If you have an account in a brokerage firm, you already have access to publicly traded marijuana stocks. The popularity of marijuana stocks continues to grow as more states legalize the substance for medical and recreational use. There currently are 34 states that allow medical marijuana, available at a local dispensary, and 15 states allow recreational marijuana, available at local cannabis shops.
Although any brokerage account allows you to participate in the burgeoning marijuana industry, investing in the market comes at high risk. Any growing industry requires a keen understanding of the market before seeing any productive growth in your investments. Still, brokerage firms are friendly enough for risk-taking beginners to start investing in marijuana stocks.
Best Brokerage Firms for Cannabis Stocks
You should look for low-cost and low minimum brokers when starting to get into trading cannabis stocks. Low stock trading fees and low minimums mean you put in less than you get from the stocks, meaning you could potentially see a large return on investment. Here are some of the best online stock brokers for marijuana stocks.
Beginners will enjoy this brokerage firm’s $0 commission fees on stocks and exchange-traded funds (ETFs). Ally Invest only requires $0.50 for a contract with the broker, and you can access its interactive stock trading platform. Many brokerage firm rating sites give this broker top grades for its excellent customer service, making its already user-friendly interface much easier to navigate.
Ally Invest offers an education center where newbies can learn more about different investing strategies. This feature may prove helpful in inquisitive and business-minded beginners who are getting into the growing marijuana stock market. The Ally Invest education center also includes a dedicated section for “rookies” starting from scratch.
This broker is another firm that requires $0 on stocks and ETFs. WeBull contracts also cost $0, making it the lowest costing brokerage firm for beginners looking to trade stocks while on a budget. While a free contract and no commission fee deal may seem too good to be true, this brokerage firm earns an income on optional services.
You do not have to subscribe to their optional services if you already understand the basics of trading in the stock market. So, WeBull may not exactly be the most beginner-friendly broker to guide newbies through the industry. Still, its website and the overall interface are neat and easy to navigate, which may suit beginners who can quickly learn as they go.
The Cannabis Industry at a Glance
The marijuana market includes companies that engage as either growers, biotechnicians, or subsidiaries. First, marijuana growers and producers cultivate and distribute cannabis products. Next, cannabis biotechnicians are drug-makers who develop cannabis-based pharmaceuticals. Finally, subsidiaries are simply ancillary cannabis products and service providers who support the marijuana growers through distribution.
Although these companies have the necessary cannabis licenses to continue their operations, cannabis remains federally illegal. This illegality is the main risk you face when investing in marijuana stocks. This risk involves potential federal intervention into the cannabis companies. As a shareholder of any cannabis company, you may face legal trouble as you keep up with your stocks.
Another risk you might face with the cannabis stock market is scammers. These criminals understand how cannabis stocks are hot, so they facilitate fraudulent investment schemes to take advantage of greenhorns. Plus, since the cannabis industry is relatively new, even some more seasoned investors fall victim to such scams to the point that the Securities and Exchange Commission (SEC) officially warned investors about these market scams.
The Best Cannabis Stocks to Invest In
Based on recent data, some of the best cannabis companies for investing in marijuana stocks include High Tide, Cresco Labs, and GrowGeneration Corp. These companies presented data within the last year that placed them among the best value and fastest-growing marijuana stocks with the most momentum. Learn more about these companies and their performance in the marijuana stock market here.
Conclusion: Can I Buy Cannabis Stocks at My Brokerage?
You can buy cannabis stocks at any brokerage firm with which you have a contract. If you are looking to start investing in marijuana stocks, Ally Invest and WeBull are two of the best low-cost brokers. These brokers require $0 on stock trades and ETFs, giving newbies the potential to earn more than they put out. However, the cannabis industry remains in its early stages and can be highly risky for anyone without a complete understanding of the market.
Be sure to keep up with the cannabis industry news to stay on top of the unpredictable stocks. If you are a beginner looking to start investing in high-risk cannabis stocks, you need to stay on top of the shifting marijuana business landscape to take part in its potentially high-reward stocks. TNM News covers the marijuana news that you need to remain updated on everything about marijuana. Visit our page for the latest on cannabis stocks.