UK investors can trade US shares for free via Bestinvest

Investors looking to trade shares of some of the largest companies in the US can now do so for free through Bestinvest’s online platform.

Bestinvest said investors on his site can trade US stocks starting today without being saddled with stock transaction fees.

For investors looking to use Bestinvest’s platform to trade UK equities, the group’s £4.95 per trading fee still applies.

The investment platform claims it offers a “competitive” exchange fee of 0.95 percent on U.S. transactions of all value and imposes a maximum service fee on invested assets of 0.2 percent per annum.

Investors using the Bestinvest platform can add their selected US stocks to an existing account, such as an ISA, general investment account or self-invested personal pension, or open a new account.

No exchange rate charges will be levied on the reinvestment or distribution of U.S. stock dividends, Bestinvest added.

Jason Hollands, Managing Director of Bestinvest, said: “While Bestinvest users have long been able to gain exposure to US equities through our extensive range of funds, investment companies and ETFs, the addition of nearly 500 individual US stocks adds an additional choice layer. to our existing selection of more than 3,000 funds, equities, investment funds, Exchange Traded Funds (ETFs) and, for investors who can tolerate higher risk, the ability to invest in new issues of Venture Capital Trust (VCT).

“The S&P 500 represents approximately 80 percent of the total market capitalization of the U.S. stock market and is one of the most viewed market indices in the world, meaning Bestinvest clients can now benefit from some of America’s largest companies directly from their account.”

As required by other platforms, any UK Bestinvest investor wishing to purchase US shares must complete a W-8BEN form to confirm that they are not resident in the US and to receive a tax credit on the dividends and interest they earn. to acquire.

Investing in US stocks

The Dow Jones Industrial Average, the S&P 500, and the Nasdaq 100 are the top US indices to watch out for.

The S&P 500 is a stock market index that tracks the stock performance of 500 major US-listed companies.

Components of the S&P 500 include Apple, Microsoft Corporation, Amazon and Alphabet. Many of the big US tech stocks have struggled over the past year amid rising costs and staff cuts.

US stocks rose this week after Federal Reserve Chairman Jay Powell spoke for the first time since January’s employment data sent chills through the markets.

Pay close attention: US stocks rose this week after Federal Reserve Chairman Jay Powell spoke

Powell said the Federal Reserve may have to raise rates higher than expected, but his comments were less aggressive than some analysts had expected.

Investors based in the UK who are interested in acquiring US equities should carefully note any transaction costs involved and take into account factors such as currency fluctuations and taxes.

With currency risk, if the US dollar falls against the pound then the value of your US stocks would also fall. On the other hand, if the US dollar strengthens against the British pound, the value of your US shares will increase.

It is also important to consider that most brokers will not list every possible stock in the US.

Instead, they will focus on US stocks that are most popular with UK investors. You may be given the option to pick up the shares through mutual funds, exchange-traded funds, or investment trusts.

In addition to Bestinvest, there are a range of potential platforms where UK investors can buy shares in US companies.

Earlier this month, top US broker Charles Schwab revealed it was allowing investors to invest in US-listed stocks with $0 commission for online trades and no sign-up fees. Previously, investors had to make a minimum investment of $25,000 to use the platform.

Unlike other investment platforms in the UK, Charles Schwab’s platform only trades in US dollars.

eToro and Freetrade do not charge transaction fees for stocks, ETFs, and mutual funds, although there is a currency exchange fee for buying US stocks.

Some brokers offer British investors the chance to acquire fractional shares. This allows investors to own part of a stock rather than one or more whole individual shares, which can be very expensive.

As with any form of investing, keep in mind that you could lose any money you invest, as stocks, whether in the UK, US or elsewhere, can and will go up and down . Do your research carefully before making an investment and stay up to date with the financial results and reports of any company you are considering investing in.