How to invest in NASDAQ funds from the UK

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Interested in trading overseas funds and shares from the UK? One crucial thing you’ll need to know about is the NASDAQ stock exchange.

In this guide, we’ll cover everything you need to know about how to invest in NASDAQ funds from the UK.

This includes what it is, the top NASDAQ companies and how to buy and sell funds and shares. And of course, the potential fees and other costs involved.

We’ll also show you how to swerve unnecessary costs when investing, by opening a Wise account to manage your money in multiple currencies. This helps you avoid unfair currency conversion fees when buying or selling shares, stocks and funds listed abroad.

What is the NASDAQ?

NASDAQ is a US stock exchange based in New York City. It’s one of the biggest and most active in the US, behind the New York Stock Exchange (NYSE)

Its name comes from its original incarnation - the National Association of Securities Dealers Automated Quotations.

There are around 3,500 major companies on the NASDAQ stock exchange, a large number of which are leading technology companies.¹

NASDAQ Composite index

The NASDAQ Composite is a stock market index consisting of almost all stocks listed on the NASDAQ stock exchange.

It’s similar to the S&P 500, as well as the FTSE 100 in the UK, in that it tracks the performance of shares in some of the world’s largest countries.

NASDAQ 100 (US Tech 100)

The NASDAQ 100 is another stock market index connected to the NASDAQ stock exchange. It tracks the performance of equity securities issued by 100 of the biggest non-financial companies listed on the NASDAQ stock exchange.

It’s also subdivided into two groups - the Nasdaq-100 Tech and the Nasdaq-100 Ex-Tech. The former consists of tech companies in the NASDAQ 100, while the latter is made up of companies not in the tech sector.

Can you invest in the NASDAQ from the UK?

Yes, UK investors can buy shares and invest in funds related to the NASDAQ.

While you yourself may be based in the UK, you can invest in stock markets worldwide with the right online investment platform or broker.

What are the top companies in the NASDAQ?

The top companies in the NASDAQ are industry-leading names in the US that you might recognise, including tech giants. Here are just a few examples:²

• Apple Inc (AAPL)
• NVIDIA Corp (NVDA)
• Microsoft Corp (MSFT)
• Meta Platforms Inc (META)
• Amazon.com Inc (AMZN)
• Tesla Inc (TSLA)
• Costco Wholesale Corp (COST)
• Alphabet Inc (GOOGL/GOOG)
• Netflix Inc (NFLX)
• T-Mobile US Inc (TMUS)
• PepsiCo Inc (PEP)

Searching for something in particular? Use the Wise Stock ticker tool to search for stock or a fund, and see the latest prices.

How does the NASDAQ index work?

The NASDAQ 100 index is compiled and weighted based on market capitalisation of company securities that are listed on the NASDAQ exchange.³

It’s made up of companies and assets in specific industry sectors, including:³

• Technology
• Telecommunications
• Healthcare
• Industrials
• Utilities
• Energy
• Consumer Staples
• Consumer Discretionary
• Basic Materials

The index is reviewed and adjusted every quarter, based on set distribution requirements.

How to invest in NASDAQ from the UK

The easiest way to invest in NASDAQ shares and funds from the UK is to use an online investment platform. Here’s how to do it, step-by-step:

1. Research which platforms offer NASDAQ trading

To save you some time, we’ll run through a quick list of NASDAQ investment platforms a little later in this guide. However, you should find that most of the big platforms cover it.

To choose the right platform for you, a key thing to look for is fees and charges. You’ll also want one that is user-friendly for newbie investors.

2. Create an account

To invest in NASDAQ funds, you’ll need an investment account. You’ll usually need to provide some personal details as part of the application process, as well as verifying your identity.

3. Add funds to your account

You’ll need to transfer funds from your bank account over to your investment platform, ready to purchase shares or invest in a fund.

4. Buy the NASDAQ fund or shares

With your account topped up, all that’s left to do is follow the platform’s process for buying your chosen NASDAQ fund or shares.

Buying NASDAQ shares in the UK

Interested in trading shares in leading US companies? Read on for info on buying both NASDAQ-listed shares and NASDAQ-related ETFs.

How to trade or invest in NASDAQ-related ETFs

If you’d like to invest in NASDAQ-related exchange-traded funds (ETFs), you should be able to do it pretty easily on the right online investment platform.

Exchange-traded funds (ETFs) replicate the performance of a specific index or benchmark, by investing in a representative sample of the stocks it tracks.

So if you invest in an ETF which tracks the NASDAQ 100, your investment will be spread across stocks in all 100 companies (or a specific industry sector).

Investing in NASDAQ-listed shares

Buying shares in NASDAQ companies is pretty straightforward to do. All you need is an investment account on an online trading platform.

You’ll add funds to your account, search for your chosen company using its stock ticker symbol (i.e. MSFT for Microsoft) and buy or sell shares in just a few clicks.

You can track the performance of your shares and your portfolio overall within the platform.

How much does it cost to invest in NASDAQ funds?

When you invest in NASDAQ funds, you’re likely to encounter two fees. The first is the commission fee for each trade, while the second is a foreign exchange fee for converting your money from GBP to USD.

On many online investment platforms, there aren’t any differences in pricing for buying/selling shares and ETFs.

For example, eToro doesn’t charge commission or spread fees for buying stocks or ETFs in the US as a UK investor.⁴

Pros and cons of investing in NASDAQ funds from the UK

Pros

• Access to stocks for the largest and most successful companies in the US
• Invest in ETFs and funds to diversify your portfolio
• NASDAQ trading available on most popular trading platforms.

Cons

• Your portfolio isn’t fully diversified, as the NASDAQ only includes US stocks
• Foreign exchange (FX) fees might apply, making trading more expensive.

💡Got RSUs? Read our article on how Wise can help you save on unnecessary currency fees before your next USD payout. Don't let currency conversion trip you up!

Investment platforms available in the UK

Here are just a few of the investment platforms and trading apps available to UK investors, which let you buy NASDAQ shares directly or invest in NASDAQ ETFs:

• eToro
• XTB
• Hargreaves Lansdown
• Trading 212
• Interactive Brokers
• Webull

Don’t let currency conversion trip you up

In this article, we’ve looked at how to invest in NASDAQ funds and shares here in the UK. We’ve covered everything you need to know to get started.

But if you’re planning on buying and selling stocks and funds listed abroad, there’s another crucial thing to consider - currency conversion.

Trade in different currencies and you could be hit with extra cost for cross border money transfer.

The good news is that you can use Wise to avoid hidden currency exchange markups. Open a Wise account to convert currency at mid-market exchange rates, for low, transparent fees*.

You may wish to hold your money in a Wise account until you decide to invest it in your chosen platform.

You can also use your Wise account to conveniently manage your money in up to 40+ currencies, sending payments worldwide at the mid-market rate for low fees*.

Open your Wise account

There’s even an extra feature, Wise Interest. With a Wise account you can earn returns on GBP, USD and EUR by opening a Wise account and investing in a fund that holds government-guaranteed assets. Capital at risk.

Capital at risk. Growth not guaranteed. Wise Assets UK Ltd is authorised and regulated by the Financial Conduct Authority with registration number 839689. When facilitating access to Wise investment products, Wise Payments Ltd acts as an Introducer Appointed Representative of Wise Assets UK Ltd. Please be aware that we do not offer investment advice, and you may be liable for taxes on any earnings. If you’re uncertain, we urge you to seek professional advice. To find out more about the Funds, visit our website.

NASDAQ FAQS

What are the trading hours for NASDAQ?

The trading hours for the NASDAQ stock exchange are Monday to Friday 9:30 am to 4:30 pm EST (2:30pm to 9pm GMT).¹

Is it worth investing in the NASDAQ?

It’s up to you to decide where you’re best investing your money, and expert financial advice could come in useful too.

But it’s worth bearing in mind that the NASDAQ stock exchange features some of the largest and most successful companies in the US. This could make it a worthwhile investment, as long as you do your research carefully.

What are some other indices that UK investors can access?

UK investors can also access the following indices to help them make investment decisions:

• S&P 500
• FTSE 100
• FTSE 250
• Dow Jones.

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Sources used:

1. Hargreaves Lansdown - NASDAQ: Market Overview
2. Slickcharts - NASDAQ 100
3. Investopedia - Nasdaq 100 Index: What It Is, How It's Weighted and Traded
4. eToro - Trading fees

Sources last checked on date: 24-Oct-2024