How to Buy Irish Shares

Consider all costs.

Trading in Ireland's stock market has been carried out since the 1790s. The Irish Stock Market became independent from London and the Irish stock exchange was formed when the Dublin and Cork exchanges combined in 1995. Today, all business is conducted electronically, rather than on the trading floor. Recently, membership of the Irish stock exchange has grown to more than 40 firms, and it now has a larger international membership base. The Irish Stock Exchange (ISE) uses the Deutsche Borse Groups Xetra trading system.

Things You'll Need

• A broker
• Enough money for shares and additional costs

Instructions

1. Obtain the services of a broker by checking the Financial Services Authority website in the UK or the A-Z Stockbrokers website (see References). Explore the additional costs, any stamp duty, capital gains tax (on disposal), or income tax (on dividends) that you may incur. Find out about your broker's commission. Explore any other costs of transferring money between your country and Ireland. Check, (if you live in the United States) if the firm you wish to invest in can be accessed by American Depository Receipt (ADR), which can be purchased from the New York Stock Exchange (NYSE). You will avoid currency exchange costs and cut down on fees if you invest in this way.

2. Open an account with a broker. You should have all the identification documents necessary for this---as if opening a bank account.Transfer enough money to your account to cover the price of the shares, the commission and any additional fees. You only can buy Irish shares on-line, using a broker. Check the current exchange rate between your country and the Euro. If buying shares by means of ADR, these also can be bought through your broker.

3. Explore the option of buying your shares through Allied Irish Banks, if you have an account with them. Compare their costs, first, with those of a broker. Ask your broker to tell you about any possibility of a double tax liability, where you could be liable for tax in your own country and in Ireland. Discuss with your broker the impact the currency exchange rate should have on your decisions about buying and selling your Irish shares.

Tips & Warnings

• The Irish economy is in recession at the moment (2010). You need to consider this when making your decisions.

References

• The Irish Stock Exchange
• Financial Services Authority
• A-Z Stockbrokers