Picking a broker to trade marijuana stocks isn’t as simple as say, picking a broker to trade shares of Apple or Amazon. As a majority of the existing marijuana stocks either trade on the OTC markets or international exchanges and many aren’t DTC eligible, there are a lot of things to take into account before you choose a broker for trading marijuana stocks.
Since Ally Invest has some of the lowest commissions of all of the U.S. online brokers, as well as some other nice perks, we wanted to make an informative guide to help you determine if Ally Invest is the right broker for your marijuana stock trading needs. Let’s roll…
U.S. Market Access
In regards to trading stocks that are listed on the NYSE or the NASDAQ, Ally Invest is a solid option. Examples of marijuana stocks that trade on the NYSE or NASDAQ include Innovative Industrial Properties (NYSE:IIPR), 22nd Century Group (NYSE:XXII) and Zynerba Pharmaceuticals (NASDAQ:ZYNE).
Additionally, U.S. based, OTC listed stocks that are DTC eligible can be traded via Ally Invest. Some cannabis companies that fit these requirements include; Americann (OTC:ACAN), Nemus Biosciences (OTC:NMUS) and Zoned Properties (OTC:ZDPY).
International Market Access
Unfortunately, Ally Invest doesn’t currently offer access to any foreign exchanges, so if you are looking to trade international stocks on their home exchanges, Ally Invest isn’t the broker for you.
Ally Invest also doesn’t provide access to unsponsored ADRs (foreign stocks that trade on the OTC Markets in the U.S.)
Commissions, Fees and More
Last but not least, we want to touch on commissions and fees because they play an important (but often understated) role in your profitability as a trader or investor. Whether you made money or lost money on your trade, you still have to pay and in some cases, commissions can be the difference between a winning trade and a losing one.
The good news is that Ally Invest has some of the lowest commissions on the street at just $4.95 per trade. Even better, if you are an active trader (making 30+ trades per quarter) or if you have an account balance greater than $100,000, commissions drop to just $3.95 per trade.
Ally Invest has no account minimums (though there is a $100 minimum per OTC Markets trade), so you can get started right away!
They also offer forex and futures trading, though you might be thinking “Why is this relevant?”. Well, at the moment it isn’t. That said, upon U.S. federal legalization, it’s not a stretch to imagine a world where there will be commodity futures contracts on cannabis and related products.
Now, if you think Ally Invest might be the right broker for you, check out their site, learn more and open an account!
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