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How to Buy GameStop Shares UK for Beginners

Tobi Opeyemi Amure
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How to Buy GameStop shares UK for Beginners

In a nutshell, to buy GameStop shares in the UK, choose a brokerage that offers access to US stocks, like eToro or Plus500. Open and fund your trading account, ensuring you complete a W-8BEN form to comply with US tax regulations. Then, search for GameStop stock ticker ‘GME’, decide on the number of shares or the amount you want to invest in and execute the buy order.

I’ve compiled an easy-to-follow guide on ‘How to Buy GameStop Shares UK’.

It will provide you with clear, step-by-step instructions, ensuring you’re well-equipped to make this exciting addition to your investment portfolio.

This article was reviewed by Tobi Opeyemi Amure, a trading expert and writer at InvestopediaInvesting.com, and Trading.biz.

How to Buy GameStop Shares in the UK – Step-by-Step Guide

Here’s a simple step-by-step guide to help you invest in GameStop shares.

1. Select a broker

Begin by choosing an online broker that allows access to US stock markets, as this is where GameStop shares are traded. In the UK, there’s a wide range of brokers available.

Key factors to consider include fees, user interface, and customer support.

2. Fund your account

After opening an account with your chosen broker, you’ll need to deposit funds. This process may involve a short wait as transfers are cleared. Payment methods differ across brokers, so select one that suits your preferences.

3. Set your investment budget

Investing in shares carries risks, and it’s crucial to only use funds you can afford to lose. With fractional shares available, you can invest an amount that aligns with your financial comfort zone.

4. Decide on your investment type

You have the option to buy individual shares of GameStop or invest in ETFs that include GameStop in their portfolio.

ETFs, such as the iShares Core S&P Mid-Cap ETF or Vanguard Total Stock Market ETF, offer diversified exposure and are often seen as less risky compared to individual stocks.

5. Buy GameStop

With your broker selected, account funded, and investment type chosen, you’re ready to buy.

Simply search for ‘GME’ (GameStop’s ticker symbol), decide on your investment amount, and confirm your order.

Best Place to Buy GameStop Shares UK

In 2023, around 2 in 5 Brits (42%) invest and trade, up from 36% in 20211.

Choosing the best trading platform for investing in GameStop shares is crucial for newcomers in the market.

Having worked in the retail investment sector in London over the last four years, I had the opportunity to experience the rise first-hand.

Additionally, in my role working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”, I was able to work with and test some of the biggest UK stock brokers in the market.

Using my experience in this field, I’ve picked two of the best places to buy GameStop shares in the UK.

Factors such as fees, commissions, usability, trading platforms available, research tools, educational materials, and additional features were considered.

Both of the platforms I’ve reviewed below are regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA) or similar.

1. eToro – Overall best place to buy GameStop stock UK

eToro – Overall best place to buy GameStop stock UK

eToro emerges as a top choice for UK investors looking to purchase GameStop shares. Renowned for its user-friendly interface and a plethora of investment options, eToro caters to both beginners and seasoned traders. 

Setting up an account with eToro is straightforward and quick, requiring just a few minutes. The platform supports various funding methods, including debit/credit cards, bank transfers, and e-wallets, with a reasonable minimum deposit of £50.

Its mobile app compatibility for both iOS and Android makes trading on-the-go effortless.

Security is a prime feature of eToro, as it’s regulated by the FCA and covered by the FSCS, offering protection up to £85,000. Its global regulation adds to its credibility, ensuring a safe trading environment.

eToro offers 0% commission on real stocks, making it an economical choice for buying shares, including international ones like GameStop. The platform waives the stamp duty tax, allowing for additional savings.

Fractional share purchases start from as little as $10 per trade.

eToro’s blend of user-friendly design, regulatory compliance, cost-effective trading options, and innovative features make it an outstanding platform for UK investors to buy GameStop shares.

While it excels in offering a diverse range of assets and social trading opportunities, users should be mindful of the other fees that may apply.

Overall, eToro stands as a versatile and reliable choice for both novice and experienced traders in the UK market.

Read my complete eToro review.

Zero commission means that no broker fee will be charged when opening or closing the position and does not apply to short or leveraged positions. Other fees apply including FX fees on non-USD deposits and withdrawals. Your capital is at risk. For more information, click here.

2. Plus500 – Good for trading GameStop CFDs

Plus500 – Good for trading GameStop CFDs.

Plus500 stands out as an exceptional platform for UK traders interested in trading GameStop stock CFDs.

This platform combines advanced trading features with user-friendly accessibility, making it a compelling choice for both novice and experienced traders. 

Plus500 is rigorously regulated by the FCA, ensuring a high level of security for your capital, which is also protected under the FSCS. Its international regulation, including in Cyprus, Australia, and Singapore, adds to its credibility and reliability.

The platform offers extensive access to international markets, including stocks from the US, UK, Germany, and other parts of the world.

This wide-ranging market access allows traders to diversify their portfolios across various global stocks, including major tech companies and indices.

A major advantage of Plus500 is its commission-free trading across supported stock markets, including indices, ETFs, forex, and commodities.

Traders can leverage their positions up to 1:5, amplifying potential profits (and losses), with a minimum trading capital of £100. Plus500 is a robust choice for those looking to trade GameStop stock CFDs in the UK.

Its combination of no commission fees, advanced tools, global market access, and strong regulatory compliance makes it a reliable and attractive platform for traders.

However, it’s important to be aware of the risks associated with leveraged CFD trading and the platform’s inactivity fee.

Overall, Plus500 offers a comprehensive and secure trading environment, suitable for a range of trading strategies and preferences.

Read my Plus500 review.

Frequently Asked Questions About Buying GameStop Shares in the UK

Here are some answers to some of the most asked questions regarding purchasing GameStop stock in the UK.

Can I buy GameStop shares in the UK?

Yes, you can buy GameStop shares in the UK. This can be done through online brokers that provide access to US stock markets where GameStop is listed.

It’s important to choose a UK stock broker that is regulated and offers the services you need.

Many UK brokers allow for the purchase of GameStop shares, often with options like direct share purchasing or through Exchange-Traded Funds (ETFs).

Should UK investors buy shares in GameStop?

Deciding whether to buy GameStop shares involves careful consideration for UK investors. Firstly, GameStop’s market performance has shown high volatility, which means the stock price can change rapidly.

This presents a risk, but also potential for high returns. Investors should assess their risk tolerance before investing. Secondly, GameStop’s business model and market position are key factors.

As a retail company focusing on video games and related products, it faces challenges and opportunities in a rapidly evolving industry. Investors need to stay informed about the company’s strategies and the gaming market’s trends.

Lastly, diversification is crucial. Investing in GameStop should be part of a diversified portfolio to spread risk.

Is it safe to invest in GameStop?

Investing in stocks like GameStop carries inherent risks and potential rewards. GameStop has experienced significant volatility, making it a potentially high-risk investment.

Investors should consider their risk tolerance and investment goals before deciding. It’s also crucial to research and stay updated on GameStop’s market performance and industry trends to make an informed decision.

How to sell GameStop shares?

  1. Log in to your brokerage account where you hold GameStop shares.
  2. Navigate to the trading section and search for GameStop’s stock ticker, ‘GME’.
  3. Enter the number of shares you wish to sell and choose the type of sell order (e.g., market, limit).
  4. Review and confirm the transaction details.
  5. Execute the sale order and monitor the execution status.

Why invest in GameStop?

Investing in GameStop may appeal to investors for several reasons. Firstly, GameStop has gained notable attention in the stock market, especially among tech-savvy investors and those interested in the gaming industry.

This interest can lead to high market activity and potential for growth. Secondly, GameStop’s efforts to adapt and evolve within the rapidly changing gaming sector show promise for future business expansion.

The company’s move towards digital platforms and e-commerce, aligning with current market trends, could positively impact its long-term value.

Lastly, GameStop’s role in the gaming community and its established brand can offer a unique investment opportunity in the retail and entertainment industry.

However, investors should balance these potential benefits with the risks involved, including market volatility and industry competition, to make a well-informed investment decision.

What to consider before investing in GameStop shares?

Before investing in GameStop shares, several factors need to be considered.

  • Market Volatility: GameStop’s stock has shown high levels of volatility, with rapid price changes. This can lead to significant gains or losses, so understanding your risk tolerance is crucial.
  • Company Performance: Assessing GameStop’s financial health and business strategies is important. Look at their earnings reports, market position, and plans for digital growth in the gaming industry.
  • Industry Trends: The gaming sector is evolving fast. Keep an eye on trends in digital gaming, e-commerce, and consumer habits, as these can impact GameStop’s performance.
  • Diversification: Investing in GameStop should be part of a diverse portfolio. This helps spread risk across different investments.

How to buy GameStop shares UK for beginners?

  1. Choose a Broker: Select an online broker in the UK that offers access to US stocks, including GameStop.
  2. Open an Account: Register and set up a trading account with your chosen broker.
  3. Verify Identity: Complete the required identity verification steps, often needing proof of ID and address.
  4. Fund Your Account: Deposit funds into your trading account, usually via bank transfer, debit/credit card, or e-wallet.
  5. Research GameStop: Understand GameStop’s market performance and stock trends before investing.
  6. Decide Investment Amount: Determine how much you want to invest, considering your budget and risk tolerance.
  7. Place an Order: Search for GameStop’s ticker symbol (GME) and place a buy order for the number of shares you want.
  8. Monitor Your Investment: Regularly check the performance of your GameStop shares and stay informed about market changes.

What are the risks of investing in GameStop shares?

Investing in GameStop shares comes with several risks.

  • Market Volatility: GameStop has experienced extreme price fluctuations, making its stock highly volatile. This can lead to rapid changes in investment value.
  • Business Model Challenges: The shift in gaming from physical stores to digital platforms poses risks to GameStop’s traditional retail model. Keeping pace with industry changes is critical for the company’s success.
  • Economic Factors: Broader economic conditions, such as consumer spending habits and technological advancements, can impact GameStop’s performance.
  • Stock Speculation: The popularity of GameStop in trading forums can lead to speculative trading. This speculation can cause unpredictable stock movements, not always based on company fundamentals.
  • Investor Sentiment: GameStop has become a focal point for retail investors, leading to sentiment-driven price movements. This can result in investment decisions driven by hype rather than solid financial analysis.

Is it worth buying one share of GameStop?

Deciding whether to buy a single share of GameStop depends on various factors.

  • Investment Goals: Consider your long-term investment strategy. A single share can be a way to diversify your portfolio without a large commitment.
  • Market Understanding: Research GameStop’s current market performance and potential growth. This helps assess if one share aligns with your investment goals.
  • Costs and Fees: Be aware of any transaction fees or commissions. These costs can impact the overall value of buying just one share.
  • Risk Tolerance: GameStop’s stock is known for high volatility. Ensure this level of risk fits your investment comfort zone.

What’s the best time to invest in GameStop stock?

Investing in GameStop stock requires careful timing for maximum benefit. The stock market, including GameStop, shows patterns of highs and lows.

Key factors affect GameStop’s stock value. These include market trends, company news, and global events.

Investors should note GameStop’s earnings reports. These reports often cause stock price shifts. Before buying, check GameStop’s financial health.

Look at its debt levels and revenue growth. Also, monitor gaming industry trends. GameStop’s stock often links to these trends.

Global events also impact GameStop’s stock. For example, economic crises or tech advances can change stock prices. It’s vital to stay informed about such events.

Lastly, watch for market trends. Bull markets often boost stock prices. Bear markets can lead to lower prices. Timing your investment during these market phases can be key.

What’s the minimum required investment for GameStop?

When considering an investment in GameStop, it’s important to understand the minimum required investment. This amount can vary based on the platform or broker you choose.

Typically, there is no set minimum investment for GameStop stock. Instead, it depends on the stock’s current market price and the broker’s policies.

Some brokers offer fractional shares. This means you can invest in GameStop with a smaller amount of money.

For example, if GameStop’s stock price is $100 and your broker offers fractional shares, you could invest as little as $10 for 0.1 share of GameStop.

It’s important to research different brokers. Look for their terms regarding minimum investments and fractional shares. This information helps you decide where and how much to invest.

Final Thoughts

Buying GameStop shares in the UK is a straightforward process, but requires careful consideration. Investors should choose a reputable broker that aligns with their investment goals and offers access to US stocks like GameStop.

It’s crucial to understand the fees involved, the process of setting up an account, and the platform’s ease of use.

Additionally, investors must be aware of the tax implications, such as dealing with foreign exchange rates and potential capital gains tax.

Before making any investment, it’s important to conduct thorough research on GameStop’s financial health and market trends.

FAQs

Does GameStop pay dividends?

GameStop does not pay dividends to its shareholders. The company has not issued dividends since 2019. Investors should regularly check GameStop’s financial statements for any updates on dividend policies.

What’s the cheapest way to buy GameStop stock?

The cheapest way to buy GameStop stock is through platforms offering commission-free trading. eToro is a popular option for this, as it allows users to purchase stocks without paying commission fees. Additionally, eToro offers fractional shares, enabling investors to buy a portion of a GameStop share if they can’t afford a full share. It’s important for investors to also consider other platform fees and foreign exchange rates if they are trading from outside the US.

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Sources:

  1. https://www.finder.com/uk/investment-statistics ↩︎

Will Fenton is the founder of Sterling Savvy. He is a personal finance expert and writes about trading, investing, budgeting, and other financial topics.

Along with his education in Economics & Finance, he has experience working in the financial services industry in London working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”.

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