CySEC-regulated FX broker EuropeFX has added four new contracts for difference (CFDs) to its trading platform. The new derivative instruments give the company’s clients exposure to a handful of companies operating in the growing sphere of the cannabis industry.
CFDs on the following shares are now available with EuropeFX:
- GW Pharmaceuticals
- AbbieVie Inc.
- Insys Therapeutics Inc
- Scotts Miracle-Gro
Over the past couple of months, marijuana stocks represented a lucrative opportunity for investors, and thus retail brokers have stepped in to cater to this demand. Being excited about a new asset class is nothing to be ashamed of, but investors, who just got badly burned by the cryptocurrency boom, should be so careful when investing into another asset that seems a good candidate for the next bubble.
Royal C Bank on Why Crypto is Still the Name of the GameGo to article >>
Demand for Cannabis Stocks Heats Up
This came in the context of more countries voting in favor of marijuana use legalization. Therefore investors’ interest definitely would make sense.
After years of challenging access to capital, 2018 has seen a remarkable improvement for US cannabis operators. The marijuana companies themselves have been busy expanding their capacity, diversifying their product lines, and making acquisitions, all in an effort to improve differentiation from their peers and bolster their long-term growth and profit outlook.
Earlier in September, EuropeFX entered into a new sports partnership with German Bundesliga football club Hertha Berlin. The one-year deal will run through the 2018-19 season and allows EuropeFX to enjoy significant amounts of brand exposure and fan engagement opportunities across the region.
Commenting on the news, EuropeFX CEO Guy Illouz said: “The legalization of medical cannabis in the U.S. and the recent Cannabis Act passed in Canada have created a whole new sector for companies to operate in and for traders to invest in. While not a “mainstream” product, quoted companies active in the sphere of medical cannabis have to comply with the same regulatory guidelines as other companies listed on the same exchanges. Our clients have expressed a keen interest in this sector and as a company, we are dedicated to meeting and exceeding client expectations.”