If you are you on the internet to find the best online broker for your trading needs, you might end up liking RoyalCBank a lot. The broker has understood its market and its requirements perfectly to come up with a system that is being loved by traders around the world. One of the most unique offering from the broker is cannabis stock trading. However, many new traders still wonder if cannabis stocks are anything special, and if they should really give RoyalCBank the preference over other brokers just for these stocks. Today, you will learn in detail why cannabis stocks from the broker are really something special.
Why Cannabis Stocks Are a Unique Offering from RoyalCBank
Most Other Brokers Don’t Offer This Market
One of the first things that you have to give RoyalCBank the credit for is that cannabis stocks is an asset class that most other brokers do not offer to their traders. You won’t find the best and the most tenured brokers offer this option. This can be disappointing for new traders who are always looking for a new opportunity to make a lot of money. Of course, you don’t want to jump in the trading career only to make just as much money as you were making from your daytime job. You must have some financial goals that you want to meet and having the opportunity to invest in new markets is the best way to achieve them.
You will notice that most of the online brokers try to differ from each other on the basis of what type of leverages they offer and how much welcome bonus the trader receives at the sign up. A welcome bonus is nothing too big because you are only going to get it once. You should be looking for something that’s going to help you throughout your trading career. As for leverage, you have some of the best leverages available for you when you join the trading platform from RoyalCBank.
The Broker Has Taken the Risk
Despite being a rising market, cannabis stocks are still nowhere near as stable as some of the decades old stocks. Firstly, cannabis companies have been on the radar of the law enforcement departments for a long time. It took a lot of time for the US government to realize that cannabis was not all bad. The healthy components of the plant can be a revolution in the healthcare industry. In fact, CBD has been playing a huge role in the healthcare industry right now as you read it. Despite the great news, you still have brokers that are staying away from the market because of its newness.
These brokers do not want to take the risk. When a market is new, it is expected to be volatile. Volatility means that traders can either incur huge losses or walk away with unprecedented profits. Of course, the job of the broker is to provide the trading platform. A broker should not be dictating you on what is right or wrong for you. RoyalCBank has seen the potential in the cannabis market and that’s why it has brought some of the best cannabis stocks at its traders’ disposal. You can always trust a broker that takes the risk just to offer profitable opportunities to its traders.
The Trader Can Take Any Position
Just like the cannabis stocks, you have the cryptocurrency market. This particular market is in its early years as well. Due to the high risks, brokers are still waiting for the right time to come before they can offer this valuable asset to their traders. Some brokers do offer you the opportunity to trade cryptocurrencies but you are not able to take the long position wherein you buy the asset and sell it later. Of course, if things work just fine, you could end up with huge profits. But these specific brokers are not ready to offer you the huge profits so they don’t let you take up the long position.
RoyalCBank, on the other hand, has no such restrictions of positions on its traders. The broker fully understands that the market is new and volatility is to be expected due to the high risk nature of this industry. However, it will still let you take up any position you like on your trade. Whether you want to go long on a trade or short is entirely your choice. What it means is that you can take advantage of the market regardless of whether it is going up or down. This is exactly the reason why so many people around the world love CFD trading.
The Best Cannabis Stocks at Your Disposal
When you look at the list of cannabis stocks being offered by RoyalCBank, you will see some of the renowned names from the industry. This is an important point that you have to pay attention to. You should know at this point that the broker is not just filling the space for you. It is not offering you the cannabis stocks just to look different or beat the competitors. It is offering you this amazing asset class only for your benefit, and that’s clear from the companies that appear on its asset index. Some of the most notable names on the list of the best cannabis stocks from RoyalCBank include:
- Cara Therapeutics
- Tilray Inc.
- Cronos Group Inc.
- GW Pharmaceuticals
- Corbus Pharmaceuticals Holding
These are just five of the names from the list. When you invest in these companies, you can rest assured that you are putting your money in some safe trading. These are not some unknown companies that will disappear from the scene after some times. They are the pioneers companies of the cannabis industry. Of course, you still have to do all that you can to make the best prediction and trade the stock that you think will benefit you the most.
You Can Take Advantage of Leverages
Just because cannabis industry is a new market for the trades does not mean the broker will not offer you any leverage on your trades. RoyalCBank fully understands the needs of the new traders. When you are a new trader, you don’t have a lot of money in your account. With the minimal deposit in your account, you can’t really earn huge profits. No, there is nothing wrong in making small profits, but small profits mean you will have to do more traders to reach your financial goals. When you take big risks, your profits are huge too. That’s where the leverage from the broker comes in.
Depending on the account type you choose with RoyalCBank, you can qualify for leverages of up to 1:200. You can do the calculation and find out how much money you can invest in trades with that much leverage. With such big leverages, you can make huge profits and thus reach your financial goals quite fast. Not to mention, you will require fewer trades to touch your financial goal when you are making big profits.
You do have to keep in mind that the leverage available to you changes with the type of asset you choose. Even within the cannabis stocks, you might see slight changes in the leverage you are being offered. However, you will get some leverage on your trades nonetheless.
You Can Hedge against Losses
There is no doubt that new markets are quite risky. Things can be even trickier if you are a new trader. For experienced traders, they have many ways to minimize their losses and risks. So, what can you as a new trader do to minimize your losses? You will be surprised to know that RoyalCBank gives you the opportunity to hedge against your losses when you sign up with it. The most interesting part is that you don’t have to pick a particular account type to take advantage of this trading technique. Some other brokers do have restrictions on the new traders when it comes to allowing them to hedge.
So, when you hedge, you invest in two different assets at the same time because of their correlation. When you look at the past data of the two assets, you notice that whenever one asset moves in one direction, the other one moves in the opposite. This particular correlation allows you to offset your losses should you end up with a trade where the price of the asset starts to move against your predictions. It is like a see-saw effect i.e. when one asset is giving you loss, the other one will profit you. However, you have to thank RoyalCBank that it allows you to use this trading technique no matter how new or experienced you are in trading.
So, if people have been scaring you of the volatility of the cannabis stocks, you can always tell them the hedging option you have available with RoyalCBank. It is important to know here that you might not get the same flexibility on your cannabis stocks trading with other brokers.
You Know the Spreads
You are already taking a big risk when you invest in a new market. With that in mind, you have to take all the steps that you can take to minimize your risks. Hedging is a technique that starts working after you have already started to go into a loss. There are certain factors that you can control before you even enter the trade and the commission you pay on your trades is one of them. Your broker has two options to charge you on your trades. It can either decide to take a commission from you every time you open a position or it can charge you on the basis of the spreads.
When it comes to commissions, you can say that there is no limit on the amount of money that you will pay to the broker. In most cases, the broker will charge you the commission not on your profit but on the total volume of your trade. Take a look at this condition. Your broker makes money when you enter a trade irrespective of the size of the profit you make. Not just that, your broker still makes the money when you end up with a loss. Even if you end up with a profit, the size of it will be small because of the commission that your broker will take from you.
The best way for brokers to take money from the traders is in the form of spreads. Spreads give you some level of control over the profits you make on your trades. More importantly, you can always decide the asset you want to trade based on the size of the spread. If a certain asset has loose spreads, you can completely avoid trading it. You can just trade the assets that have tight spreads. Keep in mind that you can go with floating or fixed spreads based on the type of account you choose when you are signing up.
So, you can see at this point that you will not always find a broker that provides you the option to trade cannabis stocks. When on the trading platform, you will see the cannabis stocks within the other traditional stocks. However, with most of the brokers, you will not see these stocks at all. A broker has to think many times before offering these stocks because of the risks involved. RoyalCBank did its homework and came up with a system where the trader has an excellent opportunity to make money even in this new market.
You should start with some training on trading, which is also available to you when you sign up with RoyalCBank. After you have learned the art of trading, you should spend some time learning about the cannabis stocks market and what affects the value of this market. Do your analysis, take the risks, stay positive, and make profits from your cannabis stocks trading. If you know others who want to trade cannabis stocks, you can definitely recommend RoyalCBank to them.