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 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.
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%|
|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.
Get the latest cannabis news
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?
|Aleafia Health 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|
|Khiron Life Sciences Corporation||CAD|
|MediPharm Labs Corporation||CAD|
|OrganiGram Holdings Inc||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|
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