You can invest in US stocks using a number of trading apps, brokerages, online share-trading platforms or by buying exchange traded funds. Each will give you different levels of access to the US stock market as well as trading options and features.
| Logo | Name | 1 year performance (to March 2023) | 5-year performance | Link to invest |
|---|---|---|---|---|
 | Apple | 24% | 248.49% | Invest with XTBCapital at risk |
 | Microsoft | 14.97% | 191.17% | Invest with XTBCapital at risk |
 | Amazon | 17.47% | 28.29% | Invest with XTBCapital at risk |
 | Tesla | 71.54% | 765.41% | Invest with XTBCapital at risk |
 | Alphabet | 12.66% | 77.02% | Invest with XTBCapital at risk |
 | Nvidia Corporation | 76.56% | 303.66% | Invest with XTBCapital at risk |
 | Berkshire Hathaway | -2.79% | 46.93% | Invest with XTBCapital at risk |
 | Visa | 3.43% | 72.26% | Invest with XTBCapital at risk |
 | UnitedHealth | 9.10% | 106.89% | Invest with XTBCapital at risk |
 | Exxon Mobil | -5% | 34.69% | Invest with XTBCapital at risk |
There are 2 key fees you need to consider when trading US stocks: the commission and the foreign exchange fees. Commission is the cost that a platform charges to allow you to make the trade. The foreign exchange fee, which you wouldn’t encounter when buying UK stocks (unless you’re abroad, of course), is the fee the provider charges you to change your money to US dollars. There may be other fees you need to consider as well, but these are the key ones.
Our table above of UK brokers that let you trade US stocks shows the fee for a US trade and foreign exchange fees of key providers. You can also check out an example, below, of how these fees work in practice.
Say you want to invest in Tesla – you’ve done your research, you’ve looked into the risks and potential rewards involved and have decided to buy 5 shares.
At the time of writing, a Tesla share costs $774.39, so 5 shares would cost $3,871.95. You’re interested in 3 popular providers, including 2 that are commission free, and 1 that charges fees for trading, and wish to compare the fees you’d pay. The providers are Freetrade, eToro and Degiro.
| Provider | Fee | What the fee is made up of |
|---|---|---|
| Freetrade | £15.06 | 0.45 foreign exchange fee |
| eToro | £16.74 | 0.5% foreign exchange fee |
| Degiro | £10.54 | €1, plus a 0.25% foreign exchange fee |
* This is a fictional, but realistic, example.
A commission-free platform might appear to be the cheapest way to buy US stocks, but that’s not necessarily the case. Once you’ve factored in foreign exchange fees, it appears that Degiro offers the cheapest option when buying US stocks, based on buying 5 shares of Tesla at the time of writing.
Over the last decade, the leading US stock indices have given investors much higher returns compared to those in the UK, typically because of the rise of technology — investors that were only invested in UK or European stocks may have missed out on bigger gains. Of course, past performance is no guarantee of future results, so you’re not going to make huge gains by investing in these stocks, but you can add additional diversification and get a chance to get hold of some of the most recognisable companies in the world.
The US stock market is home to many of the largest companies on the planet, such as Apple, Amazon, Microsoft and Facebook. Along with access to the world’s leading companies, the US stock market also includes the New York Stock Exchange and NASDAQ, which are 2 of the world’s largest stock exchanges and offer deep liquidity and extensive trading opportunities.
“It’s just a really dynamic, exciting market with the broadest range of products,” Stake co-founder and CEO Matt Leibowitz told Finder. “It lets people diversify the way they invest.”
A couple of decades ago, it was difficult and costly to invest in foreign stocks. These days, many trading platforms and brokers offer low-cost access to many international markets, including the US stock market.
The best way to understand how US stocks perform is to take a look at the 2 major US stock exchanges: NASDAQ and the New York Stock Exchange (NYSE).
Finder survey of 2,000 people, May 2020
Choosing to invest in US stocks can be a great way to get access to some rising tech stocks and diversify your portfolio. It’s a popular market for investors, but you need to make sure you know about additional fees, such as for currency exchange, that you’ll have to pay as well as commission. Work out how much you’ll spend before buying the stocks. You need to make sure you choose a broker that lets you trade US stocks.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
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