Had you bought £5,000 worth of Nvidia shares at the start of 2020 – your investment would now be worth £11,500. As such, this established tech stock is one of the best performing shares of the year.
Although Nvidia shares are listed on the NASDAQ – making a purchase from the UK is easy. All that is required is a UK share dealing account that gives you access to the US markets.
In this guide, we show you how to buy Nvidia shares online in the UK. On top of walking you through the investment process, we also discuss the best UK stock brokers to make the purchase with.
Step 1: Find a UK Stock Broker
Irrespective of which stock exchange your chosen company is listed on – in order to buy shares online, you need to open an account with a broker. The broker in question needs to give you access to the NASDAQ – which is where you will find Nvidia shares. Additionally, your chosen stock broker must offer competitive fees and commissions, as well as being in possession of an FCA license.
With that in mind, we have hand-picked two leading UK stock brokers that allow you to buy NVIDIA shares in the simplest, cost-effective, and user-friendly manner.
If you’ve never placed a single online trade in your life, then eToro is likely to be the best option on the table. This trusted broker is now home to over 13 million traders – not least because it allows you to buy shares online without you needing to have an ounce of prior experience. Instead, you simply need to open an account, deposit some funds and that’s it – you will then have access to over 1,700+ stocks.
This covers 17 UK and foreign exchanges – including the NASDAQ. As such, eToro allows you to buy Nvidia shares with ease. In terms of the fees, eToro is a market leader. This is because the platform does not charge any dealing commissions or ongoing fees. Instead, the only fee that you need to consider is that of a 0.5% FX charge when you make a deposit. This is in stark contrast to other UK brokers – which often charge a premium to buy foreign stocks.
In terms of key features, eToro offers an innovative Copy Trading tool that – as the name suggests, allows you to copy the portfolio of other investors. You will have thousands of potential investors to choose from – making it ideal for passive trading. There are no additional fees for using the Copy Trading feature, which is great. Additionally, eToro is also home to a large selection of educational resources. This once again illustrates that eToro is great for those of you with little experience of online investing.
In terms of the specifics, eToro accepts multiple payment methods – most of which are credited to your account instantly. This includes a debit/credit card, Paypal, Skrill, and Neteller. The minimum deposit required at the broker is $200. When it comes to safety, eToro is licensed by the FCA, ASIC, and CySEC. It is also partnered with the FSCS. This means that your money is protected up to the first £85,000 – should the worse happen and eToro no longer exists.
- Super user-friendly online stock broker
- Buy stocks without paying any commission or share dealing charges
- 800+ stocks listed on UK and international markets
- Deposit funds with a debit/credit card, e-wallet, or UK bank account
- Ability to copy the trades of other users
67% of retail investor accounts lose money when trading CFDs
2. Plus500 – Commission-Free Platform for Trading Nvidia Stock CFDs
While most UK investors will simply look to buy Nvidia shares and keep hold of them for several months or years – some traders are more interested in placing short-term positions. In other words, you will be looking to speculate on what the future price of Nvidia shares will be in the coming days or weeks. When doing this through a CFD trading platform like Plus500, you will have access to a much wider scope of tools.
For example, Nvidia share CFDs can be traded at Plus500 on margin. This stands at just 20% if you want to maximise your available exposure. As such, a £1,500 position on Nvidia would require an account balance of just £300. Plus500 is also worth considering if you are looking to profit from both rising and falling markets. This is because you have the option of going long if you think the price will increase, or short if you think the opposite.
A major plus-point of trading CFDs at Plus500 is that the platform does not charge any trading commissions. It is also behind some competitive spreads. For example, Nvidia stock CFDs can currently be traded at a spread of just 0.12%. This is highly conducive for short-term trading and targeting small margins. Outside of Nvidia, Plus500 is home to thousands of other stock CFDs. This covers markets in the US, UK, Germany, South Africa, New Zealand, and more.
You can also trade other asset class CFDs – such as indices, ETFs, interest rates, commodities, forex, and cryptocurrencies. In terms of getting started at Plus500 – the account opening process can be completed online or via the provider’s mobile app. The minimum deposit amount is £100 – and the platform supports debit/credit cards, Paypal, or a UK bank transfer. Not only is Plus500UK Ltd authorised & regulated by the FCA (#509909) – but its parent company is listed on the London Stock Exchange.
- Commission-free CFD platform – only pay the spread
- Thousands of financial instruments across heaps of markets
- Retail clients can trade stock CFDs with leverage of up to 1:5
- You can short-sell a stock CFD if you think its value will go down
- Takes just minutes to open an account and deposit funds
- CFDs only
- More suitable for experienced traders
72% of retail investors lose money trading CFDs at this site
So now that we have discussed the best UK platforms to trade or buy Nvidia shares, we are now going to look at some background information about the stock. This is important, as you need to ensure that the firm is right for your long-term financial goals. Additionally, you need to consider where the stocks are likely to go in both the short and long-term before taking the plunge.
As such, we would suggest reviewing the following sections before you proceed with an Nvidia share purchase.
What is Nvidia?
Launched in 2003, Nvidia is one of the world’s largest GPU (Graphics Processing Unit) producer. More specifically, it designs, manufactures, and distributes GPUs for the video gaming marketplace.
Additionally, Nvidia is involved in several other product ranges. This includes its Shield Tablet and Android TV, alongside cloud gaming.
Outside of its core gaming and media lines, Nvidia also provides services to the academic and research community. This allows the respective facility to run high-performance data.
Nvidia is listed on the NASDAQ exchange in the US and first went public in 1999. Back then, the shares were initially priced at just under $20 each. However, we need to readjust this price as Nvidia has since initiated 4 stock splits. This includes a 2-for-1 split in 2000 and further 2-for-1 split just a year later. The firm then proceeded with another 2-for-1 split in 2006, followed by a 3-for-2 split in 2007. Taking all of this into account, Nvidia’s IPO price can be adjusted to approximately $1.66.
Since then, the shares have been on a constant upward trajectory. Moving forward to late 2018 – Nvidia stocks hit highs of $281. Interestingly, the shares went on a rapid decline over the proceeding couple of months – dropping to as low at $129. However, there has been no stopping the tech player since.
At the time of writing in October 2020 – Nvidia shares are priced at a staggering $553. This translates into an end-to-end stock increase of over 34,000 since the company went public in 1999. In real terms, this means that a £5,000 investment during its IPO would now be worth in the region of £175,000. It is important to note that Nvidia shares have performed particularly well in 2020 – which is a feat achieved by very few public companies.
For example, the firm started the year at $239. This means that the stock has weathered the coronavirus storm with ease – providing investors with a YTD return of 131%. When it comes to valuation, Nvidia now has a market capitalisation of over $340 billion. This makes Nvidia the 8th largest company on the NASDAQ 100 – with a weighting of just under 3%.
Taking into account the sheer size of its market valuation – alongside its consistent revenue and operating profit growth, it makes sense that Nvidia is a dividend stock. However, Nvidia paid out just $0.64 per share over the past four quarters – which amounts to a trialling dividend yield of 0.12%. As such, the vast bulk of your upside potential on Nvidia shares is going to come from capital gains.
With that in mind, if you are looking for companies that pay a much higher yield – check out our article on the best dividend stocks of 2020.
You might be kicking yourself that you hadn’t jumped on the Nvidia bandwagon earlier – with the stocks up a whopping 131% for the year. This does leave you in somewhat of a conundrum. On the one hand, it doesn’t matter if you buy Nvidia shares right now if the upward momentum continues for the foreseeable future.
On the other hand, the stocks cannot continue to rise at 2020 levels indefinitely. After all, the company is now the 8th largest on the NASDAQ in terms of market capitalisation – with a current valuation of over $340. To put this into perspective, the only companies on the NASDAQ that are worth more than Nvidia is Alphabet (two listings), Tesla, Facebook, Amazon, Microsoft, and Apple.
Ultimately, this is why you need to explore the good and bad points of a stock before making an investment. To help you along the way, below you will find a range of considerations that you need to make before you buy this metaverse stock.
Nvidia has Defied the Pandemic
During times of economic uncertainty – investors will flock to stocks that have the potential to defy a wider bear market. While you wouldn’t have thought that Nvidia sits within this category – the proof is in the pudding. That is to say, while the vast bulk of the US and global stock markets are either on par or below pre-pandemic levels (as of October 2020) – Nvidia has smashed through all expectations. As we have noted, the stocks are up a huge 131% YTD.
To put that into perspective, it is wise to look at two stocks in particular that are viewed as a defence against a downward economic spiral – GlaxoSmithKline and British American Tobacco. During the same period, these two ‘stable’ stocks are down 19% and 16%, respectively. As a result, there is every reason to believe that Nvidia could be a great stock to hold in these uncertain times.
Huge $40 Billion Acquisition of ARM
Just a few weeks ago it was announced that Nvidia’s interest in ARM has finally been realised – with a huge $40 billion acquisition. This is great news for stockholders, as it essentially opens up the doors to other connectable devices for Nvidia and its core chip products.
This includes everything from robotics, smartphones, laptops, and even 5G. Crucially, UK-based ARM processes chips for some of the largest electronic makers globally – including Apple. We should note that this isn’t the first multi-billion dollar acquisition that Nvidia has made in recent years. In fact, just last year it completed a $6.9 billion takeover of Mellanox Technologies.
Half Year Results
Baring in mind just how well its shares have performed this year, it makes sense that Nvidia’s half-year financial results were extremely good. Firstly, the firm reported increased Q2 revenues of 50% in comparison to the prior year – taking sales to just under $4 billion.
Free cash flows were also up by just under 64% to $1.3 billion. Taking a closer look at some of its core divisions – the Date Centre saw even bigger revenue increases at 167% compared to the prior year.
Its gaming division also performed well with a 26% rise of its own. The only division that fell below market expectations was that of its automotive and visualisation segments – which dropped by 47% and 30%, respectively. All in all, its half-year results were well received by Nvidia stockholders.
Step 3: Open an Account and Deposit Funds
If you’ve researched the ins and outs of Nvidia from an investment perspective and wish to continue with your stock purchase – then the next step is to open an account with your chosen broker. The process is pretty much the same across all platforms – as you will be required to supply some personal information and contact details.
To guide you through the process with ease, we are going to show you how do buy Nvidia shares with commission-free broker eToro.
So, head over to the eToro website via your desktop or mobile device. On arrival, look out for the ‘Join Now’ button and click it. This will initially populate a box asking you for your full name, mobile number, email address, and chosen password. Next, you’ll need to provide your date of birth, home address, and national insurance number.
Once you have confirmed your mobile number via a unique SMS code, eToro will then ask you to upload some verification documents. This is to ensure the platform complies with the FCA.
Required documents include:
- Passport or driver’s license
- Proof of address (utility bill or bank account statement)
Note: eToro usually verifies documents instantly. If, however, you don’t have these documents to hand, you can still proceed with an investment as long as your deposit does not exceed $2,250.
In terms of making a deposit, this needs to be at least $200. You can choose from the following payment methods:
- Debit card
- Credit card
- UK bank transfer
Your deposit into eToro will be credited instantly (unless opting for a bank transfer) – meaning that you can now buy Nvidia share straight away. To do this, enter ‘Nvidia’ into the search box at the top of the page. When you see the stock load up – click it.
Next, click on the ‘Trade’ button.
You will now see a ‘buy order’ box. Here, you simply need to enter the amount that you wish to invest in Nvidia shares. Don’t forget – this needs to be in US dollar and meet a minimum investment of $50.
Finally, click on the ‘Open Trade’ button to buy Nivida shares commission-free.
Note: The NASDAQ exchange is open Monday to Friday from 9:30 a.m. to 4:00 p.m. Eastern Time. If you attempt to buy Nvidia shares outside of these hours – you will need to click on’Set Order’. In doing so, your order will be executed when the NASDAQ reopens.
The consensus on Nvidia shares at present is a strong buy. However, you should never invest in a company just because other analysts are bullish. After all, stock market investments are purely subjective. As such, whether or not you decide to buy Nvidia shares should be a decision you make yourself based on independent research.
As we have uncovered in this guide – to the processing of buying Nvidia shares from the UK is simple. All it takes is a quick brokerage account application and an instant deposit with a debit/credit card or e-wallet. Then, it’s just a case of deciding how many Nvidia shares you want to purchase.
If you’re ready to add some Nvidia shares to your stock portfolio – we would suggest doing this with eToro. This top-rated FCA broker allows you to buy Nvidia shares without paying any commission or ongoing fees. In fact, you can complete the end-to-end process in less than 10 minutes by clicking on the link below!
67% of retail investor accounts lose money when trading CFDs with this provider.