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How to buy US stocks in the UK

UK investors can easily buy US stocks from within the UK, but it can be a bit confusing at the start. This helpful guide will explain how it works and eliminate misunderstandings.

Can I invest in US stocks from the UK?

Yes it is completely possible Buy US stocks From the UK. Citizens outside the United States have the right to purchase US stock. The laws that govern the US stock market are Americans, but you don’t have to be Americans to invest in them. For example, if you are British, you can invest in the United States by buying US stocks. The same applies to other investments such as US government bonds, corporate bonds, and US assets.

NS The US stock market is the largest in the world And potentially offers some The most popular stocks to trade.. For foreigners, investing in the United States also has the benefits of diversification, which can give the investment portfolio “global market exposure”, but trading is risky and not suitable for everyone. Please note in particular.

Can I buy US stocks in the UK?

You do not need to open a US securities account to buy US stocks. UK banks and brokers offer accounts that allow UK residents to purchase US stocks and other financial products.

LCG offers trading of thousands of US stocks and ETFs listed on the New York Stock Exchange, Nasdaq and BATS for a small fee. 2-4 cents per share.All this can be done from the ease of LCG. App or desktop trading platform..

Several Most popular stockBuying on the New York Stock Exchange and Nasdaq tends to be the largest.

The top 10 US stocks by market capitalization are:

Rank name Ticker Market capitalization price(September 9, 2021)
1 Apple AAPL $ 2.574 T $ 155.73
2 Microsoft MSFT $ 2.262 T $ 301.03
3 Alphabet (Google) Google $ 1.921 T $ 2,895
Four Amazon AMZN $ 1.793 T $ 3,542
Five Facebook FB $ 1.065 T $ 377.74
6 Tesla TSLA $ 760.58 B $ 759.24
7 Berkshire Hathaway BRK-A $ 631.16 B $ 419,810
8 NVIDIA NVDA $ 559.75 B $ 224.62
9 visa V $ 501.48 B $ 228.53
Ten JP Morgan Chase JPM $ 476.28 B $ 159.39

sauce: Companiesmarketcap.com

An alternative way for British people to buy US stocks is to invest in indices like the S & P 500 and the Dow Jones Industrial Average.This is a US index fund, index ETF, or Index CFDNS.

Note: Pink Sheets and US small cap stocks tend to be very illiquid, can fluctuate and can be considered risky investments, which is not a good investment for most investors. It tends to be unavailable through large UK brokers. In addition, purchasing stocks denominated in currencies other than your home currency / base currency exposes you to foreign exchange risk.

Can I buy US stocks in pounds or euros?

Yes, all modern trading platforms and investment apps offer the ability to deposit in one currency and convert it to foreign currencies such as US dollars to buy foreign stocks. Once the transaction is closed, you can return the US dollar directly to pound sterling through the investment app. Of course, this also means that you are exposed to foreign exchange risk.

Therefore, investing in US equities provides an opportunity and risk for investors to be exposed to currency fluctuations. If you have been US stocks for a long time and the US dollar has fallen against the pound, your US stocks will be even less valuable to you, even if the stock price does not fall. Also, please note that you will be charged a cash currency conversion fee when investing in cash stocks. Currency tracking and conversion can be confusing.

With the LCG Spread Betting Account, all transactions in all markets, including US equities, are denominated in pound sterling, making it simple for users.

Look at this videoCheck the ease of trading with the LCG app.

Can I invest directly in US stocks?

You may be wondering how you can buy US stocks from abroad. Remember that in the digital age, shareholders usually do not have a physical copy of a stock certificate.You can own the shares while the bank or broker manages the certificate physically or digitally and charges a small quarterly fee for it (this process is called). Dematerialization).

There are two options to consider when investing in US stocks. Take ownership of the shares directly or use CFDs for speculation and avoid direct ownership.

Read this blog CFDs and stocks To better understand the difference between the two and what might be suitable for your investment journey.

Do UK Residents Pay Taxes on US Equity Trading?

One of the biggest investment considerations is what tax to pay on your returns. Not surprisingly, a concern for British investing in the United States is the possibility of double taxation. Thankfully, this is not the case.

As a so-called “non-resident alien”, a non-US citizen who does not live in the United States, you are not obligated to pay US capital gains tax. This is paid in your native UK. ..And when you open Spread betting accountThere is no UK capital gains tax on returns (provided you are a UK resident for tax purposes).

However, even non-US citizens are obliged to pay dividend taxes in the same way as Americans. But don’t worry. This is done automatically. Every time the company pays you a dividend to own their shares, a British bank or broker will withhold the necessary taxes and pay you the rest.

*** Note: LCG does not provide tax advice. Taxes are subject to individual circumstances and are subject to change. Please consult a tax expert. In addition, LCG is not an investment adviser, so if you need an opinion as to whether our products are suitable for your existing investment strategy, you should consult an independent advisory investment broker.

US Stock Market Trading Hours at BST (British Summer Time)

If you are investing in US stocks in the UK, one of the things to consider is the time difference and stock exchange opening and closing times. If you invest while living in the UK Time Zone (GMT), you cannot buy or sell US stocks in the morning due to the time lag, only in the afternoon and evening … Why watch TV when you can invest!

Weekday Eastern Standard Time (ET) 9:30 am to 4:00 pm (excluding stock market holidays)

When will the US stock market open and close in UK time?

3:30 pm to 10 pm British Summer Time (business hours) 14:30 GMT + 1, 21:00 GMT + 1)

(GMT-Greenwich Mean Time) Winter (November-April) and (BST-British Summer Time) Daylight Saving Time (May-October)

How to open a trading account to trade on NYSE & Nasdaq

How to start trading? There are some simple steps you can take to trade US stocks from the UK.

  1. Go to LCG.com
  2. Open a trading account (all LCG accounts have access to US stocks)
  3. Fund your account
  4. Investigate US stocks to buy ( Analysis section).
  5. Make a transaction

Spread betting and CFD trading pose a high level of risk to capital and can lead to loss of deposits. CFDs are a complex tool, and there is a high risk of losing money rapidly due to leverage. Please note that 69% of our retail investor accounts lose money when trading CFDs. You need to consider whether you understand how CFDs work and whether you are at high risk of losing money.

The information provided in this communication was produced by London Capital Group Limited (LCG) and is for informational purposes only. It is not intended to be an investment, commercial advice, offer or solicitation to buy or sell a financial product. Opinions, news, research, analysis, pricing, other information, or links to third parties contained in this communication are provided as general market commentary and do not constitute investment advice and in any form. It is also not intended for commercial use. LCG shall not be liable for any loss or damage, including, but not limited to, any loss or benefit that may arise directly or indirectly from the use or trust of such information.

The information in this article is not intended for EU residents, Australia, Belgium, Canada, New Zealand, Singapore, or the United States and is not intended for distribution or use to any person in any country or jurisdiction. .. Such distribution or use violates local law or regulation.

London Capital Group (LCG) is a company registered with registration number 3218125 in the United Kingdom and Wales. LCG is licensed and regulated by the Financial Conduct Authority (FCA) under reference number 182110. The registered address of LCG is 80. Cheapside, London EC2V6EE.



How to buy US stocks in the UK

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