Buying Marijuana Stocks on Robinhood
If you’re interested in trading companies that are engaged principally or secondarily in cannabis production, there are many brokers in the United States that
can assist you in finding these stocks. Services can vary widely, however, from one firm to another. Vanguard, Ally Invest, Robinhood, and Webull all provide
access to marijuana stocks; but some of these brokerage firms are much better than others.
Can I Buy Marijuana Stocks on Robinhood?
Robinhood is an ultra-low-cost firm that does not offer a desktop platform with trading capability. The broker’s mobile app is where most
trading takes place, and it doesn’t offer very much. There is no stock screener on the app, so you’ll need to know the ticker symbol of the marijuana
company beforehand. The platform offers very limited stock information. There is a rudimentary charting function, news stories in article format,
and an earnings history.
An ADR that is available for purchase through Robinhood is GW Pharmaceuticals, a British company that manufactures a cannabis derivative for multiple sclerosis. It trades on the Nasdaq under the ticker symbol GWPH.
GW’s last trade price was $112. Robinhood’s app shows that the stock is up more than 1,000% over the past five years. At its current price, the company has a market cap of almost $3 billion. The stock’s 52-week high is $137, and its low is $92. The company’s last three earnings reports have disappointed, returning negative numbers.
The stock has an average daily volume of 340,000 shares. The company has a price/book ratio of 6.8. Its price/sales ratio is 276, which is very high.
Much better option for buying cannabis stocks is Webull (discussed below).
To learn more about this company visit Robinhood Brokerage Review.
Robinhood Promotion
Get one FREE stock when you open an account.
Open Robinhood Account
Can I Buy Marijuana Stocks on Webull?
Robinhood's top competitor, Webull, also charges $0 commission on stock and ETF trades.
However, while Robinhood does not offer IRA accounts, paper trading, and advanced trading platform, Webull does.
To learn more about this broker visit Webull Brokerage Review.
Webull Promotion
Get 2 FREE stocks valued up to $1,850.
Open WeBull Account
Most Popular Cannabis Stocks on Webull
| Company | Symbol | Market Cap |
|---|
| Aurora Cannabis | ACB | $2 billion |
| Cronos Group | CRON | $4 billion |
| Canopy Growth | CGC | $13 billion |
| Aphria | APHA | $6 billion |
| NIC | EGOV | $2 billion |
| GW Pharmaceuticals | GWPH | $7 billion |
Can I Buy Marijuana Stocks on Robinhood Recap
Many brokers in our survey provide access to companies that are connected to one extent or another to the marijuana industry. Robinhood provides the fewest
resources because it is a bare-bones broker. The best screener is with Webull. The broker charges $0 for stock, ETF and mutual funds trades.
TD Ameritrade vs Robin Hood Overview
Robinhood is the ultimate low-cost brokerage firm. But TD Ameritrade lowered its equity commission, which makes it very
competitive with ultra-low-cost brokers. This survey will compare and contrast the two brokerage houses and see if one is the
better value - TD Ameritrade or Robinhood.
Commissions
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
TD Ameritrade
|
$0
|
$49.99
|
$0.65 per contract
|
$0
|
$0
|
|
Robinhood
|
$0
|
na
|
$0 per contract
|
$0
|
na
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
TD Ameritrade
|
|
|
|
|
|
|
|
Robinhood
|
|
|
|
|
|
|
TD Ameritrade: $0 commissions + transfer fee reimbursement.
Robinhood: Get one FREE stock when you open an account.
Fees, Commissions, and Account Requirements
Neither broker-dealer charges account fees, such as annual, low-balance, or inactivity charges. An
account can be opened with zero deposit of funds at both firms.
TD Ameritrade and Robinhood charge $0 for stock and ETF trades. Live representatives can help
customers place trades over the phone, and this service is just $10. TD Ameritrade charges $25.
This category is a tie.
Customer Service
TD Ameritrade offers customer service around the clock, including on the weekend. There are agents
some hours who are bilingual or even multilingual. Available languages include Spanish, Vietnamese,
Cantonese, and Mandarin.
In addition to its phone support, an on-line chat function is also available, and representatives do a good job of answering questions and providing service here. The broker also has an international phone number for clients who are temporarily traveling globally. Finally, TD Ameritrade operates a nationwide network of brick-and-mortar offices, and there are a few branches outside the United States.
Going from excellent to appalling, we now look at Robinhood’s customer service options. The broker has no branch locations anywhere. Phone service is only available during market hours, and strangely, it’s not a toll-free number. There is no on-line chat function on the Robinhood website, although the site does have some FAQ’s that may answer some customers’ questions. English is the only available language.
TD Ameritrade wins by a large margin here.
Trading Tools
An easy-to-use website will be found at TD Ameritrade.com with tons of helpful information. For trading, there is a trade bar that sits within the browser. Important data is provided here. Unfortunately, trades cannot be placed directly from the tool. On the website, orders are placed on basic web pages instead. A small chart can be shown using the trade bar.
Besides the website, there is a desktop platform named
Thinkorswim.
Surprisingly, TD Ameritrade does not require any account minimum or trading requirement to use it.
The platform is easy to use and would be good for beginners. Despite its simplicity, it has many
advanced features, such as market depth, which is essentially Level II quotes. Excellent charting
with a high degree of customization is available as well. A chart can be shown full screen, a useful
feature for technical analysis.
Going from TD Ameritrade to Robinhood once again is like the difference between night and day. Robinhood’s website has zero trading capability. There is no market or security research, and there is not even a log in. The website is used mostly for marketing purposes and signing up new accounts. The broker does not have a desktop platform.
Robinhood traders do have a mobile app where they can submit orders. However, it has a very basic interface, and very limited functions. Charting is extremely rudimentary. There are no drawing tools or technical studies. Stock research is almost nonexistent, and there is limited market news. Robinhood does have a platform for Apple Watch, one of its few highlights.
TD Ameritrade also has a mobile app, and it offers much more than Robinhood’s. The TD Ameritrade
platform has mobile check deposit and live streaming of financial news, neither of which Robinhood
offers. Bill pay is available on the TD Ameritrade app, and so is market news.
Robinhood loses this category.
Exchange-traded and Mutual Funds
TD Ameritrade’s mutual fund screener returns 13,000 products that are available for purchase by new
investors. On this list, there are 4,200 securities that carry no transaction fee and no load. The
broker’s clients must pay $49.95 to buy a fund that’s not on this short list. There is no charge to
sell a non-NTF fund. If a fund does have NTF status, there is a $49.95 short-term trade fee if it
is sold in less than 3 months after purchase.
As we have already seen, Robinhood offers all exchange-traded funds in the U.S. commission-free, and
there are about 2,000 of them. However, the broker offers zero mutual funds at any price, which is a
real disappointment.
This category is awarded to TD Ameritrade.
Learning Resources
There is a great deal of educational resources on the TD Ameritrade site. Equity reports can be downloaded at no cost. They are courtesy of many third parties. These groups include Thomson Reuters, Ned Davis, CFRA, Credit Suisse, and others. TD Ameritrade also authors its own security recommendations.
There are videos and articles on a wide range of financial and investment topics. Issues such as estate planning, taxation, and how to trade bonds are just a few of the subjects that are discussed.
Compared to TD Ameritrade, Robinhood has virtually nothing. There is limited stock research on its mobile app, but this information is very brief. The company’s website only has information about managing a Robinhood account.
Robinhood fails once again.
Other Investment Services
Besides stocks, ETF’s, and mutual funds, TD Ameritrade customers can also buy and sell futures,
forex, and bonds. Robinhood unfortunately doesn’t offer these securities at any price. Investment
advice and managed accounts, including a robo-advisory package, are available at TD Ameritrade, too.
Robinhood doesn’t provide these, either.
TD Ameritrade triumphs once again.
TD Ameritrade: $0 commissions + transfer fee reimbursement.
Robinhood: Get one FREE stock when you open an account.
TD Ameritrade vs Robin Hood: Which is Better?
Robinhood failed to score even once, and TD Ameritrade won all categories. TD Ameritrade wins by a
mile. While Robinhood offers free trades, it doesn’t bring much else to the table.
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