Best Brokers for UK Investors Buying US Stocks
UK investors can freely invest in US stocks, but two key rules apply: US-domiciled ETFs (SPY, QQQ) are blocked under MiFID II — use UCITS equivalents. And IBKR's FX cost (0.1%) vs Hargreaves Lansdown's (1%) makes a substantial difference on large portfolios.
Market
US Stocks
S&P 500
Top ETF
CSPX
CSPX (UCITS S&P 500 ETF, Ireland-domiciled)
Your currency
🇬🇧 GBP
UK
FX cost reality check
On £8,000 ($10,000) invested in US stocks: IBKR FX cost ≈ £8. HL FX cost ≈ £80. Annual saving on a £100,000 portfolio with 2 rebalances: ~£1,440.
Best brokers for UK investors in US stocks
Ranked by FX conversion cost — the biggest variable cost for international investors.
Interactive Brokers
The lowest FX spreads of any mainstream broker — 0.08–0.2% mid-market margin across all major corridors.
Trading 212
Commission-free investing for UK and EU investors with no FX fee on most plans.
Hargreaves Lansdown
UK's largest investment platform — convenient but expensive on FX
About US Stocks: what UK investors need to know
Why invest here
The US market has returned ~10% annualised over the past century. It houses the world's most innovative technology, healthcare, and consumer companies, with unmatched liquidity and corporate governance standards.
Key risk
USD currency risk vs your home currency; US estate tax for non-US holders of US-domiciled assets
Benchmark index
S&P 500
Recommended ETF (non-US investors)
CSPX (UCITS S&P 500 ETF, Ireland-domiciled)
Regulation for UK investors
No LRS or outbound limits for UK investors. Use UCITS ETFs (CSPX, VUSA) rather than US-domiciled equivalents (SPY, VTI). ISA wrapper eliminates CGT on any gains.
Tax treatment for UK investors in US stocks
Capital gains taxed at 24% (higher-rate taxpayers) above the £3,000 CGT annual exemption (2026). ISA wrapper eliminates CGT entirely.
Not tax advice. Tax laws change frequently. Consult a qualified tax professional in UK before making investment decisions.