The US stock exchange houses many mega-cap businesses, including Apple, Google and Amazon. Find out about getting and trading stocks within an US-based company with your guide: how to purchase and trade US stocks while in the UK.
Forex news Shares United States Tax CFD Dividend
Anzl Killian | Financial author, Johannesburg
Buying and trading US stocks at the UK: the basic principles
Buying or trading stocks is an integrated component of the majority of investor general wealth creation plan. However, what do you need to do if you reside inside the UK and you also want to know more about stocks from a business recorded in the US?
WithForexmn, you can be investing or trading in tens of thousands of US stocks while in the UK for less, and also at precisely the exact same manner as you’d UK stocks. There are only a couple of additional considerations about tax principles, coping costs and currency conversion. If you purchase stocks, you might even earn money if a US company pays to shareholders. Plus, in the event that you currently own investments in US stocks, then you can move your present holdings to Forexmnfast and readily.
Five steps to purchasing US stocks at the UK
- Open a talk checking account
- Complete a W-8BEN shape
- Understand the fees to Get US stocks
- Choose the US stocks you would like to buy
- Buy US stocks
Open a talk checking account
You want a share checking account to purchase US stock via our share dealing service. It’s possible to start an Forexmnshare checking account via our site or program in only a couple minutes and get started buying stocks straight a way.
Once you’re installed, you will be ready to select from over 10,000 stocks, capital and investment prospects – at a minimal price. It’s an easy task to deal with the account yourself, and you’ve got use of dedicated 24hour support in the event that you require assistance.
Open your own share checking account
Complete a W-8BEN form
No particular person may find US stocks with out a W-8BEN sort – it really is a dependence on this American Internal Revenue Service (IRS). Hence, the 2nd step into buying US stocks while in the UK will be always to fill in such a sort. You overlook ‘t have to download anything; it can be completed on our online platform. The W-8BEN is to confirm that you are not a resident of the US. It enables us to process an individual tax benefit on your behalf – a reduction of up to 30% in the amount of US tax you’re charged on dividends from the US shares you buy.
Understand the charges to buy US shares
Charges (fees and commission) for US shares differ depending on whether you buy the shares online or over the phone. When trading US shares withForexmn, you will pay a minimum charge of $15, or 2 cents a share. We charge $50 when you buy US shares over the phone.
There may be other charges and taxes including custody fees, additional services and physical share certificate costs. We may also charge you a fee if we are required to perform a service on your behalf that is not set out in our product details.
Lastly, dividends may be charged a ‘withholding tax’, which is equivalent to your UK basic rate income tax liability but exempts you from paying any further tax on your foreign dividends.
View a full list of our charges for buying US shares
You can only buy US shares in US dollars. Forexmnwill automatically convert your pounds into US dollars, charging a foreign exchange fee of just 0.5%. Remember, because you’re holding non-sterling assets, you’re exposed to foreign exchange risk and any currency fluctuations will affect the value of your international shareholding.
View a full list of our FX charges
Choose the US shares you want to buy
You can choose from hundreds of popular US shares, including Amazon, Facebook, Apple and Google. Once you’ve opened and funded your account, you can go to the ‘socket ‘ panel and enter the name of the US shares you want to buy.
Buy US shares
You can buy US shares through the Forexmnshare dealing service. First, open your share dealing account online and deposit your funds. Next, log in and go to the share dealing platform and type in the name of the company shares you want to buy in the ‘socket ‘ panel. Finally, choose whether you want to buy the shares at the current market price or if you want to set an order to buy the shares at a specified price. A limit order, for example, sets the price you are happy to pay and executes automatically when the price level is hit.
One of the features of share dealing is dividend payments. If you are due to receive dividend payments from the shares you own, we will pay them straight into your Forexmnaccount once received.
Benefits of buying US shares withForexmn
- Low costs and best possible prices
- Wide range of shares to choose from
- Dedicated support line, 24 hours a day (8am Sunday to 10pm Friday)
- Ease of access with a mobile app to manage your investments
An Forexmnshare dealing portfolio can be placed in an Individual Savings Account (ISA), shielding your profits and income from capital gains tax. Likewise, investing in an Forexmnself-invested personal pension (SIPP), you’ll receive tax relief on your contributions and pay no capital gains tax or income tax on your investments. Most foreign countries don’t bill stamp duty in your global share buys, however when they do, it’s ‘s generally very low.1
Trading US stocks at the UK
Trading US stocks at the UK can be a choice in the event that you don’t need to get the stocks outright.
Trading differs to generally share coping so you simply don ‘t own the underlying asset, so you can go long or short on the shares. When you decide to trade US shares, you can trade using leverage, which means you put down a small deposit to gain full market exposure.
However, leverage magnifies your exposure because your profit or loss will be based on the full size of your position. If you want to open a leveraged position, you can do so via a CFD trading or spread betting account.
CFD trading and spread betting on US shares
A CFD is a contract in which you agree to exchange the difference in the price of shares from when you open your position to when you close it. You can buy CFDs to go long or sell them to go short. When you trade shares via spread betting, you are placing a bet on whether its price is headed up or down. As the share price moves in your chosen direction, you make a profit. If it moves against you, you make a loss.
Find out more about CFD trading and spread betting
Benefits of trading US shares withForexmn
- You can go long or short – speculating on rising or falling prices
- Since you don’t possess the underlying asset, you overlook ‘t have to pay stamp duty
- When you trade CFDs, you can offset your losses against profits for capital gains tax liabilities
- With spread betting, your profits are exempt from capital gains tax (UK only)
- You can use spread betting or CFDs as a hedging tool
- No commission payable when spread betting – only a spread, and overnight funding charges if your position stays open
Extended hours trading on US shares
The US stock market opens from 2:30pm to 9pm (UK time), so you can trade US shares trade up until 9pm. Extended hours are also available to share dealing clients, from 12pm to 10.30pm Monday to Thursday and until 10pm on a Friday.
CFD and spread bet clients can trade up until 1am Monday to Thursday and 10pm on a Friday (UK time).
Please note that the hours mentioned here depend on stock exchange opening hours, and may vary or change as countries shift to and from daylight savings time.
Learn about weekend trading withForexmn.
1Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.