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If you’re wondering how to buy shares in Ireland, you’re not alone. Many avid stock traders are eager to learn how to buy shares right now. But how do you buy shares in Ireland? What is the best trading platform to use in 2021?

By the end of this beginner’s guide, we’ll have explored all the key metrics surrounding the how to buy shares in Ireland topic. As a bonus, we’ll also reveal the cheapest broker that offers 0% commission stock trading. Read on to learn more.

Contents

How to Buy Shares in Ireland Right Now – Quick Walkthrough

  • Open an account with eToro – Click here to the eToro website and click the ‘Join Now’ option. For your new brokerage account, fill in your details and select a username and password.
  • Verify your account – You’ll need to verify your trading account as part of the KYC process by submitting proof of identity (a copy of your passport or driver’s licence) and proof of address (a copy of a bank statement or utility bill).
  • Deposit – A $50 minimum deposit via credit/debit card, bank transfer, or e-wallet is required to fund your account.
  • Select your shares – Type the ticker symbols of your favourite shares into the search bar. Alternatively, you can use the ‘Discover’ button to search through a plethora of shares from 17 international stock exchanges.
  • Buy shares – Next to your preferred share, tap the ‘Trade’ button. To complete your order, enter the amount you want to invest and click ‘Open Trade.’

The Fundamentals of How to Buy Shares

As the global economy gradually returns to pre-pandemic levels, many new investors are wondering how to buy stocks in Ireland. However, with so many stocks and trading platforms to choose from, knowing where to start can be disorientating.

How to buy shares in Ireland - stock trading with eToro

To begin adding stocks to your investment portfolio, you must first create a trading account with a reputable and licenced stock broker. There are heaps of discount brokers available nowadays all boasting 0% commission stock trading alongside other innovative trading features.

In this convenient tutorial, we’ll show you how to buy shares in Ireland in the cheapest way possible.

We’ll also go over the fundamentals of trading stocks and shares, as well as all key metrics, the buyer’s journey, and tax rules. By learning the basics of how to buy shares in Ireland, you’ll be better equipped to make better investment decisions going forward.

What is a share in a company?

When a business decides to go “public,” via an Initial Public Offering (IPO) it means that it will be listed on a stock exchange such as the NASDAQ, London Stock Exchange (LSE), or NYSE. As a result, retail investors can buy “shares” in the company. Therefore, you will own a share of the company based on the number of stocks that you own.

How to buy shares Ireland

Market conditions and liquidity determine the value of the shares. Simply put, if there are more buyers than sellers, the share price will rise. When that happens, the value of your investment will rise accordingly.

On the other hand, when there are more sellers than buyers, the value of your stock falls. As a company shareholder, you will be eligible for a variety of benefits such as dividend payouts and voting rights.

Can Trading Shares be Profitable?

The four horsemen of tech – a quartet of big tech stocks including Microsoft (MSFT), Intel Corp. (INTC), Cisco Systems (CSCO), and Dell fueled the rise of the internet sector and drove the Nasdaq to all-time highs – helped popularise the buy-and-hold (HODL) investment strategy in the 1990s.

They appeared to be such safe bets that financial experts were recommending them to investors as stocks to buy and hold for the long term. Unfortunately, many traders who followed their advice purchased late in the bull market movement, so when the dot-com bubble burst, the prices of these overpriced securities also crashed.

Despite such drawbacks, the buy-and-hold approach produces positive returns with less volatile equities, rewarding traders with high annual returns. The HODL approach is still a popular trading strategy for retail investors. The stock market has traditionally appreciated over time, with average annual returns of about 10%. The buy-and-hold method has become popular amongst cryptocurrency traders, with the likes of Bitcoin (BTC) and Ethereum (ETH) reaching unprecedented heights in recent weeks.

Capital Gains

When the value of your shares rises above the price you paid when you first purchased them, you have made a capital gain.

As an example:

  • Imagine you bought 1,000 shares at a price of 200 cents per share.
  • This means your total investment is €2,000.
  • After ten years, the stock you purchased is now worth 400 cents a share.
  • Because your long-term investment has increased by 50%, you decide to sell your shares.
  • You earned 200p for each share, for a net profit of €2,000.

According to revenue.ie, your payment for CGT (Capital Gains Tax), is due before you file your return. CGT can be paid online through the Revenue Online Service (ROS).

Dividends

You will also be able to earn money from your shares in the form of dividends. Dividends, in their most basic form, allow large firms to share their profits with shareholders.

How to buy shares in Ireland - HSBC dividend stocks

If they do, you will be entitled to a portion of the revenue. The amount of dividend income you receive will fluctuate based on how well the firm performs. Dividends are not paid on all shares, but if they are, they are normally issued every three or six months.

Let’s see how dividend stocks work:

  • An investor owns 500 shares of HSBC.
  • Every three months, the company distributes dividends.
  • HSBC has announced a dividend yield of 7% this time around.
  • This works out to £0.28 per share.
  • Because you own 500 shares, you will receive £140 (£0.28 x 500 shares).
  • The best part is that dividends are paid in addition to capital gains.

While previous performance is never a guarantee of future results, the average annualised returns of the S&P 500 since 2011 are shown in the table below:

Year Average Closing Price Open High Low Close Annual % Change
2021 4,174.97 3,700.65 4,536.95 3,700.65 4,486.46 19.45%
2020 3,217.86 3,257.85 3,756.07 2,237.40 3,756.07 16.26%
2019 2,913.36 2,510.03 3,240.02 2,447.89 3,230.78 28.88%
2018 2,746.21 2,695.81 2,930.75 2,351.10 2,506.85 -6.24%
2017 2,449.08 2,257.83 2,690.16 2,257.83 2,673.61 19.42%
2016 2,094.65 2,012.66 2,271.72 1,829.08 2,238.83 9.54%
2015 2,061.07 2,058.20 2,130.82 1,867.61 2,043.94 -0.73%
2014 1,931.38 1,831.98 2,090.57 1,741.89 2,058.90 11.39%
2013 1,643.80 1,462.42 1,848.36 1,457.15 1,848.36 29.60%
2012 1,379.61 1,277.06 1,465.77 1,277.06 1,426.19 13.41%
2011 1,267.64 1,271.87 1,363.61 1,099.23 1,257.60 0.00%

To replicate these results, you’d need to invest in an ETF or mutual fund that tracks the S&P 500 benchmark stock index such as the Vanguard S&P 500 ETF, the iShares Core S&P 500 ETF, and the SPDR S&P 500 ETF Trust.

Compound Growth

Rather than just cashing out capital gains or waiting for dividend payouts, most investors prefer to reinvest these earnings to produce greater returns over the long haul. This is what’s referred to as compounding. By keeping a stock for an extended period and reinvesting capital gains regularly, you can generate profits from your existing earnings.

Consider the following example of compound growth:

  • You invest £100 every month in an asset with a 6-percentage-point return.
  • If you do this for ten years, you will have invested £13,200 and will have £18,915 in your account.
  • After 20 years, you will have invested £25,200 and will have a total of £50,640.
  • 40 years later and you would have invested £49,200 and would have a total of £209,201.

How to Buy Stocks in Ireland – Fees & Expenses

How to buy shares in Ireland with the lowest fees on eToro

Another important thing to consider while learning how to buy shares in Ireland is the pricing and fee structure. Commissions and bid-ask spreads are some of the most important fees and expenditures to be aware of.

What are trading commissions?

Trading commissions are charged when you open and close a trade. This is the broker’s way of getting compensated for offering its services to you.

The amount of commission charged by different brokers varies depending on the asset traded and the type of service provided. Execution-only brokers charge cheaper commissions since they do not make trade decisions on behalf of their clients or provide advice.

Traders will face a variety of charges in addition to trading commissions. Spread betting, for example, does not charge a commission and instead includes a market spread. CFD trades on stocks are subject to commission, while CFD trades on other markets are also subject to a spread.

What are bid-ask spreads?

In trading, a spread is the difference between the buy (offer) and sale (bid) prices for an asset. The spread is an important component of spread betting and CFD trading since it determines how both derivatives are valued.

Most online brokers, market makers, and other service providers will quote their pricing as a spread. This means that the price at which an asset is purchased will always be somewhat higher than the underlying market, while the price at which it is sold will always be slightly lower.

In finance, spread can refer to many different things, but it typically stands for the difference between two set prices.

What are the Best Shares to Buy Now in Ireland?

How to buy shares in Ireland - Daily Movers

Investors often start buying shares in Irish companies and other leading companies such as huge tech stocks when market conditions become bullish. FAANG stocks, such as Google, Facebook, Netflix, Alphabet, and Apple, are examples, but other significant Irish shares have recently caught the attention of many investors.

CRH plc, Johnson Controls International plc, Kerry Group plc, and Kingspan Group plc are all top-rated Irish stocks that are currently on market analysts’ watchlists. Johnson Controls International plc, for example, has had positive earnings growth for the past five years. At the time of writing it has a market capitalization of $52.41B, and YTD gains of 57.92%.

How to Buy Shares in Ireland – Best Shares to Buy Right Now

Let’s explore the best stocks to buy in Ireland right now:

  1. Harley-Davidson, Inc. (NYSE:HOG) Up by 9.35% in YTD gains
  2. Moderna, Inc. (NASDAQ:MRNA) The YTD Gains for this Biotech company have risen by 203.36%
  3. Tesla, Inc. (NASDAQ:TSLA) How to buy Tesla shares with 0% commission
  4. Ford Motor Company (NYSE:F) Up 112.21% in YTD Gains
  5. General Motors Company (NYSE:GM) Up 36.66% in YTD Gains
  6. XPeng Inc. (NYSE:XPEV) Up 110.53% in the Past 5 Years
  7. NIO Inc. (NYSE:NIO) Market value has risen by 321.11% in Past 5 Years
  8. Ryanair Holdings plc (LON: RYA) – How to buy Ryanair Shares with Low Fees
  9. Amazon (NASDAQ: AMZN) How to buy Amazon shares with $50
  10. Netflix (NASDAQ: NFLX) Best Tech Stock to Buy Now with P/E ratio of 61.38

Best Online Stock Brokers

So far, we’ve covered the basics of how to buy shares in Ireland as well as some of the best shares to buy right now.

With that in mind, it’s time to cover some of the best online stock brokers you can use in 2021 to start investing in stocks and shares with low fees and user-friendly features. Two of the best online stock brokers include eToro and Capital.com. They’re ideal for beginner traders and offer some of the most competitive fees across the board.

1. eToro – Best Online Stock Broker Offering Fractional Share Trading

eToro, which was founded in 2006, is a leading social trading platform and the best stock app in Ireland that’s home to more than 20 million investors. One of the broker’s most appealing features is that you can buy shares listed on 17 international exchanges on a commission-free basis. The stamp duty tax is also absorbed by eToro, lowering your overall trading costs even further.

How to buy shares in Ireland with eToro

Costs and Fees

eToro has become one of the top names amongst discount brokers. There are no deposit or account fees to worry about, and stock and ETF trades come with 0% commission. Furthermore, with a $50 minimum investment, you can buy fractional shares of major stocks from the comfort of your own home.

As we’ve already mentioned, eToro also waivers the stamp duty reserve tax, saving you 0.5% on all UK stock trades.

eToro’s copy trading features

Copy Trading with eToro

Think of passive investing as a hands-off approach to online trading. CopyTrader and CopyPortfolios are two innovative copy trading services offered by eToro. These trading tools allow you to either copy the trades of other experienced traders or invest in pre-built CFD portfolios.

Regulations and Safety

eToro is one of the safest and highly regulated online stock brokers. It is regulated by top-tier financial authorities including the UK’s Financial Conduct Authority, the Australian Securities and Investments Commission (ASIC), and the Cyprus Securities and Exchange Commission (CySEC).

eToro also provides negative balance protection, meaning that if your account balance falls below zero you’ll be covered. Additionally, roughly all clients’ funds are held in segregated bank accounts.

Pros

  • Regulated by the FCA, CySEC, and ASIC
  • Trusted online broker with over 20 million clients
  • Buy stocks without paying any commission or share dealing charges
  • Social and copy trading tools
  • Buy stocks or trade CFDs with ease
  • 1,700+ stocks listed on 17 global exchanges
  • Wide range of payment methods

Cons

  • Does not support MT4 and MT5

68% of retail investors lose money when trading CFDs with this provider.

2. Capital.com – Best Global CFD Broker Offering Commission-free Stock CFDs

Founded in 2016, Capital.com is a popular FX and CFD broker that is authorized by major financial regulators, including the Financial Conduct Authority, and ASIC.

How to buy shares Ireland - Capital.com

Capital.com offers FX trading as well as a plethora of CFD derivatives. Traders have access to MetaTrader 4, mobile trading apps, web and desktop platforms, spread betting, TradingView, and other top-rated trading platforms.

Costs and Fees

Capital.com charges minimal forex and CFD fees. You’ll also be pleased to learn that FCA and CySEC clients can now trade real stocks on a commission-free basis. Non-trading fees are also modest, with no inactivity fees or withdrawal charges. Stock index CFD fees, on the other hand, are not competitive.

If there is 0% commission on stock trades, you’ll be asking yourself ‘what fees will I have to pay when trading assets with Capital.com?’ The answer to this is bid-ask spreads. This is the difference between the quoted buying and selling prices.

Tradable assets

As well as heaps of CFDs, you can also trade commission-free real stocks and ETFs (exchange-traded funds). Capital.com account holders have access to shares listed on 7 international stock markets. The selection of stock CFDs is vast, with over 3,700 to choose from you’ll be spoilt for choice.

CFDs are leveraged, speculative instruments that pay the difference in settlement price between the opening and closing of a position. CFDs offer a tax-efficient way of gaining exposure to financial markets without taking ownership of the underlying assets.

CFD trading allows you to bet on the fluctuating prices of volatile financial markets such as forex, stocks, and commodities.

Regulations and Safety

Capital.com is regulated and licensed by top-tier financial institutions such as the UK’s Financial Conduct Authority and CySEC. In terms of client fund protections, UK-based clients are protected up to £85,000, while EU-based clients are protected up to €20,000, if the broker goes bankrupt.

Furthermore, Capital.com stores its clients’ funds in separate bank accounts and provides negative balance protection, which means you will be protected if your account balance falls below zero.

Pros

  • Fully regulated by several top-tier financial authorities
  • Trusted brand with over 2 million clients
  • Buy real stocks without paying any commission
  • Access to TradingView
  • User-friendly CFD trading app
  • Top-rated educational app – Investmate

Cons

  • Cannot set price alerts on web-based trading platform

75.26% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

Tutorial – How to Buy Tesla Shares on eToro

If you’re still wondering how to buy Tesla shares in Ireland, we’ll lead you through four easy steps to get you buying and selling the best stocks right now.

Step 1: Set up a Brokerage Account

eToro open account

To get started, go to the eToro website and click the ‘Join Now’ button. To open a live investment account, enter your email address and choose a username and password.

Step 2: Verification

As eToro is authorized by the Financial Conduct Authority, CySEC, and ASIC, new users must verify their accounts before they can trade.

This is a straightforward, all-digital process. Upload proof of ID (a copy of your passport or driver’s licence) and proof of address (a copy of a bank statement or utility bill) to your account dashboard using the ‘Complete Profile’ option.

Step 3: Fund your Account

For new account holders, the minimum deposit is just $50 and there are no deposit fees. You’ll be able to choose from a range of payment options including credit cards, debit cards, bank transfers, and electronic wallets such as PayPal and Skrill.

Step 4: Search for Tesla and Buy Shares

You can begin investing immediately after funding your account! Simply enter the company’s name or ticker symbol into the search field and press the ‘Trade’ button.

Buy TSLA stock with eToro

Following that, you’ll see an order box where you can select how much you want to invest and whether or not to place stop-loss or take-profit orders if you’re trading CFDs. Once you’re satisfied with everything, click ‘Open Trade.’

Are Shares Taxed in Ireland?

If you sell shares (or any other sort of real estate) for a higher price than you paid for it, you will have made a capital gain. This capital gain is subject to Capital Gains Tax (CGT), which is currently payable at a rate of 33% in Ireland.

Picking the Right Stocks for Your Investment Portfolio

Diversification

Diversification involves putting all your eggs in multiple baskets. A well-diversified portfolio may include dozens, if not hundreds, of different stocks rather than simply one or two. Not only that, but you’ll be investing in companies covering a range of sectors, ensuring that you aren’t overexposed to a single industry.

Fractional share trading

You can invest in a percentage share of a stock by buying fractional shares. This is useful when considering the market prices of several blue-chip stocks, such as Amazon and Alphabet, which have share prices above $2,000.

As such, eToro allows you to buy fractional shares in top-rated stocks for as little as $50. As a result, you can still gain exposure to blue-chip stocks without spending thousands of dollars.

Price and Volatility

You’ll want to consider key metrics such as price and market volatility when choosing the right stocks to add to your portfolio. While penny stocks trade for less than £1 and $5, blue-chip stocks such as Amazon have a share price of 3,295.43 USD.

With that said, you’ll need to consider your budget and risk tolerance whenever you choose stocks to invest in. Volatility is the rate at which the price of a stock rises or falls over a given period. Increased stock price volatility sometimes indicates higher risk and allows an investor to forecast future fluctuations.

Selling Shares in Ireland

eToro makes selling shares as easy as buying them. Here’s how to sell shares in Ireland from the convenience of your own home:

How to sell shares in Ireland

  • Go to “Portfolio” to see all of the instruments you’re actively trading.
  • To view the individual positions, click on the corresponding instrument.
  • Click the red X next to an open position to close it. (On the eToro mobile app, swipe left on the spot you wish to close and tap the red X.)

It is vital to remember that your request will be fulfilled during standard market hours.

How to buy Shares in Ireland – Expert Verdict

With the average stock market return being roughly 10%, most traders want to learn how to buy shares in 2021. Although the stock market can be volatile, a well-diversified portfolio can help weather the impacts of extreme volatility and yield positive long-term returns.

If you’re looking to buy shares in Ireland, we recommend eToro. This CySEC-regulated online broker provides copy trading as well as zero percent commission on real stocks and CFD trading. You can also purchase and sell stocks using the eToro mobile app.

eToro – Best Online Stock Broker to Buy Stocks with 0% Commission

68% of retail investors lose money when trading CFDs with this provider.

Frequently Asked Questions on How to Buy Shares in Ireland

How to buy shares in Ireland?

You can buy shares in Ireland by opening an account with eToro. Once you’ve deposited funds, you’ll be able to search for your favourite stocks and invest with a minimum investment of just $50. Alternatively, you could use eToro’s copy trading features to passively invest in 17 international stock markets with the click of a button.

How to buy Tesla shares in Ireland?

To buy Tesla shares in Ireland, log in to your eToro brokerage account and search for TSLA in the search bar. Tap on the ‘Trade’ button next to the relevant result and enter your preferred investment amount. Once you’re happy with your choices click on ‘Open Trade’ to buy shares in Tesla.

What shares to buy now?

The best tech stocks to add to your watchlist as we head into the second half of November include Intel Corporation, NVIDIA, Wolfspeed Inc, and Teradyne.

Where to buy shares in Ireland?

We’ve reviewed heaps of online stock brokers, and found eToro and Capital.com to be the best choices for 2021. Both brokers offer real stock trading on a commission-free basis. Additionally, you can also speculate on the price movements of the underlying assets via CFD trading. eToro also offers copy trading and fractional share trading, giving it a slight advantage over its competitors.

Why do companies buy back shares?

Surplus cash is money that the company does not need to run or expand its business. A company may choose to give this money back to its shareholders. This can take the shape of a dividend payout or by repurchasing the shares. However, there are various reasons why a firm may benefit from buying back its shares, including ownership consolidation, undervaluation, and improving key financial statistics.

 

Dassos Troullides
Dassos Troullides

Dassos Troullides is an experienced finance writer who specializes in CFD, stock, and crypto trading. In particular, Dassos is skilled at breaking down complex financial topics to help new and advanced investors make better trading decisions. Dassos also writes for TradingPlatforms.com, LearnBonds.com, InsideBitcoins.com, EconomyWatch.com and ForexCrunch.com