Cannabis trading offers an attractive opportunity for some investors, given its comparably new status in the agricultural industry. As more cannabis products become legalised for medicinal and recreational purposes, traders are seeking out popular investments via stocks, ETFs and CFDs. This guide will explain the cannabis trading market, from investing vehicles to price drivers. Our UK team have also reviewed and ranked the top cannabis brokers:
Best UK Brokers For Trading Cannabis
Investing involves risk. Asset prices can move rapidly and you may lose some or all money invested. Never invest more than you can afford to lose.Advertising disclosure
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Our top pick
Established in 1974, IG is a unit of IG Group Holdings Plc, listed on the LSE as IGG. It provides access to over 17,000 markets through intuitive platforms and apps. For half a century, IG has remained an industry leader, excelling in all vital aspects for traders.
- Instruments
- CFDs (not in US), Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting (UK only)
- Regulator
- CFTC, NFA, FCA, BaFin, ASIC, FINMA, MAS, JFSA, FMA, DFSA, BMA, CONSOB
- Platforms
- Web, L2 Dealer, MT4, TradingView, AutoChartist, TradingCentral, ProRealTime
- Min. Deposit
- $0
- Min. Trade
- 0.01 Lots
- Leverage
- 1:30 (Retail), 1:222 (Pro)
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
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eToro is a leading multi-asset platform providing trading services across numerous CFDs, stocks, and cryptocurrencies. Since its 2007 inception, it has attracted millions of traders worldwide. It operates with authorisation from top regulators such as the FCA and CySEC. Its social trading feature is especially well-regarded. Crypto investments are high-risk and possibly unsuitable for retail investors. There's a potential to lose all invested capital. Familiarise yourself with the risks. 61% of retail CFD accounts incur losses.
- Instruments
- CFDs, Forex, Stocks, Indices, ETFs, Smart Portfolios, Commodities, Futures, Crypto, NFTs
- Regulator
- FCA, CySEC, MiCA, MFSA, FSRA, ASIC, FSAS, MAS, GFSC
- Platforms
- eToro Web, CopyTrader, TradingCentral
- Min. Deposit
- $50
- Min. Trade
- $10
- Leverage
- 1:30
61% of retail investor accounts lose money when trading with this provider. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.
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Founded in 1989, CMC Markets is a reputable broker publicly listed on the London Stock Exchange. It holds authorisation from top-tier regulators such as the FCA, ASIC, and CIRO. The brokerage, which has received multiple awards, boasts a global membership exceeding one million traders.
- Instruments
- CFDs, Forex, Stocks, Indices, Commodities, ETFs, Treasuries, Custom Indices, Spread Betting, Certificates and Warrants (Germany and Austria)
- Regulator
- FCA, ASIC, MAS, CIRO, BaFin, FMA, DFSA
- Platforms
- Web, MT4, MT5, TradingView
- Min. Deposit
- $0
- Min. Trade
- 0.01 Lots
- Leverage
- 1:30 (Retail), 1:500 (Pro)
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Compare
Safety Comparison
Compare how safe the Cannabis are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
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4.4 | ||||
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4.3 | ||||
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4.8 |
Payments Comparison
Compare which popular payment methods the Cannabis support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
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Mobile Trading Comparison
How good are the Cannabis at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
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iOS & Android | 4.6 | 4.0 | |
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iOS & Android | 4.0 | 3.8 | |
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iOS & Android | 4.1 | 3.7 |
Beginners Comparison
Are the Cannabis good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
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$0 | 0.01 Lots | 4.5 | 4.8 | |
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$50 | $10 | 2.5 | 4.0 | |
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$0 | 0.01 Lots | 4.5 | 4.3 |
Advanced Trading Comparison
Do the Cannabis offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
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Expert Advisors (EAs) on MetaTrader, build your own on ProRealTime | 1:30 (Retail), 1:222 (Pro) | |||||
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Automate your trades via CopyTrader - follow profitable traders. Open and close trades automatically when they do. | 1:30 | |||||
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Expert Advisors (EAs) on MetaTrader | 1:30 (Retail), 1:500 (Pro) |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Cannabis.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
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4.4 | 4.8 | 4.3 | 4.5 | 5.0 | 4.0 | 4.5 | 4.9 | 4.8 |
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4.3 | 2.8 | 3.9 | 3.8 | 3.4 | 4.1 | 2.5 | 4.3 | 4.0 |
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4.8 | 4.3 | - | 4.7 | 4.3 | 4.5 | 4.5 | 4.5 | 4.3 |
Our Take On IG
IG offers a complete package: an easy-to-use web platform, top-tier beginner education, enhanced charting via TradingView, up-to-date data, and strong trade execution for seasoned traders.
Tobias Robinson Reviewer
Pros
- IG excels with its diverse instruments, offering stocks, forex, indices, commodities, and cryptocurrencies. Additionally, it provides US-listed futures, options, and an AI Index, ensuring varied diversification opportunities.
- IG secured a crypto asset license from the FCA, enabling its return to the UK market. It now offers buying, selling, and storage services for over 55 digital tokens with fees starting at 1.49%, all under FCA regulation.
- The web-based platform supports traders at every level, offering advanced charting tools and real-time market data vital for trading. Additionally, IG now includes TradingView integration.
Cons
- Beginners may find IG's fees complicated, as they vary depending on the trades or services. This could cause confusion and unexpected costs.
- IG has ended its swap-free account, diminishing its attractiveness to Islamic traders.
- IG imposes a monthly inactivity fee of $12 to $18 after two years, discouraging occasional investors.
70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Our Take On eToro
eToro's social trading platform excels with its outstanding user experience and lively community chat, aiding beginners in spotting opportunities. It offers competitive fees on numerous CFDs and real stocks, alongside exceptional rewards for seasoned strategists.
Tobias Robinson Reviewer
Pros
- In July 2026, eToro Edge introduced significant enhancements, including a charting package tailored for active traders and AI trading via Tori.
- The trading app provides a top-tier social environment featuring an engaging feed and community chat, which we enjoy using.
- The entry requirements for eToro Club have been reduced. For $4.99 monthly, members enjoy 18 benefits, including a debit card that converts purchases into stocks with a 4% share return.
Cons
- The absence of extra charting platforms such as MT4 may deter experienced traders who rely on external software.
- There are no assured stop-loss orders, which could be a valuable risk management tool for novice traders.
- The minimum withdrawal is set at $30, accompanied by a $5 fee. This may impact traders with limited funds, particularly those just starting out.
61% of retail CFD accounts lose money. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
Our Take On CMC Markets
Equipped with advanced charts and a broad array of tradable CFDs, including an unmatched selection of currencies and bespoke indices, CMC Markets offers an excellent online platform for traders at any level.
Tobias Robinson Reviewer
Pros
- The CMC web platform offers an excellent user experience, featuring advanced trading chart tools and customisable options, suitable for both novice and seasoned traders. It also supports MT4, MT5, and, from 2025, TradingView.
- CMC Markets has introduced an AI News feature. This leverages AI to highlight and summarise market stories instead of executing trades, suggesting the future direction of broker research tools.
- We upgraded its 'Assets & Markets' rating due to frequent product expansions in 2025 and 2026. These include extended hours for 5,000+ US stocks and ETFs, new share CFDs, certificates, warrants, and fractional shares in certain areas.
Cons
- Although there have been improvements, the online platform still needs further refinement to match the user-friendly trading experience offered by competitors such as IG.
- A £15 monthly inactivity fee applies after a year of no activity, possibly discouraging casual investors.
- The CMC Markets app provides a comprehensive trading package; however, its design and user experience lag behind market leaders such as eToro.
69% of retail CFD accounts lose money.
How The Legal Cannabis Industry Works
In recent years, licensed companies have been permitted to operate in the cannabis industry. Whilst recreational consumption of cannabis is illegal in many jurisdictions, medicinal usage is widely permitted. For example, in 2018, the UK government allowed cannabis to be used for medical reasons if prescribed by an NHS or private doctor.
In addition, rules around recreational usage have been relaxed in other jurisdictions, including full legalisation in Canada as well as many US states, such as Colorado. As a result, the number of listed companies involved in the cannabis industry has increased. For example, Kanabo Group and Oxford Cannabinoid Technologies are both now registered on the London Stock Exchange.
In the cannabis trading market, companies operate in three main areas: production, retail and biomedical.
- Production & processing: Companies that grow and cultivate cannabis to be shipped and sold as consumer products, such as oils and edibles. One example is Aurora Cannabis, which has been growing cannabis since 2013. A more diversified company is Associated British Foods, which has dedicated cannabis greenhouses in Norfolk, UK, alongside other commodities such as sugar.
- Retail: Following the legalisation of cannabis for recreational consumption, many dispensaries were created with the sole purpose of selling cannabis and related products such as CBD oil. The Chill Brands Group is a prime example of a CBD-product seller.
- Biomedical & research: Companies that investigate the potential medical benefits of using cannabis and develop pharmaceuticals derived from cannabis. For example, cannabis has been used to treat conditions such as epilepsy, migraines, Parkinson’s disease and insomnia. Cellular Goods is a biomedical cannabis company which creates skincare products used to treat pain and reduce inflammation.
Overall, the industry outlook is arguably looking positive. The Global Cannabis Report by Prohibition Partners estimates that the global CBD and cannabis trade could amount to over $101 billion by 2026. With that said, factors such as government regulations and public opinions can heavily impact the market.
Cannabis Price
How To Invest In Cannabis
You cannot trade directly on the price of cannabis as you can with other agricultural commodities such as sugar or soybeans. As a result, the available vehicles for online trading cannabis include shares, indices, exchange-traded funds and share baskets.
- Stocks: You can trade stocks of publicly listed cannabis companies, either directly or via derivatives such as CFDs or futures and options. Share dealing involves buying and owning stocks outright. For example, IG Index is a popular broker offering shares in Cronos Group, Canopy Growth Corporation and more. Derivatives allow you to speculate on bullish and bearish trends.
- Indices: Trade on cannabis-based indices such as the Cannabis Index, which provides a benchmark for the wider cannabis industry. The Cannabis Index derives its value from a basket of 20 listed companies involved in the cannabis business and is available at brokers such as IG.
- ETFs & share baskets: Exchange-traded funds (ETFs) are diversified products that are traded on exchanges and available at leading brokers. One common example is the Cannabis share basket tradable through CMC Markets, which contains 7 licensed medicinal cannabis producers.
5 Popular Cannabis Stocks
At the time of writing, some of the biggest firms in the global cannabis industry include:
- Innovative Industrial (IIPR): Approximate market cap $1.94 billion
- Curaleaf (CURLF): Approximate market cap $1.88 billion
- Green Thumb Industries (GTII): Approximate market cap $1.87 billion
- Tilray (TKRY): Approximate market cap $1.68 billion
- Verano Holdings (VRNOF): Approximate market cap $1.10 billion
What Influences The Price Of Cannabis?
Before you start trading cannabis, you should be aware of certain factors that could impact the performance of your portfolio:
- Regulation: Changes to legislation or trade can affect the entire market. For example, in October 2022 President Biden in the USA pardoned those convicted of possession of cannabis as well as calling for a federal legalisation review into cannabis. Both acts resulted in an immediate boost in the value of many cannabis-based stocks, such as the AdvisorShares Pure US Cannabis ETF.
- Consumption & demand: Consumer trends and sentiment can impact the value of cannabis stocks. For instance, a decline in cannabis demand can lower dispensary revenue and negatively impact a company’s valuation, which may affect its stock price. Between 2018 and 2022, the percentage of recreational users in Canada grew from 22% of the population to 27%, representing a generally positive trend.
- Expansion into new regions: As new countries legalise medicinal and recreational cannabis, new investment opportunities are created. In 2018, Canada legalised recreational cannabis and stocks of related firms in the country saw a boost in valuation. For example, the stock price of Tilray grew by almost 6 times between August and October.
- Company fundamentals: Fundamental analysis is a key element in trading cannabis shares. This includes looking at company performance, news and announcements, industry forecasts and analysing the competitive landscape. Several cannabis companies also operate in other areas, such as growing other soft commodities, which could have an indirect impact on stocks.
Getting Started
Choose A Broker
To find the best cannabis broker for your requirements, consider the following factors:
- Regulation: Our team recommends choosing a broker that holds a valid license with the Financial Conduct Authority, the financial regulatory body in the UK. A broker with FCA regulation ensures that your funds are better protected through various measures. For example, if the broker were to default, you could be entitled to claim up to £85,000 in compensation.
- Fees & charges: Determine the fee structure that is best for your cannabis investing style. This can depend on the instrument you are trading, for example, CFDs via CMC Markets come with a 0.10% commission, which is competitive. Other fees you need to be aware of include deposit and withdrawal charges, overnight swap fees and any inactivity charges.
- Trading platform: Find a broker with a reliable and powerful trading platform which supports technical analysis. Look out for a good range of indicators, patterns and charting options. The best cannabis trading platforms also come with economic calendars and market insights, plus analysis and forecasts from experts or third parties. Examples of some of the best platforms for cannabis stock analysis include MetaTrader 4 and cTrader.
- Payment Methods: Compare the available payment methods that you can use to make deposits into your brokerage account. The top cannabis brokers typically support wire transfers and bank cards, as well as some e-wallets like PayPal or Neteller. E-wallet deposits are typically processed instantly, making them attractive for short-term traders.
Learn How To Trade Cannabis
A key aspect of trading cannabis is studying market trends and stock movements, using news and analysis tools. Leading cannabis brokers will offer access to real-time news feeds and expert industry summaries. In addition, consider using third-party analysis tools such as TradingView to keep on top of stock price movements.
For example, the image below shows a TradingView forecast for the cannabis company Aurora Cannabis Inc.
You should also establish a cannabis trading strategy, which can be used to determine the optimum market conditions for opening or closing a position. A popular example is trend following, which aims to determine whether an asset is undervalued or overvalued and therefore is likely to increase or decrease in price. To do this, you could use technical indicators such as the Stochastic Oscillator.
Finally, we recommend practicing your strategies in a demo account, so that you can familiarise yourself with the platform and practice using technical analysis tools. Most top cannabis brokers, such as IG Index, offer free demo accounts with virtual funds, so you can test trading setups risk-free.
Risk Management
As with all trading, profits are not guaranteed, and cannabis traders can quickly lose money. Implementing a robust risk management system can add a layer of protection to your capital.
For example, ‘take profit’ and ‘stop loss’ orders automatically close your positions under certain market conditions. A take profit secures profit to help prevent you from losing out on a winning position. A stop loss will exit a position once a certain losing margin has been reached to prevent losses from spiralling.
Advantages Of Trading Cannabis
- Cannabis trading offers exposure to a developing industry, where investors could take advantage of short-term volatility
- As cultural views on cannabis shift, more regions may change regulations on cannabis, providing new investment opportunities
- You can diversify your portfolio using CFDs, ETFs, indices or by trading shares in large or emerging cannabis companies
Disadvantages Of Trading Cannabis
- Many cannabis firms are still relatively new, with a short track record, which can make them risky investments
- It is hard to predict future market trends for cannabis since sentiment and government regulations have a large impact
- You cannot trade directly on the value of cannabis. Instead, you often have to trade on companies in the cannabis industry
Bottom Line
The potential for the rapid growth of the industry makes online cannabis trading an exciting investment opportunity. However, as cannabis is not yet tradable as a commodity, you are restricted to trading on cannabis-based companies via stocks and derivatives. In addition, the market is still unpredictable and risky due to jurisdictional laws and changing public sentiment.
Make sure you understand the market well and choose a reputable, regulated cannabis broker which offers all the tools needed.
FAQ
Is It Legal To Trade Cannabis Online?
Yes, it is legal in the UK for clients to start cannabis trading online through company stocks, ETFs and indices. As you are investing in publicly listed and registered firms, it is similar to trading the same vehicles in other commodities.
How Do I Start Cannabis Trading?
We recommend registering with a regulated broker that offers the cannabis assets you wish to gain exposure to. Studying the market considering news and events will allow you to analyse trends in the cannabis industry. Before funding your account, also determine what cannabis trading strategy you want to use and practice your techniques in demo mode.
Is Cannabis A Good Investment?
Cannabis trading can be a good idea for those interested in the long-term outlook of an emerging market. Short-term volatility driven by consumer trends and emerging legislation could also suit a swing trading strategy. With that said, profits are never guaranteed, and volatile markets can also lead to significant losses.