Listed on the NASDAQ exchange, Apple is now a member of the trillion-dollar valuation club, so it should come as no surprise that many investors want to buy Apple shares. If you want to get your hands on some Apple shares of your own, you will need to use a UK stockbroker that gives you access to the US markets.
In this guide, we explain how to buy Apple shares online in the UK. Not only do we explain what you need to consider before investing in Apple, but we also review the best UK stockbrokers and provide a step-by-step walkthrough of how you can buy shares today.
Although Apple is listed in the US, buying its shares from the UK is actually very straight forward. All you need to do is find an online share dealing platform that gives you access to the NASDAQ exchange, deposit some funds, and then choose how much you wish to invest.
With that said, you do need to ensure that your chosen broker is regulated by the FCA and that it offers competitive fees.
To help you along the way, below you will find our picks for the best UK stockbrokers to buy Apple shares.
1. eToro – Leading Social Trading Broker With No Commission
If you’re a UK investor that wants to buy Apple shares in a fast and cost-effective manner, look no further than eToro. This online share dealing platform hosts over 800 stocks from a variety of exchanges around the world. As this includes the NASDAQ exchange, you can buy Apple shares with ease.
eToro is one of the very few online brokers that does not charge any dealing commissions. As such, you can buy Apple shares on a fee-free basis.eToro is also popular with those of you that are looking to start off with small amounts.
This is because there is no requirement to buy a full Apple share ($372 at the time of writing). Instead, eToro allows you to invest from just $50, thanks to its fractional investing.
In addition to allowing you to buy shares, eToro also offers CFD trading for shares and is considered one of the best CFD brokers. This means you can go short and speculate on the Apple shares price going down, and you can also use leverage of up to 1:5 to make larger trades.
eToro is well known for its social and copy trading tools, which really set it apart from most standard trading platforms. As a social broker, eToro allows you to engage with other users, while you can use its CopyTrader tool to copy the entire portfolios of top investors!
To deposit, you can use a bank card, bank transfer or e-wallet such as PayPal. You will need to meet a minimum deposit of $200 – which is about £160. As eToro converts all deposits to USD, you will incur a 0.5% conversion fee. However, this then allows you to invest in UK and international companies with ease.
When it comes to safety, eToro is regulated by the UK’s FCA. It also holds licenses with ASIC and CySEC. Most importantly, the platform is covered by the FSCS. For those unaware, this means that were the broker to collapse, your funds would be safeguarded up to the first £85,000. Finally, if you are the type of investor that likes to buy and sell shares on the move, eToro offers a fully-fledged investment app.
75% of retail investor accounts lose money when trading CFDs with this provider.
2. IG – Trusted UK Share Dealing Platform With Competitive-Fees
Launched over 46 years ago, IG is one of the oldest and most trusted brokerage firms in the UK trading space. With more than 10,000 shares hosted at the platform, you will have access to heaps of UK and international markets. This means that you can easily buy Apple shares from the comfort of your home.
In terms of pricing, IG is very competitive. You will pay an entry rate of £8 per trade, so irrespective of how much you invest you will always pay the same. If you are an active trader, and management to place 3 or more orders in the prior month, you will get your share dealing charges down to just £3. Although the broker cannot rival eToro’s fee-free offering, you will have access to significantly more investment opportunities.
Across thousands of equities, ETFs, and mutual funds, IG allows you to create a highly diversified portfolio with ease. This can be achieved via your main desktop device of mobile phone. Regarding the latter, IG offers a comprehensive trading app that is available on both iOS and Android. When it comes to funding your account, IG accepts debit/credit cards, bank account transfer and PayPal. Each method has a £250 minimum deposit amount.
We should also note that IG offers spread betting and CFD trading facilities. This might be useful for those of you that wish to place more sophisticated trades on Apple. For example, you will have the capacity to apply leverage of up to 1:5 on Apple shares (more if you are a professional client), and even short-sell the firm. Finally, it likely won’t come as a surprise to learn that IG is heavily regulated. This includes that all-important license with the FCA, alongside a number of international regulators.
- Trusted UK broker with a long-standing reputation
- Good value share dealing services
- Spread betting and CFD products
- Over 10,000 shares
- Access to UK and international markets
- Great research department
- Mobile stock trading app
- Minimum deposit of £250
- US stocks have a $15 minimum commission
While you might have your heart set on buying Apple shares right now, we would suggest performing some independent research first. This will ensure that you have a firm understanding of both the risks and rewards of owning Apple shares. To help point you in the right direction, below we outline some fundamental data on the tech giant.
Although Apple is often regarded as a new-age technology innovator, the firm actually went public way back in 1980. Apple opted for the tech-orientated NASDAQ exchange over the NYSE, and its shares were initially priced at $22 each. At the time of writing in July 2020, these very same shares are worth over $372. This puts Apple shares into ‘all-time high territory’, meaning that the company has never been worth more.
However, it is crucial to note that Apple has facilitated four stock splits since it went public in 1980. This makes a huge difference when determining how much the company has grown. This includes a 7-for-1 split in 2014, and a 2-for-1 in 1987, 2000, and 2005. In simple terms, had you bought 1,000 Apple shares in 1980, you would now be holding 56,000 shares. Initially, this would have cost you $22,000 ($22 x 1,000 shares).
So, at a current rate of $372, those 56,000 shares would now be worth a staggering $20.8 million! With that being said, it is also important to take a look at the shorter-term picture. Shrewd investors would have likely purchased some Apple shares in March 2020, as they were selling a major discount. This is because of the wider impact of the coronavirus pandemic. For example, while the Apple shares price was $323 in January 2020, just two months later the same shares were worth just $224.
This represents a two-month decline of 30%. But, not only did the stocks regain those losses at the turn of June 2020, but they have since continued to move northwards. As such, had you invested in Apple shares in March 2020, at today’s prices you would be looking at gains of over 66%!
Apple Dividend Information
Unlike other Big Tech companies listed on the NASDAQ (namely Amazon, Google, Facebook, and Netflix), Apple does pay dividends. This allows you to combine an ever-growing share price with regular income payments. Although this will be the case four times per year, the dividend yield on Apple shares is relatively low.
In fact, it sits below the 1% mark at the time of writing, which is nothing to write home about. However, and as we discussed in the section above, this countered by the unprecedented capital gains that investors have enjoyed over the past few decades.
So now that you have a bit of background information on the history of the Apple shares price, we now need to assess what future holds for the tech giant. As such, below we list some of the reasons why you some investors consider Apple to be one of the best shares to buy.
Mountain of Cash Reserves
Opponents of Apple as a viable long-term investment will argue that growth on its core iPhone revenues is somewhat slowing. However, let’s not forget that Apple has some of the largest cash reserves not just in the US – but globally.
In fact, as of Q2 2020, this stood at a whopping $192 billion. The likes of Amazon and Facebook – although nothing to be scorned at – are holding a fraction of this at $49 billion and $60 billion, respectively. Crucially, having such a large free cash flow position is beneficial for two key reasons.
Firstly, the firm will have no issues weathering a potential COVID-19-related storm. Whether that’s in reduced sales or supply chain distributions, Apple shareholders have little to fear. Secondly, a near-on $200 billion war chest will allow Apple to continue its diversification endeavours. This includes the launch of new, innovative products and services, as well as acquisitions. Regarding the latter, this includes the recent purchase of NextVR – a virtual reality firm that specializes in sporting events.
Services Division Remains Key for Apple Shareholders
When newbie investors think of Apple, they often hone in on its core iPhone range. While this is still the de-facto revenue source for Apple, the firm is allocating more and more resources into its services division. In 2019 alone, Apple launched four new services to the global markets.
This includes its streaming TV service, gaming streaming, news subscriptions, and even a credit card. Crucially, 2019 saw Apple grow its service-related revenues by 16% in 2019 – amounting to just under 1/5 of its total income. As noted above, such a strong free cash flow position will allow Apple to continue to increase its exposure in the services arena.
Speed in Recovering COVID-19 Losses
Very few companies avoided the wider stock market crash that occurred in March 2020. As per investor concerns on the impact of COVID-19, heaps of major companies lost anywhere between 20% to 50% in the space of just a few weeks. As we covered earlier, Apple shares lost in the region of 30% in the said period.
However, come early June 2020, Apple had recovered all of these losses. This is a major positive for stockholders. In fact, not only did Apple shares get back to pre-March 2020 levels in the space of two and a half months, but the upward trajectory has not stopped.
Step 3: Open an Account and Deposit Funds
Once you have gone through the process of performing independent research on Apple shares, the next step is to open an account with your chosen UK stockbroker. Regardless of which platform you decide to sign up with, the process remains largely the same. For example, you will need to provide some personal information, deposit funds, and then process to buy shares in Apple.
To show you how seamless the process is, below we show you how to invest in stocks using our recommended UK broker, eToro.
So, you will first need to visit the eToro website and elect to register an account. You will then be asked to provide the following personal information:
- Full Name
- Home Address
- Date of Birth
- National Insurance Number
- Email Address
- Phone Number
Although eToro allows you to deposit up to €2,000 (about £1,800) straight away, it’s best to get your identity verified first. This will ensure that you deposit limitations are lifted and that you can withdraw funds without encountering any delays. As such, you will need to upload a copy of your:
- Passport or Driver’s License
- Recent Utility Bill or Bank Account Statement
Once you’ve uploaded the above documents, you will then be asked to add some funds to your account. You will need to meet a $200 minimum deposit (about £160), and a 0.5% currency conversion fee will be applicable. Supported payment methods at eToro include:
- Debit Cards
- Credit Cards
- UK Bank Transfer
Apart from bank account transfers, all other deposit methods are credited instantly.
As soon as your eToro brokerage account has been funded, you can then buy Apple shares. Firstly, enter ‘Apple’ into the search box at the top of the page. Once the result pops up (as per the screenshot below), click it.
After that, click on the ‘Trade’ button.
You will then see an order box. If you are happy to take the current market price on Apple, all you need to do is enter the amount that you wish to invest. You don’t need to buy a full share. Instead, you can invest from just $50. To complete your Apple share purchase, click on the ‘Open Trade’ button.
Note: If you are buying Apple shares outside of standard market hours (9.30 am to 5 pm, Eastern Standard Time), you will need to click on ‘Set Order’. Your Apple share purchased will then be completed when the markets open.
It should come as no surprise to learn that Apple is often regarded as one of the best shares to buy in 2020. With a market capitalization of over $1.6 trillion, there really is knowing just how big this tech giant can become. When you factor in its cash reserves of just under $200 billion, Apple is armed with all of the required tools to continue its diversification and acquisition objectives.
This is crucial for Apple shareholders, as it reduces the risks of being overexposed to its core iPhone division. As such, Apple services – such as its TV and gaming streaming subscriptions, continues to grow year-on-year.
If you do want to jump on the bandwagon with an investment today, popular FCA-regulated broker eToro allows you to buy Apple shares from just $50. You won’t be charged any share dealing charges, and you can also make use of eToro’s innovative copy trading tools.
Simply click the link below to get started!
75% of retail investor accounts lose money when trading CFDs with this provider.
How much were Apple shares when the firm first went public?
When Apple first went public in 1980, its shares were priced at $22. At the time of writing in June 2020, its shares are worth over $372. However, you also need to factor in the four individual stock splits that Apple has initiated. This includes one at 7-for-1, and three at 2-for-1.
How much does it cost to buy Apple shares in the UK?
Stockbroker fees vary widely in the UK - especially when it comes to buying international shares like Apple. This is why it is best to stick with a cost-effective brokerage firm like eToro, which allows you to buy UK and international shares on a commission-free basis. Robinhood is another platform that removes all share dealing fees, but the platform currently has an ever-growing waiting list for UK investors.
Does Apple pay dividends?
Yes, Apple does pay dividends. It pays dividends every four months, with an average annualized yield of under 1%.
Will I need to pay a conversion charge to buy Apple shares on eToro in the UK?
Yes, all deposits at eToro come with a 0.5% conversion fee, not least because the broker denominates all account balances in USD. On the flip side, this means that you can then buy international shares like Apple without needing to keep worrying about exchange rate fluctuations.
What is the minimum number of Apple shares that I can buy?
This depends on the stockbroker that you use. Old-school brokers require you to buy shares in full increments. At today's prices, this would mean spending $372 for 1 share, $744 for 2 shares, and so on. However, if using a platform like eToro - which allows you to own fractional shares, you can invest from just $50 (about £40) into Apple.
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