Can I buy US Stocks to Hold Long Term?

[Ed-Trade]

Might be a silly question and I'm probably missing something but here goes.

Can UK citizens buy and keep US stocks long term as we do with UK stocks.

For example if I bought 100 shares of SBUX, would i receive a share certificate and be entitled to receive dividends etc?

Thank you

Ed

 

[evostik]

IMO, you would not want to deal in certificated form. You could buy via your DMA broker (eg. IB) (obviously paying interest on the margin trade) or you could buy with a nominee account with a UK broker that deals in US shares (such as IWEB or a number of others - I only mention IWEB as I happen to have an account with them and I know they deal in US stocks)

Steve

 

[Rhody Trader]

For example if I bought 100 shares of SBUX, would i receive a share certificate and be entitled to receive dividends etc?

There is very little transfering of share certificates these days. Stock ownership is all registered electronically. As long as you own the shares, though, you will receive the dividends.

 

[Ed-Trade]

Thanks Steve and Rhody.

Does anyone here actually buy US stocks with the purpose of holding for several years or to put in an ISA or a SIPP?

And if so which brokers would you recommend?

thanks,

Ed

 

[Jack o'Clubs]

You'll find most brokers offer the option to trade US stocks. Just make sure they charge on the basis of fixed-fees or per-share and not %-of-value, which can work out very expensive if you're trading in a decent size. Personally I use Interactive Brokers for this kind of trading and can't fault them, but then that's mainly because I already have an account with them for more active futures trading.

 

[chump]

Ed,
You can buy US stocks and hold them as long as you wish and take divis etc , but depending on your circumstances you need to be aware of the potential FX effects upon your returns.
Without specifics someone I know holds some major bluechips US stocks. Their problem is cap gains get eaten up by FX losses and when the cap gains disappear the FX become gains. In other words the stocks and FX have been highly correlated and he is not hedged against the FX .Frankly his money would have made more in similar UK shares had that been an option back when he originally purchased.

 

[Ed-Trade]

Thanks for the answers about exchange rate differences, as I hadn't considered that.
What about putting US shares into a SIPP - does this sound a viable option or even is it possible? And has anyone found a suitable broker that offers this?

Thank you

Ed

 

[vergis92]

Ed,
You can buy US stocks and hold them as long as you wish and take divis etc , but depending on your circumstances you need to be aware of the potential FX effects upon your returns.
Without specifics someone I know holds some major bluechips US stocks. Their problem is cap gains get eaten up by FX losses and when the cap gains disappear the FX become gains. In other words the stocks and FX have been highly correlated and he is not hedged against the FX .Frankly his money would have made more in similar UK shares had that been an option back when he originally purchased.

Hi there,
I'm new to trading shares , I'm very interested in highly liquid markets and US shares
in particular, can anyone advice what's he best way to trade undervalued shares
when buying in an apparent decline of the us markets ? spreadbetting won't work.
can CFD's margin trading work or is it best to go for a full size acc?
The objective is to take profits should the stock rise substantially but also be able
to keep it for as long as one year should you reckon it's undervalued and set
to rise again .



moreover I'm impressed by valuations (estimation of the intrinsic value)
of a stock as performed by some specialists, they prevented me from buying
(ALKS) when it was at its highs, and also recommended (mer) as a buy when
it was at $40 , what valuation method do you think is best to use?
the services I have used really blew me away but can this last?

anyone please

 

[dr.sharma.robin]

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