How to Trade US Stocks & Indices [2025 Guide]

If you're based in the UK and wondering how to trade US stocks and if you can, then you are not alone. Whether you're interested in trading shares of US stocks like Apple, Amazon, or Tesla, or trading US stock indices like the S&P 500 or Nasdaq 100, many brokers now provide accounts and products to do so.
However, trading US stocks from the UK involves understanding how the New York Stock Exchange (NYSE) works, time zones, the financial products and platforms available which will be covered in this guide. This material is for informational purposes only and not financial advice. Consult a financial advisor before making investment decisions.
Understanding the US Stock Market
The US stock market is home to two of the world’s largest stock exchanges:
- New York Stock Exchange (NYSE)
- Nasdaq Stock Exchange
These exchanges list some of the well-known companies in the world, such as Amazon, Microsoft, Apple, Meta, Coca-Cola, Netflix, Tesla, and more. When you trade US stocks from the UK, you are essentially participating in the same market as institutional investors, fund managers and other traders around the world.
What is a Stock Exchange?
A stock exchange is a place where shares of publicly listed companies are bought and sold. Each exchange is regulated and has its own rules, listing requirements, and hours of operation.
The NYSE focuses on companies from eleven stock sectors such as finance, retail, healthcare, energy, and others. The Nasdaq Exchange is known for listing companies in the technology sector like Nvidia, Tesla, Meta and others.
When Does the US Stock Market Open in UK Time?
To trade the US stock market, it's important to know the Nasdaq and NYSE trading hours. Here’s a breakdown:
Exchange | Local Hours (ET) | UK Time (GMT/BST) |
NYSE | 9:30 AM – 4:00 PM | 2:30 PM – 9:00 PM (BST) |
Nasdaq | 9:30 AM – 4:00 PM | 2:30 PM – 9:00 PM (BST) |
Note: For several weeks in the year, when the UK observes daylight saving time, there is a greater time difference with the United States, in which case the US stock market will open and close one-hour earlier in UK time, than usual.
How to Trade US Stocks from the UK: Step-by-Step
Below is a step-by-step process to for trading US stocks from the UK:
1. Choose a Broker That Supports US Stock Trading
To buy US stocks from the UK, you first need to choose a regulated broker that offers access to the US stock market. Look for the following features:
- Licensed and authorised by a financial regulator
- Access to both NYSE and Nasdaq-listed stocks
- Transparent spreads, commissions and currency conversion charges
- Support for investing in real US stocks
- Support for trading US stock CFDs (contracts for difference)
- Use of a demo trading account for practice
Note: CFDs are derivative contracts of an underlying market and allow you to speculate on the price direction of an asset. It allows you to trade both long and short, using leverage. As these are complicated instruments with several pros and cons, learn more in the CFD Trading for Beginners guide.
2. Open and Fund Your Account
Once you've chosen a broker, open an account, verify your identity, and fund it. Most brokers allow GBP deposits and will automatically convert to USD when you buy US shares.
Be sure to check the foreign exchange fees, as these can affect your overall returns. Also, check if there are any fees for deposits or withdrawals and the different methods that are available.
3. Choose Your Stock and Trade
Most brokers provide access to different trading platforms and apps to trade the market. MetaTrader 5 is a commonly used platform that most brokers offer to trade the US stock market and is available on desktop, web and mobile.
Ensure your platform offers real-time pricing, price charts, technical analysis indicators and multiple order types. Some brokers may even offer other types of stock market research, so it's well worth checking what is available.
For example, Admiral Markets offers access to Macroscope. This provides an overview of key financial metrics and market stats, access to charts, news affecting a stock, analyst forecasts and more.
Trading US Stock Market Indices: An Alternative Approach
While traders can buy and sell individual US stocks, there are other options to trade the performance of the US stock market. Stock indices or indexes act as a benchmark that tracks groups of companies.
The Main US Stock Market Indices:
- S&P 500: Tracks 500 of the largest US companies listed on the NYSE.
- Nasdaq 100: Tracks 100 of the largest technology companies listed on the Nasdaq Exchange.
- Dow Jones Industrial Average (DJIA): Tracks 30 significant US companies across multiple sectors.
You can trade these indices using CFDs, or invest in them using ETFs (exchange-traded funds).
Factors That Influence US Stock Prices
Before trading or investing in US stocks, it’s essential to understand what drives price movement. Some of the most influential factors include:
1. Economic Indicators
Economic news announcements offer detailed insights into the state of different areas in an economy. Below are just a few economic indicators that impact overall US stock prices:
- Employment reports, such as Non-Farm Payroll (NFP)
- Inflation data, such as the Consumer Price Index (CPI)
- Interest rate decisions from the Federal Reserve
- Gross Domestic Product (GDP)
2. Corporate Earnings
Quarterly earnings reports can also cause major price moves in a stock. Every quarter, publicly traded companies need to publish an earnings report which details financial metrics such as revenue and earnings per share, as well as some forward guidance.
If a company reports better or worse than expected figures, it can cause major swings in its stock price as investors buy or sell to adapt to the news.
3. Political and Global Events
Elections, central bank policy, trade disputes, and geopolitical tensions can all affect investor sentiment and the overall price of the stock market. For example, in US President Donald Trump's second term, he imposed trade tariffs on nations not seen for decades. This caused wild swings up and down in the US stock market and the stock markets of other nations.
Final Thoughts
Trading the US stock market from the UK and other products like US stock indices and ETFs is available with the right broker. However, while it may be accessible, it does require time, patience and training to build the skills to trade. Consider using a demo trading account to practice your skills, strategies and ideas in a virtual environment before using real funds.
Continue Reading:
- S&P 500 Index Trading Strategies
- Top S&P 500 ETFs to Watch This Year
- Top Nasdaq ETFs to Watch This Year