There are many advantages involved with trading equities out of the United States. Not only can the exchange rates be more favourable, trading hours could also benefit those who already have full-time employment. It is always important to evaluate which brokers are regulated and provide platforms for trading these equities. We have gathered the list of the top UK regulated brokers for your convenience.
Utilising Trader Pro as well as the popular Meta Trader 4 platform, ETX Capital is one of the most popular options for those who want to trade US stocks. ETX Capital was first formed in 2002 and is trusted by over 50,000 traders. The majority of United States shares are presented to traders via American Depositary Receipts (ADRs). ETX Capital provide traders with a wide range of equities to choose from. Amazon, Facebook and Apple are a few examples of the blue-chip companies which are accessible.
American markets include the NASDAQ, the S&P 500 and the Dow Jones Industrial Index. Chart-based trading, one-click executions and guaranteed stop losses are a few other risk management tools are available at the disposal of every trader. Finally, leverages as high as 400:1 are options to consider. These carry a fair share of risk and should only be approached when they are thoroughly understood.
Like the brokers listed above, AvaTrade offers American equities through a CFD trading system. Major exchanges include the Dow Jones Industrial Average, the NASDAQ and the NYSE. Some well-known equities within their repertoire include Apple, Coca-Cola and Google. Another worthwhile feature to mention is that AvaTrade provides a rather impressive spectrum of trading portals. These are:
- Auto Trader
- AVA Mobile Trader
- Meta Trader 4
- Meta Trader Mobile
This flexibility is intended to suit the needs of both novices and professional traders. AvaTrade has also embraced social trading as a portion of their existing architecture. Trading signals, commentaries, live news feeds and the capability to follow the actions of other investors are all significant benefits. This is particularly the case for those who may not be completely familiar with the American marketplace. As AvaTrade received the Best Broker Award from FX Empire in 2015, this company is indeed worth a closer look.
Core Spreads provides two different platforms for the client to choose from. These are CoreTrader and Meta Trader 4. Note that CoreTrader is intended for spread betting while Meta Trader 4 is geared towards CFD positions. While this platform can be used to capitalise on indices and market-wide movements, Core Spreads currently enables the user to invest in over 500 American equities. A handful of examples include:
- Goldman Sachs
All prices are updated in a real-time scenario and similar to other reputable brokers, mobile-compatible platforms are standard amenities. One final feature is that by following Core Spreads on social media outlets, “Core Points” are rewarded. These will determine any commissions for the following month.
One defining feature of London Capital Group is that low minimum entry levels are ideally suited for conservative investors. Thus, even smaller portfolios can be catered to while the familiar Meta Trader 4 system provides the insight and clarity required to execute the right positions at the right times. Margins as low as 5 per cent are advantageous for those who hope to capitalise on a trade while only committing a small portion of their funds.
Scalping and hedging are both permitted and London Capital Group software is compatible with Windows as well as Android operating systems. Spreads as low as 2 cents can enable the astute investor to profit form even the smallest of movements.
Plus500 is another respected platform. This portal was founded in 2008 and provides proprietary trading architecture (the Plus500 Web Trader). Those who are interested in trading American stocks will be pleased to learn that both small-cap and blue-chip options are available. Some common shares include:
- Chesapeake Energy
- Abercrombie & Fitch
- Boston Scientific
- JP Morgan
Please note that there are literally hundreds more to choose from. Plus500 also offers pre-defined limits in terms of profits as well as losses; ideal for the more conservative investor. A minimum deposit of €100 euros (or the equivalent currency) is required to open an account. Other useful instruments include email and mobile alerts, guaranteed fills, trailing stops and demonstration accounts. Leverages of 20:1 are available for all American equities. However, these should be approached with a certain amount of caution. Leveraging any trade can equate to sizeable profits as well as substantial losses.
As the name hints, Stockpair specialises in binary pair options. In other words, two discrete equities are chosen. The investor then predicts which one will rise. If this prediction is correct, he or she will receive a payout. The advantage here is that money can be made even during bearish market conditions. The client only needs to predict the relationship between the pair itself. Some of the American stocks currently offered include:
- JP Morgan
- Proctor & Gamble
A minimum deposit of €250 euros (or the equivalent) as well as an estimated payout level of 86 per cent (according to FX Empire) both enable Stock Pair to be another platform to consider.
These are some of the most trusted and reliable providers of American stocks to investors from abroad. Just as with international shares, there is always a certain amount of risk involved with any trade. Clients should be able to accept this risk before they open up an active account.