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

Call +41 (0) 22 888 10 42 to talk about opening a trading account. We’re here from Monday to Friday from 8am to 6pm.

Contact us: +41 (0) 22 888 10 42

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 Monday to Friday, and from 10am to 6pm on Saturdays and Sundays.

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 16,000 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

Bid
Offer
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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 5 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?

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

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1 Based on revenue excluding FX (published half yearly financial statements, June 2019).
2 Cowen & Co, 2018.