If you live in the UK, you may be wondering how to buy US shares. The process is quite simple and there are many reasons to consider investing in US stocks. Among the most popular US stocks are Apple, Netflix, Disney, and Amazon. But how do you know what to buy and where to get it? Read on to learn more about how to buy US stocks from the UK. And don’t forget to check out the Foreign exchange fees and commission-free platforms to save even more money.

Investing in US stocks

Investing in US stocks from the UK offers investors the opportunity to buy US shares without having to cross the Atlantic. While US stocks are not high-risk start-ups, they do have very large potential. Netflix, for example, will be the biggest media company in the world by 2020. Choosing the right stock depends on the investor’s preferences and risk appetite. Active traders might want to invest in high-risk tech-stocks, which can experience dramatic price moves.

Most UK pension and ISA providers allow UK investors to invest in US stocks. The fees vary from platform to platform, but most offer US-focused funds or investment trusts. In most cases, however, investing in US shares directly will require you to use a brokerage or fund manager. There are various advantages and disadvantages to using a brokerage or fund for US investing. The most popular option that you can find now a days is given here.

Foreign exchange fees

Buying US shares from the UK is no more complicated than buying British ones. However, the costs involved are higher than those of buying British shares. These fees are due to the fact that buying US stocks involves paying a foreign exchange provider a fee to change the money into US dollars. Nevertheless, there are some differences that you should look for to minimise your costs. Below are some things to consider when buying US shares from the UK.

Investing in US stocks from the UK is a great way to diversify your investment portfolio geographically. Because US stock markets have many innovative companies, UK investors may want to invest in US stocks. However, there are many foreign exchange fees that can be incurred when purchasing US shares from the UK. In addition, you need to take into consideration the currency exchange rates and dealing costs. To avoid these, it is better to use funds or invest in stocks from several countries.

Researching companies

Before investing in US shares, U.K. investors should do their homework. Before purchasing US shares, investors should know which paperwork they need to file with the IRS, which country they are investing in, and which companies they wish to purchase. It’s important to do this research to protect themselves from any potential pitfalls and to ensure that they’re buying shares of reputable companies. But this effort will be worth it – US stocks have outperformed British equities for more than a decade and are a necessary component of any well diversified portfolio.

Once you have a broker, you can start researching companies. For example, Benzinga.com offers information on U.S. companies, and it allows you to research their stocks in depth. You should focus on P/E ratios and technical indicators rather than debt levels. A good way to do this is by opening an account with an international broker. A good platform will also have updated market data, which is essential when trading.

Commission-free platforms

If you are based in the UK and want to buy US shares, the most convenient way is by signing up with a foreign brokerage. Most brokerages will charge a commission, as well as foreign exchange fees and other fees if you’re not a resident of the US. The commissions will depend on how much you invest in the US stock market, and the platform will convert the price from British pounds to US dollars before you buy it.

One of the most popular UK brokers is Libertex, which offers zero spread and no gap between buy and sell prices. This platform also offers industry-leading quotes. While it does charge a commission, it is usually below 0.1% per order, making it an excellent option for those looking for a low commission. To be sure, check the company’s reputation and financial statements before making an investment decision. Alternatively, sign up with a number of different UK brokers.

Taxation of dividend stocks

If you are a UK resident and you want to invest in American dividend stocks, you should know how the taxation of dividends works in the USA. The US has a 30% tax rate on dividends. In contrast, the UK only taxes its dividends at 15%. You can simplify your situation by completing and sending a form W-8BEN to the tax authorities in the country of purchase.

To avoid taxation, you should ensure that you are buying shares that have a minimum dividend payout of $2.25 per share. Buying stocks in the UK is a relatively easy process. As long as you understand how the taxation works, it is relatively painless. Once you have an account with a broker, you need to send them your UK tax return. There are two main ways to file this tax: by using a broker or through the exchange.