How to Invest in US Stocks from UK
The US stock market is the largest in the world and is home to many of the world’s most exciting companies. Understandably then, US stocks are very popular with investors from around the world, including in the UK. In this article, we will tell you what to know about investing in US stocks from UK.
Table of Contents
Why Buy US Stocks?
The US stock markets are the largest in the world. Between them, the New York Stock Exchange (NYSE) and NASDAQ have a combined market capitalisation of more than $50 trillion. For comparison, the total market cap of companies listed on the London Stock Exchange is less than $4 trillion at the time of writing.
As well as accounting for a large chunk of global equities (around 60%), the US exchanges are home to some of the world’s most exciting companies, including the Magnificent Seven stocks. As well as companies based in the US, many international companies choose to list in the US.
Consequently, US-listed stocks are incredibly popular not only with UK investors, but with investors from all over the world.
Fees for Buying US Stocks in UK
Just like buying shares in the UK, buying US stocks will incur fees. As well as the broker’s commission fee, which may differ to fees for buying UK stocks, you may be charged a foreign exchange fee, although many brokers offer foreign currency accounts.
With the Invest.MT5 account from Admirals, commission on US stocks is charged at $0.02 per share, with a minimum commission of $1 per transaction.
However, investors are entitled to one commission-free trade a day (this only applies to the first one-sided deal, i.e. one buy or one sell transaction), after which standard commissions apply. Check out the Contract Specification section on our website to find out more about fees.
So, how can you start investing in US stocks from UK?
Investing in US Stocks from UK
In order to start buying US stocks in the UK, you will need to choose and open an account with a broker which offers access to the US stock markets.
At Admirals, we offer our UK clients the ability to invest in more than 2,200 US listed companies through our Invest.MT5 account. Clients also have the option of opening their investing account in US dollars to avoid paying foreign exchange fees on US stock purchases.
Once you have opened an investing account, the process for buying US stocks in UK is largely the same as buying UK stocks.
Firstly, you will need to pick which US stocks you want to buy. Remember, when building your investment portfolio, it is generally accepted that diversification can help minimise overall risk.
Before buying any US shares, it is important to conduct independent research into the specific company and, amongst other things, ensure you understand how its business works.
To find out more about stock picking for beginners, check out our other article “How to Pick Stocks to Invest in”.
Buying US Shares from UK with ETFs
As well as buying individual shares, investors can buy US stocks in the UK using Exchange-Traded Funds (ETFs).
ETFs are a type of fund which are traded on stock exchanges and allow investors to gain exposure to a wide range of assets with a single investment. Many ETFs are designed to track an underlying stock index, which it does by purchasing shares in all the companies which make up that index.
Consequently, UK investors can use ETFs to gain exposure to US stock indices - such as the S&P 500, which tracks the performance of 500 of the largest public companies in the US. This can be a cost efficient way of investing in US stocks as well as providing investors with instant diversification.
How to Invest in US Stocks from UK
The exact method of how to invest in US stocks from UK will vary from broker to broker, depending on their specific share dealing platform.
In order to buy US stocks with Admirals, follow these four steps:
- Open an Invest.MT5 account and log in to the Dashboard.
- Open the web trading platform.
- Search for US stocks you want to invest in and click the symbol to open a price chart.
- Create a new order, enter the desired number of shares and hit ‘Buy’ to send the order to market!
Investing in US Stocks from UK with Admirals
As well as the ability to invest in more than 2,200 US-listed stocks, an Invest.MT5 account allows investors to buy shares in companies listed on a variety of other stock exchanges around the world! Click the banner below to open an account today:
FAQ
Can I Buy US Stocks in UK?
In a word, yes. Many brokers facilitate buying US stocks in UK without needing to register for a separate account.
Are US stocks worth buying?
The US stock market is home to some of the world’s largest and most successful companies. However, that does not necessarily mean that every US stock is a good investment. Before deciding whether or not to invest in US stocks, it is important to conduct your own research.
What is the minimum amount to buy US stocks?
Thanks to fractional shares, it is possible to start investing in US stocks with as little as $1!
About Admirals
Admirals is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today!
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.
