How to Buy Tilray Shares Online in the UK

Tilray is a US-listed stock that in its own words – is “pioneering the future of cannabis globally”. The firm is involved in several segments of the ever-growing legal cannabis industry – including research, cultivation, processing, and distribution.

If you’re based in the UK and wish to buy Tilray shares yourself – the process can be completed in minutes when using the right brokerage site.

In this guide, we’ll show you how to buy Tilray shares online in the UK. We’ll walk you through the process of choosing a suitable broker, opening an account, and then completing your Tilray share purchase.

Step 1: Find a UK Stock Broker to Buy Tilray Shares 

Tilray is a Canadian company that is listed on the NASDAQ exchange. Crucially, this means that in order to buy some shares of your own you will need to use a broker that gives you access to the US markets.

There are many brokers that offer just this, albeit, you need to be extra careful when it comes to fees. This is because some brokerage in the space charge high fees to invest in non-UK stocks.

With this in mind, we have hand-picked a small selection of UK stock brokers that not only allow you to buy Tilray stock – but in a cost-effective manner.

1. Plus500 – Commission-Free Stock CFD Trading Platform

Plus500 is home to a huge UK stock trading community. This trusted platform specialises exclusively in CFD instruments – meaning that you will be trading assets as opposed to buying them. The Plus500 asset library covers thousands of financial instruments across stocks, indices, interest rates, commodities, cryptocurrencies, and forex.

Crucially, this includes Tilray stock CFDs. Some of the many benefits of choosing Plus500 to trade Tilray shares is that you can apply leverage of up to 1:5. In simple terms, this means that a £100 account balance would allow you to enter a position worth £500. If you’re a professional trader then you will get even higher limits. Unlike traditional stock brokers, the Plus500 CFD platform allows you to profit from rising and falling markets.

In other words, you get to choose from a sell or buy order – meaning that you can attempt to make a profit irrespective of which way Tilray stocks are moving in the market. Each and every financial instrument – including Tilray stock CFDs – can be traded commission-free at Plus500. At the time of writing, you will benefit from a very tight spread of just $0.21, too. Plus500 allows you to trade online or via your mobile phone. The latter includes a native mobile stock trading app on iOS/Android devices.

If you like the sound of Plus500, you can easily open an account. You simply need to provide some basic personal information and contact details. Then, you’ll need to meet a minimum deposit of £100 or more. You can do this instantly with a debit/credit card or Paypal. Or, bank transfers are also supported – but processing times can take a couple of days. Plus500UK Ltd is authorised & regulated by the FCA (#509909).

Pros:

Cons:

72% of retail investors lose money trading CFDs at this site

2. IUX.com

IUX.com is a forex broker designed to empower traders of all experience levels. They offer a comprehensive suite of trading tools, including a wide range of instruments, flexible account types, and the industry-standard MT5 platform. This combination allows you to tailor your trading experience and pursue opportunities across the forex market.

IUX.com boasts competitive spreads, a key factor for maximizing your profit potential. They also advertise high leverage, which can amplify gains (and losses) for experienced traders comfortable with calculated risks. The MT5 platform is a user-friendly and powerful tool, providing advanced charting functionalities and a robust set of technical indicators to help you make informed trading decisions.

IUX.com understands that every trader has unique needs. That’s why they offer a variety of account types, allowing you to select the option that best suits your capital and trading style. This level of flexibility ensures you can enter the market with confidence, knowing your account is set up for your specific goals.

If you’re looking for a forex broker that prioritizes your trading experience, IUX.com is definitely worth considering. Their diverse platform, competitive offerings, and focus on trader empowerment make them a compelling choice for those seeking to navigate the forex market.

Your capital is at risk

Step 2: Research Tilray Shares UK

Whether you’re investing in Tilray or other pharmaceutical companies like AstraZeneca, Vectura or Pfizer, it’s always important to do your research.

this is especially important in the case of Tilray. After all, the company is operating in an unproven, high-risk industry. Moreover, Tilray was only launched in 2013 and went public in 2018.

As a result, the next sections of this guide will cover some background information on the stock and what you should consider before taking the plunge.

Tilray Share Price History

As noted above, Tilray went public in 2018. The firm opted for the NASDAQ exchange and initially priced its shares at $17 per stock. Just four months later, the very same stocks were valued at $148 – representing a rapid increase of 770%. On the one hand, those that backed the firm during the IPO and managed to cash out near its October 2018 peak are looking at unprecedented gains.

On the other hand, the stocks have since been moving in the wrong direction. In fact, at the time of writing the Tilray share price is just $5.40 on the NASDAQ. This is very concerning for two key reasons. First and foremost, $5.40 translates into a stock price capitalisation of over 96% from its prior all-time highs.

This has resulted in the vast bulk of Tilray’s market capitalisation being wiped out. At the time of writing, this stands at just under $700 million – which is small-fry. Secondly, a stock valuation of $5.40 is 68% lower than its initial IPO price. In more recent months, much of this downfall occurred in the response to the coronavirus pandemic. Starting the year at $16.40 -Tilray shares hit 2020 lows of just $2.43. At the very least, the shares have recovered by over 122% since this 52-week lows.

Tilray Shares Dividend Information

It goes without saying that a company as young and as unprofitable as Tilray does not pay dividends. Instead, all operating profits are being reinjected into the long-term growth of the stock. If dividend stocks are what you are after, you’ll want to focus on large-cap companies that have a long-standing track record of making distributions.

Should I Buy Tilray Stock Today?

So that begs the question – should you buy shares in Tilray? Unfortunately – the answer to that question can only be realised upon performing in-depth research. To help you along the way, below we cover some of the most important factors that you need to take into account before buying Tilray shares.

The Legal Cannabis Industry is Huge

Although figures vary wildly depending on the metrics used to perform the study – BusinessInsider notes that the legal cannabis industry was worth between $20-$23 billion in 2017 in the US alone. The same publication states that this figure is estimated to increase to $77 billion by the end of 2027. With that said – the numbers are significantly higher when you look outside of the US.

Relaxation of Laws is Crucial

By investing in a cannabis stock like Tilray, you are somewhat reliant on government legislation. In other words, the long-term goal is for more and more countries around the world to relax the laws not only on medical usage – but recreational. Regarding the former, there are dozens of nations around that permit the medical-usage of cannabis.

This must, however, be provided by licensed dispensers. On the other hand, the recreational side of the industry is substantially larger. At the time of writing, just Canada, Uruguay, and several US states permit the recreational sale of cannabis. But, if more governments follow suit – this would be extremely welcome for Tilray shareholders.

Discounted Share Price

As we covered in earlier, Tilray shares have capitulated not only since their all-time highs – but the initial IPO price. While this is, of course, very concerning for stockholders – this does mean that you can buy the shares at a huge discount.

For example, at $5.40 per stock – a return to an IPO price of $17 would represent upside of 214%. On the flip side, there is no guarantee that this will be the case. As such, you should keep your stakes to a minimum.

Expect Volatility

With a current market capitalisation of $686 million – Tilray shares are going to move in much more volatile cycles in comparison to large-cap blue chip stocks. This means that they might not be overly suitable if you are an inexperienced investor. After all, you are likely to see the value of your Tilray stock goes up and down in sharp movements. For example, between September 8th and 23rd – Tilray shares lost just over 16% in value. But, in the proceeding 11 days – the shares increased by 14%.

Tilray Shares Buy or Sell?

Most analysts on Wall Street have Tilray as a ‘hold’ at the time of writing. This means that the general consensus does not favour a buy or sell. Crucially, Tilray is likely to appeal to those of you that have a firm belief in the future of the legal cannabis industry.

With that said, even if the industry does continue to thrive as expected – there is no guarantee that Tilray stock will follow suit. As such, the only way that you can make an informed investment decision is to perform heaps of independent research.

The Verdict?

Buying shares in Tilray from the UK is a process that can be completed in minutes. The most important part of the process is finding a suitable share dealing platform. After all, many UK brokerage firms will charge a premium to invest in US stocks.

FAQs