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Is E*Trade the Best Broker for Trading Marijuana Stocks?
Picking the right broker to trade marijuana stocks can be a difficult decision. Important considerations like international market access come into play depending on which marijuana stocks you want access to (or maybe you want access to them all!). Beyond international market access, it's important to consider commissions when trading marijuana stocks.
Since E*Trade is one of the most commonly used online brokers here in the United States, we wanted to make an informative guide helping our readers determine if it is the right broker for their marijuana stock trading needs.
U.S. Market Access
E*Trade is a solid option for accessing U.S. listed marijuana stocks that trade on the Nasdaq or the NYSE. Examples of marijuana stocks like this include the cannabis REIT, Innovative Industrial Properties (NYSE:IIPR), as well as GW Pharmaceuticals (NASDAQ:GWPH) and more from the cannabinoid biotech space.
Also trading on the Nasdaq are ADRs from two companies based in Israel. Both Intec Pharma (NASDAQ:NTEC) and Therapix Biosciences (NASDAQ:TRPX) are dual listed on the Tel Aviv Stock Exchange as well as the Nasdaq.
Other cannabis companies based in the United States, such as Axim Biotechnologies (OTC:AXIM) and CV Sciences (OTC:CVSI) are also available on E*Trade. Unlike some brokers, E*Trade offers easy access to OTC-listed stocks, making a vast majority of marijuana stocks available for trading on E*Trade, including many international listings.
International Market Access
Marijuana stocks are trading on exchanges all around the world. From Frankfurt to Tel Aviv, there are more and more investment opportunities popping up every day. When the Horizons Medical Marijuana Life Sciences ETF (TSX:HMMJ) began trading in Canada on the TSX on April 5th, it was not just Canadians interested in buying. Investors from the United States and beyond were buzzing about it. In one of the sub-reddits we follow, many prospective investors were asking if their broker offered accessibility to trade foreign-listed shares.
There's good news and there's bad news when it comes to international market access through E*Trade. E*Trade no longer has a Global Trading platform, which means you no longer have direct market access to exchanges all around the globe.
Don't worry, there's good news! Most international marijuana-related stocks are dual listed on the OTC markets. For instance, Invictus MD Strategies Corp. is listed on the TSXV in Canada under the ticker IMH, but also has a listing on the OTC Markets under the ticker IVITF. CannaRoyalty Corp. is listed on the CSE in Canada under the ticker CRZ, but also has a listing on the OTC Markets under the ticker CNNRF. This is the case almost all across the board.
Last but not least, we want to touch on commissions because traders hate commissions. The more actively you trade, the more that commission costs can add up. Whether you made money or lost money on your trade, you still have to pay!
The good news for more active traders on E*Trade is that traders who make more than 30 trades per quarter get a commission discount, making it $4.95 per stock, options, or ETF trade. Standard commissions however are $6.95 per stock, options, or ETF trade.
Now read: Trading Marijuana Stocks Commission-Free on Robinhood