Everything is bigger across the pond, and US stocks make up close to 60% of the global stock market. Buying US shares is a fantastic chance to diversify your portfolio and invest in some of the world’s biggest and best companies. But, if you’re in the UK, how do you invest in US stocks?
You can invest in US stocks using a number of trading apps. Each will give you different levels of access to the US stock market, along with various trading options and features.
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Yes, you just need an investing account that lets you trade US stocks. We’ve listed some of these below with links to our reviews – check these out to find one that suits you.
There are some extra things you need to take into consideration when investing in US stocks, including the fees involved and whether you need to fill out a W-8BEN form.
There are 2 key fees you need to consider when trading US stocks:
There may be other fees you need to consider, but these are the primary ones. Our table below of UK brokers that let you trade US stocks shows the commission fee for a US trade and the FX fee for key providers.
Over the last decade, leading US stock indices (like the S&P 500 index and the Nasdaq 100 have given investors much higher returns compared to those in the UK (like the FTSE 100). Mostly, because of the rise of tech stocks – thanks Zuckerberg, Musk, and Bezos. Investors that were only invested in UK or European stocks may have missed out on these big, tech-driven gains.
Of course, past performance is no guarantee of future results. You may not make huge gains by investing in these stocks today. But holding US stocks means adding a layer of international diversification – owning pieces of the most recognisable companies in the world.
A couple of decades ago, it was difficult (and costly) to invest in US stocks. These days, many of the best trading apps and platforms offer low-cost access to international markets – including the US stock market. Did someone say yeehaw?
The best way to understand past performance of US stocks is to take a look at the 2 major US stock exchanges: the Nasdaq and the NYSE.
Here are some of the key benefits as an investor:
There are also some potential downsides to think about:
"There’s no one-size-fits-all answer to this. The best US stocks for you to invest in will depend on the rest of your portfolio, your risk tolerance and your investing strategy. One thing to keep in mind with US stocks (or any stock for that matter) is that what’s performed well in the past rarely keep on winning forever. For example, the top US stocks from 30 years ago look very different to the top stocks today. So, what will the top US stocks look like in 30 years time? It’s impossible to predict.
One way to combat this uncertainty is by investing in an index fund or ETF that tracks the whole US stock market, or just a big portion of it like the S&P 500 does. Using a tracker fund rather than picking individual stocks means that you don’t have to worry about choosing the winners of tomorrow, you can automatically invest in them with a diversified fund."
Choosing to invest in US stocks can be a great way to get access to tech stocks and prominent American companies to help diversify your portfolio. It’s a popular market for investors, but if you want to buy US shares from the UK, you need to make sure you’re aware of all the costs (like commissions and FX fees).
It’s worth working out the costs before buying US stocks, and crucially, you should try to use one of the best trading apps for US shares because these platforms should let you access US stock exchanges easily. Diversifying internationally is a great strategy, just make sure that any US stocks you pick align with your goals and risk appetite.
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.
Investing in US stocks can be an excellent way to gain exposure to some of the world’s leading companies making waves on Wall Street, from tech giants to innovative startups.
Thinking of investing in Chinese shares? This guide outlines the main considerations when investing in Chinese companies.
Find out how to invest in Japanese stocks from the UK.
We outline the pros and cons of investing in Germany and how to go about choosing and buying German stocks.
