Can I Buy Cannabis (Marijuana) Stocks and Funds on Charles Schwab?

2020: Can I trade marijuana stocks on Charles Schwab? Does Charles Schwab offer investing in U.S. and Canadian weed, medical cannabis stocks, ETFs, and mutual funds (MJ, Aurora, Canopy Growth, Cronos, Tilray)? Pot stocks buying cost.

Can I Trade Marijuana Stocks on Charles Schwab?

Many medical cannabis stocks can be traded at Charles Schwab. In fact, you can buy just about every marijuana stock, mutual fund or ETF with this broker, including all four of the biggest players in the Canadian cannabis industry: Aurora Cannabis (NYSE:ACB), Canopy Growth (NYSE:CGC), Cronos Group (NASDAQ:CRON), and Tilray (NASDAQ:TLRY).

How much Charles Schwab Marijuana Stock Trades Cost?

Charles Schwab charges $0 for cannabis stocks trades. Firstrade charges $0 on marijuana stocks and all other stocks, ETF's and mutual funds trades.

Buying Cannabis Stocks on Charles Schwab

Schwab provides access to a wide variety of stock exchanges, both inside the U.S. and around the world. One of these is the Toronto Stock Exchange. Because many marijuana companies are headquartered in Canada, having access to this market is a must for any trader interested in cannabis growers.

One company in particular that trades on the Toronto exchange is the Canopy Growth Corporation. Because Canada has legalized cannabis only for medical purposes, the company is strictly a medical marijuana firm.

Unlike Insys, Canopy Growth focuses on marijuana and does not manufacture other medical products. This makes the stock less diversified, which some investors will prefer. Canopy is also a much younger company, beginning in 2014.

Marijuana stocks on Charles Schwab

Trading under the symbol WEED, Canopy has gone from $3 per share to $13, back down to $7.89, its most recent trade price. The company has a market cap of $1.3 billion, which is pretty large for a cannabis-only company. Unfortunately, its most recent EPS is negative, indicating a losing period. The stock must have a lot of interest because its average volume is 1.25 million shares. It does not pay a dividend.

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Charles Schwab vs Welltrade Comparison

Wells Fargo has succeeded in offering brokerage services with a good selection of mutual funds. Some of its fees, however, are above average. Its trading tools are inadequate, and it fails to offer any commission-free ETF's. Investors can find better values at TD Ameritrade, Fidelity, and Firstrade.

Charles Schwab offers $0 commission on stocks and ETFs while Wells Fargo Brokerage charges $0 for the same trades. Schwab doesn't have surcharges on pre-market and after-hours trades, penny stocks and large orders. The competitor offers shorter extended hours trading, and charges the greater of $34.95 and 3.5% of principal on stocks priced under $1 per share. While Charles Schwab does not have account maintenance and inactivity fees, Wellstrade charges $25 annual low balance fee for regular accounts with balances under $5,000.

With Charles Schwab investors get decent banking services, wide selection of investment products and great customer service. The company is offering thousands of mutual funds, including its own family of mutual funds.

Wellstrade is best known for its banking services (offered by the parent company Wells Fargo Bank) and good investment research. The company, unfortunately, provides some of the worst trading tools of all brokers we have reviewed, has terrible customer service and extremely high margin rates.

Unlike Wellstrade, Charles Schwab doesn't charge IRA fees. The firm, however, was not included in our list of Best IRA Companies in 2020.

Both of these discount brokerages don't offer virtual trading (trading simulation with virtual money) that allows users to practice trading without risking real money.

Charles Schwab is an excellent option for buy-and-hold and mutual fund investors. Because of higher than average commissions, and multiple fees and surcharges as well as poor trading tools at Wellstrade, we don't recommend opening investment account there.