Top brokerage companies to buy cannabis stocks. Best stock brokers for investing in CBD, hemp, medical marijuana stocks.

Introduction

As the demand for cannabis continues to soar and the legality of its use expands, an increasing number of people have sought to capitalize on the marijuana business growth trend. Thus, investors have turned to the accessibility and liquidity of the stock market to deploy their capital.

TD Ameritrade and Robinhood are two excellent brokerages that bolster a wide catalog of cannabis stocks in conjunction with all the research tools necessary to get involved successfully.

Services

Broker Review Cost Investment Products Trading Tools Customer Service Research Overall Rating
TD Ameritrade
Robinhood


Cost

It is completely free to sign up, fund an account, and make stock trades with both TD Ameritrade and Robinhood. Both brokerages employ a zero-commission model that enables users utilizing their platforms to enter and exit trades as often as they see fit, opening the door for day-traders, long term investors, and everyone in between to get started investing in the cannabis industry.

Robinhood also offers free options trading, whereas TD Ameritrade options trading incurs a $0.65 commission per contract traded. Options trading volume and bid/ask spreads are similar through both brokerages, tipping the scales toward Robinhood for novice or cost-effective traders. Experienced traders will appreciate TD Ameritrade’s emphasis on trade customizability, offering a more technical approach toward crafting option spreads or implementing trade contingencies.


Broker Review Broker
Rating
Stock/ETF
Fee
Mutual Fund
Fee
Option Promotion Offer
TD Ameritrade 4.5-star brokerage firm rating $0 $49.99 ($0 to sell) na $0 stock/ETF trades and a transfer fee refund.
Robinhood 4-star brokerage firm rating $0 na $0 Get up to $200 in free stock with a new Robinhood account.


Notable Features

Robinhood’s website and mobile app are predicated upon providing a user friendly and visually appealing experience. Upon logging in, the home page displays a line chart of an account’s balance over time, allowing an investor to quickly and clearly gauge the overall performance of their cannabis (and other) investments.


cannabis stock brokers


Beneath this chart is a news feed that populates with articles related to stocks added to the watchlist. This is tremendously useful for keeping up to date on cannabis related news, specifically a company’s performance, analyst opinions, and overall cannabis policy, which is in a notably dynamic state.

At the bottom of each individual stock’s page is a “People Also Own” section that displays a list of related stocks within the industry, thereby facilitating familiarization and identifying additional research targets for potential investing. Given how quickly the cannabis sector is growing and how many new companies will be IPOing in the future, this feature smoothes the discovery process.


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TD Ameritrade offers a website and computer and mobile apps, named thinkorswim, that are optimized for gathering information. The platform’s presentation is more advanced than that of Robinhood and its apps provide charts and metrics designed for technical analysis, though it is still suitable for investors of all experience levels looking to get involved in the cannabis industry.

Similarly to Robinhood, TD Ameritrade has an intuitive, though more customizable, news feed. The feed can be filtered by keywords, symbols, watchlists, and can also be narrowed down by the publishing source, ensuring a thorough and adjustable experience when staying current on all things cannabis.

Listed within a stock’s description are ratings and full write-ups from investment analysis firms that serve to boost confidence when electing to invest in new companies. These reports are extremely useful for developing an investing position rooted in fundamentals and audited by professionals.


Promotions

TD Ameritrade: $0 stock/ETF trades and a transfer fee refund.

Robinhood: Get up to $200 in free stock with a new Robinhood account.



Availability of Cannabis Stocks

Both TD Ameritrade and Robinhood have a growing list of cannabis stocks available to their users.

A search for “cannabis” in TD Ameritrade populates the search with over 60 hits of domestic stocks, international stocks, and ETFs, including all of the top options highlighted in the Most Popular Stocks and Cannabis Funds sections below.


marijuana stock brokers


Robinhood takes a proactive approach toward providing investment options by curating a list of recommended cannabis companies. Titled “Cannabis,” this list appears in the Trending Lists section of the home page and can also be easily found using the search function. The Cannabis list currently displays 10 of the hottest stocks on Robinhood and is a solid starting point for building a watchlist, allowing users to easily compare price fluctuations and market caps of the included companies.

Of note, Curaleaf (CURLF) and Green Thumb (GTBIF), two top companies, are not directly available for purchase on Robinhood, however they compose a large portion of the AdvisorShares Pure US Cannabis (MSOS) ETF holdings allocation, emulating a more diversified approach toward investing in both.

Most Popular Cannabis Stocks

The biggest players in the space are Curaleaf (CURLF), Green Thumb (GTBIF), and Tilray (TLRY), which are currently the three largest public cannabis companies by market cap and some of those most popular among investors.


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Curaleaf is a vertically integrated cannabis producer based in Canada that offers both medical and recreational use products internationally to Canada, the United States, and Europe. Curaleaf trades around $6.50 per share with a total market cap of almost $5B and a TD Ameritrade Smart Score Rating of 6 (Neutral).

Green Thumb, headquartered in Chicago, Illinois, specializes in producing marijuana and selling pre-packaged products such as edibles, pre-rolls, vapes, and more to retailers. Green Thumb trades around $13 per share with a total market cap of about $3B and a TD Ameritrade Smart Score Rating of 6 (Neutral).

Tilray grows cannabis and hemp for use in products such as dried cannabis, edibles, hemp foods, and CBD oil, with retail, wholesale, and pharmaceutical applications. Based in Canada, Tilray trades around $4 per share with a total market cap of about $2.4B and a 70% Hold Recommendation per Robinhood’s published analyst ratings.

Cannabis Funds

Electronically Traded Funds (ETFs), essentially a mixed investment basket of many different companies, serve as a great option for those wanting to diversify their money across a number of cannabis companies while continuing to exercise a bullish stance on the industry as a whole.

The two most popular Cannabis ETFs are AdvisorShares Pure US Cannabis (MSOS) and ETFMG Alternative Harvest (MJ), both of which are available on TD Ameritrade and Robinhood.

MSOS focuses on investing in United States based marijuana and hemp businesses, targeting a number of pharmaceutical and biotechnological applications. MSOS has been trading around the $12 per share mark, with a total of about $700M Assets Under Management (AUM) and an expense ratio of 0.80%. Its top three holdings by allocation are Green Thumb (GTBIF), Curaleaf (CURLF), and Trulieve (TCNNF).

Unlike MSOS, MJ has its holdings diversified globally, seeking out companies that cultivate, produce, and market cannabis. MJ also incorporates stocks that specialize in peripheral products, such as the fertilizers, foods, pesticides, and equipment necessary to grow. MJ has recently traded in the $5-6 range, with a total of about $400M AUM, an expense ratio of 0.75%, and a beneficial 3.31% annual dividend paid to shareholders. Its top three holdings by allocation are ETFMG U.S. Alternative Harvest ETF (MJUS), Canopy Growth (WEED.TO), and SNDL (SNDL).

A full prospectus, detailed breakdown of holdings, and a number of other useful financials and metrics for MSOS and MJ can easily be found on TD Ameritrade and Robinhood.


Promotions

TD Ameritrade: $0 stock/ETF trades and a transfer fee refund.

Robinhood: Get up to $200 in free stock with a new Robinhood account.



Stock Brokers for Investing in Cannabis

Both brokerages have an excellent array of stocks and tools designed to enable participation in a booming cannabis market that is slated to keep climbing higher. Go Green with TD Ameritrade or Robinhood.



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