Before You Start
- Open a verified account with DEGIRO or Interactive Brokers (IBKR) as a European resident.
- Have your identity documents (passport/ID) and proof of address ready for onboarding.
- Set up a EUR-denominated bank account for deposits and withdrawals.
- Understand basic order types (market, limit) and currency conversion concepts.
- Be aware of tax reporting obligations in your EU country.
Time needed: 45–90 minutes (account setup + first purchase)
What you'll need: DEGIRO or IBKR account, internet banking, 2FA device/app, €100–€500 (or more) for testing
Want to buy international stocks in Europe—like Apple, Tesla, Alibaba, or Toyota—from the comfort of your home? This step-by-step tutorial covers exactly how to do it on two of the most popular EU-accessible brokers: DEGIRO and Interactive Brokers (IBKR). You’ll learn how to deposit EUR, convert currencies, place orders, handle FX fees, and what to watch out for as a European investor.
We’ll focus on buying non-European shares listed in the US, Asia, and beyond, using practical EUR-based examples. If you’re still choosing your broker, check out our comprehensive broker comparison for a broader overview.
Step 1: Open and Verify Your Account
What to do:
- Register at DEGIRO or Interactive Brokers (select your EU country).
- Complete identity verification: upload your passport/ID and proof of address (utility bill, bank statement).
- Set up two-factor authentication (2FA) for security.
Why it matters: Due to EU regulations, brokers require full KYC (Know Your Customer) onboarding. Without a verified account, you can’t deposit funds or buy stocks.
What can go wrong: Incorrect documents or blurry uploads may delay approval. Make sure your address matches your bank records.
Pro Tip
Choose the “Custody” account type on DEGIRO if you want extra asset protection (but note: less flexibility for some corporate actions or lending revenue).
Step 2: Deposit EUR to Your Broker Account
What to do:
- DEGIRO: Link your bank account (SEPA transfer only). Go to “Deposit/Withdraw” → “Deposit Money” and follow the instructions. Use the unique payment reference provided.
- Interactive Brokers: Log in, select “Transfer & Pay” → “Transfer Funds” → “Deposit Funds”. Choose “Bank Wire” or “SEPA Transfer” in EUR. Follow the on-screen instructions, including reference codes.
Why it matters: Depositing in EUR avoids unnecessary currency conversion fees at your bank. Both brokers credit funds quickly (1–2 business days for SEPA transfers).
What can go wrong: Sending money from an unlinked or third-party account will be rejected. Always use your own name and reference code. Double-check the IBAN and BIC/SWIFT.
Pro Tip
Try a small test transfer (e.g., €10–€20) first to ensure everything works before sending larger amounts.
Step 3: Understand FX Fees and Currency Conversion
Most international stocks (US, Asia) are not traded in EUR. For example, Apple trades in USD, Toyota in JPY. You must convert your EUR to the local stock currency before buying.
- DEGIRO: Offers both automatic and manual FX conversion. By default, it will auto-convert EUR when you place a foreign stock order, but you can also convert manually (“Currency Handling” → “Manual”). FX fee: ~0.25% per transaction.
- Interactive Brokers: Lets you convert currencies manually with very low FX spreads (as low as 0.002%). Go to “Convert Currency” or place a spot FX trade for EUR→USD, EUR→JPY, etc.
Why it matters: FX fees can eat into your returns. Manual conversion gives you more control over timing and rates, especially for larger investments.
What can go wrong: Auto-conversion may use less favourable rates, especially on DEGIRO. If you don’t convert enough, your order may be rejected for “insufficient funds.”
Pro Tip
On Interactive Brokers, you can batch-convert a larger amount of EUR to USD (e.g., €1,000) and use it for multiple US stock purchases, reducing FX costs over time.
Step 4: Find and Select Your International Stock
What to do:
- Use the broker’s search tool to find the stock. For example, search “Apple” or “AAPL” for US shares, “Toyota” or “7203” for Japan.
- Check the exchange: For Apple, select NASDAQ (USD). For Alibaba, select NYSE (USD) or Hong Kong (HKD).
- Review the stock’s details: currency, trading hours, and ticker symbol.
Why it matters: Many stocks are dual-listed. Always ensure you’re buying on the intended exchange and in the correct currency.
What can go wrong: Accidentally buying an ADR (American Depositary Receipt) or a different share class. Double-check the ticker and exchange before placing your order.
Pro Tip
International stocks may have different tax implications depending on the market (e.g., US dividend withholding tax). Keep this in mind for future tax reporting.
Step 5: Place Your Buy Order (Market or Limit)
What to do:
- DEGIRO: Click “Buy” on the stock screen. Choose order type:
- Market Order: Buy at the current market price (fast, but risk of slippage in volatile markets).
- Limit Order: Set the maximum price you’re willing to pay (recommended for non-EU stocks due to FX and price swings).
- Interactive Brokers: Click “Buy” → choose order type (market/limit) → set quantity and price. IBKR also allows fractional shares for US stocks (e.g., buy 0.5 Amazon share).
Expected outcome: You should see your order as “Pending” or “Executed” in the platform’s order list. Once filled, your new stock position will appear in your portfolio, with value shown in EUR (may update with currency fluctuations).
Why it matters: Order type affects your execution price and risk. Limit orders protect you from sudden price spikes, especially in non-EU markets with wider spreads.
What can go wrong: Market orders during volatile hours can result in unexpected prices. Limit orders may not fill if the price never reaches your limit.
Pro Tip
On Interactive Brokers, you can enable “SmartRouting” to improve execution across multiple exchanges, often getting better prices for international stocks.
Step 6: Review Custody, Tax Documents, and Reporting
What to do:
- After purchase, check your portfolio overview. Both brokers show your holdings, average purchase price, and current value in EUR.
- Download tax documents:
- DEGIRO: Go to “Documents” → “Annual Report” for your yearly tax statement (“Jahresübersicht”).
- Interactive Brokers: “Reports” → “Tax Documents” → download your “Annual Activity Statement” and dividend reports.
- If you hold US stocks, complete the W-8BEN tax form in your account settings to ensure reduced US withholding tax (15% for most EU residents vs. 30% default).
Why it matters: Proper tax documentation is essential for reporting foreign dividends and capital gains in your EU country. The W-8BEN form is critical for US stocks to avoid excess tax.
What can go wrong: Failing to submit W-8BEN means your US dividends will be taxed at 30% instead of 15%. Missing tax documents may cause headaches at tax time.
Pro Tip
Set a calendar reminder to download your annual tax report each January. Many EU tax authorities require you to declare foreign assets and income, even if you don’t sell your stocks.
Step 7: Understand Custody and Asset Protection
What to do:
- Review your broker’s custody model:
- DEGIRO Custody Account: Your shares are held in a separate legal entity—less exposure to broker default, but you may miss out on some perks (voting, lending revenue).
- DEGIRO Basic/Active/Trader: Shares may be lent to third parties, increasing risk slightly in exchange for lower fees or more features.
- Interactive Brokers: Client assets are held in segregated accounts and are protected up to €20,000 (EU IBKR Ireland/Luxembourg), with additional US SIPC coverage for US-listed assets.
Why it matters: In the unlikely event of broker insolvency, custody structure affects how quickly and easily you recover your investments.
What can go wrong: Confusing account types or not understanding the implications of securities lending. Always read the broker’s terms on custody and asset protection.
Pro Tip
If you’re unsure, start with a “Custody” account on DEGIRO and upgrade later if needed. For larger portfolios, consider spreading assets across multiple brokers (compare features and fees here).
Common Mistakes When Buying International Stocks as a European
- Ignoring FX fees: Small differences add up, especially with frequent trading or large amounts.
- Forgetting to submit W-8BEN: Leads to unnecessary US tax on dividends.
- Using market orders in illiquid markets: May get a much worse price than expected.
- Buying on the wrong exchange or share class: Double-check ticker, currency, and listing before confirming.
- Not downloading or keeping tax reports: Leads to trouble at tax time.
- Assuming all brokers have the same custody protections: Review each broker’s structure and consider splitting assets for added safety.
Next Steps
- If you want to invest in international ETFs, see our guides on DEGIRO’s crypto ETF listings or buying your first ETF on IBKR.
- Compare fees, features, and protections across DEGIRO, Interactive Brokers, and Trade Republic in our detailed comparison article.
- Ready for more advanced strategies? Learn how to use margin safely in this IBKR EUR margin tutorial.
Buying international stocks as a European is straightforward with the right broker and a clear plan. Always keep an eye on FX fees, custody options, and tax paperwork for a smoother investing journey.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always do your own research and consider consulting a qualified financial advisor before making investment decisions.