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Can I Buy Cannabis Stocks on Merrill Edge?

2020: Can I trade marijuana stocks on Merrill Edge? Does Merrill Edge 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.

How to Buy Cannabis Stocks at Merrill Edge

If you’re looking to invest in the burgeoning cannabis sector, Merrill Edge offers several resources to help you get started. With this guide, you’ll be able to buy and sell pot stocks easily.

First, Run a Scan

The first step at Merrill Edge to find cannabis companies is to open the broker’s stock screener. It can be found by clicking on ‘Research’ in the top menu and then selecting ‘Stock Screener’ under ‘Screeners.’

Here, you’ll find many search criteria. For medical marijuana firms, you can select ‘Health Care’ under ‘Sector & Industry Group.’ There is also a sub-category of ‘Pharmaceuticals, Biotechnology & Life Sciences.’ When we selected this group, we got 793 results. Many of these stocks are regular pharmaceutical equities; so you’ll have to sort through them if you don’t have a specific company in mind.

Results of a scan can be sorted by many different issues. Merrill’s default screener offers several tabs, such as ratings, earnings & growth, today’s activity, and performance. Under each tab, there are several columns, and each one can be selected as the sort category, either in ascending or descending order. Issues such as P/E ratio and market cap can be chosen.

Next, Do a Search Using the Quote Box

Another method to find weed stocks is to enter a company’s name in the ‘Quote’ box in the upper-right corner of the website. For example, we entered ‘Canopy’ in the field and a drop-down list of two companies appeared: Canopy Rivers, Inc., and Canopy Growth Corp. The last choice is a marijuana producer that trades on both the Toronto Stock Exchange and the New York exchange.

Third, Look Over a Stock’s Profile Page

Either from the drop-down menu in the quote box or within a screener’s results, it’s possible to access a stock’s profile page. From the quote box, you’ll need to click on the company’s name and then click on the ‘Research’ button inside the pop-up window. Within search results, hover over a ticker symbol, and the same window will appear with the ‘Research’ button.

Merrill Edge’s security profile pages offer a great deal of information. There is technical analysis data from Recognia, data on earnings history, financial statements, ratings and reports, options chains, and news articles.

Merrill Edge Cannabis Stocks Cost

Merrill Edge charges the same commission on marijuana trades as on other stocks - $0 but $19.95 will be charged on mutual funds. To compare, Firstrade charges $0 on marijuana stocks and all other stocks, ETF's, options, and mutual funds trades.

Stock Example

One of the medical marijuana stocks we found on the Merrill Edge platform is Tilray, Inc. According to its profile page, the stock pays no dividend. Moreover, its EPS (earnings per share) is negative, which means it’s losing money. Its 52-week range is $20.10 to $300, which shows a lot of volatility. The short interest in TLRY is 4.06%, which isn’t too bad. Short interest is the percent of a company’s outstanding shares that are currently shorted.

Weed stocks on Merrill Edge

Merrill offers stock reports from Morningstar and CFRA free of charge. Morningstar doesn’t cover Tilray, but CFRA does. The analyst’s investigation grades the stock a neutral for valuation and quality, negative for growth and financial health, and a positive for price momentum. Overall, CFRA has a sell rating on the stock, definitely not a good sign for bullish investors.

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Fund Example

Using Merrill Edge’s quote box at the top of the website, we were able to find a cannabis fund, the ETFMG Alternative Harvest fund (ticker symbol MJ). Without providing a reason, Merrill’s profile page states that the ETF is blocked and unavailable for trading.

There is nevertheless a lot of information on MJ. Holdings information shows that the fund owns Canopy Growth Corp, Cronos Group, Tilray, and Aurora Cannabis as top holdings.

Merrill’s site also shows Lipper ratings on MJ. The fund has 5 out of 5 for its overall performance and another 5 for 3-year performance. It is unrated at 5-year and 10-year timeframes. These ratings only compare the fund against other funds within the specialty & miscellaneous category.

Placing a Trade

If you decide to purchase a marijuana stock at Merrill Edge, submitting an order is quite easy. At the bottom of the screen is a trade bar. Just type in the ticker symbol (TLRY for Tilray, for example) and trade information will automatically be populated. Enter the required fields and you’ll be able to submit the order directly from the trade bar.

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