How to Buy European Stocks

You may have heard some variation on the old investing mantra: Let your money work for you. That, essentially, is what happens in the stock market: You put some of your money into a company and hope your investment pays off. You surely have heard of the New York Stock Exchange and other U.S. stock markets. You can invest just as easily overseas, buying European stocks, for example.

Step 1

Prior to buying European stocks, you need to find a market. Look up a European stock exchange. There are several options to choose from: MATIF (a French market), the Frankfurt Stock Exchange (Germany) and EASDAQ (Belgium) are just a few examples. (See References.)

Step 2

Find a full-service broker, or use a discount broker or online service. The advantage of a full-service broker is that he or she will research stocks and provide feedback on your portfolio. Plus, you can find an expert in the European stock market to help you make the right decisions. The downside is that such brokers are pricey. Discount brokers and online services force you to do the research yourself, but they're cheaper.

Step 3

Research a European stock and watch its performance in the market for a few days or a few weeks. A full-service broker can help you with this. Or, once you have chosen a European market, pick out a few stocks and watch them. Think about buying if the stock's price is going up, particularly if it has been steadily increasing over time.

Step 4

Buy the stock of your choice through your broker, who will handle the details of the purchase. You will be provided with share information after the sale.