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 with the world’s No.1 CFD provider.1
Call 010 500 8624 or email newaccounts.za@ig.com to talk about opening a trading account. We're around 24 hours a day from 9am Saturday to 11pm Friday.
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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.
Fund your international account using your debit or credit card to access this exciting new market.
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.
Get tax benefits
Losses on CFDs can be offset against profits for tax purposes.3
Why trade cannabis with IG?
Trade on easy-to-use platforms and apps, at your desk or on the move.
Rest assured that your account never stays below zero, thanks to negative balance protection.4
Get friendly, expert support 24 hours a day, from 8am Saturday to 10pm Friday.
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.
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 | Retail margin | Professional margin What is this? |
| Shares and ETFs | 20% | 9% |
| Index | 10% | 9% |
| 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 |
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.
Fund your international account using your debit or credit card to access this exciting new market.
How can I trade cannabis with IG?
You can trade on cannabis with IG by trading CFDs on two 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.
Trade cannabis 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 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 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…
Learn how to trade on the performance of an industry in four steps, from choosing your market to placing your first deal.
Find out how trading contracts for difference (CFDs) can help you take advantage of price movements in the financial markets.
Discover the marijuana high rollers that are getting traders talking.
1 Based on revenue excluding FX (published financial statements, February 2018).
2
Cowen & Co, 2018.
3 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
4 Negative balance protection applies to trading-related debt only, and is not available to professional traders.
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