How to invest in cannabis stocks

Pot stocks to watch if you're looking to invest in the cannabis boom from Australia.

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Cannabis legislation hit a new milestone in Australia in 2021, with CBD oil now available over the counter for the first time from Monday February 1.

While no products have so far been approved for sale in Australia, the change in legislation is a positive sign of things to come for the many ASX listed cannabis stocks. Some ASX cannabis stocks that could be set to benefit include:

The rise of cannabis stocks

Just five years ago, few investors took cannabis stocks seriously. Today, as billions of dollars pour into the sector thanks to changes in changes in legislation, 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.

ASX and global cannabis 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.
Note: The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Name Product Standard brokerage fee Inactivity fee Markets International
Superhero share trading
$5
No
ASX shares, US shares
Yes
Australia’s lowest-cost broker for ASX shares and ETFs.
Pay zero brokerage on US stocks and all ETFs and just $5 (flat fee) to trade Australian shares from your mobile or desktop.
eToro (global stocks)
US$0
US$10 per month if there’s been no login for 12 months
Global shares, US shares, ETFs
Yes
Zero brokerage share trading on US, Hong Kong and European 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 currencies from the one account.
IG Share Trading
$8
$50 per quarter if you make fewer than three trades in that period
ASX shares, Global shares
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, plus get access to 24-hour customer support.
Saxo Capital Markets (Classic account)
$5
No
ASX shares, Global shares, Forex, CFDs, Margin trading, Options trading, ETFs
Yes
Access 19,000+ stocks on 40+ exchanges worldwide
Low fees for Australian and global share trading, no inactivity fees, low currency conversion fee and optimised for mobile.
ThinkMarkets Share Trading
$8
No
ASX shares
No
Limited-time offer: Get 10 free ASX trades ($0 brokerage) when you open a share trading account with ThinkMarkets(T&Cs apply).$8 flat fee brokerage for CHESS Sponsored ASX stocks (HIN ownership), plus free live stock price data on an easy to use mobile app.
HSBC Online Share Trading
$19.95
No
ASX shares, mFunds, ETFs, Bonds
No
Limited time offer: Get up to $100 in brokerage rebates on your first 5 trades when you sign up to a HSBC Online Share Trading account (T&Cs apply). Make trades online with brokerage fees starting from just $19.95 with an HSBC Online Share Trading account. Plus gain access to complimentary expert research, trading ideas and tools.
Bell Direct Share Trading
$15
No
ASX shares, mFunds, ETFs
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.
CMC Markets Invest
$11
No
ASX shares, Global shares, mFunds, ETFs
Yes
$0 brokerage on global shares including US, UK and Japan markets.
Trade up to 9,000 products, including shares, ETFs and managed funds, plus access up to 15 major global and Australian stock exchanges.
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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 is the cost to purchase $1,000 or less of equities without any qualifications or special eligibility. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.

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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.

Marijuana vs Hemp

Unlike marijuana, hemp is not normally a narcotic. While hemp and marijuana come from the same cannabis plant, hemp has a lower component of the psychoactive THC – which means that it has no psychoactive effects. Typically, hemp is used in food products, building materials and textiles while marijuana is used for medicinal and recreational purposes.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment 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. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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