Best Brokers for Australian Investors in European Stocks
Australian investors can access European stocks through global online brokers. European markets trade at 50–60% discount to US markets on P/E basis. Companies like LVMH, ASML, SAP, and Novo Nordisk are world leaders in their sectors. The discount may represent value for long-horizon investors. CommSec International charges 0.6% FX each way. IBKR charges 0.1%. On A$15,000 ($10,000 equivalent), CommSec costs ~A$90, IBKR costs ~A$15.
Market
European Stocks
EURO STOXX 50
Top ETF
IEUA
IEUA (iShares Core MSCI Europe UCITS ETF)
Your currency
🇦🇺 AUD
Australia
FX cost reality check
Converting AUD to EUR at IBKR costs ~0.1% vs 0.5–1% at most retail alternatives. On $10,000 equivalent invested, IBKR saves $40–90 per transaction.
Best brokers for Australian investors in European stocks
Ranked by FX conversion cost — the biggest variable cost for international investors.
Interactive Brokers
The lowest FX spreads of any mainstream broker — 0.08–0.2% mid-market margin across all major corridors.
Stake
Simple, commission-free US stocks for Australian and New Zealand investors
Pearler
Long-term index investing platform for Australian buy-and-hold investors
About European Stocks: what Australian investors need to know
Why invest here
European markets trade at 50–60% discount to US markets on P/E basis. Companies like LVMH, ASML, SAP, and Novo Nordisk are world leaders in their sectors. The discount may represent value for long-horizon investors.
Key risk
EUR currency risk; European stocks have underperformed US stocks over the past decade; geopolitical risk
Benchmark index
EURO STOXX 50
Recommended ETF (non-US investors)
IEUA (iShares Core MSCI Europe UCITS ETF)
Regulation for Australian investors
No outbound investment limits. ASIC-regulated platforms available. Superannuation cannot generally be used for foreign stocks outside super fund investment options.
Tax treatment for Australian investors in European stocks
Capital gains taxed at marginal rate. 50% CGT discount for assets held 12+ months. Foreign income (dividends) taxable at marginal rate. 15% US withholding on dividends creditable against Australian tax.
Not tax advice. Tax laws change frequently. Consult a qualified tax professional in Australia before making investment decisions.