International Share Trading

Investing internationally is a great way to diversify your portfolio. It can provide you with opportunities that the ASX can't provide and it's a great way to reduce your risk through diversification. Discover a world of opportunity trading the best performing and emerging companies across the globe.

Why trade international shares?

The Australian Stock Exchange (ASX) represents less than 2% of the global market. Like big fish in a small pond, it’s dominated by a few large industry sectors: mining, healthcare and financials.

Casting your net overseas is like paddling out from the pond and into the ocean. Tap into US tech giants like Apple and Tesla, diversify in Germany with Adidas and Mercedes, or dabble in the UK with Vodafone and Unilever. The choice is yours.

Spread your risk

Spreading your risk internationally can reduce your risk. While one market may be declining, your investments in another may be doing well which can help cushion your losses.

According to the ASX Australian Investor Study 2023, only 16% of Australian investors own international shares, leaving a lot of Aussies relying heavily on one market to to achieve their financial goals.

What to consider when investing internationally

Currency shifts

Currency fluctuations can increase your investment gains or compound your losses depending on the situation. If you’re buying and/or selling US stocks for example, a suggestion could be to keep an eye on the Australian dollar and US dollar to ensure you’re not left surprised if either rises or falls.

Global events

Geo-political tensions, pandemics, elections and interest rate changes can influence the performance of stock markets around the world. For example, the war in Ukraine turned the markets upside down. We can never predict global events, however, diversification and proper risk management may allow you to mitigate any potential risk.

International Taxation

Familiarise yourself with the investing regulations of other countries such as tax and accounting rules for seamless share trading. For example, you’ll need to complete a W-8BEN form before you start trading US securities to ensure you can claim a reduction of withholding US tax charged on sales or dividends.

How to buy international shares

You can buy and sell international shares through a stockbroker like CMC Invest. Compare your options by considering brokerage fees, which markets you’ll have access to, how long it takes to execute a trade, exchange rates and research tools available.