An investor’s guide to buying international stocks in Australia

Looking to diversify beyond the ASX and tap into world-leading companies? Read on to learn why some investors add international shares to their portfolios for diversification and growth. Let’s break down how to buy international shares from Australia. 

What are international shares? 

International shares are ownership stakes in companies listed on stock exchanges outside of Australia, like the New York Stock Exchange (NYSE), NASDAQ, London Stock Exchange (LSE) and markets across Europe and Asia. Buying them lets you tap into sectors that are under-represented on the ASX, from US technology and semiconductors to European luxury brands and global healthcare leaders. 

They span from large, blue-chip multinationals to high-growth innovators and emerging-market champions. For Australian investors, international exposure can broaden your portfolio drivers (earnings, currencies, economic cycles) and reduce your reliance on domestic resources and financials. 

Why invest in international shares? 

Diversification benefits 

Investing in international shares can spread your risk across different geographies and sectors. That means a downturn in one market or industry can be offset by strength elsewhere. Diversification doesn’t eliminate risk, but it can smooth the journey and stop you from investing in just one economy or currency. 

Growth potential in global markets 

Global markets give you exposure to innovation at scale – cloud computing, artificial intelligence, biotech, clean energy and plenty more. While historical returns in major indices have at times been strong, past performance isn’t a reliable indicator of future performance. The best strategy? Matching growth exposure to your goals and risk tolerance. 

Access to global brands and industries 

International investing opens the door to household names and specialised niches. Think consumer platforms, chip designers, pharmaceuticals, industrial automation and luxury goods. This can be a great way to complement an ASX portfolio that may skew to banks and mining companies, for example. 

Currency fluctuations and potential benefits 

When you hold foreign shares, returns translate back into Australian dollars (AUD). A rising USD can add to local-currency returns, while a stronger AUD can subtract. Currency effects can diversify your portfolio, but they also introduce another source of risk. 

How to buy international shares in Australia: Step-by-step guide 

1. Open an account with CMC Invest: Create your account and start investing. With CMC Invest, you can find thousands of international shares across major exchanges from a single platform. Some of the biggest benefits include intuitive order tickets and watchlists, competitive pricing and portfolio tools that help you track holdings across markets.  

2. Research international shares: Before placing an order, build a watchlist. Look into company updates, sector trends and macro drivers (rates, inflation, currency), then use platform charts, news and our Knowledge Hub to understand how share investing works. 

3. Place your order: Search for your chosen security, pick the order type (market or limit), set the quantity and then review the estimated costs (including any forex conversions) before you submit. Watch a quick walkthrough on research and order entry for more guidance. After execution, you can stay on top of price moves, corporate actions and portfolio allocations in the platform. 

Risks and considerations when buying international shares 

Market volatility in global investments 

International markets can move on earnings surprises, policy changes, geopolitical developments and sector rotations. Technology and biotech, in particular, tend to be more volatile than defensives like consumer staples and utilities. So while volatility can create opportunity, it also demands discipline. 

Currency risk for Australian investors 

Because foreign securities trade in their local currency, fluctuations in AUD/USD, for example, can amplify or offset the underlying share performance and increase your risks of investing. If the Aussie dollar rises, your offshore holdings could be worth less in local terms, and vice versa. Some ETFs have AUD-hedged units, which can limit the currency impact but might also come with extra costs. 

Regulatory and political risks abroad 

Different jurisdictions have different rules covering disclosure, tax, antitrust, privacy, labour and capital markets. Events like elections and trade policy can disrupt supply chains and influence company outlooks. Regulatory actions might also change how the business operates or monetises its products. 

Aligning with your investment goals 

Settle on your objective (growth, income, diversification) and your time horizon. International shares will suit investors who are comfortable with currency and market risks and looking for more exposure to different sectors. Just make sure your position size and the mix of markets match your risk appetite. 

Fees, taxes and other costs 

Consider brokerage, forex conversions and any custody or exchange fees. Dividends from foreign shares could be subject to withholding tax too. Always read the disclosure documents and work with a tax or accounting specialist if necessary. 

Next steps

International shares can broaden your opportunity set, giving you diversification, greater variety across sectors and exposure to global innovation, plus new risks around currency and volatility. With the right tools and plenty of discipline, you can take advantage of overseas markets. 

Start investing in international shares today with CMC Invest by opening an account. 

This article provides general information only. Past performance is not a reliable indicator of future results. It is not to be construed as a solicitation or an offer to buy or sell any financial instruments, or as a recommendation and/or investment advice. It does not intend to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any financial instruments. CMC Invest believes that the information in this article is correct, and any opinions and conclusions are reasonably held or made on information available at the time of its compilation, but no representation or warranty is made as to the accuracy, reliability or completeness of any statements made in this article. CMC Invest is under no obligation to, and does not, update or keep current the information contained in this document. Neither CMC Invest nor any of its affiliates or subsidiaries accepts liability for loss or damage arising out of the use of all or any part of this document. Any opinions or conclusions set forth in this article are subject to change without notice and may differ or be contrary to the opinions or conclusions expressed by any other members of CMC Invest.