How to Buy Psychedelic Stocks – Top 3 Psychedelic Stocks

Fact Checked by Gary McFarlane

The psychedelics sector has been big news in recent years. Although the majority of products are still undergoing testing, there have been a number of preliminary studies that indicate a great deal of potential in the sector. As most companies in the space are waiting for clinical trials to conclude, they’re somewhat haemorrhaging money. This results in lower stock prices, meaning, it could be the perfect time to buy psychedelic stocks before prices shoot up. As such, we’re providing you with the rundown on how to buy psychedelic stocks, the best psychedelic stocks, and the top brokers to trade with. 

#1 Broker to Buy Psychedelic Stocks – eToro

1
$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

How to Buy Psychedelic Stocks With eToro – Step by Step Guide 2021

  • Step 1: Open an eToro account: Want to learn how to buy psychedelic stocks? First, you’ll need to register with a reputable broker like eToro. To do this just type “eToro.com” into your browser, press “Join Now” and fill in the form. 
  • Step 2: Verify your Identity: Once your account has been created, you’ll need to verify it. This is because eToro is a regulated broker. Luckily, this is a quick and simple process, all you’ll need at hand is a photo ID (passport, driving license) and proof of address (bank statement, utility bill). 
  • Step 3: Fund your account: After you’ve verified your account, you’re only one step from buying psychedelic stock. The final requirement is funding your eToro account. To do this just click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 
  • Step 4: Buy Psychedelic Stocks: Now that your account has been funded, you’re ready to buy Psychedelic stocks. Just type the name of the asset you’d like to purchase into the eToro search bar, press “Trade”, enter the number of shares you’d like to buy, and press “Open Trade”. 

Where to Buy Psychedelic Stocks – Top 3 Psychedelic Brokers

One of the most commonly overlooked aspects of buying stocks is selecting a trustworthy, high-quality broker. If you don’t take the time to carefully research this step you can quickly find yourself locked into a subpar platform, not ideal, right? To make sure this doesn’t happen to our readers, we’re bringing you an in-depth review of the top three psychedelic stock brokers.

1. eToro – Best Overall Psychedelic Stock Broker 

If you want to trade with the best, then look no further. eToro, founded in 2007, has garnered an impressive 20 million active users. They’ve achieved this by creating a well-rounded trading platform that gives users all the tools they need to succeed. As such, all traders regardless of skill level will feel right at home on eToro. 

Security & Privacy

Security is one of the most crucial aspects of any trading platform. After all, brokerages tend to be in charge of funds for millions of people, meaning they’re a prime target for hackers. To prevent client funds from getting stolen, eToro follows strict guidelines outlined by the SEC, along with several other authoritative bodies. Attackers intercepting data while it’s being sent to a central server is a big issue in the modern world, so to prevent this from being an issue, eToro uses SSL encryption to obscure client data. On top of all this, eToro gives every user the option of enabling 2FA, a last line of defense in the event of an account getting compromised. 

Features

As we mentioned, eToro has managed to gain such popularity by offering its users an excellent trading experience. One of the ways they’ve done this is by ensuring their interface and platform as a whole are simple and intuitive. Combine this with eToro’s automated social CopyTrading system and it’s easy to see why beginners love eToro. Fees are the bane of every trader, nobody wants their profits eaten into by unreasonable charges. Therefore, it’s great to see that eToro offers commission-free trading on non-leveraged instruments, allowing you to get the best possible bang for your buck. 

eToro Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 (Monthly)

 

Pros

  • Commission-free
  • Regulated
  • CopyTrading
  • SSL encryption
  • Simple interface
  • 2FA

Cons

  • Lacking MetaTrader support

68% of retail investor accounts lose money when trading CFDs with this provider.

2. TD Ameritrade – Safest Psychedelic Stock Trading Platform

By far the longest-standing platform on our list, TD Ameritrade was founded in 1975 and has managed to accumulate an impressive 11 million users. Outside of the stock market, TD Ameritrade supports investments in a range of markets including forex and index funds

Security 

It’s unlikely that TD Ameritrade would’ve survived as long as they have without boasting some pretty impressive security measures. One of the ways TD Ameritrade protects its clients is by providing SIPC insurance, covering securities balances of $500k and cash balances of $250k. Sensitive information is protected using 128-bit SSL encryption, a big plus for the security conscious. Like any trustworthy platform in the modern world, TD Ameritrade also closely adheres to regulations outlined by the SEC in order to better protect customers’ funds and data. 

Features

If you’re looking for a platform to buy psychedelic stocks, then for most people, TD Ameritrade should be perfect. They provide users with access to all the indicators and tools you’d expect from a leading brokerage. However, their “thinkorswim” platform takes this to another level. It’s a comprehensive desktop trading platform with the USP of being improved by real users. This just means that they update the platform based on feedback from users, meaning it should in theory be more user-friendly than alternatives. If all that wasn’t enough to sway you, TD Ameritrade also offers automatic dividend reinvestment, so if you’re a big fan of dividend-paying stocks, TD Ameritrade will be hard to beat.  

TD Ameritrade Fees

Fee Type Fee Amount 
Commision Fee 0% (on US stocks)
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0

 

Pros

  • Regulated by the SEC
  • SIPC insurance up to 500k
  • 128-bit SSL encryption
  • Auto dividend reinvestment 
  • thinkorswim – advanced trading platform improved by its users

Cons

  • Might be too complex for some
  • Limited on stock choice

68% of retail investor accounts lose money when trading CFDs with this provider.

3. Webull – Best Psychedelic Stock Broker for Rewards

In contrast to our last review, Webull is the youngest platform on our list, founded in 2017. However, don’t let its age fool you, Webull has managed to amass over 10 million active users, a seriously impressive feat considering the time frame. 

Security & Privacy

Because new platforms don’t have a long track record to fall back on, security is even more important than for an established company. As such, you’ll be happy to hear Webull offers the same SIPC insurance as TD Ameritrade ($500k securities, $250k cash). However, that’s where the similarities end. Webull uses AES-256 encryption to ensure client data is useless in the event of it falling into the wrong hands. And to top things off, they also use a piece of software called Plaid to allow customers to securely sign in to their online banking. 

Features

If you’re wondering what features Webull has packed into their platform, we’ve got you covered! New users can benefit from using a practice account to sharpen their skills prior to risking real money, massively lowering the risk a new trader takes on. Webull supports after-hours trading between 4am and 8pm, meaning you can take advantage of price swings caused by news released after usual trading hours. Another factor that contributed to Webull’s rapid growth is its rewards system. Users can earn a free stock (valued between $3 – $1600) for completing basic account actions like depositing, referring friends, or trading. While all this is great on the surface, it’s offset somewhat by Webull’s lack of real-time support, making it much harder to get an answer to a question. 

Webull Fees

Fee Type Fee Amount 
Commision Fee 0%
Transaction Fee (Sells Only) 0.00051% (Min US$0.01)
Deposit Fee $0
Withdrawal Fee $0

 

Pros

  • SIPC insurance 500k securities 250k cash
  • AES-256 encryption 
  • Practice account
  • Premarket/aftermarket stocks
  • Free stock for doing basic account action $3-$1600
  • Plaid 

Cons

  • No real-time support 

68% of retail investor accounts lose money when trading CFDs with this provider.

Buy Psychedelic Stocks – Broker Price Comparison

To ensure our readers have the easiest time possible choosing a broker, we thought it best to include this handy table comparing the fee structure offered by each broker. 

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $0 $10 monthly (after 12 months inactivity)
TD Ameritrade 0% (on US stocks) $0 $0 $0
Webull Commission 0% / 0.00051% (Min US$0.01) Transaction fee $0 $0 $0

Top 3 Best Psychedelic Stocks

Now that we’ve covered the top brokers you can use to buy psychedelic stocks, it’s only right we bring you the rundown on four of the hottest psychedelic stocks you can buy right now!

Corbus Pharmaceuticals (CRBP)

Corbus Pharmaceuticals (CRBP) is a Phase-III pharmaceutical company with a primary focus on developing and commercializing drugs designed to help people suffering from autoimmune issues, fibrosis, and cancer. Corbus’s leading product is currently a drug called Lenabasum which is aimed at resolving chronic inflammation and limiting fibrosis. 

Advantages

Corbus Pharmaceuticals is one of the hottest psychedelic stocks you can buy right now! It can be hard to decide whether a certain investment is right for you. So it makes it easier, we’ve broken down some of the main advantages to investing in CRBP. 

Testing Beginning Soon: CRBP is currently working on a few different drugs that if successful could mark a huge breakthrough when it comes to treating fibrous and tumors, which would, of course, also be massive for the company. All it takes is one drug to gain FDA approval for a pharmaceutical company to go absolutely parabolic. Therefore it could be a great time to build a position in Corbus before they’re due to analyze data and begin testing in 2023. 

Liquidity: Regardless of how groundbreaking a company’s research is set to be, without a solid balance sheet they’re going to have a hard time attracting investors and staying afloat. Luckily, Corbus has a good amount of cash on hand at $106.9M. Considering their total debt amounts to just $41.9M, as long as they can maintain a reasonable amount of revenue, they should have no issues making it to 2023. 

Disadvantages

It can be difficult to follow the performance of emerging pharmaceutical companies as you can’t gauge them on traditional metrics like profit until they’ve released at least one drug. With that said, a company also cannot keep operating in the red indefinitely as they’ll amass too much debt. So to help our readers make a decision on whether buying CRBP stock is right for them, here’s a potential issue for the long-term plans of Corbus Pharmaceuticals. 

Revenue Decreasing: Developing new drugs is an expensive process. Millions need to be spent before a company can even make it to clinical trials. Without some solid research behind you, it’s difficult to make any kind of deal and bring in revenue. This could be an issue for Corbus as their for the past has dropped by 74% to just $1.5M, a big disparity from their $66.8M operating expenses. 

Zynerba Pharmaceuticals (ZYNE)

Zynerba Pharmaceuticals (ZYNE) is a company focused on developing products used to treat rare and near-rare neuropsychiatric conditions. Their flagship product Zygel is currently undergoing testing with topline results expected in mid-2022. If you’re looking to buy psychedelic stocks that are yet to realize their potential, ZYNE could be an excellent option. 

Advantages

A large part of the battle for an upcoming pharmaceuticals company like ZYNE is sustaining themselves till they can see the results from their products. It seems as though Zynerba will be able to manage this without much trouble, making it a great psychedelic stock to buy for beginners. 

Cash Reserves: As we mentioned previously, it takes a lot of money to develop new drugs. Zynerba has posted negative earnings for the past few years which wouldn’t be ideal in ordinary circumstances. However, ZYNE expects topside results for its drug Zygel in Q3/4 2023, and with $74M in the bank, they shouldn’t have an issue making it that far. 

Analyst Ratings: Each quarter, top analysts from companies like Goldman Sachs and JP Morgan analyze promising stocks and provide their two cents. These ratings can affect the market a great deal because many investors look at where institutional money is going to decide whether a certain stock is right for them. The Vanguard Group recently increased the size of their ZYNE position by 70.1% meaning it could be one of the best psychedelic stocks to buy for beginners looking to get exposure in the industry. 

Disadvantages

Investors looking for the best psychedelic stocks to buy need to carefully analyze the pros and cons of each stock they consider. You can find some issues with buying ZYNE stock below. 

Taboo: Psychedelic drugs are commonly looked down upon in polite society. When you talk about psychedelics people tend to think about crazed individuals running around the streets completely dissociated from reality. A misconception that can put off investors that are used to buying mainstream stocks like Tesla and Amazon. However, this is rarely the case, many people self-medicate with psychedelics if they don’t like the effects of traditional medicine. While the efficacy of treatments like this is still unknown, some of this taboo is alleviated, progress will be slow at best. 

Negative EPS: A company can be developing something revolutionary but the sad truth is without the financials to support themselves, they’re doomed for failure. While this is somewhat less true in the pharmaceutical sector, clinical trials take a long time, and without the funds to operate many companies go into insolvency before they can see the results of their tests. As such, it should be noted that ZYNE has an earnings per share (EPS) of $-1.09 which is far from ideal for investors. 

Atai Life Sciences (ATAI)

Founded in 2018, Atai Life Sciences has grown to become the largest biotech company predominantly focused on psychedelics. Considering how popular the psychedelic sector is becoming it’s a great time to get a piece of the buy before prices continue climbing. To help our readers decide if ATAI is the right psychedelic stock for them, we’ve broken down some of the pros and cons of buying ATAI stock.

Advantages

Atai Life Sciences is certainly an interesting company, they’re at the forefront of psychedelic research. So, to help you decide whether you want to buy this psychedelic stock, we’ve included a few advantages to buying ATAI stock. 

Investments: The phrase “follow the money” tends to ring true in the stock market. It can be a solid strategic decision to try and look at stocks that prominent investors are putting their money in, after all, the chances are pretty high they have information not available to the general public. As such, anyone debating buying ATAI stock will be happy to know they’ve received investments from several prominent venture capitalists such as Peter Thiel. 

Acquiring Companies: A great way to continually innovate and branch out into new sectors is acquiring companies that specialize in a specific field. This is precisely what ATAI has been doing. They’ve purchased or invested in several companies such as Compass Pathways to expand their offerings and have better control over the supply line.

Disadvantages

No matter how great a company’s fundamentals may seem, there’s always the potential for an investment to go wrong. Which is exactly why it’s always worth weighing the pros and cons against one another to make an informed decision on whether a certain stock is right for you.

Poor YTD Performance: Although ATAI has shown it’s got the potential to be huge, since its IPO in June 2021 the price per share has plummeted from almost $20 to just $11.65. While this could mark a great time to buy, there’s no telling if the stock will start to recover in the near future or continue falling, making it quite risky. 

How to Buy Psychedelic Stocks with eToro

If you’re looking to take advantage of the recent psychedelics trend, then you’re in the right place! We’ll be covering precisely how to buy psychedelic stocks with top-rated broker eToro. 

Step 1: Open an account with eToro

If you want to buy psychedelic stocks, you’ll first need to register with a trustworthy broker. We recommend eToro because they offer an excellent blend of security, ease-of-use, and powerful features. Just type “eToro.com” into your browser, press “Join Now”, and fill in the required information. 

68% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Verify your account

eToro is a regulated broker, while this provides security advantages, it also means you’ll need to verify your identity. Don’t worry, this is common practice with every trustworthy broker. The only documents you’ll need at hand are a photo ID (passport, driving license) and proof of address (bank statement, utility bill).  

Step 3: Fund your account

Now that your account has been verified, you’re only one step away from buying your first psychedelic stock. But before you can do that, you’ll need to deposit some funds to your eToro account. Simply, click on the button marked “Deposit Funds”, enter the amount you plan on investing, and press “Deposit”. eToro supports deposits using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill). 

Step 4: Buy Psychedelic Stocks!

As soon as the funds have landed in your eToro account, you’re ready to make a purchase. Just type the name of the asset you’d like to purchase into the eToro search bar, press “Trade”, enter the number of shares you’d like to buy, and press “Open Trade”. You can monitor the performance of your shares from the “Portfolio” section of your account. 

Conclusion

The field of psychedelics has the potential to revolutionize medicine as we know it. For years, research involving psychedelic substances was shunned, but now it seems as though they could be the key to creating effective medicine for a large number of neurological disorders. With the vast majority of companies in the field waiting to see the fruits of their labour, it could be an excellent time to buy psychedelic stocks before the general public pours money into them. We’ve broken down the pros and cons of some of the best psychedelic stocks currently out there to give you a better chance of picking the next big thing. It’s also important to ensure you’re trading with the best broker possible, eToro is the perfect platform to buy psychedelic stocks for beginners and experienced investors alike. All in all, if you can afford to take on a little risk, buying psychedelic stocks offers some of the highest upside potential out of any sector. 

eToro – Best Broker to Buy Psychedelic Stock

1
$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

FAQs

Where can I Invest in Psychedelic Stocks?

What is a Stock?

What is the Future of Psychedelics?

Is Buying Psychedelic Stocks Safe?

Is Psychedelic Research Legal?

About Jay Leonard PRO INVESTOR

Jay is a UK based cryptocurrency expert, specialising in fundamental analysis and medium to long term investments. He has a great deal of hands on experience in the space and a current focus on institutional adoption.