US stock trading at Vanguard

When looking to diversify your investments by investing in US stocks, you may have trouble finding the right broker that offers US stock trading, and at favorable fees. We'll help you find the best option.

Vanguard is an excellent option for trading US stocks: it offers access to US stock markets, and its trading fees are low, making it a great provider for diversifying your portfolio.

My findings on US stock trading at Vanguard

My findings on US stock trading at [broker name]

Adam Nasli

Trading • Safety • Market Analysis

I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.

Learn about our methodology

Adam Nasli

Trading • Safety • Market Analysis

I am an active trader, and I've thoroughly tested Vanguard's services with our analyst team by opening a real-money account. Here's what you need to know about US stock trading at Vanguard:

• You can trade US stocks at Vanguard.
• The cost of trading US stocks at Vanguard is low.
• Altogether, you can trade on 4 global stock markets at Vanguard.
• US stocks can serve as a cornerstone of a well-diversified stock portfolio.

Data updated on December 9, 2024

Here is what our Vanguard review has to say about the stock selection at Vanguard:

Vanguard gives access only to the US market.

The US stock market is where people and institutions buy and sell ownership in publicly traded companies, making it a vital part of the nation's financial system. It is the largest and most important stock market of the world. There are many stock exchanges in the United States, the most prominent ones are The New York Stock Exchange (NYSE) and NASDAQ.

You can either buy individual stocks to own a part of a single company, or you can choose Exchange-Traded Funds (ETFs) for a more diverse investment that covers a range of assets. The stock market operates during regular business days, from 9:30 AM to 4:00 PM Eastern Time (ET). There are also pre-market and after-hours trading options, but these come with some added risks.

The US stock market is closely regulated by the Securities and Exchange Commission (SEC) to ensure fairness and protect investors. To begin, open an online brokerage account, which provides easy tools for buying and selling stocks. They also offer useful resources and educational materials for beginners.

Here is a list of examples of the largest publicly traded companies in the United States, along with their stock tickers. Usually the shares of larger companies are more liquid and have wider analyst coverage.

• Apple Inc. (AAPL)
• Microsoft Corporation (MSFT)
• Amazon.com Inc. (AMZN)
• Alphabet Inc. (GOOGL) - The parent company of Google
• Facebook, Inc. (now Meta Platforms, Inc.) (FB)
• Berkshire Hathaway Inc. (BRK.A) (BRK.B)
• Johnson & Johnson (JNJ)
• Tesla, Inc. (TSLA)
• JPMorgan Chase & Co. (JPM)
• Visa Inc. (V)
• Procter & Gamble Company (PG)
• Mastercard Incorporated (MA)
• NVIDIA Corporation (NVDA)
• Walt Disney Company (DIS)
• Home Depot, Inc. (HD)
• AT&T Inc. (T)
• UnitedHealth Group Incorporated (UNH)
• Intel Corporation (INTC)
• Verizon Communications Inc. (VZ)
• Coca-Cola Company (KO)

Investing in the US stock market offers several benefits for investors.

• Potential for growth: The US stock market has historically shown consistent long-term growth. Investing in stocks allows you to participate in the potential appreciation of companies' value over time.
• Diversification: The US stock market is incredibly diverse, with companies spanning various sectors like technology, healthcare, finance, and consumer goods. This diversity enables you to spread your investments across different industries, reducing the risk associated with any single sector's performance.
• Liquidity: US stocks are highly liquid, meaning you can easily buy and sell them. This liquidity ensures you can access your invested funds relatively quickly when needed.
• Ownership in profitable companies: When you invest in stocks, you become a partial owner of the company. If the company performs well, you may receive a share of its profits in the form of dividends.
• Accessibility: The US stock market is accessible to both individual and institutional investors. You can start with a modest amount of capital and gradually increase your investments as you become more comfortable.
• Inflation hedge: Historically, stocks have provided returns that have outpaced inflation, helping to preserve and potentially increase your purchasing power over time.
• Transparency: US financial markets are known for their transparency and regulation. The Securities and Exchange Commission (SEC) oversees the market to ensure fair practices, protect investors, and maintain transparency.

However, it's crucial for investors to remember that investing in the stock market carries risks, including the possibility of losing money. To maximize the benefits while managing risks, consider conducting research, diversifying your portfolio, and investing for the long term. Additionally, stay informed about market developments and consider consulting with financial professionals as you navigate your investment journey. Read more about portfolio diversification to learn how to reduce the risks of your long-term investments.

US stocks can act as a cornerstone of your investment portfolio, but they also come with their risks that you should consider. Here are a few:

• Market volatility: Stock prices can fluctuate significantly in the short term due to various factors, including economic conditions, geopolitical events, and company-specific news. This volatility can lead to rapid gains or losses.
• Market downturns: The stock market experiences periodic downturns or corrections, which can result in broad declines in stock prices. These downturns can be triggered by economic recessions, financial crises, or other systemic issues.
• Company-specific risk: Investing in individual stocks exposes you to company-specific risks. Poor management decisions, competition, or industry disruptions can negatively impact a company's stock price.
• Economic factors: Economic events, such as inflation, interest rate changes or currency fluctuations, can influence stock prices. A rising interest rate environment, for example, can put downward pressure on stock prices.
• Liquidity risk: Some stocks may have lower trading volumes, making it challenging to buy or sell shares at desired prices. Illiquid stocks can be more susceptible to price manipulation and sudden price swings.
• Regulatory changes: Changes in government regulations, tax policies, or accounting standards can impact the financial markets and individual stocks.
• Currency risk: If you are an international investor, fluctuations in currency exchange rates can affect the returns on your US stock investments when converting gains or dividends to your home currency.

Investing in US equities can be a great addition to your portfolio due to their historical strong performance, diverse investment opportunities across sectors, and the country's role as a global innovation hub. US markets offer liquidity and regulatory transparency making them attractive for investors. However, before making any investments, it's crucial to manage risks, diversify your portfolio, and consider a long-term investment horizon to fully capitalize on these advantages.

You can start investing in US equities at Vanguard today. If you're interested, you can also browse other brokers' offering: