Buying American Shares from the UK?

Yep, many online brokers will do this. For example,

is one such. You'll need to fill in some forms for US tax withholding and to accept NASDAQ/Dow Terms and Conditions, but that's easy enough. IWeb provide everything for download.

Bear in mind that it takes the thick end of two weeks to set up an account with most online brokers. If you're lucky, one week.

At IWeb, it's going to cost you fifteen quid (plus forex spread) to trade in either direction on the US exchanges. You won't get much cheaper. No monthly charges, full stop. Even if you're not an active trader and/or have a zero cash balance.

Jon (satisfied IWeb customer)

Comdirect

charge 12.50/trade for dealing in US shares.

Some of these, can be traded online (they have to be listed on the London Stock Exchange via its International Retail Service (IRS)) but the full range can be traded via telephone. (both ptions are the same price of

12.50/trade)

You'll need to fill in 1 form for US tax withholding.

Comdirect also quote you the prices of foreign shares in GBP which makes it easier.

In addition, if you are referred to Comdirect by an existing customer, both get 50 - hence, if you would like me to refer you, just drop me a line.

Regards Sunil

Try

It is the 20th biggest broker in the USA. It charges $1 commission per trade (a lot less than the 15 quoted above). The account can be opened online and proof of ID can be faxed over. Note, if you want to see a real time price feed you have to pay a monthly charge, but you do not have to pay this to trade. You can still place orders and give a limit price without paying the monthly fee.

Tran

Interesting. What are the spreads like? And do they handle tax withholding correctly for UK customers?

Also, how do you fund and cash out the account? (In other words, do you have to have a US bank account to service the broker's account?)

Jon