What country to invest in?

SharesExplained.com focuses on the US and UK stock markets and below are the advantages and disadvantages of both.

The majority of brokerage accounts allow you to buy both UK and US stocks and we will tell you if they don’t in our list of recommended brokers.

US market

Advantages

Cheaper entry to stocks (as little as $1 buy and $1 sell)

The U.S. market  has higher liquidity, there are more people buying and selling stocks, making it easier for you to buy and sell stocks.

Disadvantages

The US market is slightly more volatile meaning you can make or lose money faster than the UK market.

UK market

Advantages

If your from the UK you know many of the companies you are investing in.

The market is slightly less volatile therefore trading stocks carries less risk.

Disadvantages

Its expensive to buy and sell stocks (£6 buy and £6 sell on average).

Stamp duty 0.5%. This means if you buy £2,000 worth of shares, you will have to pay £10 to the government each time.

Note: To actually buy shares you need a brokerage account.