How to Buy OTC Cannabis Stocks

Many of the largest US cannabis companies trade on OTC (Over-the-Counter) Markets rather than major exchanges. Buying OTC stocks requires a few additional considerations compared to purchasing stocks on NASDAQ or NYSE.

First, you need a brokerage account that supports OTC trading. Most major online brokers including Fidelity, Charles Schwab, and Interactive Brokers support OTC stock trading. However, some brokers charge additional fees for OTC transactions, and a few newer platforms may not support OTC trading at all. Check your broker's fee schedule and OTC policies before attempting to trade.

To buy an OTC cannabis stock, search for the ticker symbol — for example, CURLF for Curaleaf, GTBIF for Green Thumb Industries, or TCNNF for Trulieve. OTC ticker symbols are typically five characters long, often ending in F (for foreign ordinary shares) since many MSOs are technically incorporated in Canada despite operating primarily in the US.

Be aware of several important differences between OTC and exchange-listed stocks. Liquidity is typically lower on OTC Markets, meaning bid-ask spreads can be wider. This makes limit orders especially important — always use limit orders rather than market orders when trading OTC cannabis stocks to avoid unexpected fill prices.

Trading hours for OTC stocks may differ slightly from major exchanges, and some OTC securities have pre-market and after-hours trading limitations. Real-time quote data for OTC stocks may require a separate subscription depending on your broker.

OTC stocks also have different reporting requirements. While the largest MSOs file with the SEC and meet high disclosure standards (OTC QX market tier), smaller companies may have less rigorous reporting. Always review a company's financial filings and verify which OTC market tier they trade on — QX (highest), QB (venture), or Pink (lowest standards).

Tax treatment of OTC cannabis stocks is the same as any other equity investment for investors. Capital gains, dividends (rare in cannabis), and losses follow standard IRS rules. Some OTC cannabis stocks are classified as Passive Foreign Investment Companies (PFICs), which can create additional tax complexity. Consult a tax advisor familiar with OTC securities.