Canada is the world’s leading country for legal cannabis. And the country could mint a new group of “marijuana millionaires” within the next 100 days.
Canada is ground zero for cannabis. And that means you MUST be able to BUY these Canadian pot stocks.
You can BUY 95% of Canadian stocks in your account…
Many of the BEST Canadian pot stocks trade in both Canada and the U.S.
That’s because these stocks have a “dual listing.” That means they primarily trade in Canada on the Toronto Stock Exchange (TSE) or Canadian Venture Exchange (CVS). But they also trade in the U.S. on the OTC or Pink Sheets.
On the Canadian exchanges, shares trade in Canadian dollars. And on U.S. exchanges, shares trade in U.S. dollars.
One Canadian dollar is worth $0.76 USD. So, you’ll notice that the price of U.S. shares is always LESS than the quote on a Canadian exchange. That’s simply currency exchange rates adjusting the price.
Your account at Charles Schwab, E*Trade or TD Ameritrade will let you trade 95% of cannabis stocks . . . including most Canadian stocks.
But here’s the bad news that could cost you…
The situation is not perfect.
There are two reasons to be concerned.
The first is liquidity.
Most Canadian stocks primarily trade in Canada. That means the Canadian market is where most transactions happen.
Consider Aphria Inc., one of Canada’s biggest players in the cannabis industry.
The stock trades on the Toronto Stock Exchange with ticker symbol “APH.” Here in the U.S., shares trade on the OTC as “APHQF.”
Yesterday, the stock traded 461,000 shares on the OTC. Meanwhile, the stock traded nearly 1.7 million shares in Canada. That’s nearly 4x more trading volume.
Greater share volume means more trading. More trading means tighter bid / ask spreads for the stock price. And that means it’ll be easier to BUY and SELL shares and get a good price.
The second issue is access.
MOST Canadian pot stocks trade in the U.S. But not all of them . . .
I’ve noticed that newly public companies typically take a week or two to begin trading in the U.S.
That’s not a big deal – unless the stock doubles in an IPO debut.
Additionally, shares of smaller players may not be listed on the OTC or Pink Sheets. And that may make it impossible to BUY a small portion of these cannabis stocks.
Trading DIRECTLY on the Canadian market is ideal – if you’re able. The only problem is that most U.S. brokers don’t allow international trading.
Top 3 Brokers for Trading Canadian Pot Stocks
Want to trade directly on the Canadian market? Here’s how to do it.
The firm made its name serving active traders. This online broker requires a $5,000 account minimum.
Commissions are $0.005 per share, with a maximum of 1% of the trade value. That means a $1,000 investment would cost $10 in commission (max).
The firm is a bare bones broker. New clients can get started with as little as $500.
Commissions are higher than other firms. Buying or selling a stock will cost you $29.95.
With no account minimum, Questrade appeals to beginners. Commissions range between $4.95 and $9.95.
The firm charges “extra fees” for specific types of trades. So be sure to check out the fine print before signing on.
Most folks are completely satisfied trading U.S. stocks.
But if you’re looking for the BEST price on Canadian stocks . . . or you want to trade newly listed IPOs . . .
You may want to open an account at one of these three firms.
Frankly, I’m getting ready to invest $100,000 within the next three weeks. And I plan to double my money before 2019.