(Photo Credit - Paul Keleher)
Is Fidelity the Best Broker for Trading Marijuana Stocks?
Picking the right broker to invest in 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 Fidelity is one of the most widely used online brokers here in the U.S., we wanted to make an informative guide helping our readers determine if it is the right broker for their cannabis investment needs.
U.S. Market Access
Fidelity is a great option for trading U.S. listed marijuana stocks that trade on the Nasdaq or the NYSE. Examples of marijuana stocks like this include leading plant biotechnology company 22nd Century Group (NYSE:XXII), as well as Zynerba Pharmaceuticals (NASDAQ:ZYNE) and more from the cannabinoid biotech space.
OTC-only stocks like Cannabics Pharmaceuticals (OTC:CNBX) and Cannagrow Holdings (OTC:CGRW) are also available to trade and invest through Fidelity. Fidelity offers customers access to OTC stocks, making a large majority of cannabis stocks available for trading or investing with Fidelity, including international listings that trade over-the-counter.
In addition to OTC-traded stocks, Fidelity also offers customers access to the one-of-a-kind marijuana mutual fund - American Growth Fund Series II E.
International Market Access
Cannabis stocks are listed on exchanges all around the world. From Australia to Germany, there are more and more opportunities popping up every day to invest in this booming industry.
When the Horizons Medical Marijuana Life Sciences ETF (TSX:HMMJ) started trading in Canada on the TSX on April 5th, it was not just Canadians interested in buying. Investors from the United States and abroad were talking about this first-of-its-kind ETF. In one of the marijuana investment sub-reddits we follow, many prospective investors from the U.S. were wondering if their broker offered access to this international listing.
There's good news when it comes to international market access with Fidelity. Fidelity offers customers access to "most common stocks and exchange-traded funds (ETFs) listed in the following markets," including:
One country that is not listed on Fidelity's website as being accessible to customers is the Tel Aviv Stock Exchange in Israel. Thankfully for investors focusing on cannabis companies, both Intec Pharma (NASDAQ:NTEC) and Therapix Biosciences (NASDAQ:TRPX) have ADRs listed on the Nasdaq.
If any of the of the other foreign cannabis companies are not accessible with direct market access, most international marijuana-related stocks are dual listed on the OTC markets as well.
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. Canopy Growth Corp. is listed on the TSX in Canada under the ticker WEED, but also has a listing on the OTC Markets under the ticker TWMJF. This is the case almost all across the board.
Last but not least, we want to touch on commissions because traders and investors all hate commissions. The more actively you trade, the more that commissions can add up. Whether you made money or lost money on your investment, you still have to pay your broker!
The good news for more active traders on Fidelity is that customers pay a flat-rate commission of $4.95 per stock trade. E*Trade also offers customers $4.95 commission, but only to traders with more than 30 trades per quarter.
Now read: Trading Marijuana Stocks Commission-Free on Robinhood