy among offered companies.
Cannabis is a plant that is processed to offer a psychoactive drug that is known also as cannabis, but also marijuana, and many other names. It is native to Central Asia and India, and it has been used as a drug for recreational and entheogenic purposes for centuries. While banned in most parts of the world for a long time, many regions are now becoming more open to the idea of its use, and are lifting the ban from this particular drug.
This will likely depend on where you live and your local laws, so make sure to consult those before making a move to invest in such companies.
According to experts, if you wish to buy cannabis stocks in the US, your best options are Curaleaf Holdings (CURLF), Canopy Growth Corporation (CGC), Green Thumb Industries (GTBIF), Tilray (TLRY), and Cronos Groups (CRON).
Yes, more than half US states have already legalized cannabis, and while there is still some uncertainty — legalization has not yet reached the federal level — many are choosing to buy stocks of US and Canadian companies.
This is every investor’s and trader’s personal decision, but as the legalization of marijuana continues to spread around the world, more and more people are getting optimistic about cannabis firms’ stocks.
You can invest in cannabis-related companies by looking them up on eToro and purchasing their stocks.
Ali is an experienced writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profiled investment sites including CCN, Capital.com, BeInCrypto, Bitcoinist, and NewsBTC.
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