How to invest in the Euronext from Australia

Yvonne Taylor avatar
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Andrew Boyd avatar
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Updated 19 Sep 2023
  • Learn about investing in the Euronext, Europe’s largest stock exchange.
  • Ways to invest – shares, ETFs and index funds – where to invest, and how to invest step-by-step.
  • Pros and cons of investing in the Euronext.

Euronext is a stock exchange operating regulated share markets in seven countries – Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal – as well as non-regulated activities in other parts of the world. It’s the largest stock exchange in Europe, with almost €7 trillion in the combined market capitalisation of around 2,000 listed companies. That makes it about 50% bigger than the London Stock Exchange.

Some of the largest companies listed on Euronext include:

  • LVMH. Moët Hennessy Louis Vuitton, encompassing not only the brands appearing in the company name, but also Christian Dior, Fendi, Givenchy, Marc Jacobs, Stella McCartney, Loewe, Loro Piana, Kenzo, Celine, Sephora, Princess Yachts, TAG Heuer, Bulgari, and Tiffany & Co).
  • L’Oreal. Cosmetics and personal care.
  • Volkswagen. Multinational motor vehicle manufacturer.

There are also plenty of SME (small and medium-sized enterprise) listings with growth potential, as well as large companies, such as Procter & Gamble, with dual listings on other world exchanges. In short, it’s a market with lots of choices for Australian investors, and Australian residents are eligible to trade in securities listed on the Euronext.

What can you invest in?

Ways to invest in the Euronext

You’ll need to decide which of the following investment paths is right for you, or whether you are going to opt for a combination of them.

Individual company shares

Investing in individual company shares is very risky, especially for beginners. Even seasoned share market experts find it difficult to predict whether – or when – a company's share price will go up or down, and the share price of a single company is likely to see more volatility than a fund investing in a diversified basket of shares (see below).

Day trading and short-term trading are best left to professional investors and market veterans. Other investors, having done extensive research or taken professional advice from a trusted expert, could consider investing in individual companies for the long term. But always remember that there are many factors that can cause share prices to fall, so you should never invest an amount that you cannot afford to lose.

Exchange traded funds

An exchange traded fund, or ETF, pools investors’ money to buy assets such as shares, interest-bearing bonds and units in property trusts. The fund has a manager, and units in the fund can be bought and sold on a stock exchange.

Most funds track the value of an index (see ‘Index funds’ below) or a commodity (such as gold). Because they are trying to mirror the asset they are tracking, they don’t aim to outperform the market, but merely follow its price movements. This makes them a relatively low-risk form of investment, and also low-cost, since the management fees reflect the fact that they are passively rather than actively managed.

An example of an ETF which tracks a European market segment, other than the main Euronext index, is the BNP Paribas Easy ECPI Circular Economy Leaders (PA: REUSE), which invests in companies with strong social and environmental objectives. Other Euronext ETFs may invest, for example, in banks (e.g. Lyxor Stoxx Europe 600 Banks UCITS ETF – PAR: BNK) or agribusiness (BNP Paribas Global Agribusiness THEAM Easy UCITS ETF – PAR: EAG).

Index funds

Like all major stock exchanges, Euronext has indexes (or indices), hypothetical portfolios of investments representing a sector of the market, such as the 100 largest companies valued by market capitalisation. You can’t buy a share in an index, but you can buy units in ETFs which aim to replicate the content of an index by pooling investors' funds to purchase shares in companies included in the index.

Euronext indexes, and some examples of funds which track them, include:

  • Euronext 100 index. Blue chip stock index of the 100 largest companies on Euronext.
  • AEX (Amsterdam Exchange Index). 25 of the most recently traded securities on Euronext Amsterdam. iShares AEX UCITS ETF (AMS: IAEX) tracks this index.
  • BEL 20. 10-20 (most often 20) companies trading on Euronext Brussels. Tracked by Lyxor BEL 20 TR (DR) UCITS ETF (BRU: BEL).
  • CAC 40. 40 most significant companies amongst the 100 largest trading on Euronext Paris. Tracked by Xtrackers CAC 40 UCITS ETF (GER: 4MYR).
  • ISEQ 20. 20 companies with the highest trading volume and market capitalisation trading on Euronext Dublin.
  • FTSE MIB. 40 most traded stocks on the Italian national stock exchange. Tracked by WisdomTree FTSE MIB 3x Daily Leveraged (MIL: 3ITL).
  • PSI 20. 20 companies with the largest market capitalisation and trading volume on Euronext Lisbon.
  • OBX 25. 25 most liquid companies on the Oslo stock exchange.

Unsure about what share dealer to use?

Where to invest in the Euronext

eToro

On website

eToro AUS Capital Limited AFSL 491139. eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Highlights

  • Trade and invest in top financial instruments, including a wide selection of stocks.
  • eToro is regulated by CySec, FCA, and ASIC.
  • Your funds are protected by industry-leading security protocols.
  • Earn up to 5.3% annual interest on your balance.*

*Applicable to uninvested funds. Your capital is at risk. Eligibility and Terms & Conditions apply.


Pros

  • Stock fees are low, helping you keep more of your returns.
  • Pricing is competitive, giving you good value for your trades.
  • Access to a wide range of markets.
  • The platform is simple to use, even if you’re new to trading.
  • Social trading lets you follow and learn from experienced investors.
  • Access to market news and trader insights.

Cons

  • Customer support is limited.
  • Advanced traders may find the analytical tools too basic.
  • Withdrawals come with a $5 fee, which can add up over time.
  • Only a few account base currencies are available, which may lead to extra conversion costs.
Saxo Invested

On website

Saxo Invested

Highlights

  • Invest in 23,500+ stocks from ASX, New York, Hong Kong, and 50+ other global markets.
  • Save more with low stock and ETF fees, minimal FX fees, and no withdrawal fees.
  • Analyse, improve, and manage your risk using intuitive trading tools.

Pros

  • Start investing in US stocks with brokerage fees as low as USD 1.
  • Stay informed with built-in research, expert analysis, live market updates, podcasts, and webinars.
  • Trade US stocks on your schedule with extended hours from 7 AM to 5 PM (GMT-4).
  • Set up stop-loss and take-profit orders to manage risk automatically, even when you're not watching the market.
  • Get rewarded for being an active trader, adding extra perks to your experience

Cons

  • A high custody fee can add to your overall trading costs.
  • Fees for options and futures trading are on the higher side.
  • No automated investing.
  • The platform’s features and tools may feel too complex for beginners.
IG

On website

IG

Highlights

  • Trade Australian shares for just $5 commission when you make three or more trades in the previous month.
  • Pay $0 commission on US and UK shares, though a 0.7% FX conversion fee applies.
  • Gain an edge by trading key US shares during extended pre- and post-market hours.
  • Offers better deals for active traders.

Pros

  • IG’s low trading fees have earned multiple industry awards.
  • A trusted global CFD provider with strong compliance and transparency.
  • Has a user-friendly platform with great educational tools and free bank transfers.
  • No inactivity fee for two years, plus an optional bank card for convenience.
  • Deposits and withdrawals are smooth, with no fees on withdrawals or bank transfers.

Cons

  • IG’s spreads are higher than those of some competitors.
  • Only a few order types are available.
CommSec

Not available for application via this website

Highlights

  • Invest in ETFs and over 2,000 Australian companies on the ASX.
  • Access U.S. shares plus 12 other global markets.
  • Own CHESS-sponsored shares for added security.

Pros

  • Backed by 25+ years of experience in the industry.
  • No inactivity fees.
  • Strong research tools to help you make informed decisions.
  • Advanced data and monitoring tools for tracking the market.
  • Quality trading tools, including conditional orders for better trade execution.

Cons

  • Limited investment options beyond stocks and ETFs.
  • The $2 brokerage fee for trades up to $1,000 seems low, but it adds up for small investments.
  • Higher fees for international trades compared to some competitors.
  • No live chat support, but assistance is available via email or phone.
nabtrade

Not available for application via this website

Highlights

  • Trade domestic and international shares online starting from $9.95 per trade.
  • Earn a competitive 4.25% p.a. on cash balances up to $1 million.
  • Access global markets, including the US, UK, Hong Kong, and Germany.

Pros

  • Well-established platform with a solid reputation.
  • CHESS-sponsored ASX trades for added security.
  • No inactivity fees.
  • Access to competitive trading tools and advanced order types.
  • Comprehensive data and company research are available to support your decisions.

Cons

  • Limited access to international markets compared to other platforms.
  • Customer service is only available on weekdays from 8 am to 8 pm AEST.

Looking for the best trading platform in Australia? Compare options with Finty.

First time investing?

How to invest in the Euronext

Step 1: Choose a broker

There are hundreds of online share trading platforms to choose from. When comparing options, check their brokerage, cash withdrawal and inactivity fee amounts, as well as the tradable securities offered (which should include ETFs and shares).

Whichever broker you choose must have access to the Euronext stock exchanges. For the sake of having all your investment activity in one place, you may also want access to Australian and European share markets from the same broker.

Some brokers offer commission-free trades on ETFs. If you’ve decided to invest in shares, look for a broker offering fractional shares, since some Euronext companies have high prices for a single share – upwards of €500.

Step 2: Decide how much to invest

Only ever invest what you can afford to lose because share markets are volatile. If you can’t withstand losses in the short term, it’s best to wait until you can, or plan to invest for the long term only.

Step 3: Transfer funds to your account

Add funds to your trading account with a bank transfer, the most commonly accepted method.

It may take some time for funds to clear before you can start trading. Note that your broker may require a minimum deposit amount.

Step 4: Choose between shares and an ETF (or a combination of them)

ETFs are diversified across a range of companies, so they typically experience lower price volatility than individual company shares and can be better for long-term investment.

Short-term investors hoping for quick capital gains (but also prepared for losses) may prefer to buy shares. ETFs can often be traded commission-free.

Step 5: Configure your order

Depending on the broker you use, you can choose from various kinds of orders.

A market price order is the most straightforward, requiring virtually no setup. Once executed, you’ll get shares at the next available market price for the share or fund unit.

If you have a specific strategy in mind, you’ll need more options in terms of order configuration. Some brokers have highly customisable orders that can be triggered by events, meaning you can buy or sell when your chosen share or fund hits a price target.

Step 6: Place your order

When you’re happy with all of your decisions, submit your order to be executed.

Step 7: Monitor your investment

Share investment should not be a set-and-forget activity. Even if you intend to invest for the long term, you need to keep an eye on the company or fund's performance and price movements.

Still not sure?

Pros and cons

  • More investment opportunities. Branch out from investment solely in Australia to invest in securities involved in Europe’s largest stock exchange.
  • Lots of choices. There are over 2,000 Euronext-listed securities, including both shares and ETFs.
  • De-risking. Diversify your portfolio by choosing an ETF to reduce volatility.
  • Euronext trading hours. Euronext trading hours are 9:00am to 5:30pm Central European time, Monday to Friday. Central European time is seven hours behind of Australia, which can be inconvenient when placing price-sensitive orders.
  • Foreign currency risk. Having a trading account in AUD, and trading in euro-denominated shares and ETFs exposes you to foreign currency risk and foreign exchange conversion fees.
  • Foreign event volatility. Euronext share and ETF prices are subject to volatility caused by events occurring in a wide range of European countries, whose potential effects may not be immediately apparent to Australian investors.

As seen on

Media - The Sydney Morning Herald
Media - Yahoo Finance
Media - News.com.au
Media - Daily Mail Australia
Media - Australian Fintech
Media - Dynamic Business