How to Buy European Stocks: A Guide for 2023 • Benzinga (2024)

FAQs

What is the best way to invest in European stocks? ›

The easiest way to invest in the whole European stock market is to invest in a broad market index. This can be done at a low cost by using ETFs. In this curated investment guide, you will find all ETFs that allow you to invest broadly diversified in European stocks. Currently, there are 24 ETFs available.

Europe Equities ETFs offer investors exposure to companies domiciled in Europe. These ETFs can offer broad exposure to stocks from European countries, or can focus on certain developed or emerging markets.

The easiest way to add international stocks to your portfolio is by investing in U.S.-registered mutual funds or exchange-traded funds that track foreign markets. Why U.S.-registered? To avoid potential risks and costs associated with investing in foreign markets (more on that below).

Another way to invest in the European stock market is to buy foreign stocks through American Depository Receipts (ADRs). In some cases, American Depository Receipts are sponsored by the foreign company itself.

The Nasdaq 100 index

In the USA, the popular QQQ ETF, which tracks the Nasdaq 100, has been available since 1999. It is managed by Invesco. The European counterpart of this ETF uses the ticker symbol eQQQ.

Besides countries from the Eurozone, like France, Germany, Spain, the Netherlands and Italy, you also have exposure to Great Britain, Switzerland and Scandinavian countries. Due to its broad market exposure, the STOXX Europe 600 index is often quoted as the European equivalent of the U.S. focused S&P 500 index.

Vanguard ETFs/Index Funds Alternatives in Europe

IShares: As a subsidiary of Blackrock, iShares is the largest provider of ETFs in the world. You can find any asset class under this umbrella structure. In Europe, you will find 340+ ETFs from this provider alone.

Are international stocks cheaper than US stocks? ›

Reason 1: International stocks tend to be much cheaper than U.S. ones. The U.S. stock market is well below its highs but is considered expensive compared to most of its foreign counterparts. When we say "expensive," we are not talking about the market price at which you can buy or sell a share of stock.

Based on data, the top four European ETFs in 2023 are EZU, FEZ, EWG, and EWQ. Each of these funds sports cheaper valuations than the US market and is under heavy accumulation. Consider them on any meaningful pullback if you're looking to add European exposure.

As a TD Direct Investing client, you can trade securities on the international markets and exchanges listed below. There may be a minimum trading amount requirement depending on the exchange you want to trade on. It usually takes two days from the transaction date for the security to show as a holding in your account.

TD Ameritrade opens accounts to residents of over 100 countries. The few exceptions include the European Union, Canada, and Australia, but “there are lots of buts and ifs on it”.

Europe's biggest stock exchange is the Euronext which combines five markets based in Amsterdam, Brussels, Dublin, Lisbon, London, Oslo and Paris.

Place online trades for virtually any domestic stocks, international stocks via ADRs¹, or initial public offerings (IPOs)² whenever TD Ameritrade is a member of the selling group and you qualify.

What you can do. Trade in 25 countries with the flexibility to settle in either U.S. dollars or the local currency. Exchange between 16 different currencies, offering you the potential to capitalize on foreign exchange fluctuations. Trade domestic and international stocks in a single account.

How much foreign stock should I own? ›

How much should be invested internationally? In general, Vanguard recommends that at least 20% of your overall portfolio should be invested in international stocks and bonds.

BlackRock and Vanguard captured the lion's share of ETF flows in Europe last year as investors opted for low-cost passive strategies amid a turbulent market environment while DWS and PIMCO suffered outflows.

Is it possible to buy US ETFs for EU retail clients? No, since 2018 EU residents can't trade US-domiciled ETFs because of EU legislation that most US-registered ETFs have not bothered to deal with. For most EU traders and investors this means US ETFs are not possible to trade for the foreseeable future.

The reason why US-domiciled ETFs are not available for European investors can be summed up in one word: compliance. To be allowed on EU markets, US-domiciled ETFs (exchange-traded funds) are required to produce documentation according to standards prescribed by MiFID, the EU's legal framework for securities trading.

It is, however, impossible to directly buy the S&P 500 index. What you can do is invest in the S&P 500 through an instrument replicating every movement of the S&P 500, like an Exchange Traded Fund (ETF). The table below shows the five biggest S&P 500 ETFs available to Europeans.

The DAX was created in 1988 and tracks 30 of the largest German companies, listed on the Frankfurt Exchange.

Regardless of where you move, the following applies: Fidelity does not provide discretionary asset management services to customers who reside outside the United States. The services provided by our representatives are limited to those that are ministerial or administrative in nature.

Is it worth it to invest in foreign stocks? ›

International stocks can give a lift to your stock portfolio when U.S. stocks are stuck in the mud. Over the long term, this should smooth out volatility in your stock market returns, investing experts say.

You can invest in over 5,000 securities with Robinhood Financial, including most U.S. stocks and exchange-traded funds (ETFs) listed on U.S. exchanges. We're also excited to offer options trading and access to over 650 global stocks through American Depositary Receipts (ADRs).

Key takeaways. Many non-US stock markets may struggle in 2023 due to high inflation, rising interest rates, and slowing economic growth. The Ukraine war, rising nationalism, and the legacy of COVID are all helping to slow globalization which lifted non-US markets over the past 30 years.

International stocks are broadly outperforming this quarter, decoupling from the U.S. to an unusual extent, according to DataTrek Research. “Non-US stocks have decoupled from domestic equities by a statistically unusual degree over the last 50 days,” said Nicholas Colas, co-founder of DataTrek, in a note Tuesday.

History suggests that international stocks may continue to outperform. Since 1975, the outperformance cycle for US vs. international stocks has lasted an average of eight years. We're currently 12.1 years into the current cycle of US outperformance based on 5-year monthly rolling returns.

We can help you invest in U.S. markets while living abroad, access U.S. dollar–based accounts, and provide reporting for U.S. tax filing.

How do I open an account? To apply for a Schwab One International^® account, simply prepare the required supporting documents and go through the online account opening process. Once the account is fully established, you can fund your account and start investing.

Over 530 of the world's largest and most influential international companies are listed on the NYSE, spanning across 45 countries. We help fuel the visions of today's greatest leaders, icons and innovators, providing access to the resources they need to raise capital and change the world.

ProductsStocks, ETFs, Bonds, Futures and Options, new shares at initial (IPO) price. Founded in 2013, Freedom24 is the only European broker, listed on NASDAQ. The company has more than 400,000+ worldwide clients and offers direct access to the largest exchanges of USA, Europe and Asia with low trading fees.

What are the 2 biggest stock exchanges in Europe? ›

You can open an account with a commission-free broker like Robinhood or Webull. Robinhood offers free stock trading on most European stocks listed on U.S. exchanges as ADRs.

You can access your Robinhood account in almost all countries, with the exception of Cuba, Iran, North Korea, Syria, and the Crimea region of Ukraine.

TD Ameritrade opens accounts to residents of over 100 countries. The few exceptions include the European Union, Canada, and Australia, but “there are lots of buts and ifs on it”. 2. Interactive Brokers opens accounts to residents anywhere.

The S&P Europe 350® consists of 350 leading blue-chip companies drawn from 16 developed European markets.

London Stock Exchange

This makes it the one of the oldest stock exchanges in the world. It was actually the largest stock exchange in the world up until the end of World War I, when it was dethroned by the NYSE. The LSE is now the sixth largest stock exchange in the world, and the largest stock exchange in Europe.

The New York Stock Exchange (NYSE) is the 1st on the list of the largest stock exchange in the world and is a highly esteemed stock exchange in the USA which is situated at 11, Wall Street, New York City. It was established on May 17, 1792, and consists of 2,400 listed companies.

Europe's biggest stock exchange is the Euronext which combines five markets based in Amsterdam,... Euronext Euronext stock exchange is seated in several cities in Europe including Brussels, London, Amsterdam, Paris, and Lisbon.

Switzerland. Switzerland is one of the best countries to invest in.

What is Europe stock market called? ›

Euronext Press releases

Paris – 9 June 2023 – Euronext today announced the results of the quarterly review for the CAC SBT…

The New York Stock Exchange. The NASDAQ Stock Exchange. The London Stock Exchange.