How to buy US shares in a UK Stocks & Shares ISA
Find out what you need to do to start buying US shares in your UK Stocks & Shares ISA.
Important information: As investment values can go down as well as up, you may not get back all of the money you invest. Currency changes affect international investments, and this can decrease their value in sterling. If you’re unsure if an investment account is right for you, please speak to an authorised financial adviser. Tax treatment depends on your individual circumstances and may be subject to change in the future.
What you’ll learn in this guide...
- How to quickly start buying US shares in a UK ISA
- What you need to know about the differences between the US and UK markets
- How much investing in US shares could cost – including trading charges and tax
- What US shares others are investing in
Can you buy US shares in a UK Stocks & Shares ISA?
You can buy and trade US shares in a Stocks & Shares ISA just as you would with UK shares. Investing internationally allows you to access some of the biggest brands beyond the UK, as many recognisable names are from the US.
Buying US stocks in an ISA could be a good idea if you want to diversify your portfolio. It’s also a great way to make the most of your £20,000 annual ISA allowance as it gives you even more options to explore.
But there are a few things you need to do before you can start trading US stocks. Let’s run through the steps.
How to invest in US stocks in a UK ISA
How to invest in US stocks in a UK ISA
You can open a Stocks & Shares ISA with us quickly and easily. It should only take 10 minutes to get started.
Don’t worry: you won’t actually be charged until you deposit your money and start using your ISA.
Let’s take these steps one at a time:
Sign the Exchange Agreements
The Exchange Agreements allow us to make live international share prices available to you. You’ll see a prompt to sign the Exchange Agreements when you’re logged in to your account and search for a non-UK stock.
Complete a W-8BEN form
This form can reduce the amount of tax you pay on US dividends and interest payments. Your form is valid for three years. You can fill the form in online by logging in and going to our Useful Forms page. Note that you don’t need to do this if you’re only investing with the ii SIPP.
Take time to understand the costs associated with trading US shares. Our platform charge is a flat fee that starts from as little as £4.99 a month. US trades cost £3.99 each.
Other fees, such as stamp duty and foreign exchange charges, may also apply. You can read more about costs later in the guide.
What US stock markets are available with ii?
You can access two of the largest stock exchanges in the world with ii: the New York Stock Exchange (NYSE) and the Nasdaq.
Between the NYSE and the Nasdaq, you can invest in a lot of the biggest household names – from Apple and Amazon to Microsoft and Tesla.
What you need to know before buying US shares
What you need to know before buying US shares
Company earnings release times
US companies tend to report their quarterly earnings during what’s known as the ‘US earnings season’. You can find out dates for specific companies on our US earnings season page, which we update every quarter.
Market opening hours
You have to account for the time difference between the UK and US.
You can trade US shares between 2:30pm and 9:00pm GMT (which is 9:30am to 4:00 Eastern Time in the US).
Foreign exchange risk
Exchange rates can create risk if another currency rises against sterling. If you're unsure about the risks, seek advice from a qualified financial adviser. You can also read about foreign currency exchange to learn more.
What types of US investments can be held in a Stocks & Shares ISA?
Along with individual stocks, you can also buy US shares through a range of funds, ETFs or investment trusts. These options are ideal if you’re looking for an easy way to start building a diversified portfolio. US trades are usually £3.99 a trade, and be mindful that foreign exchange charges will apply.
Investing in a fund, ETF or trust lets you spread your money across a particular sector or industry. So you could choose to invest in US tech companies or the US energy sector. Alternatively, you could invest more broadly in an entire US index fund, such as the S&P or NASDAQ.
How much does it cost to buy US shares in a UK ISA?
The trading fee for buying US shares is typically £3.99 with ii.
For foreign exchange (FX) charges, currency conversions are based on the live exchange rate, to which we'll apply an FX charge of up to 1.5%. This rate reduces as your conversion value increases (see table for details).
It’s worth bearing in mind that the ii ISA can’t hold foreign currencies, so you will be charged FX on every transaction.
Foreign exchange charges
| Value converted | FX charge |
|---|---|
| Up to £24,999.99 | 1.50% |
| £25,000 - £49,999.99 | 1.25% |
| £50,000 - £99,999.99 | 1.00% |
| £100,000 - £599,999.99 | 0.50% |
| £600,000 or more | 0.25% |
Do you pay tax on US shares in the UK?
If you’re a UK resident trading US stocks and shares, you still have to pay tax. But by completing the W-8BEN form, you can reduce the amount you pay on any dividends or income received from those US stocks.
This tax is called a withholding tax (WHT). The WHT is 15% of any dividends or income earned from US stocks. Also note that any US investments held outside your ISA may be subject to Capital Gains Tax.
What US shares are people investing in?
Looking for investment inspiration? Here are the 10 most popular US shares with ii customers over the last few months:
Source: interactive investor. Note: the top 10 is based on the number of “buys” as of 30 November 2024.
