Based in the UK and looking to buy Apple shares? Although this multi-trillion dollar company is listed on the NASDAQ – making an investment from the UK could not be easier. All you need is a low-cost broker that gives you access to the US stock markets.
Plus, when using an FCA-regulated broker that supports fractional ownership – you don’t need to invest hundreds of pounds. Instead, you can purchase just a small fraction of one Apple share – should you wish to.
In this guide, we show you how you can buy Apple shares online in the UK.
Step 1: Find a UK Stock App that Lists Apple Shares UK
Your first port of call is to find a stock trading app that allows you to buy Apple shares from the UK.
There are dozens of options in this respect, albeit, you need to understand what fees are applicable., After all, many stock apps in the UK will charge you a premium to buy US-listed stocks.
To save you countless hours of independent research – below we list a selection of FCA-regulated trading apps that allow you to buy Apple shares in a safe and low-cost manner.
1. eToro – Popular Social Trading App with Apple Shares
After reviewing dozens of stock apps that allow UK residents to buy Apple shares – we found that eToro is one popular option in this marketplace. This investment app – which is home to over 20 million users, gives you access to over 2,400 shares from 17 different exchanges, including similar stocks like blackberry.
This includes the NASDAQ – meaning that you can buy Apple shares at the click of a few buttons. You won’t need to pay a premium to access this market from the UK – as eToro is a 100% commission-free stock app. This means that you can buy Apple shares in the UK without paying any dealing fees whatsoever.
There is no ongoing platform fee either, so it’s only the spread that needs to be considered when buying and selling stocks. In the case of Apple shares, this typically hovers around the 0.20%-mark, which is competitive. What we also like about eToro is that you can buy Apple shares in the UK at a minimum investment of just $50. This is particularly interesting when you consider that in 2021, the tech firm has since hit highs of over $145.
Once you have purchased Apple stocks on eToro, you will be entitled to your share of dividends as and when they are paid. In the case of Apple, this is every three months. Nevertheless, the investment process at eToro requires you to open an account, upload some ID, and then make a deposit. You can do this with your debit or credit card for an instantly processed transaction. Other supported payment methods on this stock app include Paypal, Skrill, Neteller, and bank transfers.
When it comes to the safety of your funds, eToro is authorized and regulated by the Financial Conduct Authority (FCA). Even more importantly – the app is covered by the Financial Services Compensation Scheme (FSCS). This ensures that you can buy, sell, and trade financial instruments in a safe environment. Finally, on top of stocks, eToro also offers a variety of other asset classes that might interest you. This includes ETFs, cryptocurrencies, and CFDs in the form of forex, indices, and commodities.
Read our comprehensive eToro app review to find out more about what this FCA-regulated broker offers.
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2.Capital.com – Popular UK Stock App for Trading Apple CFDs
There might come a time whereby you wish to access Apple shares via CFDs (contracts-for-differences). These are financial instruments offered by regulated brokers and they allow you to trade an asset without actually owning it. As such, you will make a profit if you correctly speculate on whether the asset will rise or fall.
In the case of Apple shares, you can trade them via CFDs at FCA-regulated platform Capital.com. The benefit of choosing this stock trading app provider is that you can go long or short on Apple shares at the click of a button. This means that you can speculate on Apple shares rising as well as falling in value – depending on what your analysis suggests.
Additionally, by trading Apple shares via CFDs at Capital.com – you can apply leverage. If you are a retail client, this means you’ll get leverage of up to 1:5. So, should you stake £200 on your trade, leverage of 1:5 would amplify your profits or losses by a factor of five.In other words a £200 stake would amplify your position to £1,000. In terms of why Capital.com stands out from the crowd, there are several reasons for this.
Firstly, Capital.com doesn’t charge any trading commissions. Much like eToro, this means that the only fee that needs to be considered is the spread. At the time of writing, this amounts to just 0.10% on Capital.com. Another reason why we like Capital.com is that the minimum deposit is just £20.
This allows you to trade Apple CFDs in a low-risk manner, as you don’t need to meet a large account minimum. Plus, you can also trade Apple share CFDs via the Capital.com demo account. In doing so, you can get a feel for short-term CFD trading without risking a single penny.
In terms of getting started, Capital.com accounts take minutes to open. The broker supports debit/credit cards and several e-wallets. Bank transfers are also supported, but this payment method pushes the minimum deposit up to £250. Finally, Capital.com is authorized and regulated by the FCA.
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Step 2: Is Apple a Good Investment?
Once you have chosen a UK stock app that supports Apple shares, you then need to do a bit of research before proceeding. This should be something that you do whenever you are considering a new investment. After all, you don’t want o rely on third-party financial advice. Instead, it’s important to make your own investment decisions.
With this in mind, spend some time reviewing the following sections – where we explore key Apple stock metrics such as price action, fundamental research, and future projections.
Apple Share Price UK Action
Apple went public way back in 1980 – meaning it is now one of the oldest tech companies listed in the US. During the firm’s IPO, the shares were initially priced at $22 each. However, Apple has since executed five stock splits at various ratios – so the adjusted IPO stock price stands at just $0.10.
Fast forward to early 2021 and the stocks have since hit all-time highs of over $145. This means that in the four decades that Apple has been a publicly-traded company, its shares have increased by over 144,000%. In other words, had you invested £1,000 into Apple back in 1980 and were in possession of the shares – your money would now be worth over £1.4 million!
Returns like this aren’t just reserved for Apple – as plenty of other tech stocks have seen huge gains over the past few decades. Other examples include Amazon shares and Microsoft shares. Nevertheless, what is particularly interesting about tech stocks like Apple is that many experienced double-digit percentage gains in 2020.
For example, while many stocks are still worth less than pre-pandemic levels, Apple shares have grown by over 100% in the 12 months prior to writing this article. As a result, Apple as a company is now worth over $2 trillion.
Does Apple Pay Dividends?
In the vast majority of cases, tech stocks do not pay dividends. This includes the likes of Alphabet, Amazon, Facebook, Tesla, Twitter, and Netflix – all of which have had a great 2020 on the stock markets. However, Apple does not fall into this club – as it has been paying dividends since 2012.
On the one hand, the monetary value of Apple dividends is typically the highest of any company listed in the US. With that said, the yield on offer isn’t the highest out there. For example, based on a ‘running yield’ ratio, this stands at 0.66% at the time of writing. On the flip side, Apple did increase the size of its dividend payment by 6% last year, and 10% in each of the six years prior to that.
Ultimately, the way the majority of investors make money from an investment in Apple is via capital gains. The dividend payment is, however, a nice little extra to receive on top of any stock price increases that you encounter as an Apple shareholder.
Apple EPS and P/E Ratios
In taking a closer look at the financials, Apple’s earnings per share (EPS) continues to move in the direction. For example, this went from an EPS of $1.04 in 2018, $1.25 in 2019, and $1.68 in 2020. This means that between 2018 and 2020 – the EPS has risen by over 68%.
In terms of Apple’s price to earnings (P/E) ratio, this stands at just over 33 at the time of writing. This offers much more value than other high-performing tech stocks in this space. For example, Amazon currently stands at over 73 while Tesla’s has ballooned to over 1,100!
Should I Buy Apple Shares?
If you’re wondering whether or not you should buy Apple shares – there are many metrics that you need to consider. Sure, the tech stock saw double-digit gains in 2020 – making the company a great hedge against COVID-impacted industries. However, this isn’t to say that Apple shares will continue their bullish stock market run indefinitely.
As such, below are some common factors traders may consider before buying Apple shares in the UK.
Apple Trading at a Discount
Depending on when you read this article on how to buy Apple shares in the UK – you might have a chance to invest at a discount. In investment terms, this means that the shares are potentially trading at an amount below their true value.
For example, Apple last hit all-time highs of $145 in early January 2021. At the time of writing in mid-March, the same shares are trading in the $123-$125 region.
Balance Sheet and Cash
When going through the process of finding good long-term value stocks – one of the most important things to look at is the balance sheet. After all, this gives us a clear birds-eye view of how strong or weak the company’s financials are. In the case of Apple’s balance sheet – it really doesn’t get much better.
For example – as per its most recent earnings report, Apple is currently sitting on over $195 billion in cash. This is actually 2% more than the prior quarter. Having such a large amount of cash is crucial for several reasons.
Not only does it ensure the firm is financially stable and well-prepared for challenging times, but it allows Apple to diversify into other markets. It also ensures that the tech firm can continue to invest money into new and exciting technologies – as it has done for the prior four decades.
But perhaps even more importantly, Apple’s cash hoard allows it to continue its share buyback program. This is where it buys shares back from the open marketplace. In turn, as there are fewer shares in circulation, this has the desired impact on the stocks increasing in value. Since early 2021, more than $380 billion has been spent by Apple for this purpose.
Services Division Continues to Thrive
Services – as opposed to physical products like the iPhones and iPad, offer significantly larger operating margins for Apple. This includes everything from Apple TV, Apple News and the App Store to Apple Music and Apple Fitness Plus. As per its most recent earnings report – its services division saw revenues rise by 24% to over $15.8 billion.
Apple Shares Buy or Sell?
The general consensus on Wall Street is that Apple is still a firm buy. There is just too much to like about this innovative tech stock – even with a valuation of over $2 trillion. On the one hand, you would be lead to think that at current prices – there is only so much upside potential available.
But, when you look at how Apple stocks reacted to the wider pandemic – shareholders increased their wealth by over 70% in 2020 alone. One thing many people find attractive about Apple is that it continues to bring out new and exiting products – ensuring that it isn’t overly reliant on iPhone sales.
This includes its Apple Fitness Watch, which continues to fly off the shelves. And of course – Apple’s services division is also continuing greatly to the company’s bottom line. The addition of 5g to its latest iPhone rollout is yet another thing for shareholders to get excited about.
Apple is one of the very few leading tech stocks that has a dividend policy in place. Although there are much more attractive yields on offer, don’t forget that Apple increased its dividend by 6% last year. In each of the six years prior to that, the increase stood at a whopping 10%.
Remember, it’s super important to always do your own research and form your own opinion when making any investment, as there’s never a guarantee you’ll make money and your capital is at risk.
Step 3: How to Buy Apple Shares in the UK
If you have performed lots of research on the future potential of Apple shares and wish to complete your purchase right now – follow the steps outlined below. Once again, there are many stock apps in the UK that allow you to buy Apple shares – here’s what the process typically looks like with an FCA regulated broker.
Open a Brokerage Account and Add Funds
First and foremost, head over to your chosen broker’s website – either on your laptop or mobile phone, to start the account opening process.
Before you are able to deposit, you will need to upload a copy of your passport or driver’s license. It’s a good idea to do this now – as eToro will validate your documents instantly.
Either way, you will need to make a deposit before you can buy Apple shares. Common supported payment methods include a debit/credit card, bank transfer, or e-wallet.
Step 4: How to Invest in Apple in the UK
Now that you have a fully-funded account, you can proceed to buy Apple shares. Like the image below, enter ‘Apple’ into the search box and click on the top result.
You will then see an order box. All you need to do here is enter the amount that you wish to invest.
To complete your investment in Apple shares – click on the ‘Open Trade’ button.
This guide has discussed just how easy and cost-effective it now is to buy US-listed shares like Apple in the UK. While it may be one of the most poplar stocks among investors, make sure you do your research and are aware of the risks before making an investment in Apple.
When did Apple first go public?
Apple first went public in 1980. Opting for the NASDAQ exchange, the shares were priced at $22 each during its IPO. However, based on adjusted prices for its 5 stock splits, its IPO price actually amounts to just $0.10. This means that those investing £1,000 back in 1980 are now looking at a portfolio value of over £1.4 million!
Can you buy Apple shares in the UK?
Yes, there are dozens of FCA-regulated brokers that allow you to buy Apple shares in the UK. You do, however, need to check how much the broker charges - as there is often an FX fee that applies..
Does Apple pay dividends?
Unlike fellow tech stock counterparts Amazon, Facebook, Tesla, and Netflix - Apple has a dividend policy in place. In fact, the firm has been paying a quarterly dividend since 2012.
What is the cheapest way to buy Apple shares in the UK?
You can buy Apple shares some FCA-regulated brokers without paying any commission.
How much are Apple shares?
At the time of writing in early 2021, Apple shares are hovering above the $120-$125 mark. The shares last hit all-time highs of $145 in late 2020.