How to Buy the S&P 500 with Hargreaves Lansdown
Explore how UK investors can buy the S&P 500 through Hargreaves Lansdown, understand fees, and navigate its platform for smart investing.
74% of retail CFD accounts lose money.
Summary: UK investors can buy the S&P 500 through Hargreaves Lansdown, offering a regulated and secure platform with a fee of 0.45% per trade and a spread around 1%. For an alternative, eToro provides commission-free trading of the S&P 500 with a 0.5% spread. Understanding fee structures, platform navigation, and regulatory compliance is essential for successful investing in the S&P 500.
Get the daily newsletter keeping 200,000 investors ahead of the market.
Can I Buy the S&P 500 with Hargreaves Lansdown?
Yes, UK investors can access S&P 500 investments via Hargreaves Lansdown, a prominent UK investment service and FTSE 100 company. Regulated by the Financial Conduct Authority (FCA), Hargreaves Lansdown upholds strict UK financial regulations, offering investors security.
It's important for traders considering the S&P 500 through Hargreaves Lansdown to understand that their fees, starting at 0.45% annually for fund and share accounts, may be higher than those of some UK stock brokers. Additionally, Hargreaves Lansdown's platform, while rich in tools and resources, could be complex for beginners, necessitating careful navigation of its extensive features.
How to Buy the S&P 500 with Hargreaves Lansdown
To invest in the S&P 500 through Hargreaves Lansdown, UK investors need to create an account with Hargreaves Lansdown. For those who manage their finances with other firms, alternative platforms such as AJ Bell or Interactive Investor can also facilitate investments in the S&P 500.
For those choosing Hargreaves Lansdown, here’s a simple guide to begin:
- Create a Hargreaves Lansdown Account: Sign up with Hargreaves Lansdown, completing all required verifications in compliance with UK financial regulations.
- Fund Your Account: Deposit funds into your Hargreaves Lansdown account from your personal or business bank account.
- Search for SPY: On the Hargreaves Lansdown platform, look for the SPDR S&P 500 ETF Trust (SPY) and add it to your watchlist for quick access.
- Invest in SPY: From your watchlist, select 'SPY' and choose ‘Buy’ to complete your investment.
It's recommended to be well-informed about the fees, platform usability, and other pertinent details specific to Hargreaves Lansdown prior to investing.
Top Alternative to HL for S&P 500 Investments
For UK investors looking for an alternative to Hargreaves Lansdown for investing in the S&P 500, eToro is a commendable option. Regulated by the Financial Conduct Authority (FCA) in the UK, eToro allows for immediate deposits in British pounds from numerous UK banks. It offers a broad selection of over 3,000 assets, covering a variety of asset classes, including popular indices and ETFs such as the SPDR S&P 500 ETF.
.webp)
What are the Fees?
Hargreaves Lansdown imposes a fee of 0.45% per trade for transactions including the S&P 500, plus a spread of around 1%. This fee arrangement aligns with UK financial regulation practices. Additional fees may apply depending on the trade type or specific financial products.
eToro, in comparison, operates with a commission-free model for stock trading, including assets like the S&P 500. Their costs are embedded in a spread of about 0.5% for these trades. It's important for investors to note that while eToro offers commission-free trading, other fees, such as those for withdrawals and GBP deposits from your bank or alternative payment method.
Bottom Line
In conclusion, investing in the S&P 500 through Hargreaves Lansdown offers UK investors a regulated and secure platform, albeit with potentially higher fees and a complex interface. For those seeking alternatives, eToro provides a versatile and commission-free option, suitable for a range of assets, including the S&P 500. Understanding the fee structures, navigating the platforms, and being aware of regulatory compliance are crucial for any investor embarking on this journey.