How to Invest in GameStop UK – Invest in GameStop Shares Today!
Looking to buy GameStop shares in the UK? If so, you will need to gain entrance to the world’s biggest equity market – the New York Stock Exchange (NYSE).
Today, we shine a light on how to invest in GameStop in the UK. This includes a full assessment of the best brokers for the task and a walkthrough of how to create an account to buy GME shares today!
#1 Stockbroker to Invest in GameStop UK – eToro
How To Invest in GameStop UK – Choose a Stockbroker
Accessing the NYSE to invest in GameStop in the UK is straightforward via the right stockbroker. We’ve listed the best providers below; each of which offers low trading fees, a plethora of stock markets, and has been awarded a license from the FCA.
- eToro – Overall Best Place to Invest in GameStop UK
- Capital.com -Trade GameStop Shares in the UK at 0% Commission
The best investment platforms should provide you with access to GameStop shares, as well as fulfil many other requirements. This should include low fees and a user-friendly platform.
How to Invest in GameStop UK – A Quick Guide For 2021
If you have never signed up with a brokerage before, you can follow the quickfire guide that follows. This 5 step guide will make it possible to invest in GameStop in the UK today, via a regulated broker and from the comfort of home.
- Step 1: Open an Account with eToro – Opening an account to invest in GameStop in the UK is super-easy at eToro. After clicking ‘Join Now’, you can fill in a simple form to tell the broker who you are. Information required will be inclusive of basics such as your full name, address, contact details, and date of birth. You can also decide on a username and password to access your portfolio in safety later
- Step 2: Upload Your ID – Investors are asked to upload their ID as part of the KYC process at this regulated brokerage. This entails eToro validating your identity. You may leave this step for later, but will be limited to deposits of $2,250 or less (about £1,600) and won’t be able to make an instant withdrawal. Attaching your passport and a recent bank statement takes next to no time and allows you to use a fully operational portfolio to invest in GameStop
- Step 3: Deposit Funds – To buy shares in GameStop in the UK, you will need to finance your stockbroker account with a minimum of $50 (around £36). Finding your preferred payment type should be simple enough, as eToro lists a wide selection of supported deposit methods. This is inclusive of convenient e-wallets like Skrill and PayPal, credit/debit cards, and wire transfers
- Step 4: Search for GameStop – There are thousands of stocks and various other markets at eToro. To locate GameStop shares, you are best using the search bar on the main platform. As you begin to enter ‘GameStop’, the stock will appear. Click ‘Trade’ when you see ‘GME’
- Step 5: Invest in GameStop – Consider how much you are willing to invest in GameStop and complete the stock order form in front of you. Enter a number in the ‘Amount’ box, signifying how much you wish to allocate to GME shares. eToro supports investments from as low as $50, meaning you can purchase a fraction of a share. This is perfect for newbies
You will see references to eToro in the above walkthrough. This is because the stockbroker is quick to sign up with and was awarded a license by the FCA back in 2013. eToro keeps fees low with 0% commission stock trades and supports fractional investments in GameStop and thousands of other instruments.
Note The US stock markets trade within specific hours. The NYSE where GameStop shares can be found opens at 14:30 and closes again at 21:00 (UK time).
67% of retail investor accounts lose money when trading CFDs with this provider.
Where to Invest in GameStop UK – Full Stockbroker Reviews
It’s hard to know where to begin when you are searching for the best place to invest in GameStop in the UK. There are heaps of stockbrokers offering entry to the NYSE. However, some are more economical with fees and are much safer than others.
Below, you will see our analysis of the best stockbrokers to invest in GameStop shares in the UK. This should help you reach an informed decision.
1. eToro – Overall Best Place to Invest in GameStop UK
eToro offers a safe platform to invest in GameStop in the UK. The broker is covered by the FSCS, which provides you with a layer of financial protection, in the unlikely scenario the company folds. The FCA, CySEC, and ASIC regulate the platform. Furthermore, globally, over 20 million investors use this stockbroker, and you will pay 0% commission to invest in GameStop shares in the UK.
This leaves the difference between the buy and sell price to pay, referred to as the spread. At eToro, this is tight across thousands of assets. To invest in GameStop, you will need to create an account and fund it. This broker operates in USD, regardless of the stock exchange you are accessing. As such, when making a deposit, you will pay a small fee of 0.5%, to convert British pounds to US dollars. This works out at just 50p from a £100 deposit, which is competitive.
Supported deposit methods include all major credit and debit cards, as well as e-wallets, like PayPal and Neteller. You may finance your account to invest in GameStop shares via bank transfer, but this can take up to 7 working days to land. This broker accepts a low minimum deposit of $50 to get started. Moreover, you will pay ZERO stamp duty tax at eToro. The broker covers this fee, which represents a saving of 0.5%.
This broker has some standout features that allow you to invest in stocks in a passive manner. The most popular is called Copy Trading. To elaborate, let’s say you invest $1,000 in CopyMe246 via your eToro account. Next, they risk 60% of their equity on GME shares. In this case, you have passively allocated $600 to GameStop. If CopyMe246 decides to allocate a further 20% to AMZN shares, you will see that you have $200 invested in Amazon.
You might decide to invest in GameStop in the UK and diversify your portfolio with other stocks. There are over 2,500 stock markets listed at eToro, from local and international marketplaces. Not only that, but you will also find a wide range of forex pairs, ETFs, commodities, indices, and cryptocurrencies. The minimum investment is low at this brokerage. The platform supports stakes starting from $50. This means you are able to invest in a fraction of a share.
- Invest in stocks at 0% commission and ZERO stamp duty
- Minimum investment per stock investment is $50
- Supports debit/credit cards, e-wallets, and UK bank transfers
- Regulated by the FCA and covered by the FSCS
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
- Perhaps too basic for technical traders
- No support for MT4 or MT5
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Trade GameStop Shares in the UK at 0% Commission
Capital.com is also a member of the FSCS and has a license from regulatory bodies; the FCA and CySEC. Notably, this broker specializes in share CFDs (Contracts for Difference). To explain, a CFD is a financial contract between yourself and the broker you have an account with. This is a trading derivative that monitors and mimics the price of the underlying asset – in this case, GameStop stock.
This means that you can trade GameStop in either direction. Put simply, when you believe the price will fall, CFDs allow you to short GME shares by placing a sell order. If you foresee a price increase, simply place a buy order instead. If you enter the market with a sell order, you must cash-out with a buy. Importantly, unlike at eToro, you are not able to invest in the underlying asset when you place an order at Capital.com.
You can fund your account to trade GameStop with just £20 at Capital.com. Payment types include major debit and credit cards. You may also opt for PayPal and a few other e-wallets. Importantly, bank transfers are supported. However, this method takes the longest time to clear and you must fund your account with £250 or more to get the ball rolling. Finally, this broker charges 0% commission on GameStop CFDs and offers a tight spread.
- Top-rated spread betting and CFD broker
- Licensed by the FCA
- £20 minimum deposit (debit/credit cards and e-wallets)
- 0% commission on all markets
- Tight spreads and no fee on deposits or withdrawals
- Supports thousands of financial markets
- Convenient for newbies
- Experienced traders might consider the broker too basic
- £250 minimum deposit on bank transfers
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.25% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
How to Invest in GameStop UK – Detailed & Explained in Full
By now, you will have a much clearer idea of how to invest in GameStop in the UK. As such, you may be ready to create a stockbroker account. Signing up with an online broker to invest in GameStop shares is a stress-free process with the right platform.
To get started, simply follow our detailed guide – where we explain the required process with eToro. The platform is super-easy to use, is regulated by the FCA, and is also covered by the FSCS. Not only that, but the broker absorbs stamp duty tax and offers 0% commission on thousands of stocks and ETFs – including GameStop.
Step 1: Open a Stockbroker Account
You will need to open a stockbroker account with a platform with access to the NYSE to invest in GameStop in the UK. eToro lists 17 stock exchanges covering the NYSE, the NASDAQ, the LSE, and more. To request a sign-up form, click ‘Join Now’, which can be found on the main page.
Next, you can complete all relevant fields, such as your first and last name, mobile number, and email. In addition to a username and password to access your investment portfolio moving forward.
When prompted by eToro, you can complete your date of birth, home address, and nationality. This stockbroker will allow you to invest in GameStop shares in the UK prior to completing the KYC process. However, you will find your account is limited and you cannot make a withdrawal or deposit more than $2,250 (around £1,630).
To complete the validation process now, upload your passport or driving license. Furthermore, eToro accepts numerous documents to validate your address. Many people find a recent utility bill or financial statement to be most convenient – but check the platform for more options.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Deposit Investment Funds
To invest in GameStop shares in the UK, you need to fund your account. At eToro, this can be as little as $50. Select a payment method and enter the amount to deposit.
eToro accepts e-wallets such as PayPal and Neteller, as well as credit and debit cards by Visa, Maestro, and Mastercard. If you fund your account with a wire transfer, you can expect to wait between 3 and 7 business days to invest in GameStop. Confirm all to proceed to Step 3.
Step 3: Search for GameStop
As we mentioned, eToro offers access to a long list of stocks. As such, the fastest way to invest in GameStop is to use the search function. This is super-responsive at eToro, so as you start to enter GameStop, you will see GME appear.
You can get things moving straight away by clicking ‘Trade’ to request an order box to invest in GME shares. For future reference, if you click GME, you will see more information, such as stats and price charts.
Note The NYSE trades between 14:30 and 21:00 GMT.
Step 4: Invest in GameStop UK
When you have clicked ‘Trade’, you will see an order box appear to facilitate your investment in GameStop. Check that it says ‘BUY GME’. This shows you are investing in the correct stock.
eToro supports fractional shares from $50. As such, we are investing just $50 in GameStop and have entered the corresponding number in the ‘Amount’ box. Enter the monetary amount you wish to invest in GameStop shares, before clicking ‘Open Trade’ to confirm your purchase.
Step 5: How to Sell GameStop Shares UK
It’s never been easier to invest in GameStop in the UK and cash out later. This is done by placing a sell order.
See a quick walkthrough of how to sell GameStop shares in the UK at eToro:
- Enter your username and password to log into the eToro account you created
- When you invest in GameStop or any other stock, eToro adds the shares to your portfolio
- Open your portfolio, to view the list of markets you’ve invested in and click ‘GameStop’
- Place a sell order and enter the amount you wish to cash out
Confirm your order and the proceeds from the sale of your GME shares will be added to your portfolio by eToro. You can then withdraw the cash back to your debit/credit card, e-wallet, or bank account – depending on the funding method you originally used to deposit.
Buy GameStop Shares UK – Best Place to Invest in GameStop UK
The best place to gain entry to the US stock market to invest in GameStop in the UK will be through a top-rated brokerage. Factors to consider should include super-low fees, licensing, and much more.
For some inspiration, see a list of attributes you might look for when seeking out the best place to invest in GameStop in the UK:
- Regulation and licensing from tier-1 organizations, including the FCA
- An easy to navigate and super-responsive stockbroker website
- A long list of stock markets, including the NYSE in the US
- Plenty of accepted deposit methods to fund your account and invest in GameStop
- Super-low fees when placing orders to invest in GameStop
- Investment tools and features
We mentioned the FCA, which is the primary financial regulator in the UK. You can also look for cover by the FSCS. Other respected bodies include CySEC and ASIC. The eToro platform is regulated by all of the aforementioned financial bodies, is a member of the FSCS, and also keeps fees to a minimum. For details on how eToro possesses all the above-mentioned attributes, you can scroll up to recap on our earlier review.
Is GameStop a Good Stock to Buy?
Before you can fully decide whether GameStop is a good stock to invest in, you will need to take a look at some details surrounding the company’s finances.
To broaden the picture for you, next, we shed some light on GameStop’s stock price history and dividends.
GameStop Stock Price History
In 1984, GameStop was founded in Dallas – initially going under the name Babbage’s. The company began life as a gaming merchandise retailer. By 1986, the company was sold on to Barnes Noble, a bookseller in the US. In 1999, the company settled on the name GameStop.
By 2021, GameStop had over 4,800 operational stores, spanning the US, Australia, Europe, New Zealand, and Canada. On 12th February 2002, GameStop announced an IPO of 18,055,555 shares on the NYSE.
On 19th March 2007, the company actioned a 2 for 1 stock split. Taking this stock split into consideration, the initial price of $18 per share would be adjusted to $9. If you had decided to educate yourself on how to invest in GameStop back in 2002, you would be looking at impressive gains of 1,787% today.
To put this into perspective, let’s hypothesize that you bought 100 shares of GameStop on 12th February 2002. Those 100 shares would now be worth nearly $17,000 (around £12,339)!
Does GameStop Pay Dividends?
You may want to invest in GameStop in the UK regardless of whether the stock pays dividends. Alternatively, this could be a deciding factor for you. We can confirm that GameStop does not pay dividends.
- GameStop paid dividends regularly from 2012
- However, the company decided to cut payments in 2019
- This was with the vision to improve financial optionality and flexibility
The lack of dividends might not be a bad thing if you decide to invest in GameStop. The company uses its profits to invest in growth initiatives and reduce debt – which in theory should be good for the company and its shareholders in the long term.
Should I Invest in GameStop?
If you are still asking yourself whether you should invest in GameStop in the UK, consider some of the main reasons that others may choose this stock.
Below, we have listed the most common reasons investors might opt to invest in GameStop shares today!
GME Stock Remains Popular on Discussion Boards
When you are researching how to invest in GameStop, the saga that shook Wall Street will not pass you by. In a nutshell, in early 2021, shares of this floundering stock dramatically increased in price, very suddenly. This frenzied assent was one of the largest single-day stock increases in history.
Its increase in value was largely down to WallStreetBets, a popular online discussion board on Reddit. The group caught wind of multiple major hedge funds that were risking huge quantities of money on short-selling GameStop stock. As such, small investors rallied together and began to purchase GME shares in their droves. This, in turn, caused GameStop stock to skyrocket.
Let’s offer some perspective regarding the impact that online investing communities had on the price of GameStop stock. Between the 8th of January and the 12th of March, 2021, shares had risen by 1,395%. GameStop stock is still hugely popular. In fact, there are 400,000 members in the GME community – just on Reddit alone.
Many market commentators thought that the increased interest from small investors would cause a short squeeze, before deflating back to normal levels early in 2021. In fact, shares did fall to just under $40 after the initial price spike. However, GameStop was still trading significantly higher than it was were before the infamous rally in January 2021.
GameStop Stock Price Volatility
The amount you need to invest in GameStop will change, as stock prices continuously shift depending on supply and demand. However, as we said, GME stock is still popular within investor communities and has shown great resilience. At less than $200, now could be a good time to invest in GameStop. You can also look for platforms that can facilitate fractional investments.
The aforementioned price spike in January 2021 was followed by a few other surges in February and March, albeit not as steep. Furthermore, it’s expected that GameStop will keep its brick and mortar stores, but also grow and modernize by focusing on the e-commerce side of things.
Let’s take a look at GameStop’s performance in 2021:
- On the 8th of January, GameStop was trading at $17.69
- By the 12th of March, GME shares were $264
- On the 7th of May, a GameStop share was priced at $161
- By the 11th of June, GME was trading at a value of $233
- On the 26th of October, GameStop shares costs around $170
Despite stock price volatility during 2021, many market commentators expect GameStop to do well in the future. Moreover, GameStop’s e-commerce strategy could indicate a complete restructuring of the company.
When you invest in GameStop, there is every chance the stock could rally again. In this scenario, you could capitalize on a price increase by selling your shares for more than you initially paid. Carry out thorough research of your own before making an investment.
Potential for Another Short Squeeze
Numerous people are still choosing to short GameStop stock. As we touched on in our broker reviews earlier, this means a sell order is created with the belief the stock will fall in price. In January 2021, GameStop was one of the few companies to have a short interest greater than the number of shares outstanding. This was quite unprecedented.
Here is an explanation of a short squeeze:
- When investors short a company, they hope that the price of the respective stock declines
- But, if there are more buyers than sellers in the market, this will result in the shorting position to run at a loss
- If these losses continue to the grow, the brokerage offering short-selling services will be required to close the position on behalf of the trader
- In turn, this forces short-sellers to buy back the respective stock, which causes a rapid increase in price
There is every chance that if you invest in GameStop now, a short squeeze could happen again. As we explained, this means you could cash out for a profit later!
Always investigate information surrounding a potential investment before diving in. You will find plenty of material covering the GameStop stock and its performance. This will aid you in making a sound financial decision on whether buying GameStop shares in the UK is the right choice for you.
Ways to Invest in GameStop UK
When you are doing your homework on how to invest in GameStop in the UK, you should be aware that here are numerous ways to do so.
Invest in GameStop With Debit Card
It’s simple enough to invest in GameStop with a debit card. However, you will need to check with your chosen broker before opening an account. This is because not all platforms support this deposit method. eToro supports debit cards from Visa, Mastercard, and Maestro.
Invest in GameStop With Credit Card
To invest in GameStop in the UK with a credit card, you need to find a suitable platform and check any fees that may be payable. eToro supports credit cards from Mastercard and Visa.
Invest in GameStop With Paypal
You can invest in GameStop with PayPal in a few clicks at eToro. Simply select PayPal from the list of supported deposit methods and enter an amount to fund your account with.
Risks of Investing in GameStop in the UK?
There is a risk attached to any investment. So when you are conducting research on how to invest in GameStop in the UK, it’s crucial you have your eyes wide open to the potential risk of loss.
- There is always the risk that investors (like those on WallStreetBets) stop supporting GameStop stock and it sees a rapid decline
- You can counteract this risk by investing in GameStop shares, and also various other markets to diversify
- Unregulated stockbrokers should be treated with caution as if they go bust there is little protection for investors
- By signing up with an FCA regulated and FSCS covered stockbroker, you are able to invest in GameStop in much safer conditions
You should also be mindful that when you invest in GameStop, you are purchasing shares in a company listed on the NYSE. As such, stock prices will be quoted to you in US dollars and you will need to consider shifts in the GBP/USD rate.
eToro automatically swaps your British pounds to US dollars (the currency it operates in) when you make a deposit. This makes it easier to calculate your gains and losses when investing in US-listed companies from the UK.
The Cost of Investing in GameStop in the UK?
The cost of investing in GameStop in the UK will heavily rely upon the broke and the deposit method you choose.
Brokerage Deposit Fees
Brokerage deposit fees come in all shapes and sizes and may depend on the payment method used. As such, always study the fee table before creating an account to invest in GameStop. eToro charges 0.5% when making a deposit, which is to convert GBP to USD.
Share Dealing Fees
A crucial charge to keep an eye out for when looking at how to invest in GameStop in the UK is the broker’s share dealing fee. This is chargeable on all share transactions.
For instance, if you place an order at Hargreaves Lansdown, you will pay a share dealing fee of £11.95. You will be charged this again when cashing out your position. In contrast, eToro charges nothing in share dealing fees to invest in GameStop in the UK.
As you are reading up on how to invest in GameStop in the UK and the company is listed on a US stock exchange, you will need to consider FX fees. Hargreaves Lansdown charges 1% to convert British pounds to US dollars, which is on top of the aforementioned £11.95 share dealing fee.
How to Invest in GameStop UK – Conclusion
When you are learning how to invest in GameStop in the UK, and need to gain entry to the NYSE in the US. As such, it’s important that you are vigilant about which platform you sign up with. This guide found that FCA-regulated broker eToro is the overall best place to invest in GameStop in the UK.
The platform offers access to the NYSE, the LSE, and 15 alternative international marketplaces. There are thousands of stocks to invest in with 0% commission, tons of supported deposit methods, and low minimums of $50. Furthermore, you will not pay stamp duty tax as the stockbroker absorbs this cost for you.