Hot new sectors often capture investors’ attention. Similar to when cryptocurrencies (particularly Bitcoin) took over the internet not too long ago, lately a new sector has been gaining a lot of attention from all of us – Cannabis stocks.
Popularized by celebrity potheads and the recent legalization boom, cannabis stocks are becoming one of the best investments of the year. The question is, what are the best cannabis Forex brokers?
Before we move on to discussing the top cannabis CFDs broker, let us briefly explain the concept. Cannabis stocks are companies engaging in producing or selling marijuana, a type of useful medicinal or recreational drug.
Though cannabis stocks have been around on penny shares for some time, they are becoming more popular on the general market. As recreational use of cannabis is growing worldwide, people started seeking profit from marijuana producers. Surely, the share prices are soaring with a lot of promise.
Cannabis investments were estimated to have reached $9 billion in 2018. The revenues are estimated to reach $20 billion by 2020. Many cannabis-related companies are reaching the mainstream. Some are trading on a major stock exchange, and some on NYSE.
Keep in mind that investing in cannabis is not limited to growers and retailers. Many new companies started to arise, such as biotech, pharma, and even cannabis delivery services. The different types of businesses will be discussed below. Some of them even managed to get millions of dollars worth of investments from celebrities such a Snoop Dogg, Mike Tyson, and Patrick Stewart.
This might be one of the most asked questions online, is cannabis trading allowed? Since this is a drug people often assume that it is an illegal substance from the black market that somehow appeared on the stock market.
It is not like that at all. Cannabis is legal in some countries, and recreational legalization is becoming a trend worldwide. The answer thus is pretty simple. Trading cannabis is legal if you use the trusted cannabis online Forex broker. It all depends on the laws of the country where the stock company is headquartered. If the government allows it – you have the right to trade it.
Not many brokers are taking advantage of this rising market yet. But as the popularity grows, more brokers are expected to take part in this booming business.
It is hard to pinpoint what really is the deciding factor in choosing the right broker for you. In the end, it is all a personal preference. Some might choose the quality of customer service, some might choose low commissions, safety, fees, etc.
There is no way to tell someone what works the best for them, but at least we can provide you with enough facts to give you an overview of each best cannabis Forex brokers online.
Of course, it also makes a difference whether you will be trading in Canadian, Australian, European, or any other securities which do not have U.S. listings.
So then, it is time to answer the main question with the FX broker reviews.
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As more countries allow the use of marijuana, the market is becoming more accessible than ever. This does not mean that the volatility is dropping. But since it still is a young market the volatility is not far from stabilizing.
On a positive note, there are a lot of stocks that remain strong despite the high volatility of the market. Leafbuyer Technologies, Inc. (LBUY) is one of them. It shot up by as much as 100% by the end of December. Prior to then, the company stock price was steadily rising, which shows low volatility. The company specializes in online education regarding the cannabis industry. It was founded back in 2014 and has become of the largest competitors for digital education regarding cannabis and specific types of strains.
HEXO (HYYDF) is one more key player in the cannabis industry. The reason for their success though is different than the former stock. HEXO has a deal with SQDC (a regulatory body in charge of all cannabis sales in Quebec, Canada) worth around 200,000 kilograms of cannabis. It is expected to peak in the next five years in Canada, without accounting for their worldwide services. Their cash flow is quite predictable in the next five years.
Besides from SQDC, HEXO has been working on an agreement with Molson Coors to start the production of cannabis-infused beverages on the open market. Though the deal is not finalized yet, it definitely shows a promising pay off, as cannabis-infused beverages start taking over the industry. It is expected to become a mainstream beverage somewhere around 2022 until then it is only an idea in the works.
Despite of the high volatility, the cannabis industry remains highly lucrative, and the competition is growing fiercely. This is yet another proof that this might be an industry worth looking into for investors, but finding the top online cannabis Forex broker remains a challenge for many.
As mentioned above, the cannabis industry does not only include companies growing and tending to the plant. There are many different companies and industries you can invest in. Here are some examples:
This is a type of business that develops the equipment required to cultivate cannabis. Automated fertilized systems, greenhouse technologies, lighting systems, incubator fridges, etc. There are many different options you can choose from to support and possibly profit from the industry.
A growing type of business which concentrates on the quality of the plant. They have laboratories where they test cannabis products, they also cover insurance for cannabis cultivators, creation and financing of special packaging for products, etc.
If you wish to contribute to cannabis research, this is where you should be looking into. Biotechnology concentrates on research for pharmaceutical applications of cannabis. The goal is to develop treatments for different illnesses and diseases using this natural drug.
A self-explanatory type of business. They provide services to assist with licensing for companies, advising on operational processes, and more.
There are many ways to consume cannabis, and this type of business concentrates on their development. If you wish to contribute to developing natural smoking leaves, papers, vaporizers and such, this is the way to go.
The most popular type of investment, concentrating on the growth and selling of cannabis.
Surprisingly enough, there are different types of products which can be made from cannabis. This business works on developing them, creating oils, shampoos, concentrates, etc.
This type of business has become widely popular among celebrities. Cannabis delivery services directly from farms to consumers prove to be the best way to get your hands on some fresh marijuana.
If you wish to have a type of influence on the management and affairs of holding companies, which might change the future of the industry, this seems like the type of business for you.
Dissimilar to the smokable cannabis, hemp has a more materialistic use. It can be used in clothing, a creation of paper and rope, building materials, fuel, and foods.
These are businesses which provide organically grown cannabis to other companies or sell to consumers directly.
This is a growing trend in the west. Cannabis spas provide a full cannabis experience, with cannabis oil massages, relaxing smoke rooms, etc. A lot of celebrities are looking into investing in these types of resorts.
As you see, there is more than one way to invest in the cannabis industry. Of course, what really matters is your preference for the type of business you wish to support and the type of online cannabis Forex broker you use for the best profit.
Though it is never easy to predict where the stocks will go, sometimes it is worth it to follow the graphs. Before making up your mind where and when to invest, make sure you are aware of all of your options. There are many different businesses you could support, and profit from, that you personally would be comfortable with.
Granted, this is a very young market, but the numbers do not lie. Despite its high volatility, it is expected to stabilize as the rest of the world follows the legalization trend.
The purpose is to help you understand what this new sector is, and where it is headed. Remember, the risk is involved in every kind of trading. In the end, all it comes down to is if you choose the actual best cannabis CFD broker for you.
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