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

Call 1800 601 799 or email helpdesk.au@ig.com to talk about opening a trading account. We’re here 24hrs a day from 1pm Saturday to 7am Saturday (AEST).

Contact us: 1800 601 799

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 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.

Trade on major stock indices

Trade with lower 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 1pm Saturday to 7am Saturday (AEST).

Become a better trader whatever your skill level, with our online courses and webinars.

Choose a FTSE 250-listed, 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 shares CFDs with IG by trading CFDs on different types of market - 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.

Key cannabis markets

Bid
Offer
Change
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Cannabis margins

Cannabis spreads

CFD trading are both 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 Professional margin
Shares and ETFs 20% 16%
Index 10% 8%

Market Minimum spread Minimum commission (share and ETF CFDs)
Shares and ETFs 0.15%

2 cents/share (US);
3 cents/share (Canada)
0.08% (Australia)

Index 6 points N/A

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.

Company news

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.

FAQs

What are cannabis shares CFDs?

When you use a financial product – for example, a CFD – to speculate on the movement of a cannabis-related asset, with the aim of profiting from that movement, you are participating in cannabis trading.

That asset could be the stock of a company that produces cannabis or a cannabis ETF made up of a basket of related cannabis stocks.

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 investment only allows profit if an asset increases in value.

What are the constituents of IG’s cannabis index?

Name Currency
Aleafia Health Inc CAD
Aphria Inc CAD
Aurora Cannabis Inc CAD
Auxly Cannabis Group Inc CAD
CannTrust Holdings Inc CAD
Canopy Growth Corporation CAD
Cronos Group Inc CAD
Emerald Health Therapeutics Inc CAD
The Green Organic Dutchman Holdings Limited CAD
HEXO Corporation CAD
Khiron Life Sciences Corporation CAD
MediPharm Labs Corporation CAD
OrganiGram Holdings Inc CAD
PharmaCielo Limited CAD
Zenabis Global Inc CAD
Corbus Pharmaceuticals Holdings Inc USD
GW Pharmaceuticals PLC - ADR USD
Innovative Industrial Properties Inc USD
Tilray IncTilray Inc USD
Zynerba Pharmaceuticals Inc USD

You might be interested in…

Learn how to trade on the performance of an industry in four steps, from choosing your market to placing your first trade.

Find out how trading contracts for difference (CFDs) can help you take advantage of price movements in the financial markets.

Discover the cannabis industry that are getting traders talking.

1 Number 1 in Australia by primary relationships, CFDs, Investment Trends December 2018 Leveraged Trading Report

2 Cowen & Co, 2018.