How to invest in US stocks from the UK: Complete guide

Interested in trading US stocks? If you’re a new UK investor and aren’t yet experienced in the world of share dealing, you’ll need to know how to get started.

In this guide, we’ll walk you through the process of buying, selling and investing in US stocks from the UK. This includes how to open a trading account, what forms you need to fill in, and how you can calculate the cost. So, let’s dive right in.

We’ll also show you how to minimise fees or avoid them altogether, using a multi-currency solution such as Wise.

➡️ Learn more about the Wise account

Table of contents

How to invest in US stocks from the UK Buying shares in a US company from the UK How to buy US shares in the UK: step-by-step 1. Open a share trading account 2. Fill out a W-8BEN form 3. Calculate the cost 4. Decide which US shares to purchase Selling or trading shares in a US company from the UK 1. Open a share trading account 2. Fill out a W-8BEN form 3. Understand how much tax you need to pay 4. Calculate the cost Selling US shares: key platform costs to check Opening hours of international stock markets Don’t let currency conversion trip you up when trading - use Wise

*When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in. Tax treatment depends on your individual circumstances and may be subject to future change. The content of this article is provided for informational purposes only and is not intended to be, nor does it constitute, any form of personal advice.

Investments in a currency other than GBP are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in GBP terms. You could lose money in GBP even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.*

How to invest in US stocks from the UK

There are a few ways you can invest in US stocks as a UK investor. You can buy shares directly, or you can invest in a professionally-managed investment fund. These include exchange-traded funds (EFTs) and investment trusts.

Here, we’ll focus on how to buy and sell shares in US companies directly, via one of the many popular online investment platforms available in the UK.

Buying shares in a US company from the UK

It’s relatively easy to buy shares in the UK. You don’t need a broker (although you can use one if you want, for a fee), as you can do everything online.

All you need to do is choose an online investment platform and create an account. You can usually open a trading account in just a few simple steps, although there can be identity verification processes to complete.

Plus, some tax-related paperwork and crucial cost calculations to carry out beforehand to make sure you’re really getting the most out of your choice. We’ll cover all of that next.

How to buy US shares in the UK: step-by-step

Let’s run through the steps involved in buying shares in a US company as a UK-based investor.

1. Open a share trading account

There are lots of investment platforms available in the UK, and most offer trading in US stocks. However, there are some caveats and differences between them (but more on that later).

Some options to check out include:

• eToro
• XTB
• Hargreaves Lansdown
• Trading 212
• Interactive Brokers

When trying to find the right platform for you, it’s important to do your research and compare fees, features and customer reviews - to name a few.

Remember, always check that the company is listed on the FCA register to ensure that they are legitimate.

2. Fill out a W-8BEN form

If you plan to invest in US shares, you’ll need to complete a W-8BEN form. Your chosen investment platform will prompt you for this when you first try to buy a US-listed stock.

This form is an IRS (Internal Revenue Service) form used by non-US residents to confirm they are not a US taxpayer. It also lets you claim tax benefits under your home country’s tax treaty with the US.

With your W-8BEN in place, any dividends from US shares are usually subject to a reduced 15% US withholding tax for UK residents.¹ This is automatically deducted before the income reaches your account.

A few other things to know:

• You only need to fill in the W-8BEN form every few years - it’s typically valid for three years.¹
• W-8BEN affects dividends not capital gains. Selling US shares doesn’t trigger US capital gains tax for UK residents, although you may owe capital gains tax in the UK depending on your circumstances.
• Most investment platforms allow you to complete the W-8BEN online within your account,² but you may need to complete a paper version if you’re using a joint, corporate, trust or charity account, or if you’re acting under power of attorney.

3. Calculate the cost

Your chosen trading platform will tell you how much your shares will cost, but you also need to factor in fees and currency conversion costs. Remember, platforms may charge annual fees or per-transaction commission fees for trading.

This means that your British pounds (GBP) will need to be converted to USD, you may also incur foreign currency fees.

To give you an idea of these costs, here are the fees charged by a handful of popular platforms:

Platform	US trade (commission) fees	Foreign exchange fees
eToro	£03	0.75%4
XTB	£05	0.5%5
Hargreaves Lansdown	£5.95 to £11.956	0.25% to 1%6
Trading 212	£07	0.15%7
Interactive Brokers	£0.0035 per share8	0.03%8

Note: All above investment platform fees were correct as of 1st December 2025.

As you can see fees can vary, which is why it pays to do your research and comparison and also consider what matters to you as an investor. For example, some of these foreign exchange fees are so high that they can soon start eating into your return. To avoid these, it could be a good idea to use a Wise account.

With Wise, you can open a USD account and hold your money until you’re ready to buy (or sell). Then you can trade directly in USD on your chosen investment platform. When you need to convert money to GBP or into USD, you can take advantage of Wise’s low fees* and the mid-market exchange rate.

📚How to avoid fees on a global portfolio

4. Decide which US shares to purchase

The last step is to decide which US shares to purchase, and then place the order. You might want to get some professional advice on which company to invest in, whether it’s a large corporation like Microsoft or Amazon, or if you want to pursue an alternative investment strategy.

Selling or trading shares in a US company from the UK

Now we come to the steps involved in selling US shares from the UK.

1. Open a share trading account

If you’ve bought shares, it’s likely that you already have a share trading account. But if you’ve acquired them through another means, such as through inheritance or an employee share scheme, you’ll need to open an account.

Check out the options we’ve listed above, making sure to compare prices, features and reviews before signing up. Remember, you’ll need to have a form of photo ID in case you’re asked to verify your identity.

2. Fill out a W-8BEN form

As mentioned, if you’re trading US-listed shares, you’ll likely have completed a W-8BEN form when you first bought them. When it comes to selling US shares, the W-8BEN doesn’t affect the tax you pay. It only affects the withholding tax applied to any dividends you received while you held the shares.

What’s more, you don’t have to pay US capital gains tax as a UK resident.⁹ But you may still owe UK capital gains tax depending on your personal circumstances.

3. Understand how much tax you need to pay

As mentioned above, when you sell US shares as a UK resident, you don’t pay US tax on the sale.⁹ The IRS does not withhold any tax on capital gains for UK investors and the W-8BEN has no impact on the tax treatment of share sales. It only affects withholding tax on dividends received while you held the shares.

However, you may owe UK capital gains tax depending on your personal allowance and whether the investment was held in a tax-efficient wrapper such as an ISA. If you’re unsure, it can be a good idea to get an external tax advisor involved.

4. Calculate the cost

When selling US shares, there are a few costs to consider. These include commission or trading fees charged by the platform, along with currency conversion fees.

Remember, you can avoid some of these by opening a Wise account and holding your money in USD until you’re ready to sell or trade your shares.

Selling US shares: key platform costs to check

Platform	Sell trade fee	FX conversion on sale	Withdrawal fee	Inactivity fee
eToro	£03	0.75% FX if converting USD→GBP4	£3.85 withdrawal fee10	Yes10
XTB	£05	0.5% FX on selling non-GBP assets5	£0 withdrawal (with minimum amount)11	Yes12
Hargreaves Lansdown	£5.95–£11.95 per sell trade (activity-based)6	1% for first £5k, then tiered down to 0.25%6	£013	No13
Trading 212	£07	0.15% FX when selling USD assets7	£014	No15
Interactive Brokers	Typically low (£2 depending on volume)8	0.03% FX8	1 x £0 after that charged16	Yes17

Note: All above investment platform fees were correct as of 1st December 2025.

When selling US shares, some brokers may pass on small regulatory fees charged by US market authorities. This includes a per-share FINRA Trading Activity Fee as well as SEC-related charges.¹⁸ These are usually only a few cents but it’s important to check individual platforms before signing up.

Opening hours of international stock markets

Stock exchange	Local trading times19	Typical GMT trading times19
London Stock Exchange (LSE)	08:00-16:30	08:00-16:30
New York Stock Exchange (NYSE)	09:30–16:00 (ET)	14:30-21:00
NASDAQ	09:30–16:00 (ET)	14:30-21:00
Australian Securities Exchange (ASX)	10:00–16:00 (AEST/AEDT, varies by season)	00:00-06:00
Frankfurt Stock Exchange (FSX)	08:00-20:00 (CET)	07:00-19:00
Tokyo Stock Exchange (TSE)	09:00–15:00 (with a lunch break 11:30–12:30)	00:00-06:00

Don’t let currency conversion trip you up when trading - use Wise

When you invest in US stocks from the UK, one of the biggest extra costs can come from currency conversion. This is because many investment platforms charge high FX markups when converting GBP to USD or when you sell your shares and convert USD back to GBP.

That’s where a Wise account comes in helping you to reduce or avoid these charges. Not just that, but you can:

• Convert money at the mid-market exchange rate, with low and transparent fees*
• Conveniently manage your money in currencies, sending payments worldwide
• Hold USD (and other currencies) until you’re ready to invest or withdraw
• Set up exchange rate alerts so you know when the USD/GBP rate moves in your favour.

Wise also offers Wise Interest, turn it on in your account to earn a return on GBP, USD or EUR and invest in a fund that holds government-backed assets.

Turn on Wise Interest

Investments can fluctuate, and your capital is at risk. Interest is offered by Wise Assets UK Ltd, a subsidiary of Wise Payments Ltd. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you're uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

---

Sources used:

1. The Motley Fool - W-8BEN
2. IG - W-8BEN form
3. eToro - eToro fees and charges
4. eToro - eToro conversion fees
5. XTB - XTB fees
6. Hargreaves Lansdown -Hargreaves Lansdown overseas share dealings and fees
7. Trading 212 - Trading 212 fees and trading terms
8. Interactive Brokers - US stock trading costs for UK residents
9. IRS - US tax for non-residents
10. eToro - trading fees
11. XTB - withdrawal fees
12. XTB - inactivity fees
13. Hargreaves Lansdown - charges and fees
14. Trading 212 - additional fees and charges
15. Trading 212 - inactivity fee
16. Interactive Brokers - other fees
17. Interactive Brokers - required minimums
18. Revolut - regulatory fees and taxes
19. CMC Markets - stock market trading hours

Sources last checked on date: 01-Dec-2025