How to Buy Shares in Ireland
Organized stock trading in Ireland dates from the opening of the Dublin and Cork stock exchanges (now merged as the Irish Stock Exchange) in the 1790s. In addition to the typical assortment of bank and corporation securities, Ireland is known for a strong technology stock sector. Since 2000 the Irish Stock Exchange moved entirely to electronic trading using the Deutsche Borse Group's Xetra trading platform. There are two ways to buy shares in Ireland. You can have your broker buy directly through ISE Xerta or by purchasing Irish ADRs on the New York Stock Exchange (NYSE).
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Instructions
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Determine if the shares you want to buy in an Irish firm are available as ADRs. An American Depository Receipt is a negotiable security issued by banks that holds shares in foreign companies, acting as a depository. Each ADR represents one or more shares of the stock. This method avoids the cost of currency exchanges and holds other administrative costs to a minimum. Your broker can tell you if an Irish stock is available as ADRs or you can check NYSE listings.
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Buy shares in Ireland as ADRs just as you would purchase any American corporation stock. For example, if you decide to buy shares in the Bank of Ireland, simply place an order with your broker. You could see a different price quoted for the shares in Ireland and the ADRs, because the NYSE quotes the price of the ADR, not the individual shares.
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Contact your broker to buy shares in Ireland directly from ISE Xetra. After you deposit sufficient funds in your account, have your broker exchange US dollars for Euros and then place your stock purchase order. In addition to the normal broker's commission, you will have to pay a currency exchange fee and additional administrative costs.
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Tips & Warnings
When buying foreign stocks, bear in mind that you might incur a double tax liability in the United States and for the country where the stock is traded.
Currency exchange rates do more than cost you a fee when buying foreign stocks. Favorable rates can save you money. Buy and sell when currency exchange rates are not in your favor and you could see a profitable trade turned into a net loss.
