{"id":556152,"date":"2025-04-16T17:21:00","date_gmt":"2025-04-16T16:21:00","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=556152"},"modified":"2025-07-17T09:47:16","modified_gmt":"2025-07-17T08:47:16","slug":"cutting-costs-without-cutting-corners","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/share-trading\/invest-in\/overseas-shares\/cutting-costs-without-cutting-corners","title":{"rendered":"US stocks for UK investors: Cutting costs without cutting corners"},"content":{"rendered":"<p><a href=\"https:\/\/www.finder.com\/uk\/share-trading\/invest-in\/overseas-shares\/us-stocks\">Investing in US stocks<\/a> can be an excellent way to gain exposure to some of the world\u2019s leading companies making waves on Wall Street, from tech giants to innovative startups. <\/p><p>Before you jump in and start trading, it\u2019s essential to understand the costs involved. And, more importantly \u2013 how to keep them as low as possible. Here\u2019s your ultimate guide to buying US stocks in the UK without breaking the bank.<\/p><article class=\"luna-card luna-card--primary\"><div class=\"luna-card__block\"><div class=\"u-grid u-grid--alignMiddle\"><div class=\"u-grid__col u-1\/6@s u-grid__col--orderLast@s\"><img decoding=\"async\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2025\/03\/robinhood_240_46.png\" alt=\"Robinhood logo\" style=\"width: 170px; vertical-align: middle;\" class=\"has-padding-top-xsmall has-padding-bottom-xsmall\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2025\/03\/robinhood_240_46.png?fit=180 180w, https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2025\/03\/robinhood_240_46.png?fit=360 360w, https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2025\/03\/robinhood_240_46.png?fit=510 510w\" sizes=\"(max-width: 510px) 100vw, 510px\" loading=\"lazy\"><\/div><div class=\"u-grid__col u-10\/12@s\">This is a paid content promotion brought to you by <a target=\"_blank\" rel=\"sponsored\" href=\"https:\/\/www.finder.com\/redirect\/uk\/share-trading\/robinhood-uk-secure.html?nb=1&amp;src_country=uk&amp;redirect_tracking_params=%7B%22placement_type%22%3A%22product_link%22%2C%22title%22%3A%22Robinhood%22%2C%22class%22%3A%22u-font--bold%22%2C%22site%22%3A%22UKFST%22%2C%22offer_id%22%3A%2225929%22%2C%22niche_code%22%3A%22UKFST%22%2C%22product_id%22%3A%224a854b97-433e-404e-aa83-874de37c630d%22%2C%22product_name%22%3A%22Robinhood%22%2C%22provider_id%22%3A%22c1e6f7d1-e659-40ac-839d-df16073b20e9%22%2C%22provider_name%22%3A%22Robinhood%22%2C%22post_id%22%3A%22556152%22%2C%22post_path%22%3A%22share-trading%252Finvest-in%252Foverseas-shares%252Fcutting-costs-without-cutting-corners%22%2C%22post_country%22%3A%22uk%22%7D\" class=\"u-font--bold\">Robinhood<\/a>. Choose a free fractional share in an S&amp;P500 company when you sign up. Capital at risk. T&amp;Cs apply.<\/div><\/div><\/div><\/article><h3>Lower your trading commissions<\/h3><p>One of the key areas to keep an eye on if you\u2019re investing in US stocks and looking to keep your costs at rock bottom levels is the trading commissions. <\/p><p>Simply put, commissions are fees that you normally pay to buy or sell shares. Usually it\u2019s a flat fee, \u00a35 per trade for example. Sometimes it\u2019s a percentage fee based on the size of your trade. However, not all investing platforms charge these commission fees.<\/p><p>If you use a zero commission* platform like <a href=\"https:\/\/www.finder.com\/uk\/share-trading\/share-trading-reviews\/robinhood\">Robinhood<\/a>, you can buy and sell shares to your heart\u2019s content without racking up any pesky commission fees. <\/p><p>This has a number of benefits: <\/p><ul><li>Makes it easier for you to diversify your stock portfolio<\/li><li>Makes it cheaper for investing smaller amounts<\/li><li>Allows you to carry out investing decisions without the burden of extra commission costs to factor in<\/li><\/ul><p>If you\u2019re able to buy and sell <a href=\"https:\/\/www.finder.com\/uk\/fractional-shares\">fractional shares<\/a> (pieces of stocks), then zero trading commissions become even more valuable because you can invest smaller amounts with minimum costs. <\/p><h3>Watch out for currency conversion costs<\/h3><p>Alongside trading commissions, the next thorn in your side is usually currency conversion costs. <\/p><p>If you\u2019re in the UK and investing in US shares, because they\u2019re denominated in USD \u2013 you\u2019ll usually need to pay a foreign exchange (FX) fee for the privilege of switching your pounds sterling to US dollars.<\/p><p>Usually, the FX fee will be a percentage, so the total amount you pay depends on the size of your trade. With UK investing platforms, FX fees can vary wildly and go as high as 1.5%, which is a significant chunk of change. <\/p><p>If you can keep your FX fees to a minimum, this will ensure you don\u2019t get stung when switching your pounds to American dollarydoos to invest. <\/p><p>Pretty much every platform out there charges some sort of FX fee for international investments. If you want the cheapest option around, it\u2019s Robinhood, because they don\u2019t charge you an FX fee (a small 0.03% third party fee still applies).   <\/p><h3>Paying less tax on US dividends<\/h3><p>If you invest in US stocks that pay <a href=\"https:\/\/www.finder.com\/uk\/share-trading\/invest-in\/dividend-stocks\">dividends<\/a>, Uncle Sam will want to take a cut. They went to war with the UK over taxes back in the day, so I guess some sort of payback is warranted. <\/p><p>So, the US government applies something called a \u201cwithholding tax (WHT)\u201d on dividends paid to non-US investors. However, thanks to the special relationship between the UK and US, investors can reduce this tax from 30% to 15% by completing a \u201c<a href=\"https:\/\/www.finder.com\/uk\/share-trading\/share-trading-guides\/tax-on-investments\/w-8ben-form\">W-8BEN form<\/a>\u201c. <\/p><p>This might sound complex and confusing but it\u2019s usually dead simple. Once you\u2019ve opened up an account with an investing platform, it should prompt you about completing a W-8BEN form. After you\u2019ve filled out the online form, you\u2019re good to go and everything else is automatic. <\/p><p>Most people don\u2019t realise this but even if you\u2019re holding US investments in a <a href=\"https:\/\/www.finder.com\/uk\/stocks-and-shares-isas\">stocks and shares ISA<\/a>, you still pay the 15% WHT on dividends, which is why ISAs aren\u2019t completely \u201ctax-free\u201d. <\/p><h3>Keep an eye on stock market opening times<\/h3><p>You\u2019re not alone. Even the stock market has to put up with a weekday 9 to 5 grind. Well, technically the US stock market operates from 9:30am to 4:00pm \u2013 lucky them!<\/p><p>Why does this matter for buying and selling US shares? These days, due to fancy technology and our insatiable appetite for stocks, some of the <a href=\"https:\/\/www.finder.com\/uk\/share-trading\/best-trading-apps\">best trading apps<\/a> allow you to invest outside ordinary market hours.**<\/p><p>However, if you plan to do this, it\u2019s important to remember that prices can be more volatile because of the lower liquidity (fewer buyers and sellers available) and you could end up paying more for a stock because not everyone is up at 6am making trades. <\/p><p>Trading around the clock is a useful feature but it\u2019s important to keep an eye on market prices. You can circumnavigate some of these potential obstacles by making the most of different <a href=\"https:\/\/www.finder.com\/uk\/share-trading\/share-trading-guides\/share-trading-glossary\/trading-order-types\">trading order types<\/a> like limit orders. <\/p><h3>Bottom line<\/h3><p>Access to US stock markets is now easier than ever, and it can be cheaper than ever if you tread the right path. <\/p><p>If you want to invest stateside, make sure you use a platform that has no trading commissions, low FX fees, and the option to invest smaller amounts of money with fractional shares.<\/p><style>\n#floaterscroll .content { justify-content: center; }\n#floaterscrollcta { min-width: 200px; }\n@media only screen and (min-width: 961px) { #floaterscroll .content > div { flex: none !important; } }\n@media only screen and (max-width: 601px) { #floaterscroll .cookie-footer-bar__text { margin-top: 7px; } }\n@-webkit-keyframes fadein { 0% { opacity: 0; } 100% { opacity: 1; } }\n@keyframes fadein { 0% { opacity:0; } 100% { opacity: 1; } }\n.fadeIn { opacity: 1; -moz-animation: fadein 0.5s linear; -webkit-animation: fadein 0.5s linear; animation: fadein 0.5s linear; }\n<\/style>\n\n\n<div id=\"floaterscroll\" style=\"display:none;\">\n<div class=\"fixed-footer cookie-footer-bar cookie-footer-bar__show\" style=\"background-color: #c3f53c;\">\n<div class=\"cookie-footer-bar__content content\">\n<div class=\"cookie-footer-bar__text u-font--medium\" style=\"font-size: medium; line-height: 22px; display: flex; align-items: center;\">\n<img decoding=\"async\" height=\"25\" border=\"0\" src=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2025\/03\/robinhood_240_46.png\" alt=\"Robinhood\" class=\"ls-is-cached lazyloaded\" style=\"height: 25px !important; max-width: 45%; line-height: 25px; vertical-align: middle; min-width: 120px; width: auto; margin-right: 20px;\" srcset=\"https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2025\/03\/robinhood_240_46.png?fit=180 180w, https:\/\/www.finder.com\/finder-us\/wp-uploads\/sites\/3\/2025\/03\/robinhood_240_46.png?fit=360 360w\" sizes=\"(max-width: 360px) 100vw, 360px\" loading=\"lazy\">\nGet a free fractional share! Capital at risk.<\/div><div class=\"cookie-footer-bar__actions\">\n<a id=\"standardMasthead__primaryCta\" href=\"https:\/\/www.finder.com\/redirect\/uk\/share-trading\/robinhood-uk-secure.html?nb=1&amp;src_country=uk&amp;redirect_tracking_params=%7B%22placement_type%22%3A%22nb-product%22%2C%22product_id%22%3A%224a854b97-433e-404e-aa83-874de37c630d%22%2C%22product_name%22%3A%22Robinhood%22%2C%22offer_id%22%3A%2225929%22%2C%22decorator%22%3A%22GLOBAL.PRODUCT.CTA_UKFIN_MAXRR_FLOATER_REDIRECT_BUTTON%22%2C%22niche_code%22%3A%22UKFST%22%2C%22post_id%22%3A%22556152%22%2C%22post_path%22%3A%22share-trading%252Finvest-in%252Foverseas-shares%252Fcutting-costs-without-cutting-corners%22%2C%22post_country%22%3A%22uk%22%2C%22partial%22%3A%7B%22id%22%3A539697%2C%22name%22%3A%22maxrr-floater%22%2C%22country%22%3A%22uk%22%7D%7D\" rel=\"sponsored\" target=\"_blank\" class=\"luna-button luna-button--primary luna-button--fluid luna-button--small floatercta\" role=\"button\">Go to site<\/a>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<script>\nvar myScrollFunc = function() {\nvar floaterscroll = document.getElementById(\"floaterscroll\");\nvar y = document.documentElement.scrollTop;\nif (y > 1500) {\nfloaterscroll.style.display = \"block\"; floaterscroll.classList.add(\"fadeIn\");\n} else { \nfloaterscroll.classList.remove(\"fadeIn\"); floaterscroll.style.display = \"none\";\n}\n};\nwindow.addEventListener(\"scroll\", myScrollFunc);\n<\/script><article class=\"luna-card luna-card--alt\"><div class=\"luna-card__block\"><p>*Commission-free trading refers to $0 commissions on stocks for Robinhood self-directed individual brokerage accounts that trade U.S. listed securities and ADRs. Keep in mind, contract fees apply when trading options and other costs such as regulatory fees may also apply to the brokerage account.<\/p><p>**Robinhood\u2019s 24 Hour Market is available from Sunday 8 PM ET to Friday 8 PM ET. Trading outside of market hours involves additional risks like increased price volatility and lower trading volume.<\/p><\/div><\/article><article class=\"luna-card luna-card--alt\"><div class=\"luna-card__block has-padding-small\"><p>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\u2019re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.<\/p><\/div><\/article><br>","protected":false},"excerpt":{"rendered":"<p>Investing in US stocks can be an excellent way to gain exposure to some of the world&#8217;s leading companies making waves on Wall Street, from tech giants to innovative startups. <\/p>\n","protected":false},"author":1273,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"","apple_news_slug":"","apple_news_sections":[],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[130140],"tags":[],"asset_tag":[],"class_list":["post-556152","post","type-post","status-publish","format-standard","hentry","category-overseas-shares"],"apple_news_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.9 (Yoast SEO v24.9) - 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