How much money do you need to buy Microsoft shares?
Less than the full share price suggests. eToro supports fractional shares from 10 USD, so the per-share price is not a barrier. A smaller budget simply buys a smaller fraction, which tracks the share price and earns the quarterly dividend on the same proportional basis.
The live price, the chart and the order button are all on the broker's market page:
NASDAQ trades 2:30pm–9:00pm UK time, Monday to Friday. Orders placed outside those hours are queued for the next open.
What does it cost to buy Microsoft shares?
Four costs apply on eToro, and all of them are visible before you confirm an order:
- Commission: $1 to buy and $1 to sell on real US stock trades. ETFs are commission-free on the platform, but individual stocks are not.
- Spread: the difference between the buy and sell price at any given moment.
- Currency conversion: MSFT is priced in dollars, so a conversion fee applies when your pounds become dollars at the point of purchase, not before, because UK accounts hold GBP as the base currency.
- Withdrawal fee: a flat $5 per withdrawal. On small withdrawals this is proportionally the largest cost on the platform, so fewer, larger withdrawals work out cheaper.
Does Microsoft pay a dividend?
Yes, and among the big US technology names it is the long-running commitment rather than the recent gesture. Microsoft has paid a quarterly dividend since 2003 and has raised it every single year for well over a decade. The payout is what an income investor in this group actually compares against, and Alphabet only paid its first dividend in 2024. The current per-share rate is on your broker's dividend tab.
For UK holders, the US withholds 15% of each dividend at source under the UK–US tax treaty, provided a W-8BEN form is on file. eToro submits it automatically. Whatever remains above your £500 dividend allowance counts as UK dividend income.
What tax do you pay on Microsoft shares in the UK?
A standard eToro account is a general investment account, not an ISA, so normal UK tax rules apply (2026/27 figures):
- Capital gains tax: gains above the £3,000 annual exemption are taxed at 18% within the basic-rate band and 24% above it. Gains over the allowance are reported through Self Assessment.
- Dividend tax: dividends above the £500 allowance are taxed at 10.75% (basic rate), 35.75% (higher) or 39.35% (additional). The 15% withheld in the US can be offset against the UK liability through Foreign Tax Credit Relief.
- Stamp duty: none on US-listed shares. The 0.5% SDRT applies to UK-listed stocks such as Rolls-Royce, not to NASDAQ tickers.
This is a summary, not tax advice. For your own situation, check GOV.UK or consult an adviser.
What to consider before buying
Three points that belong in any decision about Microsoft, whenever you read this:
- The revenue does not hang on one product. Azure cloud, Office subscriptions, Windows, gaming and LinkedIn each carry a meaningful share of the business. Buying Microsoft is buying that spread, which is why the market files it under the steadier end of large US technology.
- AI spending cuts both ways. Microsoft spends heavily on data centres and chips for AI, and the market's view of what that spending earns changes far faster than the products underneath do. Expect the share to move hardest around quarterly earnings, when that view gets updated.
- Judge the price on a long chart. Before concluding the shares are cheap or expensive, look at the five-year chart rather than the recent months. Short windows distort the picture in both directions.
eToro also runs a sign-up promotion for new clients that credits a chosen real asset to the account after the first deposit. The terms are covered in our eToro sign-up reward article. It has no effect on the buying process above.
If any step looked different when you went through it, let us know in the comments and we will update the guide.