Cannabis CFD trading
The cannabis industry presents a wealth of share trading opportunities, its growth driven by legalisation that continues to spread across the US and Canada – and spurred on by ever-increasing support from the public. Discover how to trade cannabis CFDs and our cannabis index with Australia's No.1 CFD provider.1
Why is cannabis CFD trading suddenly so popular?
As more states and countries legalise cannabis – fuelled by greater acceptance from the public – there’s reason to believe that the cannabis industry’s prospects for continued growth look good.
In fact, research suggests that the US legal cannabis industry could be worth as much as $75 billion by 2030.2 With forecasts like these, it’s no wonder that savvy traders have been flocking to the market, eager to capitalise on the latest cannabis industry.
Benefits of trading cannabis CFDs
Why trade on cannabis shares CFDs, as opposed to buying marijuana stocks outright? There are a few unique advantages that CFDs offer over traditional investment.
Go long or short
Take advantage of market movement, whether cannabis share prices are rising or falling.
Free up your capital
Deposit just a fraction of your trade’s full value to open, with your profit or loss based on that full value. However, losses can exceed deposits.
Trade on major stock indices
Trade with low margins and more 24-hour markets than any other provider.
Why trade cannabis CFDs with IG?
Trade on easy-to-use platforms and apps, at your desk or on the move.
Mitigate against risk with our extensive range of stop and limit orders.
Get friendly, expert support 24 hours a day, from 2pm Saturday to 8am Saturday (AEDT).
Become a better trader whatever your skill level, with our online courses and webinars.
Choose a FTSE 250-listed3, established provider, and benefit from 45 years’ trading expertise.
Open an account quickly and easily – you can usually start trading on the same day you apply.
How can I trade cannabis CFDs with IG?
You can trade on cannabis by trading CFDs on two different types of markets - each with their own benefits.
Cannabis shares CFDs
Speculate on the movement of individual stocks across the marijuana industry, from growers to the firms bringing cannabis to market.
Cannabis ETF CFDs
Go long or short on a basket of cannabis stocks, designed to track industry trends and broaden exposure for investors.
Cannabis CFD margins
Cannabis CFD spreads
CFD trading is a form of leveraged trading, meaning you can win, or lose, a significant amount more than you pay up front. Though not actually a cost to you, the margin you pay makes a big difference to the affordability of your trade, and differs between providers.
Your key payment for trading cannabis is the spread, essentially our commission for executing your trade. We work to keep our spreads among the lowest in the business.
|Market||Retail margin||Pro Level 1 margin||Pro Level 2 margin|
|Shares and ETFs||20%||10%||4%|
|Market||Minimum spread||Minimum commission (share and ETF CFDs)|
|Shares and ETFs||0.15%||
2 cents/share (US);
Explore cannabis industry with an IG account in minutes
Opening an account with us is quick and easy. Just follow these three steps.
Fill in our simple online form
We’ll ask a few questions about your trading experience.
Get swift verification
We can usually verify your ID in just a few seconds.
Fund your account and trade
Or practise on a demo if you’d prefer.
What moves cannabis markets?
Changes in the law
Cannabis is currently legal, in some capacity, in 43 US states and Canada – which accounts for most of the industry’s business. Further legalisation will be positive for share prices, where a return to illegality would deal a blow.
Supply and demand
With the industry in relative infancy, cannabis suppliers are expanding rapidly to meet investor expectations and public demand. However, that can’t last forever, and a supply glut – where supply outstrips demand – could see share prices falling.
As with any stock, the speculators that drive price movement will look to company news – changes in executives, earnings reports – to decide what’s positive or negative for cannabis industry.
Cannabis shares CFDs differs from investment, which means the outright purchase and sale of cannabis stocks or ETFs. When trading on cannabis shares CFDs, you are speculating on price movement and never own any assets. You can also use trading products like CFDs to profit whether markets are rising or falling, whereas direct investment in the physical stocks only allows profit if an asset increases in value.
|Auxly Cannabis Group||CAD|
|Charlottes Web Holdings||CAD|
|Clever Leaves Holdings Inc||USD|
|Fire & Flower Holdings Corp||CAD|
|Gw Pharmaceuticals 1for12 ADR||USD|
|Hempfusion Wellness, Inc.||USD|
|High Tide Inc||CAD|
|Innovative Indl. Props.||USD|
|Neptune Wellness Solutions||CAD|
|Sundial Growers Inc||USD|
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Discover the cannabis industry that are getting traders talking.
1 Number 1 in Australia by primary relationships, CFDs & FX, Investment Trends December 2020 Leveraged Trading Report CFDs & FX, Investment Trends December 2020 Leveraged Trading Report
2 Cowen & Co, 2018.
3 IG is part of IG Group Holdings Plc, a member of the FTSE 250.
4 The index is calculated and managed by BITA GmbH and is subject to change.