At the height of the GameStop (NYSE: GME)-related Reddit craze, Robinhood, a fledgling online brokerage, restricted and then suspended share purchases.
As a result, the share price’s rapid increase came to an abrupt end. People who used Robinhood were angry because they thought the brokerage was protecting the interests of big hedge funds that were betting against GameStop.
According to Robinhood, the underlying reason for the halt was that the business lacked the resources to fulfill the numerous orders coming in for GameStop.
When the GameStop boom lost its momentum, investors focused on other businesses, including cannabis companies. As a result of all the headlines in recent weeks about legalizing developments in several states (LPs), Canadian Robinhood customers flocked to the only cannabis company they had access to: Canadian Licensed Producers. LPs, including Aphria (TSX: APHA) (NYSE: APHA) (FRA: 10E), Tilray (NASDAQ: TLRY) (FRA: 2HQ), and Sundial Growers (NASDAQ: SNDL) (FRA: 14K), experienced a significant influx of new investors while not being at all impacted.
The U.S. Multi-State Operators (MSOs), who all trade on the OTC Markets Exchange (OTC) in the United States in addition to their listings on the Canadian Securities Exchange (CSE), are the genuine winners of legalization’s advancement in America. Unfortunately, trading in U.S. OTC equities is still possible right now using the Robinhood app.
Investors in Robinhood are unable to purchase (and are generally unaware of) market-leading MSOs like Curaleaf (CSE: CURA) (OTCQX: CURLF), Trulieve (CSE: TRUL) (OTCQX: TCNNF), and burgeoning newcomer Red White & Bloom (CSE: RWB) (OTCQX: RWBYF). Red, White & Bloom, which may be the multi-state operator now providing investors with the greatest upside potential, made a big splash on the MSO landscape last year. The company’s price has skyrocketed in 2021, and RWB’s eagerly awaited Q4 earnings are just around the corner.
The legalization process is progressing quickly, so the future is promising for U.S. MSOs. If you are an American investor who left Robinhood because of the Gamestop scandal and you want to invest in American cannabis stocks like Red White & Bloom, Curaleaf, and Trulieve, you should carefully consider the following brokerages. They all offer access to OTC stocks.
Brokerages for the U.S. Investors
Fidelity is often regarded as the greatest all-around brokerage and is suitable for both novice and experienced traders as well as long-term investors. Fidelity is the industry leader thanks to its simplicity, comprehensive educational resources, in-depth market and industry analysis, low fees, and availability of virtually any stock, bond, ETF, or mutual fund worldwide.
One of the biggest brokerages in the nation is TD Ameritrade, well known for its Think or Swim platform. Their market-leading instructional resources enable businesses to delve deeply into a variety of market facets. Think or Swim lets investors build portfolios with fake funds, make complex charts using a wide range of data criteria, and set up complex option plays.
One of the biggest and most well-known brokerages in the nation, E-Trade, is perhaps best known for its advertisements featuring a baby discussing stock deals. The online brokerage provides practically all of the services that other significant brokerages do, but options trading is where they really stand out. Despite the fact that most brokerages now provide commission-free options trading (thanks to Robinhood), the majority still impose a flat price of $0.65 per options transaction. For investors who place 30 or more trades per quarter, E-Trade lowers this cost to $0.50 in order to accommodate frequent traders.
Canadian investors’ brokers
Wealthsimple, which caters to younger and less experienced investors, is essentially the Canadian equivalent of Robinhood. A streamlined, user-friendly interface and commission-free transactions on stocks and ETFs are two of the advantages. The company also provides managed accounts, where investors can collaborate with experts to create a portfolio of several ETFs.
The majority of Interactive Brokers’ capabilities, such as advanced charting tools, stock screeners, and custom portfolio creation, are largely intended for professional investors. But for just $0.01 per share traded, the company offers competitive commission-free trading on American stocks and ETFs.
Traditional brokerage Questrade provides a selection of managed and self-directed accounts. Through individual stocks, ETFs, and mutual funds, investors have access to cannabis companies in both Canada and the United States. For new investors, a range of educational resources is also accessible. Starting at a moderate 0.25 percent, managed account fees are fair.
Through any of the above brokers, investors have the chance to partake in a once-in-a-generation investing opportunity in the U.S. cannabis boom. The finest brokerage, however, will vary greatly depending on the experience and objectives of each investor. Here is a list of a select few online brokerages where you can invest in the soaring U.S. cannabis stocks.
While Canadian investors should think about checking into Wealthsimple Trade or Questrade, novice or casual investors from the United States would be best served by Fidelity or TD Ameritrade. The best options for more seasoned investors wishing to trade options, trade-in big volume, or perform in-depth analysis are Interactive Brokers (CDN) and E-Trade (U.S.).