US stocks investing advice please

Gin_and_Milk

Hi,

I've never invested in the US before, but there is a company I'm interested in. How complicated is investing in the US?  I'm with Hargreaves Lansdown and I'm aware of the W-8BEN form.  The company is listed on NASDAQ, and whilst I'm certainly interested in investing, I just wondered if anyone could offer advice as to how complicated investing in the US is?  One of the things I am aware of is that their prices are listed in dollars not cents, which I need to make a point of remembering when I see the prices.
Any pointers on where I could do further research on being a novice in US investing would also be gratefully received.  I'm aware I'll need to consider things such as taxes, currency conversions etc.
Thanks

Bostonerimus1

If you want to invest in US equities do it via a US stock index fund - you can buy plenty of those at H&L. Don’t invest in single companies in foreign countries as it’s a fast way to lose lots of money.

On-the-coast

…it’s certainly the case that investing in funds or index trackers is lower risk than individual shares, but the Nasdaq or NYSE isn’t riskier than London - excepting currency risks.  You’re taking a bet on exchange rates as well as the stock in question (you could argue you’re doing that anyway if your buying into a global fund listed in London)

For the USA, other than W-8BEN you need to note a few other things. 

Timing of the sale can be different (different market hours)
Allow to lose 1% on both buying and selling your shares to get them into & out of dollars. 

Dividends…. You will lose 15% of your dividends to the US IRS.  But you can claim this as a tax credit on your tax return.   If you hold these shares in an ISA you will still lose that 15%. 

That being said it’s pretty easy.  I do it - but only for shares I’m very familiar with. 

wmb194

Gin_and_Milk said:

Hi,

I've never invested in the US before, but there is a company I'm interested in. How complicated is investing in the US?  I'm with Hargreaves Lansdown and I'm aware of the W-8BEN form.  The company is listed on NASDAQ, and whilst I'm certainly interested in investing, I just wondered if anyone could offer advice as to how complicated investing in the US is?  One of the things I am aware of is that their prices are listed in dollars not cents, which I need to make a point of remembering when I see the prices.
Any pointers on where I could do further research on being a novice in US investing would also be gratefully received.  I'm aware I'll need to consider things such as taxes, currency conversions etc.
Thanks

It's easy but HL is an expensive way to do it - looks like its FX fee for trades <£5,000 is 1%(!) plus a rip-off £11.95 commission. I'd suggest looking at opening an account with Trading212, 0.15% FX and zero commission and lots of markets, or Robinhood UK, no FX fees or commission but US shares only. 

US investing guides and data is easy to Google. Make sure you keep good records.

https://www.hl.co.uk/shares/share-dealing/overseas-share-dealing-service

https://monevator.com/compare-uk-cheapest-online-brokers/

Eyeful

1. Do you understand that investing in single shares is at the high risk end of investing.
You would be taking less risk using a US stock index fund.     

2. What is the US share you are interested in, how did you here about it & just how much research have you done into the share fundamentals before deciding to invest. Or is it just a hunch or tip.

3. Is this going to be a long or short term investment?                   

sausage_time

I have some US Shares in a Trading 212 ISA.  These came via my employment, and I did "Bed and ISA" hoping for the big gain.  They don't pay a dividend, I so won't lose any tax to the IRS. 

Agree holding individual shares is risky, but they were "free" (RSUs, so only UK income tax paid) and they are part of an otherwise diversified portfolio.