How to buy US shares in the UK

Why buy US shares from the UK?

The US market offers exposure that simply cannot be replicated through UK-listed stocks alone. The NYSE and Nasdaq together list approximately 5,500 companies spanning every major sector, many of which are global market leaders in technology, healthcare, energy, consumer goods, and financials.

Sentiment among UK investors has shifted strongly towards the US in recent years, perhaps spurred by pension funds looking for capital gains. That reflects a broader trend of UK investors looking overseas for growth.

Five of the most widely held US stocks among UK customers are Apple, Tesla, Microsoft, Meta and Amazon. Other popular names include Berkshire Hathaway, Alphabet, Nvidia, Exxon Mobil and Verizon.

How to buy US shares in the UK: five steps

1. Open a share dealing account

To buy US shares outright, you need a share dealing account with a platform that offers access to US markets. With us, you can open a share dealing account through our website or app in minutes, choosing from over 11,000 shares, funds and investment trusts, with £0 commission on US shares.

If you want to keep your US share investments tax-efficient, consider opening a stocks and shares ISA instead. Any gains and dividends within an ISA are sheltered from capital gains tax and income tax, up to the annual £20,000 allowance. You can also hold US shares within a SIPP for tax-efficient retirement investing.

2. Complete a W-8BEN form

Before buying any US-listed stock, you are required to complete a W-8BEN form, a requirement of the US Internal Revenue Service (IRS). This confirms you are not a US resident and enables you to benefit from the reduced 15% withholding tax rate on US dividends under the UK-US tax treaty, rather than the standard 30% rate.

With us, the W-8BEN can be completed digitally within the platform — no downloads required. The form is valid for three years, expiring on 31 December following the third anniversary of the date you signed it. For example, a form signed at any point in 2024 remains valid until 31 December 2027. We will notify you when a renewal is due.

Note that the W-8BEN only affects dividend withholding tax. It does not apply to capital gains. Selling US shares does not trigger US capital gains tax for UK residents, though any gains may be subject to UK capital gains tax depending on your circumstances.

3. Understand the costs

There are several costs to be aware of when buying US shares from the UK:

• Commission is the charge per trade. With our share dealing account, US shares are bought and sold at £0 commission online.
• Currency conversion is the most commonly overlooked cost. US shares are priced and settled in US dollars, so if your account is denominated in sterling, a foreign exchange conversion applies each time you buy or sell. With us, this is charged at 0.7% on the converted amount. Over time, particularly for frequent traders, this cost adds up and is worth factoring into your overall return.
• Multi-currency accounts offer an alternative for investors who trade US shares regularly. Converting sterling to dollars once and then trading from your dollar balance avoids repeated FX conversion charges on each individual trade.
• Custody or platform fees may also apply depending on your account type. Check your account terms for any ongoing charges.

4. Find the US shares you want

Once your account is funded and your W-8BEN is in place, use our platform to search for your chosen US stocks by name or ticker code; for example, AAPL for Apple, MSFT for Microsoft or NVDA for Nvidia.

Our platform provides access to charts, trading signals, client sentiment data, and technical indicators to support your research. For fundamental research, see our guides on how to invest in stocks, fundamental analysis, and how to pick stocks.

5. Buy your US shares

To place a trade, log in to your account, search for the stock, and select whether to buy at the current market price or set a limit order at a specified price. A limit order executes automatically when your target price is reached, giving you more control over your entry point.

You can place trades during US market hours — the NYSE and Nasdaq are open from 2:30pm to 9pm UK time, and we also offer after-hours trading for certain US stocks outside those windows.

Fractional shares

Some of the most prominent US stocks trade at very high prices. For investors who want exposure to these companies without buying a full share, fractional shares allow you to invest a set pound amount rather than buying whole units. Check our platform for current fractional share availability.

Trading US shares with spread bets or CFDs

If you want to speculate on the price movements of US shares without owning them outright, you can use spread bets or CFDs. Both are leveraged products — you put up a margin deposit and gain exposure to the full position size, which amplifies both gains and losses. Under FCA rules, retail clients benefit from negative balance protection, meaning you cannot lose more than the funds in your account.

Spread betting profits are free from capital gains tax and stamp duty in the UK, though tax treatment depends on individual circumstances and can change. CFD profits are subject to capital gains tax. For a full breakdown, see our guides on how is day trading taxed in the UK and spread betting vs CFDs.

These products are best suited to short-term trading rather than long-term investing. For US share dealing with a longer time horizon, outright ownership through a share dealing account or ISA is generally more appropriate.

Currency risk

When you buy US shares, you take on currency exposure alongside the stock itself. If the dollar weakens against sterling, your returns in pound terms will be lower even if the share price rises in dollar terms. Conversely, a stronger dollar enhances your sterling-denominated returns.

Currency risk is a material consideration for UK investors with significant US share exposure. For guidance on managing this, see our article on how to protect your portfolio from currency risk.

US shares tax considerations for UK investors

Beyond the W-8BEN and dividend withholding tax outlined above, UK investors should be aware of the following:

• Capital gains tax applies to profits from selling US shares held outside an ISA or SIPP, at the same CGT rates as UK shares. The annual CGT allowance is currently £3,000.
• Dividend income from US shares held outside an ISA is subject to UK income tax above the £500 dividend allowance, after the 15% US withholding tax has already been deducted. You can claim relief for the withholding tax paid to avoid double taxation, but the mechanics depend on your individual circumstances.
• Stamp duty reserve tax does not apply to US shares. Unlike UK shares, which attract 0.5% stamp duty on purchases, US shares are exempt.

For a full breakdown of how US share trading is taxed, see our guides on how is day trading taxed in the UK and understanding your ISA allowance.

Getting started with us

We offer access to over 11,000 global shares with £0 commission on US stocks online. Whether you want to invest for the long term through a share dealing account or ISA, or trade short-term price movements with spread bets or CFDs, we give you the tools and access to act on your conviction.

Past performance is not a reliable indicator of future results. The value of investments can fall as well as rise and you may get back less than you invest.