Fancy owning a share of an American car giant or a cutting-edge Japanese tech firm? Happily, the nature of global markets means that just because a company is based overseas, it isn\u2019t necessarily difficult for a UK resident to buy shares in it. Not only can it give you a more diverse portfolio, but it also enables you to support (and potentially make a profit from) companies you admire that happen to be based overseas. We weigh up the pros and cons and explain how to get started with investing in overseas shares.<\/p>
This isn\u2019t a trick question. Overseas shares are simply shares in companies that are listed overseas rather than in the UK. Tesla and Facebook are good examples. While they\u2019re well-known brands in the UK, both companies are based in the US.<\/p>
As is the case with UK companies, each overseas share you buy represents your ownership of a unit of the company, as we explain in our beginners guide to shares<\/a>.<\/p> In many cases, yes. Living in the UK doesn\u2019t restrict you to shares in companies based in the UK. If you wish, there are ways to buy shares in major overseas markets in Europe, Canada, the US and even Asia.<\/p> There are likely to be some, typically less popular or less established, international markets where it\u2019s harder to buy shares. In some countries \u2013 such as China \u2013 regulation may mean that shares in certain companies can\u2019t be bought by foreign investors.<\/p> You can buy most overseas shares in the same way you buy UK shares \u2013 from a traditional face-to-face or phone-based stock broker or, more usually these days, using an online share dealing platform that deals with international markets.<\/p> The process for the purchase of overseas shares is likely to be nearly identical to the purchase of UK shares. There may be some differences in the fees you pay depending on whether the shares are listed on the UK\u2019s stock exchange (the London Stock Exchange<\/a>) as well as the stock market for the country they\u2019re based in.<\/p> If a company is listed on the London Stock Exchange as well as on the stock exchange for the international market the company is based in, it\u2019s what\u2019s known as \u201cdual-listed\u201d or \u201ccross-listed\u201d. There are a couple of legal differences between these types of listings. But what it boils down to for most retail investors is that you can buy dual or cross-listed shares on the London Stock Exchange in the same way you would buy shares in UK companies.<\/p> Examples of companies that are listed on both the London Stock Exchange and in other countries include US electric car manufacturer Tesla, retail giant Amazon and Netherlands-based Unilever.<\/p> If a company is listed on an international stock exchange, but not on the London Stock Exchange, you will need to buy it directly from that exchange. The price will be listed in the relevant currency for the country. In the vast majority of cases, as a UK investor, you will still pay in pounds, but a foreign exchange charge will have been applied. Some brokers or trading platforms may also charge a higher fee or commission to buy and sell shares from international exchanges, though this varies by platform.<\/p> Depending on the country you\u2019re buying from, there may also be extra tax implications for any dividends you receive, and you may need to fill in some extra forms to make sure you\u2019re taxed correctly.<\/p> If you want to buy shares in overseas companies that are dual-listed or cross-listed on the London Stock Exchange, you shouldn\u2019t have any issues. Almost every share dealing platform in the UK lets you buy shares listed on this exchange.<\/p> If you want to buy shares that are only listed on exchanges outside of the UK, you\u2019ll need to be more selective in your choice of share dealing platform. Not all platforms offer access to overseas exchanges and, of those that do, many only let you buy from one or two.<\/p> In its review of online share dealing platforms, Finder publishes details of some of the most popular foreign stock exchanges available through each platform. Head to our share dealing platform comparison<\/a> and click on \u201cView details\u201d for each provider in the table to see the exchanges on offer.<\/p> By far the most widely accessible exchange is the US Nasdaq. A decent number of platforms also let you buy shares from the following:<\/p> Access to stock markets in other countries, such as China or India, is harder to come by, so you may need to seek out a broker that specialises in less mainstream markets.<\/p>Can I invest in overseas shares?<\/h3>
How do I buy overseas shares?<\/h3>
Dual-listed (or cross-listed) shares<\/h4>
Shares that aren\u2019t listed on the London Stock Exchange<\/h4>
Which providers offer overseas shares?<\/h3>
What overseas markets can I invest in via online share dealing platforms?<\/h4>
Compare trading platforms to buy overseas shares<\/h3>