When trying to trade cannabis stocks as an American investor, you might occasionally find limitations in what kinds of stocks you can buy at some brokerages, however. Not all of them will trade Canadian or even OTC stocks, though access has improved immeasurably over the last year or two.
Fortunately, most of the biggest U.S-based brokers now allow you to trades stocks listed in Canada, notably ones on the Toronto Stock Exchange (TSX) and the Canadian Securities Exchange (CSE) just as if you were buying Apple or Ford.
Whenever a stock trades in Canada and the United States over-the-counter (OTC) markets for our NICI Membership or The Cannabis IPO Insider subscribers, my trade instructions will tell you where it’s best to buy the shares. If you’re trading a stock which NICI has not recommended, you generally will do a little better buying it on a Canadian exchange than getting it OTC.
But first, you have to sign up with an online brokerage.
Signing up with any online brokerage is easy. It’s like applying for a credit card or renting a car. In fact, signing up for a brokerage account is almost as easy as signing up to be part of the National Institute for Cannabis Investors.
You just go to the sign up area on the website and put in all your information: name, address, and so on. You’ll also enter a banking account number so you can actually put money into your brokerage and then make your stock buys.
It’s all normal and no riskier than using your credit card at a grocery stores or gas station.
Since most of my trades of the best emerging cannabis stock opportunities don’t involve companies listed on the New York Stock Exchange or Nasdaq, let’s take a look at your best options for buying TSX, CSE, or OTC stocks (in no ranked order).:
Interactive Brokers LLC (interactivebrokers.com) – Investors may trade Canadian stocks with no notable restrictions. Our research team have asked if trades with three of our first five recommendations for the CSE listing of a stock could be made, and a representative said they could do so with no problems.
Fidelity Investments Inc. (fidelity.com) – Fidelity will allow you to buy through Canadian exchanges and automatically converts your purchases to Canadian dollars when buying a stock from there. Fidelity does have a policy that it will automatically convert attempted purchases of stocks trading at a penny stock prices – the Securities & Exchange Commission defines a penny stock as anything trading for less than $5 per share – to whatever the OTC stock is.
TD Ameritrade (tdamertrade.com) – This broker will accept trades on Canadian exchanges. However, you would need to call in and talk to a live broker to make such a trade. Meanwhile, a customer can place their own trade for an OTC stock on the online platform.
eTrade (https://etrade.com) and TradeStation Group Inc. (https://tradestation.com) – These brokers do not yet offer any Canadian cannabis stock trades. However, you can buy OTC listed stocks, though foreign stocks will be limited as well (tickers ending in ‘F’).
All brokers may require additional fees beyond normal costs. Please reach out directly to your broker for further information.
Additionally, while we do try to accommodate all investors, we do cater specifically to American customers and therefore our recommendations are geared towards those who have American citizenship and are not effected by foreign law. Customers outside of the US will have to carry out additional due-diligence to make certain that they comply with and understand their local laws and regulations regarding investing.
A member of our Customer Support Team can help you answer any questions or concerns you may have about NICI. You can reach them by phone at 866-260-0361 or by email at email@example.com.
If you have questions about your trading account or are having difficulty placing a trade on a trading platform, you should reach out to your broker directly.