Best Cannabis Stock Brokers in 2019

Cannabis stock online brokers represent basically essential intermediaries that investor and traders need to carefully choose. However, not every stock online broker offers the same quality of services, trading features, resources and assets. This article reviews five of the most prominent stock brokers and trading platforms in the world, and also evaluated which ones are most suitable for investing into cannabis stocks.

Related: The Ultimate Cannabis Stock Market Guide 2019

 

Top 5 Cannabis Stock Online Brokers

Online brokerPlatform designCannabis stock availabilityFees & commissionsAverage ratingsSpecial note
eToroSimple with advanced options4/5Low3.1/5Best for social trading
Plus500Simple with advanced options5/5Low4.1/5Best for small traders & investors
Charles SchwabAdvanced with expert options4/5Medium4.0/5Best investment features
Interactive BrokersAdvanced with expert options5/5Low3.8/5Best for high-networth traders
Saxo Capital MarketsExpert5/5High3.8/5Highest minimum deposit

Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

 

eToro – review for trading cannabis stocks

best social trading cannabis stock broker

Location: Israel, Cyprus & the United Kingdom
Availability: USA, EU & most of Europe (see blocked countries)

Description

eToro is probably one of the most popular platforms among beginner traders and investors. The company is a multi-asset brokerage firm that offers the trading of various stocks, commodities, ETFs, cryptocurrencies and other assets. Moreover, eToro is widely known for its social trading features. Through using its platform, you may choose to copy the trades of a proven expert trader, allowing you to make passive income by benefiting from the expertise of other users.

 

How does it work?

When you buy an asset like a cannabis stock on eToro, you don’t acquire the actual stock itself, but instead a contract for difference (CFD). While this means that you are technically not entitled to the ownership of the stock you just bought, it also comes with several benefits.

For example, you can buy only a fraction of a share of a certain company, which is especially interesting to people who are working with a tight investment or trading budget. Moreover, the CFD model allows eToro to offer a zero commission fee on trading, as there are no costs for bureaucratic contracts.

What’s more, eToro offers leveraged trading of currencies, stocks, ETFs, indices, commodities and crypto assets.

Signing up on eToro and getting started with trading is actually extremely easy and fast. You also don’t need a huge budget, as the minimum deposit is only $200, while the minimum trade size for non-leveraged stock trades is currently at $50.

Before investing real money, you can use eToro’s free demo platform to make yourself familiar with trading and the platform itself.

 

eToro Dashboard with Aurora cannabis stock

eToro dashboard

 

Commissions and fees

eToro does not charge any fees or commissions on trading and deposits. However, the company does charge a $25 fee for withdrawing any amount of funds. Considering that many other brokers charge around $5 per trade, the withdrawal fee can be seen as a reasonable compromise.

 

Which cannabis stocks can you trade on eToro?

Users of eToro are able to buy stocks (CFDs) from a variety of international exchanges, including the Toronto Stock Exchange (TSX), where many big cannabis stocks are listed. You can also easily filter for various industries and exchanges in the eToro software dashboard.

Related: European Cannabis Stocks – What to Invest In

Major marijuana stocks that are available on eToro include Aurora Cannabis Inc. (ACB), Tilray Inc. (TLRY), Aphria Inc. (APHQF), Cronos Group (CRON) and GW Pharmaceuticals (GWPH), among a few other companies.

 

What do the ratings say?

Brokerchoose.com – 4.5/5

Brokerchoose sees eToro as one of the best trading platforms for European traders and investors. The author of the review praises the seamless account opening, social trading experience and zero-commission trading.

On the other hand, Brokerchoose pointed out that there is only a limited number of educational tools available on eToro, as well as the occasional poor customer service experience.

Investopedia.com – 2.8/5

Investopedia is also happy about the social trading feature and further pointed out that eToro has some impressive charting tools available.

However, the platform seems to lack tools for advanced traders, such as streaming news, a standalone platform and more customisation options, according to Investopedia.

Trustpilot.com – 2.0/5

In contrast to Brokerchoose and Investopedia, reviews on Trustpilot are not published by experts, but instead by actual users. About 25 percent of all reviews rated eToro as excellent (5/5), but a substantial number of more than 40 percent only gave it a one out of five points rating.

In general, users seem to be unhappy with eToro’s customer service. However, it needs to be noted that members of eToro’s team seem to be responding to every review, in order to find a solution that suits the needs of their customers.

 

The verdict

eToro is a decent platform for beginner traders and investors. If your only goal is to invest a few hundred dollars or euros into cannabis stocks, then chances are high that you are actually going to be very satisfied with the services offered by eToro.

That being said, advanced traders or expert traders are potentially going to be happier with the alternatives.

 

Plus500 – review for trading cannabis stocks

best cannabis stock online broker for beginners

Location: Israel, Cyprus, UK, Singapore, Australia & Bulgaria
Availability: EU & most of Europe (currently no U.S. customers)

Disclaimer: 80.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Description

Plus500 can be seen as a direct competitor to eToro, as its target customers include beginner traders and investors. In fact, Plus500 claims that it had the highest number of new traders in 2017 in Europe.

The company is a multi-asset brokerage firm that offers CFD services. A trader with a Plus500 account can trade CFDs on underlying financial instruments such as Forex, Stocks, Commodities, Options, and Indices. It does, however, not have any social trading features.

Plus500UK Ltd is authorised and regulated by the FCA (#509909).

 

How does it work?

Exactly like on eToro, you don’t acquire actual stocks on Plus500, but instead a contract for difference (CFD). While this means that you are technically not entitled to the ownership of the stock you just bought, it also comes with several benefits.

For example, you can buy only a fraction of a share of a certain company, which is especially interesting to people who are working with a tight investment or trading budget. Moreover, the CFD model allows Plus500 to offer a zero commission fee on trading, as there are no costs for bureaucratic contracts.

Plus500 also offers leveraged trading of currencies, stocks, ETFs, indices, commodities and crypto assets, with a leverage of up to 1:30.

The Plus500 platform is designed to be easy to understand. The registration process is quick and does not include any complicated aspects. In comparison to eToro, where the minimum deposit is $200, you can already start trading on Plus500 with only $100 or equivalent funds. The minimum trade size varies between assets, but can be as low as $10.

Plus500 also offers a demo version of its platform where you can learn the mechanics and features of Plus500 before actually betting real money.

 

Commissions and fees

Plus500 does rarely charge any fees on trading, deposits and withdrawals. An inactivity fee of $10 will apply in case an account has no trading activity within three months. In certain situations, Plus500 will charge fees for withdrawals, though this does not apply to most cases. You can find out more information on the fees of Plus500 here.

The company works with a very small spread that varies from asset to asset. The current spread for the Cannabis Stock Index is 0.6%, while regular cannabis stocks have similar but not identical spreads. (As of June 13, 2019)

 

Which cannabis stocks can you trade on Plus500?

Plus500 offers stocks from more than 50 international stock exchanges.

Major marijuana stocks that are available on Plus500 include Aurora Cannabis Inc. (ACB), Tilray Inc. (TLRY), Aphria Inc. (APHQF), Canopy Growth Corp. (CPC), Cronos Group (CRON) and GW Pharmaceuticals (GWPH), among a few other companies. Moreover, it is possible to trade the Cannabis Stock Index (BGCANG) on Plus500, which is a basket of the biggest cannabis stocks on the market.

In general, Plus500 is home to a greater selection of cannabis investments than eToro.

 

plus500 cannabis stock fund

Cannabis Stock Index on Plus500

 

What do the ratings say?

Brokerchoose.com – 4.4/5

Similarly to eToro, Brokerchoose considers Plus500 to be one of the best trading platforms for beginner traders and investors. In the review, Brokerchoose’s author positively mentions that the platform is easy to use and has low spreads and fees. Besides, the platform is said to be particularly safe to use, as the company behind it is publicly listed at the London Stock Exchange and, therefore, needs to be transparent about its financials.

On the other hand, Brokerchoose also mentioned that there is only a limited number of research tools available on Plus500, as well as high financing rates for leveraged trading.

Investopedia.com – 3.75/5

According to a review published by an expert on Investopedia, Plus500 offers some of the lowest fees and spreads in the industry.

However, the media outlet mentioned that Plus500 could provide more educational material, as well as further analysing tools.

Trustpilot.com – 4.0/5

In contrast to Brokerchoose and Investopedia, reviews of Plus500.co.uk on Trustpilot are not published by experts, but instead by actual users. About 62 percent of all reviews rated Plus500 as excellent (5/5), whereas a small percentage of less than 10 percent left a rating of only one out of five points.

In general, most users seem to be happy that the platform is extremely easy to use. When taking a closer look at the few bad ratings of Plus500, it can sometimes be quite difficult to understand the problems of the authors.

 

The verdict

According to various reviews, as well as the fact that Plus500 has a great diversification of cannabis investment opportunities, it can definitely be considered as one of the best platforms for getting started with cannabis stock trading and investing.

 

InteractiveBrokers – review for trading cannabis stocks

best advanced cannabis stock broker

Location: United States of America
Availability: USA, EU & most of Europe

Description

InteractiveBrokers is an online platform for advanced traders and investors. It is known for its wide range of available stock markets from all around the globe and its great variety of services for experienced traders.

 

How does it work?

In contrast to eToro and Plus500, users can actually buy real stocks certificates on InteractiveBrokers. While this allows investors to actually receive dividend income from stocks and (potentially) voting power, it also comes with a higher entry barrier and bureaucratic obligations.

Since InteractiveBrokers is targeted at high net-worth investors, the platform required a minimum deposit of $10,000 in order to start trading until very recently. InteractiveBrokers eventually decided to eliminate the $10,000 minimum deposit, but the platform still might not be a good choice for investors that are not able to maintain a high balance.

Accounts with a balance of less than $100,000 are subject to several monthly activity fees and may be excluded from multiple features that the platform offers.

 

interactive brokers free cannabis stock trial

Free trial on InteractiveBrokers

 

Commissions and fees

InteractiveBrokers has fairly low fees compared to many other stock brokers on the market. In their fixed plan, which is recommended for occasional traders, commissions per trade are only $0.005 per share, with a minimum of $1 per trade.

 

Which cannabis stocks can you trade on InteractiveBrokers?

Since InteractiveBrokers has one of the biggest networks of stock exchanges, investors can basically trade almost every cannabis stock, no matter if it is registered in the U.S., Canada, Israel or Denmark.

Major marijuana stocks that are available on InteractiveBrokers are Aurora Cannabis Inc. (ACB), Tilray Inc. (TLRY), Aphria Inc. (APHQF), Cronos Group (CRON) and GW Pharmaceuticals (GWPH) and many others.

 

What do the ratings say?

Brokerchoose.com – 4.8/5

Brokerchoose claims that InteractiveBrokers is home to a broad product portfolio, great and diverese researching tools as well as fairly low fees compared to similar platforms.

However, the review also states that the platform isn’t really user friendly and overall quite complicated, while the account opening can also be quite a journey.

Investopedia.com – 4.3/5

Investopedia believes that InteractiveBrokers is one of the most sophisticated trading and investing platforms in the world, as the platform and its services are geared for extremely active traders.

On the dark side, Investopedia mentions that ‘the overwhelming wealth of tools could intimidate a new investor’. Furthermore, the review also refers to the maintenance fees that may be charged for accounts with balances below $100,000.

Trustpilot.com – 2.1/5

User reviews of InteractiveBrokers on Trustpilot are rather negative compared to the expert reviews on Brokerchoose and Investopedia. Many users are unhappy about the complicated user interface, while others also mention bad customer service as a negative point.

 

The verdict

For those who are looking to invest a quite decent amount of capital into marijuana stocks, InteractiveBrokers is definitely a very interesting broker for investing into cannabis stocks.

That being said, less advanced traders might want to look for other, more uncomplicated, trading platforms.

 

Saxo Capital Markets – review for trading cannabis stocks

good cannabis stock broker

Location: Denmark
Availability: USA, EU & most of Europe

Description

Saxo Capital Markets is a service provided by Saxo Bank, a Danish investment bank specialising in online trading. It runs an online platform that is geared towards advanced traders and investors. Saxo Capital is operating in many countries across the world and allows users to trade stocks, currencies, CFDs and several other financial instruments.

 

How does it work?

Saxo Capital Markets is a provider of complex financial services. The platform is known for its highly customisable trading desktop and charting instruments, which makes it an interesting choice for experienced traders.

With a whopping £1,500 minimum deposit, Saxo Capital Markets currently has one of the highest minimum balances in the industry. Furthermore, accounts with a balance of less than £50,000 are subject to increased fees and spreads, which are, unfortunately, not entirely transparent to the end-user.

The platform also charges a fee of £25 per quarter for accounts that have not conducted a trade within the past 90 days.

 

saxo capital cannabis stock trading

SaxoTraderGo – expert-level trading desktop

 

Commissions and fees

As already stated above, Saxo Bank has high fees for accounts that do not maintain a high balance. U.S.-stock fees are currently at $0.01 per share at a minimum of $9.99 per trade. The lowest fees for trading stocks are reserved for VIP customers that maintain a balance of more than £1,000,000 and are currently at a $3 minimum per trade.

 

Which cannabis stocks can you trade on Saxo Capital Markets?

Saxo Capital Markets offers stocks from dozens of European stock exchanges as well as the most important exchanges from overseas. This includes the NYSE, Nasdaq and the Toronto Stock Exchange, which are currently the most important stock exchanges for cannabis stocks.

Therefore, Saxo Capital grants you access to the vast majority of cannabis stocks on the market.

 

What do the ratings say?

Brokerchoose.com – 4.7/5

Brokerchoose positively mentions that Saxo Capital Markets is offering stocks from a big number of international stock exchanges, while it also allows high-networth individuals to trade with very decent fees.

On the flipside, Brokerchoose isn’t happy about the slow account opening, missing live chat and high forex, bonds, options and futures fees.

Investopedia.com – 3.2/5

Overall, Investopedia is not very happy with the service provided by Saxo Bank. It believes that the platform lacks a transparent fee, spread and commission structure, while the general user experience is also quite complicated for newer traders.

However, Investopedia also positively mentions that the highly customisable desktop is very interesting for advanced and expert traders, as well as the available charting instruments and research options.

Trustpilot.com – 3.65/5

Reviews of Saxo Capital Markets on Trustpilot are leaning more towards the positive side. However, the sentiment of the general user base seems to be divided on the customer support provided by Saxo Bank. While some users were able to make positive experiences with Saxo Bank’s customer support, others heavily criticised actions of the company.

 

The verdict

Saxo Capital Markets is definitely a platform to consider when planning on investing into cannabis stocks. However, one should keep in mind that the platform might not be the right choice for people who consider investing anything below $50,000.

All others might want to check out other brokers for cannabis stocks in this list, such as Interactive Brokers, Plus500 and eToro.

 

Charles Schwab – review for trading cannabis stocks

best features for cannabis stock brokers

Location: United States of America
Availability: USA and most of Europe

Description

Charles Schwab is one of the largest banks in the USA and among the most popular stock brokers in the world. As of late 2017, the company had roughly 10.75 million active client brokerage accounts, managing more than $3.362 trillion in assets.

Charles Schwab is undoubtedly a highly respected player in the global stock market industry.

 

How does it work?

Users of Charles Schwab are able to buy stocks from 12 international stock exchanges as well as about 265 exchange-traded funds (ETFs). Aside from that, Schwab also offers a variety of other investment opportunities, including fixed income issues.

The minimum balance of Charles Schwab is currently at $25,000 (for clients outside of the U.S.), which means that it is geared towards either experienced traders, or at least investors who are willing to invest a decent amount of money.

What’s more, the platform offers a myriad of features and services, including a popular mobile app, investment consultation as well as education and information services.

 

Charles Schwab cannabis stock management

Charles Schwab portfolio management

 

Commissions and fees

Charles Schwab currently charges a $4.95 fee per trade, whereas users will not be charged for withdrawals, deposits, inactivity or general maintenance.

 

Which cannabis stocks can you trade on Charles Schwab?

Unfortunately, when users of Charles Schwab are looking to place an order on stock exchanges outside of the U.S., the platform requires to place these orders via phone call or in person only. Therefore, it is not possible to buy many of the Canadian cannabis stocks online via the Charles Schwab platform.

That being said, quite a few of the biggest Canadian cannabis stocks are also listed on the New York Stock Exchange as American depositary shares (ADRs), which can be purchased online in exchange for a small extra fee. Canadian cannabis stocks that are listed on American exchanges include Aurora, Canopy Growth and Cronos.

 

What do the ratings say?

Brokerchoose.com – 4.6/5

Brokerchoose sees Charles Schwab as one of the best broker services in the U.S., as it has an overall decent fee structure, fast account opening and plenty of useful features for advanced traders and investors.

The main disadvantage would be the limited number of stock exchanges that clients can trade on Charles Schwab.

Investopedia.com – 4.1/5

Investopedia sees Charles Schwab among the top three stock brokers in the U.S. The media outlet specifically points out the Schwab Satisfaction Guarantee, which gives refunds to displeased customers.

Regarding negative aspects, Investopedia sheds light on Charles Schwab pushing customers towards using in-house financial advisors, while it also finds faults with some features being distributed to separate platforms.

Consumeraffairs.com – 3.4/5

User reviews on Consumeraffairs are mostly positive, as people seem to be happy with the services provided by Charles Schwab. Nevertheless, some people said that they encountered delays when requesting to sell stock in their portfolio, which has supposedly led to significant losses.

 

The verdict

Charles Schwab certainly has a great reputation and is used by many American investors. Nevertheless, it might not be the best choice if you are residing outside of the U.S. since it requires a minimum investment of $25,000.

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