Cannabis trading
The marijuana industry presents a wealth of 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 stocks and ETFs with the world’s No.1 CFD provider.1
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Why is cannabis 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 marijuana sector’s prospects for continued growth look good.
In fact, research suggests that the US legal marijuana 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 trending marijuana stocks.
Benefits of trading cannabis
Why trade on cannabis, 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.
Don't pay stamp duty
As you never own the underlying asset when trading CFDs, you don't have to pay stamp duty.
Why trade cannabis with IG Bank?
Trade on easy-to-use platforms and apps, at your desk or on the move.
Rest assured that you’re trading with a company authorised and regulated by the FINMA.
Get expert support, 24 hours a day from 9am Saturday to 11pm Friday.
Become a better trader whatever your skill level, with our online courses and webinars.
Choose an established provider, and benefit from our trading expertise.
Open an account quickly and easily and enjoy flexible access to cannabis markets and more than 17 000 other global markets.
How can I trade cannabis with IG Bank?
You can trade on cannabis with IG Bank by trading CFDs on three types of market – each with their own benefits.
Cannabis shares
Speculate on the movement of individual stocks across the marijuana industry, from growers to the firms bringing cannabis to market.
Cannabis index
Trade cannabis as a stock index, taking your position on a price that represents the performance of the world’s top marijuana shares.
Cannabis ETFs
Take a view on a basket of cannabis stocks, designed to track industry trends and broaden exposure for investors.
Key cannabis markets
Prices above are subject to our website terms and conditions. All shares prices are delayed by at least 15 mins.
Cannabis margins
Cannabis spreads
CFD trading is a form of leveraged trading, meaning you can win, or lose, a significant amount more than you deposit initially. Though not actually a cost to you, the margin you pay makes a big difference to the affordability of your trade.
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 | Margin |
| Shares and ETFs | 10% |
| Index | 10% |
| Market | Minimum spread | Minimum commission (share and ETF CFDs) |
| Shares and ETFs | 0.15% | 2 cents/share (US); 3 cents/share (Canada) |
| Index | 6 points | N/A |
Trade cannabis with an IG Bank account
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.
Identity verification
We can verify your identity in 6 different ways.
Fund your account and trade
Or practise on a risk-free 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 marijuana businesses.
Get the latest cannabis news
FAQs
What is cannabis trading?
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 trading differs from investment, which means the outright purchase and sale of cannabis stocks or ETFs. When trading on cannabis, 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 is a cannabis index?
A cannabis index, or marijuana index, is a gauge of performance for a section of the marijuana industry. The price of a marijuana index will be derived from the prices of a selection of related marijuana assets. This could be the 20 top-performing marijuana stocks, for example.
IG’s cannabis index market captures the gross total return performance of the 20 largest publicly listed US and Canadian companies with direct revenue exposure to the cannabis industry. The index is calculated and managed by BITA GmbH.
You can trade on the price of a marijuana index by using financial derivative products like CFDs, and use them to profit whether the price is rising or falling.
What are the constituents of IG’s cannabis index?
- AFC Gamma, Inc.
- Artelo Biosciences, Inc.
- Aurora Cannabis Inc.
- Canopy Growth Corporation
- Cara Therapeutics, Inc.
- Chicago Atlantic Real Estate Finance, Inc.
- Cresco Labs Inc.
- Curaleaf Holdings, Inc.
- Green Thumb Industries Inc.
- Innovative Industrial Properties, Inc.
- Jazz Pharmaceuticals plc
- Mojave Brands Inc.
- Trulieve Cannabis Corp..
- Verano Holdings Corp..
You might be interested in…
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1 Based on revenue (published financial statements, 2022)
2
Cowen & Co, 2018.
