How to Invest Globally from the UK: Cheapest Brokers and Tax Guide (2026)

The Stocks & Shares ISA is the UK's most powerful investment account. All gains, dividends, and income within an ISA are tax-free. The annual allowance is £20,000.

• ISA: £20,000 annual allowance. All gains and dividends are tax-free. Withdraw at any time without tax. Best for most investors.
• GIA (General Investment Account): no limit. Gains above the CGT annual exempt amount (£3,000 for 2024-25) are taxable at 18% (basic rate) or 24% (higher rate). Dividends above £500 are taxed.
• SIPP (Self-Invested Personal Pension): for long-term retirement investing. Tax relief on contributions (20–45%). Cannot access until age 57.
• Strategy: max your ISA first (£20,000/year). Use GIA for amounts above this. SIPP for retirement.

Buying US stocks in a UK account requires GBP → USD conversion. The FX markup on this conversion is the biggest variable cost:

• Trading 212 (ISA): 0.15% FX fee. On £10,000 investment, that's £15.
• Interactive Brokers: 0.08–0.2 bps FX spread. On £10,000, that's ~£1. No ISA.
• Freetrade (ISA): 0.45% FX fee. On £10,000, that's £45.
• Hargreaves Lansdown (ISA): 1% FX fee (capped at £12.50). On £10,000, that's £12.50.
• eToro: 1.5% FX fee. On £10,000, that's £150.
• High street banks: 2.5–3.5% FX markup on investment transactions.

• Capital gains tax (CGT): annual exempt amount of £3,000 (2024-25). Gains above this: 18% (basic rate) or 24% (higher rate). ISA gains are exempt.
• Dividend allowance: £500 per year tax-free. Above that: 8.75% (basic rate), 33.75% (higher rate). ISA dividends are exempt.
• US dividend withholding: the US withholds 15% on dividends (UK-US treaty rate). Inside an ISA, you cannot reclaim this — the 15% is permanently lost.
• Foreign income reporting: declare foreign dividends and gains in your Self Assessment. Use HMRC form SA106 (foreign income).