How to Buy S&P 500 in the UK

Summary: UK-based investors can invest in the S&P 500 ETF using their bank account or credit card in Great British Pounds (GBP). To do so, they need to create an account on a licensed stock trading platform that complies with the UK Financial Conduct Authority (FCA) rules.

The SPDR S&P 500 ETF represents the large-cap U.S. stock market, offering exposure to hundreds of American corporations across various sectors. Fees for purchasing shares of the ETF vary, but our research found that eToro is a cost-effective choice due to its low deposit fees, minimal commissions, and competitive spreads.

Can You Buy the S&P 500 in the UK?

Yes, it's possible to invest in the S&P 500 ETF through your UK-based bank account or credit card with Great British Pounds (GBP). To acquire shares of this exchange-traded fund, you must create an account on a licensed stock trading platform in the UK that accepts deposits from your financial institution. It's imperative to select a platform that complies with the rules set out by the UK Financial Conduct Authority (FCA) to guarantee a safe investment procedure.

‍

How to Buy the S&P 500 ETF in the UK

To securely buy shares of the S&P 500 ETF using your UK bank account, we recommend using a regulated platform such as eToro. Recognised for its reliability, eToro enables users to instantly deposit British Pounds (GBP) using various methods, including Faster Payments, bank transfers, debit cards, and credit cards, to trade various assets, encompassing the SPDR S&P 500 ETF.

Here's a straightforward step-by-step guide:

1. Sign up for an eToro account and complete the verification process. 
2. Click on the 'Deposit Funds' button located at the lower left of your screen. 
3. Select 'GBP' and your chosen payment method, then transfer funds from your UK bank account.
4. Use the search bar to locate and invest in the SPDR S&P 500 ETF.

‍

What is the SPDR S&P 500 ETF?

Known by its ticker SPY, the SPDR S&P 500 ETF is an exchange-traded fund created to reflect the performance of the S&P 500 Index. This index represents the large-cap U.S. stock market, encompassing 500 of America's leading corporations. The SPDR S&P 500 ETF, one of the largest and most actively traded ETFs worldwide, is favoured by individual and institutional investors to attain diverse exposure to the U.S. equity market. It enables investors to acquire a single security representing stakes in hundreds of different companies, effectively spreading risk.

Overseen by State Street Global Advisors, the SPDR was the first ETF to be launched in the U.S. in 1993, setting the blueprint for many future ETFs. Its holdings cross all sectors, such as technology, healthcare, finance, consumer discretionary and more, thereby mirroring the sector composition of the S&P 500 Index.

‍

What are the Fees? 

The expenses associated with purchasing shares of an S&P 500 ETF using a UK bank account can differ depending on the chosen trading platform. Noteworthy costs may include deposit fees, withdrawal charges, spread percentages, and transaction costs.

We recommend eToro as a cost-effective choice for UK investors, as it offers low-cost GBP deposits and trading with minimal commissions. The primary expense when investing in the SPDR S&P 500 ETF on eToro is the spread, typically below 0.15%, which is notably competitive compared to other platforms that frequently impose higher fees per transaction.

‍

Bottom Line

In conclusion, UK investors can indeed access the broad exposure to U.S. equities offered by the S&P 500 ETF, using GBP through a reliable and regulated platform like eToro. By adhering to our simple, step-by-step guide, you can navigate the secure deposit and investment process easily. 

Although the costs may vary depending on your selected platform, eToro's competitive spread and minimal commissions make it a cost-effective choice for investing in the SPDR S&P 500 ETF. With such an opportunity, UK investors can participate in the growth of America's leading corporations across diverse sectors, thereby effectively diversifying their investment portfolio.