Every day I use products from Apple, Google, Netflix etc. So it would make sense that I’d want to invest in them. Many of these shares are listed on US exchanges.
Until recently, investing in US shares was expensive with most brokers charging more than $20 per trade in commissions. But thankfully there are some new brokers available to Australians which don’t charge any commissions at all!
Here are the best ways to invest in US shares from Australia:
On eToro you can trade and invest in real shares with zero commissions. This means you won’t pay any brokerage fees to buy and sell US shares. Compared to commsec which charges $19.95 per trade for US shares this is an excellent deal. I’ve been using eToro for the last few years to trade US shares.
eToro has all the popular stocks from the U.S exchanges including Apple, Facebook, Alphabet, Amazon etc. You’ll be able to put together a portfolio of stocks from all over the world that align with your interests and beliefs.
eToro allows partial share trading. This means you can buy just a fraction of a share. So even if you have just $50 you can start investing.
If you don’t want to pick which stocks to buy and sell on your own, you can also copytrade on eToro. Copy Trading is where you automatically copy trades made by experienced traders.
Stake lets you buy over 3,000 different U.S shares with zero brokerage commissions. Their goal is to make investing in U.S stocks cheaper and easier for Australians. Stake’s product is very similar to eToro’s although there are no social trading features on Stake.
One advantage of Stake is the huge number of shares on offer. Pretty much any US share you want to trade is listed. I’m currently using Stake to build a dividend portfolio.
On Stake you can start trading with as little as $10. Just like eToro, Stake supports fractional shares. So you don’t need to invest in a full share.
p.s – You can get a free stock (Dropbox, GoPro or Nike) when you use this Stake Referral Code.
Spaceship is a managed investment product that lets you invest small amounts in a diverse portfolio of stocks. Many of these stocks are from the U.S. These include Apple, Alphabet (google), Amazon, Netflix and Tesla.
The idea behind Spaceship is giving regular investors access to stocks of that they believe will be important in the future.
You can start investing with as little as $5, as this money will automatically be invested in the fund. This is great way to invest small amounts on a regular basis (dollar cost averaging). With Spaceship Voyager, the portfolio has been put together by experts so you don’t need to worry about which stocks to buy.
Check out this post to find out how Spaceship has performed for me over the last year.
p.s – Get $5 free to invest on Spaceship using this Spaceship referral code.
Through your bank/broker
I don’t recommend this option for most people as it requires a lot of capital. If you buy U.S stocks through a platform like Commsec, you pay very large commissions. In order to offset these commissions you need to buy shares with at least $1000 in capital. For most people that is not realistic. If you do have a large amount of capital that you’re looking to make a stock purchase with, then offer your bank/broker will be the most efficient and cost effective option. But for those who are looking to get started with less than $1000, it’s best to try another method.