Best UK Accounts For Buying US Stocks Compared & Reviewed

Buying US stocks from the UK requires an investment platform that offers international investing. In this guide, we explain what US stocks are, the different ways to invest in them, and the pros and cons of buying US stocks.

We have ranked, compared and reviewed some of the best US stock dealing platforms and accounts in the UK that are regulated by the Financial Conduct Authority (FCA). The main things to compare when choosing a share dealing account are the costs of buying and selling shares (trading fees) and how much it will cost to keep those shares on your account. You should also compare account types so you have the option to deal US stocks in a tax-efficient ISA, SIPP or for your children.

We have chosen what we think are the best US stock investing accounts based on:

  • over 35,000 votes and reviews in our annual awards
  • our own experiences testing the US share dealing accounts with real money
  • an in-depth comparison of the features that make them stand out compared to alternative US stock market investing platforms.
  • interviews with the investment account company CEOs and senior management

⚠️ FCA Regulation

All US stock investing platforms that operate in the UK must be regulated by the FCA. The FCA is the Financial Conduct Authority and is responsible for ensuring that UK investment accounts that offer access to US stocks are properly capitalised, treat customers fairly and have sufficient compliance systems in place. We only feature US stock buying accounts that are regulated by the FCA, where your funds are protected by the FSCS.

Which broker has the best exchange rates for buying US stocks?

Interactive Brokers has the best FX exchange rates for buying stocks in the US as IBKR only charges 0.03% and you have complete control over when you do the conversion.

FX fees are one of the biggest hidden fees when buying US shares from the UK. When you buy US stocks you need to convert GBP into USD and the cost of doing so varies dramatically from broker to broker and can seriously eat into your investment returns.

Interactive Brokers also gives you the flexibility to convert GBP to USD whenever you like as opposed to the other brokers on this list wich do it automatically when you trade.

GBPUSD Trading Platforms

Traditional investment platforms like Hargreaves Lansdown, AJ Bell and Interactive Investors are very expensive for converting GBP to USD, and they also charge commissions on top of exchange rate spreads. They only become cheap when you are dealing in very large amounts.

IG is a fairly cheap option, but there is still a high minimum commission when you trade; it only becomes cost-effective when you deal more than three times a month when the commission is reduced to zero.

How much does it cost to buy US stocks from the UK?

In the past, it was quite costly for UK investors to buy US stocks. However, thanks to advances in financial technology over the last few decades, the costs associated with buying US shares have come right down.

Most UK investment platforms do not charge commission when you buy and sell US stocks as they make money when you convert GBP into USD.

The main things to consider when buying US stocks from the UK are: 

  • Dealing costs – how much does it cost to buy and sell stocks? (💡 IG offers free US stock dealing)
  • Account charge – how much does it cost to hold US stocks in the investment account? (💡 Interactive Brokers does not charge account fees)
  • FX rate – how much does it cost to convert GBP into USD to buy US stocks? (💡 Lightyear has recently reduced FX rates to 0.1%)
  • Account types – can you buy US stocks in a GIA, SIPP or ISA? (💡AJ Bell offers all of these account types)
  • Derivatives – can you go short US stocks or can you just buy them outright? (💡 Saxo offers DMA investing, plus US options, stocks and CFDs)

Related Guide: Best Investment Apps For US Shares

Is it worth buying US stocks as an investor?

For many investors, the answer increasingly looks like yes, at least based on current sentiment. As often, major US stocks outperform UK shares in the long-run.

A recent investor survey by CMC Invest found that 43% of investors expect the US to be the best-performing market in 2026, comfortably ahead of all other regions. By comparison, just 3% believe the UK will deliver the strongest returns next year, while confidence in continental Europe also remains muted.

UK Versus US Investing
The UK FTSE 100 versus the US S&P 500 over the past five years.

The survey paints a cautious picture for UK assets. Investors rated the UK’s trading outlook at an average score of 4.3 out of 10, with nearly a quarter (22%) feeling extremely pessimistic. While almost half of respondents sat on the fence, the clear takeaway is that many investors are looking abroad,  and the US is their first port of call.

Laurence Booth, Head of Global Markets at CMC Markets, said that repeated challenges have left investors unconvinced the outlook will materially improve in the near term in the UK. 

Which means there may be more profits to be made buying US stocks as opposed to UK shares.

Advantages of buying US stocks

The benefits of buying US stocks include:

  • Geographic diversification. The composition of the US stock market is very different to that of the UK stock market. For example, while the largest companies in the UK are Shell, HSBC, and AstraZeneca, the largest companies in the US are Apple, Microsoft, and Alphabet (Google). This means that the two markets do not move in lockstep. As a result, owning stocks in both markets can reduce overall portfolio risk.
  • Higher returns. Over the long run, the US stock market has generated higher returns than the UK stock market. For example, over the last five years, the UK’s FTSE 100 index has risen about 10% in price terms while the US’s S&P 500 index has risen nearly 85% (as 17th June 2024). The FTSE 100 has traditionally had a much higher dividend yield than the S&P 500 over that period; however, even when dividends are factored in, the return from US stocks is far higher than the return from UK stocks.
  • World-class companies. Many of the world’s most dominant companies are listed in the US. Examples of highly dominant companies listed in the US include Apple, Microsoft, and Alphabet.
  • Innovative markets. The US stock market is home to many innovative companies including large-cap tech companies such as Apple, Alphabet, Amazon, Tesla, and Nvidia, and smaller players such as Roblox, Coinbase, and Teladoc Health. These companies are all enjoying strong growth as the world becomes more digital.

Disadvantages of buying US stocks

The disadvantages of buying US stocks include:

  • Foreign exchange (FX) fees. Most brokers charge FX fees to buy US stocks. Hargreaves Lansdown, for example, charges 1.0% per trade for trades under £5,000, on top of regular trading fees. These FX fees can add up.
  • Foreign exchange risk. This is the risk that a change in the GBP/USD exchange rate could impact the value of your investment. If you buy US stocks and the British pound strengthens against the US dollar, your investment is going to lose value in sterling terms. For example, let’s say you bought one share in Amazon for $3,000 when the GBP/USD exchange rate was 1.30. Ignoring trading commissions and FX fees, this would have cost you approximately £2,308. Now let’s say Amazon’s share price remains at $3,000 but the GBP/USD FX rate rises to 1.40. As a result of this move in the exchange rate, your Amazon position would be worth approximately £2,143 in GBP terms.
  • Higher volatility. US stocks can be highly volatile at times. Technology stocks, in particular, can see their share prices fluctuate wildly. Amazon stock, for example, has regularly had pullbacks of 20% or more in the past.
  • W-8BEN forms. To buy US stocks in the UK, you usually have to complete a W-8BEN form for your broker. This is a one-page form that requires you to fill in some personal details. Most brokers won’t let you trade US stocks until you have completed this form. Once you have completed a W-8BEN, only 15% tax is deducted from the dividends you receive from your US stocks, rather than the standard 30% withholding tax.
  • Capital Gains Tax. As with UK stocks, gains from US stocks are subject to Capital Gains Tax (CGT) in the UK. However, you can minimise CGT by buying US stocks in a tax-efficient account such as a Stocks & Shares ISA.

How to buy US stocks from the UK

US stocks are stocks that are traded on American stock exchanges such as the New York Stock Exchange (NYSE) and the Nasdaq Stock Market. Stocks, or ‘shares’ as they are often called, are investments that represent ownership in a company. When you buy a stock, you become a part-owner of the underlying business and are entitled to a share of its profits.

US stocks tend to be popular with UK investors due to the fact that the US stock market is home to some of the world’s most dominant companies, including the likes of Apple, Amazon, and Microsoft. And investing in US stocks can be a good way to diversify an investment portfolio geographically.

There are several differnt ways of buying US stocks which include: 

  • Buying regular shares

    This is one of the most straightforward ways of investing in US stocks. The advantage of this approach is that you are the direct owner of the stocks you buy. The disadvantage is that you need to pay the full value of the trade upfront. You also need to pay trading fees.

  • Investment Funds

    Through platforms such as Hargreaves Lansdown and AJ Bell , it’s possible to invest in funds that are focused purely on the US stock market. Examples include the Baillie Gifford American fund, which is an actively-managed fund (meaning it’s managed by a portfolio manager who picks individual stocks), and the Legal & General US Index, which is a passive fund that tracks the performance of the FTSE USA Index. The main advantage of funds is that they provide a high level of diversification. On the downside, they can be relatively expensive. Actively-managed funds, for example, can have annual fees of more than 1% per year.

  • Exchange-traded funds (ETFs)

    ETFs are passive funds designed to track the performance of specific stock market indexes or assets. They are traded on the stock market in the same way that regular stocks are. Examples of US stock-focused ETFs include the iShares Core S&P 500 ETF (ticker: IVV), which tracks the performance of the S&P 500 Index, and the iShares NASDAQ 100 UCITS ETF (ticker: CNDX), which tracks the performance of the 100 largest companies on the Nasdaq Stock Market. The advantage of ETFs is that they offer diversification and tend to have low annual costs. A disadvantage of ETFs is that you have to pay trading fees to buy and sell them.

  • Contracts for Difference (CFDs)

    CFDs are financial instruments that enable you to profit from a stock’s price movements without actually owning the underlying stock. With CFDs, you can trade in both directions, and also use leverage to increase the size of your trade. The advantage of trading CFDs is that, using leverage, you can potentially invest more money than you have in your account. This can potentially increase your profits. On the downside, losses are magnified if you use leverage, meaning it’s possible to lose a lot of money.

  • Financial Spread Betting

    Spread betting is a form of trading that enables you to profit from a security’s price movements without actually owning the underlying security. As with CFDs, you can trade in both directions and also use leverage to increase your exposure. The advantage of spread betting is that you can use leverage to invest more money than you have in your account. Profits are also exempt from Capital Gains Tax. On the downside, leverage can result in heavy losses if your trade doesn’t go to plan.

  • Fractional shares

    Fractional shares allow you to buy a fraction of one share. This can be useful if you wish to buy shares in a company that has a very high share price, such as Amazon. At the time of writing, its share price is over $3,000. With fractional shares, you could potentially buy half a share or a quarter of a share if you didn’t have the capital to buy one share. At present, there are only a few companies in the UK that offer fractional shares.

US Stock Buying FAQs:

  • The main US markets are open from 9:30am Eastern Standard Time (EST).

The main US markets close at 4pm EST.

Yes. Most stocks and shares ISA accounts, including Hargreaves Lansdown, AJ Bell, and Interactive Investor, allow you to hold US stocks in an ISA.

Yes. Most SIPP providers, including the likes of Hargreaves Lansdown, Interactive Investor, and AJ Bell, allow you to hold US stocks in a SIPP.

Yes. With some brokers, such as IG and Interactive Brokers, it’s possible to trade US stocks outside of normal US trading hours. This is known as ‘extended-hours trading’ and it takes place between 4pm EST and 8pm EST.

It’s worth noting that trading volumes during extended-hours trading tend to be significantly lower than they are during normal trading, so shares prices can be very volatile. Share price volatility can be particularly high after a company releases its quarterly results.

Yes, it’s easy to buy US stocks from the UK today. To buy US stocks, you will need to have an account with a stock broker or investment platform.

A W8-BEN form is a form that UK brokers usually require you to complete before you can trade US stocks. It is a one-page form that requires you to fill in your personal details.

W-8BEN forms are valid for three years. Once you have completed the form, withholding tax on dividend payments from US stocks is reduced from 30% to 15%.

On the New York Stock Exchange and the Nasdaq Stock Market, there are around 5,500 stocks in total.

The two major US stock exchanges are the New York Stock Exchange (NYSE) and the Nasdaq Stock Market. Together, these two exchanges account for the bulk of stock trading in North America.

The New York Stock Exchange, which is the oldest exchange in the US, is the largest equities-based stock exchange in the world, based on the total market capitalisation of its listed securities. This exchange is owned by Intercontinental Exchange, and based in New York City.

At present, there are over 2,400 companies listed on the New York Stock Exchange across sectors such as financial services, healthcare, consumer goods, technology, and energy. Some of its more famous companies include Berkshire Hathaway, JP Morgan, Visa, Walt Disney, and Johnson & Johnson.

The Nasdaq, which is also based in New York City, is the second largest exchange in the world behind the NYSE. Created by the National Association of Securities Dealers (NASD) in 1971, it was the world’s first electronic stock market.

Compared to the NYSE, the Nasdaq has more of a technology focus. Companies that are listed on this exchange include Apple, Microsoft, Alphabet (Google), Amazon, and Meta Platforms (formerly known as Facebook).

The best US stocks to buy will depend on your own goals, circumstances, and risk tolerance, but the most popular US stocks to buy are:

Some of the most popular US stocks among UK investors include:

  • Apple (NASDAQ: AAPL). Apple is a multinational technology company that specialises in consumer electronics such as smartphones, personal computers, tablets, and wearables.
  • Tesla (NASDAQ: TSLA). Tesla is an American electric vehicle and clean energy company that is very popular with growth investors.
  • Amazon (NASDAQ: AMZN). Amazon is the largest e-commerce company in the world as well as the biggest player in the cloud computing space.
  • Microsoft (NASDAQ: MSFT). Microsoft is a technology company that operates in a number of industries including business productivity software, cloud computing, and video gaming.
  • Meta Platforms (NASDAQ: FB). Meta is the owner of Facebook and Instagram.

US dividend stocks that are popular with UK investors include:

  • Coca-Cola (NYSE: KO). Coca-Cola is a multinational beverage company that owns a range of brands including Coke, Fanta, and Sprite.
  • PepsiCo (NASDAQ: PEP). PepsiCo is a multinational food, snack, and beverage company that owns a range of brands including Pepsi and Doritos.
  • McDonald’s (NYSE: MCD). McDonald’s is the largest restaurant chain in the world by revenue.
  • Johnson & Johnson (NYSE: JNJ). Johnson & Johnson is a multinational company that develops medical devices, pharmaceuticals, and consumer packaged goods.
  • Pfizer (NYSE: PFE). Pfizer is a pharmaceutical and biotechnology company that develops and produces medicines and vaccines for immunology, oncology, cardiology, endocrinology, and neurology.

At the time of writing (Feb 21), the five largest US stocks by market capitalisation were:

  • Apple (NASDAQ: AAPL). Market cap – $2.7 trillion
  • Microsoft (NASDAQ: MSFT). Market cap – $2.2 trillion
  • Alphabet (NASDAQ: GOOG). Market cap – $1.7 trillion
  • Amazon (NASDAQ: AMZN). Market cap – $1.5 trillion
  • Tesla (NASDAQ: TSLA). Market cap – $886 million
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Richard Berry

Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape. Having worked as a broker at Investors Intelligence and a multi-asset derivatives broker at MF Global (Man Financial), Richard has acquired substantial experience in the industry. His career began as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson), following internships on the NYMEX oil trading floor in New York and London IPE in 2001 and 2000. Richard's contributions and expertise have been recognized by respected publications such as The Sunday Times, BusinessInsider, Yahoo Finance, BusinessNews.org.uk, Master Investor, Wealth Briefing, iNews, and The FT, among many others. Under Richard's leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide's standing as a well-respected resource for both customers and industry colleagues.

This article contains affiliate links which may earn us some form of income if you go on to open an account. However, if you would rather visit the US stock investing platforms via a non-affiliate link, you can view the product pages directly here:

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