The biggest companies in the world – and the most exciting ones – trade in the US.
We’re talking the likes of Google, Microsoft, Tesla: companies that offer a sure bet when it comes to investing your money in a business that will grow. The US market is also home to literally thousands of innovative new start-ups and up-and-coming businesses that could make you a mint if you invest when the time is right.
Traditionally, the problem for British investors has been the cost associated with trading in the US market. If you have to pay high fees to start buying your investments, that is immediately limiting the return that’s available. And that’s if you have access to the market at all: unfortunately, many UK brokers simply don’t offer this for their customers.
This is the problem that commission free brokerage company Stake aims to solve. As the only brokerage in the UK offering direct access to the US market, they currently have over 250,000 customers world-wide and provide access to over 4,000 US stocks and ETFs. Best of all? No commission and no hidden fees means that more of the money you earn stays in your bank account.
With Stake on hand to help – they even have an automated tax tool – now is the perfect time for British investors to join the world’s biggest market. There are several great reasons to consider the US exchange for your next investment opportunity:
- Global diversification. Investing in companies from across the world can help you to add some much-needed variety to your portfolio. While the stock market often follows global trends, there will also be variations by country. Having some of your money held in the US helps to protect you in case of a market crash closer to home.
- Bigger, better choices. If you’re looking for an even simpler reason to invest, then consider this: the US offers more options than any other market in the world. Whether you’re concerned with finding companies that have a strong track record, or choosing investments that match your personal values, you’ll find exactly what you’re looking for.
- More liquidity. Liquidity refers to how easy it is to sell up, should you decide that you want to convert some of your investment into cash. No surprises here, but a bigger market means more customers and more daily trades – meaning that you’ll almost certainly be able to find a buyer when the time comes.
- Better performance. No investment is ever guaranteed, so it’s important only to invest what you can afford. That said, the US market has been one of the best-performing over the past decade – particularly for tech stocks.
If you still have questions about how it all works, then Stake can help to walk you through the process. Their help and support hub covers everything from the practical need-to-knows – how to set up your account and add funds or make withdrawals – to the principals of investing and the correct documentation.
There are a few things that you do need to be aware of if you choose to invest abroad – in particular, the different tax requirements. Familiarising yourself with the legal requirements will ensure that everything is done correctly, and working with a broker like Stake can make this process easier.
As an added incentive to get started sooner rather than later, you will also receive free stock up to a value of $150 dollars if you sign up and fund your account with a minimum of £50 within 24 hours.
The value of your investment could go down as well as up – but looking at the historical data, investments in the US market have typically far outstripped the money that you could earn by leaving your money in a savings account. You may want to set aside an emergency fund in an easy access account, and then consider moving any additional money into investment accounts.
Investment usually works best when you’re in it for the long-haul. This means setting up your investments and then leaving them to mature over several years, allowing you to ride out any short-term market fluctuations. The same principles definitely apply to US investments, just as they would to any investments that you make in the UK or globally.