2019: Can I buy Canadian marijuana stocks on Robinhood app? Does Robinhood offer trading penny stocks, medical cannabis stocks (Aurora, Canopy Growth, Cronos, Tilray) from Toronto Stock Exchange?

Can I Trade Canadian Stocks at Robinhood?

Robinhood Financial has quickly become a household name among millennial traders as the app successfully leads the no-cost trading movement. With all this success, you may be wondering what investment options the app offers outside of U.S. stocks. This article addresses the common question – Can I invest in Canadian stocks on Robinhood?

The short answer is, yes and no - it really depends on the Canadian company and how and where their stock is listed. Robinhood, like many U.S. brokers, doesn’t allow you to directly trade listings on the Canadian stock exchanges; however in many cases you can still invest in Canadian companies through direct U.S. listings and ADRs. We’ll dive deeper into both of these options.


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Canadian ADRs on Robinhood

ADRs (American Depository Receipts) are U.S.-listed securities that directly own stock in foreign-listed companies, and are an efficient means for American investors to invest in foreign public companies. ADRs represent pure ownership in the foreign company and also carry the foreign FX exposure (just like buying that company’s locally listed stock would), but can be purchased by American investors the same as they would purchase a U.S.–listed stock. Many large Canadian companies have ADRs that you can trade on Robinhood, such as Canadian National Railway Company, whose ADR is listed on the NYSE under the ticker CNI.


Canadian Dual Listings

Another very similar approach to investing in Canadian companies through Robinhood is by choosing companies that have dual primary listings, or cross-listings. While this is very similar to investing in an ADR in that both options give you pure exposure to the underlying Canadian company, dual primary listings are structurally and legally different. With a dual listing, the company is choosing to directly list its stock on two different exchanges, whereas with a Canadian ADR the company only has one primary listing (on a Canadian exchange) and then an ADR issued by an American bank that goes out and buys the Canadian-listed stock to hold in custody.


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Aurora Cannabis – A $5Billion Canadian Company You Can Trade on Robinhood

One of the more popular Canadian companies with a dual listing in the U.S. that you can trade on Robinhood is Aurora Cannabis (ACB). Aurora Cannabis is a $5billion company that is engaged in the production and distribution of medical cannabis. They currently have sales in 18 countries, and as the recent stock performance suggests, many investors are betting on Aurora being a leading world player as more countries take steps to legalize marijuana’s recreational use.


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Other popular Canadian companies that you can trade on your Robinhood Financial account include marijuana names Canopy Growth (CGC) and Cronos Group (CRON).


Buy Cronos on Robinhood


Trading Canadian ADRs and Dual Listings

Trading ADRs and dually-listed Canadian stocks on Robinhood is functionally exactly the same process you would follow when trading U.S. stocks (because these are also U.S.-listed securities). The only real difference you may notice is that some ADRs, depending a lot on the size of the company, tend to have less liquidity than directly listed stocks.


Summary of Trading Canadian Stocks on Robinhood

To summarize, you can trade many Canadian stocks that have ADRs or dual primary listings in the U.S. on your Robinhood account. If a Canadian public company doesn’t have an ADR or a dual listing, or if it does but isn’t currently offered on the Robinhood platform, you won’t be able to trade it on Robinhood. That said, Robinhood’s platform offers trading on hundreds of foreign stocks, and this list is continually expanding to cater to growing investor demand.


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