New York Stock Exchange

New York Stock Exchange (NYSE) brokers connect investors with the world’s largest stock exchange. In this tutorial, we explain how to choose brokers with access to the New York Stock Exchange, comparing trading fees, opening times, investing platforms, mobile apps, market information, and more. Find out how to trade on the NYSE.

Choosing NYSE Brokers

When it comes to choosing an online broker to trade on the New York Stock Exchange, there are several key factors that investors should consider:

• Instruments – The top New York Stock Exchange brokers offer online trading through multiple products. This includes the direct purchase and sale of stocks, plus CFDs, spread betting and options. CFDs are popular with retail investors adopting short-term strategies owing to their leverage element, which allows traders to increase their purchasing power and potential returns. XTB, for instance, offers equity CFDs on the NYSE with 1:10 leverage for UK traders. Spread betting is also popular with UK traders as profits are tax-free.
• Fees & Charges – The top-rated New York Stock Exchange brokers offer low to zero commissions and tight spreads. Pepperstone, for example, offers a $0.02 commission per share for US stocks. Also check for any deposit and withdrawal charges, inactivity penalties, and overnight fees.
• Platforms – A stable electronic trading platform is the foundation for profitable speculation on NYSE products. Support for level 2 data is important for advanced equities and options traders, while basic stock and bond investing may be better suited to simple, browser-based platforms. The best NYSE brokers also offer user-friendly mobile apps so you can open positions and monitor trades on the go. The most popular stock platform among retail traders is MetaTrader 4 (MT4).
• Security & Regulation – Investors should only sign up with NYSE trading brokers that have top-tier regulation from reputable bodies such as the UK’s FCA. Regulatory oversight and associated requirements help protect investors from scams and offer fund protection schemes to protect traders in case of broker insolvency. Additional security measures to look out for include the provision of negative balance protection and NYSE brokers that use segregated accounts for client funds.
• Payment Methods – Leading brokers with access to the New York Stock Exchange offer commission-free payment methods with near-instant deposits. Popular payment solutions include wire transfer, debit card and PayPal. Also check the minimum deposit requirement. The top NYSE brokers allow new traders to get started with less than £100. FXCC even has zero minimum deposit, making it popular with beginners.
• Account Types – UK investors may benefit from country-specific investing accounts such as an ISA. In addition, the best NYSE brokers for UK traders will deal in British Pounds rather than US Dollars to avoid forex fees. Also check for perks and fee rebates if you sign up for premium profiles, though these often require a larger deposit and account balance.
• Tools – Leading New York Stock Exchange brokers offer additional tools to enhance the user experience. These can come in the form of advanced charts and graphs, live volume data, and copy trading.

How To Trade With NYSE Brokers

Choose Your Product

The vehicle that best suits your trading style will depend on the purpose of your investment. Those looking for a stable, fixed income will favour NYSE bonds, while those looking for leveraged products with high profit potential may favour CFDs or spread bets.

Importantly, equities are versatile assets that allow investors to meet a wide range of trading needs. There are thousands of NYSE-listed companies that investors can purchase shares of, including JP Morgan Chase and Visa.

Pick The Best NYSE Brokers

Using the criteria outlined above, investors can select secure, low-cost NYSE brokers. Importantly, traders should prioritise New York Stock Exchange brokers with solid regulation when investing, as safety is paramount in the online trading space.

Sign up with your chosen brokerage and deposit funds. Many brokers with access to the New York Stock Exchange may require verification documents such as copies of your ID or passport, so ensure the firm is trusted before sending over sensitive information.

Develop A Strategy

A solid and repeatable strategy is the secret to making a profit in the long term.

Many approaches are available to investors with NYSE products, including dividend investing, hedging and scalping. New York Stock Exchange products are also highly exposed to news, such as US economic announcements and dividend changes.

Make Your Trade

Open your broker’s platform and navigate to your chosen asset. Now, open your position, either long or short.

When investing in equities, traders can often open a position using advanced tools such as limit orders and trailing buy orders to maximise profit potential. However, these options are only normally available during standard market hours (more on these later).

Close Your Position

With many NYSE products, choosing when to close out a trade is key. This is less important when trading bonds, where investors purchase bonds for the cash returns offered by a product rather than their face value.

To close out a position, investors can set NYSE alerts to notify them when an asset reaches a price or movement threshold and cash out manually. Alternatively, tools such as trailing stops or sell orders can help investors automate this process through a platform’s API.

Live Price Chart

How Does The NYSE Work?

The New York Stock Exchange (NYSE) is one of the world’s leading stock exchanges. It is a physical marketplace where buyers and sellers come together to exchange shares of US companies.

This NYSE trading mechanism is in contrast to the NASDAQ, which operates as a purely electronic platform, with traders conducting transactions entirely online.

The exchange operates using a centralised mechanism connecting buyers and sellers, with the NYSE trading value averaging over $150 billion (£125 billion) daily. The exchange has also implemented various NYSE rules, such as circuit breakers, which automatically pause trades in case of significant market declines.

Additionally, the NYSE options and bonds markets are essential components of the exchange, allowing investors to trade a broad range of products in addition to US equities.

History

The NYSE is housed in an iconic building in the heart of New York’s financial district, and its trading floor has become synonymous with the world of finance.

The history of the NYSE can be traced back to 1792 when twenty-four brokers agreed upon a set of rules called the Buttonwood Agreement. The first traded securities included war bonds and banking stocks.

The system was updated in 1817 to ensure fairness in trading practices. The first use of the now iconic trading floor came in 1865.

Despite dozens of regional competitors vying for its business in addition to panics and crashes in the stock market itself, the NYSE came into the 20th century as the highest volume exchange in the US. A 2006 merger with rival Archipelago and a 2007 merger with the European stock market Euronext cemented the NYSE as the top dog of the financial world.

In 2007, the NYSE established an electronic platform to create a hybrid market, with almost all listed equities, options and bonds available to trade online as well as on the physical trading floor.

Key Figures

NYSE market data can be tracked back to the early 20th century. Investors can view daily volume charts and other data on platforms such as TradingView.

The NYSE’s average daily total trading volume reached $169 billion in 2013 (£140 billion) but has regressed slightly since to around the $150 billion (£125) mark.

The largest single-day crash occurred in 1987 when a black Monday event saw the Dow Jones Index plunge 22.6%. This led to the NYSE instituting a rule regarding trading curbs in 1988.

The New York Stock Exchange market cap reached over $30.1 trillion in February 2018, though it fell to around $23 trillion in December 2022.

Markets

The NYSE offers investors three key markets: stocks, options and bonds.

The NYSE equities market includes thousands of ETFs and publicly listed US trading companies and has over 8,000 total symbols on offer. Access to these shares and ETFs are offered by NYSE brokers, who act as intermediaries between the New York Stock Exchange and retail traders.

The number of bonds on the NYSE is smaller, as most bonds are traded over-the-counter by secondary broker-dealers.

Two options markets are available on the NYSE– NYSE American options and NYSE Arca options. The trading economics of these NYSE markets are very different.

The NYSE American market is focused on providing investors with deep liquidity and low fees, while Arca aims to offer tight markets with two-way fees encouraging competitive investing.

Fees

Due to the high liquidity of NYSE-listed equities, it is possible to trade stocks with very low or even zero commissions. Finding NYSE brokers that support low fees is key to protecting your profit margin.

Options can also have highly competitive fees, especially when trading on the NYSE American market. Bonds are also low-cost instruments, so investors do not have to worry about excessive fees.

One area where NYSE costs can add up is through data fees. To receive real-time level 2 data or other market depth information, investors will often have to pay a monthly fee to their brokerage, who will purchase this data directly from the New York Stock Exchange.

Shop around to see which New York Stock Exchange brokers offer competitive rates on data fees. Keep an eye out for NYSE brokers that bundle together data packages to help investors receive cost-efficient deals.

Additional Information

When speculating on NYSE equities from the UK, investors can access preferential tax rates by signing a W-8BEN form. Most NYSE brokers offer this form to traders free of cost and will process the form quickly to ensure investors receive their tax advantages as soon as possible.

The W8-BEN lowers the withholding tax for qualifying dividends and interest from US shares from 30% to 15%.

Opening Hours

The New York Stock Exchange opening times run from Monday to Friday 9:30 am to 4:00 pm Eastern Time. For UK investors, the NYSE hours correspond to 2:30 pm to 9:00 pm GMT.

Premarket and after-hours trading are also possible on the NYSE. Premarket runs between 1:00 pm GMT and the 2:30 pm GMT trading start time open, while after-hours typically run from 9:00 pm GMT until as late as 1:00 am GMT the next day.

Bottom Line On NYSE Brokers

As the largest exchange in the US, the New York Stock Exchange has thousands of symbols available for investors to trade. With accessible trading hours for UK investors and a variety of markets including options and bonds, the NYSE is a great choice for online traders. There are multiple brokers that support NYSE investment products, and with this tutorial, traders can find a reputable and low-cost brokerage to fulfil their needs.

Register with one of our top NYSE brokers to start investing online.

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