How to invest in cannabis stocks

Just five years ago, few investors took cannabis stocks seriously. Today, as billions of dollars pour into the sector, few doubt that cannabis will be one of the next big disruptors.

If you're looking to invest in the cannabis boom from Australia, you can start here. Below is a list of companies that have exposure to the cannabis sector and are listed on the Australian Securities Exchange (ASX). Click to the next tab for a list of global cannabis stocks.

Listed cannabis sector stocks

Note: The global cannabis list refers to the EQM Global Cannabis Index at the time of writing. This is a general guide only and should not be taken as investment advice. The above lists may not be fully representative of the Australian or global cannabis marketplace and some companies may not directly deal in cannabis but have cannabis exposure.

Why invest in cannabis?

In the last couple of years, governments the world over have become less stringent on the use and production of marijuana and hemp products, paving the way for an explosion of new businesses.

A year after Canada became the second country to legalise recreational marijuana in 2018, the legal cannabis sector was estimated to be worth $150 billion, according to Euromonitor International. Between then and 2025, they predict the sector will grow by 2,000% globally.

How to invest in cannabis

There’s more than one way to invest in cannabis.

• Australian cannabis stocks. This means buying stocks on the Australian share market in cannabis companies or companies that have cannabis exposure.
• International cannabis stocks. Some of the biggest cannabis companies are listed on stock exchanges in overseas markets such as the US or Canada. It’s possible to invest in these if you use a broker that offers global stocks. Click on the "global" list above to see some of these stocks.
• Cannabis ETFs. ETFs contain a bundle of stocks, usually hundreds, and these often track an index of stocks. There are around six cannabis ETFs listed in the US; to date, there are no ASX-listed cannabis ETFs.
• CFD trading. You can trade cannabis stocks, ETFs or indices using CFDs. CFDs are contracts that allow you to make money on the price movements of an underlying asset, such as a share or commodity. Warning – these are complex products best suited to experienced traders.
• Copy portfolio. Share trading app eToro has a pretty neat portfolio of cannabis stocks that you can invest in. These are called copy portfolios and there are a bunch of investment themes you can track. To check them out, click on eToro's link in the table below.

How do I buy cannabis stocks?

1. Choose a share trading platform. If you’re a beginner, our table below can help you choose.
2. Open your account. You’ll need your ID, bank details and tax file number.
3. Confirm your payment details. You’ll need to fund your account with a bank transfer, debit card or credit card.
4. Find the shares you want to buy. Search the platform and buy your shares. It's that simple.

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Name	Product	Standard brokerage fee	Inactivity fee	Markets	International
IG Share Trading Finder Award		AUD 8	AUD 50 per quarter if you make fewer than three trades in that period	ASX shares, Global shares, Forex, CFDs, Margin trading	Yes	$0 brokerage for US and global shares plus get an active trader discount of $5 commission on Australian shares. Enjoy some of the lowest brokerage fees on the market when trading Australian shares, international shares, forex and CFDs, plus get access to 24-hour customer support.	Go to site More Info	Compare	loading Fetching your data...
eToro Share Trading (US stocks) Finder Award		USD 0	USD 10 per month if there’s been no login for 12 months	Forex, CFDs, US shares	Yes	Zero brokerage share trading on US stocks with trades as low as $50. Note: This broker offers CFDs which are volatile investment products and most clients lose money trading CFDs with this provider. Join the world’s biggest social trading network when you trade stocks, commodities and forex from the one account.	Go to site More Info	Compare	loading Fetching your data...
Superhero share trading		AUD 5	No	ASX shares	No	Pay zero brokerage on all Australian ETFs. Trade ASX stocks with a flat $5 commission fee and a low minimum investment of just $100.	Go to site More Info	Compare	loading Fetching your data...
Bell Direct Share Trading Finder Award		AUD 15	No	ASX shares, mFunds	No	Invest in Australian shares, options and managed funds from the one account with no inactivity fee. Bell Direct offers a one-second placement guarantee on market-to-limit ASX orders or your trade is free, plus enjoy extensive free research reports from top financial experts.	Go to site More Info	Compare	loading Fetching your data...
CMC Markets Stockbroking Finder Award		AUD 11	No	ASX shares, Global shares, Forex, CFDs, Margin trading, Options trading, mFunds	Yes	$0 brokerage on global shares including US, UK and Japan markets. Trade up to 9,000 products, including shares, managed funds, forex, commodities and cryptocurrencies, plus access up to 15 major global and Australian stock exchanges.	Go to site More Info	Compare	loading Fetching your data...
ANZ Share Investing		AUD 19.95	No	ASX shares, Global shares, Options trading, mFunds, ETFs, Warrants	Yes	Earn 1 Qantas Point per AU$3 spent on brokerage fees on certain instruments. Access Morningstar reports, company announcements and and live pricing via ANZ’s share investing platform. Available for desktop and mobile.	More Info	Compare	loading Fetching your data...
Westpac Online Investing Account		AUD 19.95	AUD 63.50 per year on the global markets account	ASX shares, Global shares, Options trading, US shares	Yes	More Info	Compare	loading Fetching your data...

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Important: Share trading can be financially risky and the value of your investment can go down as well as up. “Standard brokerage” fee is the cost to trade $1,000 or less of ASX-listed shares and ETFs without any qualifications or special eligibility. If ASX shares aren’t available, the fee shown is for US shares. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

Cannabis products

While smoking weed is perhaps the most well-known use of cannabis, there are many types of businesses that are set to benefit from the growing sector. In Australia and other countries, legalisation of many of these products is still new and in some cases, still underway. These include the following:

• Medicinal products. Medicinal cannabis is used in Australia toward the treatment of cancer pain, epilepsy, palliative care, chemotherapy nausea, neuropathic pain, anorexia and neurological conditions.
• Science and research. Recent policy changes mean that cannabis may be cultivated for both science and medicinal reasons in Australia.
• Recreational use. Marijuana as a recreational drug is still illegal or restricted in most countries and in some cases carries serious punishment. However, legalisation is starting to occur in parts of the US and in all of Canada. It's consumed to achieve feelings of relaxation or euphoria – however, there are also many risky side effects.
• Food products. Hemp is used as an ingredient in a range of products including cooking oils, snacks, protein powder, cooking flour and more. The sale of hemp food products in Australia was legalised in 2017.
• Building materials. Hemp is used in insulation and building construction materials and has several names, including hempcrete, hemp masonry and hemplime.
• Clothing. Hemp is broadly recognised as one of the most sustainable materials available in the manufacturing of clothing.
• Beauty products. Hemp is commonly used in various health and beauty products, such as moisturisers, lip balm, makeup and skin oils.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.