How to Invest in International Stocks 2024

Identifying the best international markets to invest in can be challenging. However, it's worthwhile considering international markets, including international stocks, when your regional stock market is underperforming or has already peaked. Learn more about some of the top international markets to focus on this year. 

What are International Stocks?

UK investors often prioritise domestic stocks, which is understandable given their familiarity with UK-based companies. However, investing overseas not only provides unique opportunities but may also offer more stability through diversification during financial turmoil and periods of high inflation. 

Investing in foreign companies is more accessible than you might think, as some are dual-listed on the London Stock Exchange. Many UK-based stock brokers, such as Admiral Markets, offer international stocks from other exchanges such as the Euronext Paris Exchange, New York Stock Exchange and Tokyo Stock Exchange, among others.

You can also invest in other international markets such as the currency of a country. This can be done by trading spot currencies, or by investing in ETFs (exchange-traded funds) which track a certain currency or region.

Best International Stocks List

Below is a list of a few international stocks to watch this year that are available to invest in from the Admiral Markets Invest.MT5 account with a minimum commission of just 1 EUR/USD/GBP and the option for fractional investing on some stocks meaning you could get started with a small amount of capital to begin with. 

Ultimately, what is considered to be the ‘best’ will differ for each individual and no one can ever know how a stock will perform in the future. Below is a list to get started with and analyse further before making a decision. You can also use a demo account to practice your investing skills until you are ready to go live.

Here are seven of the best international stocks to watch:

1. Apple - US - Market leader and innovation driver in consumer electronics 
2. Tesla - US - Upending the global car market with high-quality electric vehicles 
3. LVMH - France - Luxury goods and accessories producer with a rock-solid brand presence 
4. ASML Holding NV - Netherlands - The most advanced producer of computer chip printers globally 
5. BMW - Germany - Well-known car manufacturer delivering high-quality German engineering to the mass market 
6. Sony Corp - Japan - Globally established producer of electronics and a media conglomerate 
7. Rio Tinto Ltd - Australia - One of the largest metals and mining companies in the world 

Apple - Market Leader and Innovation Driver in Consumer Devices 

Apple needs no introduction. Ever since the groundbreaking launch of the original iPod 22 years ago, the company has consistently dominated the consumer electronics market. Whether it's the highly anticipated release of the newest iPhone or MacBook, tech enthusiasts worldwide eagerly gather at Apple stores. Apple doesn't just offer phones and computers but provides customers with a seamless ecosystem of powerful and convenient devices. Unsurprisingly, Apple consistently ranks among the best international stocks to watch. 

The numbers speak for themselves: with a staggering valuation of 2.7 trillion US dollars, Apple experiences double-digit revenue growth each year, an impressive achievement considering its already massive size. Additionally, the company holds a substantial amount of cash reserves and stocks, totalling over 200 billion dollars. This financial strength ensures that Apple is well-positioned to fund its future innovations without requiring external cash injections.

However, that is not to say its share price has gone up in a straight line (rarely do any do so). In fact, during 2022 the stock price dropped more than 30%. Investors will now be watching any news for Apple’s upcoming products to see how the share price will develop.

Tesla - Upending the Global Car Market with High-Quality Electric Vehicles

Tesla has been a game changer in the global car market and sustainable investing sector. With the car market traditionally dominated by established giants (VW, Ford, etc), the entry of newer brands was considered nearly impossible due to the strong grip held by the incumbents in terms of production and brand recognition. However, when Tesla emerged in 2003, no one could have predicted that it would not only disrupt the industry but also become the global leader in electric car sales. This forced other car manufacturers to scramble and develop their own electric vehicles to compete with Tesla's offerings. 

By the end of 2021, Tesla's stock had reached an impressive valuation of $381 per share, resulting in a staggering market capitalization of $1.2 trillion. Although, the stock has experienced a very high level of volatility and share price fluctuations since then. In 2022, Tesla achieved a revenue growth rate of 52% from the prior year but still recorded its worst share price performance on record ending down more than 65%. 

Tesla has had to recall almost all of the 1.1 million vehicles sold in China due to safety issues regarding the lack of warning when the accelerator pedal is pressed down too hard for a long period of time. However, this wasn’t a physical recall but an ‘over the air’ software update which does mean investors need to be careful and watch for any issues. 

LVMH - Luxury Goods and Accessories Producer with Strong Brand Presence 

Louis Vuitton, renowned for its iconic LV symbol, holds a significant position as one of the world's most valuable brands, estimated at around $24 billion. To clarify, this valuation pertains solely to the name and logo. Moët Hennessy Louis Vuitton (LVMH) is a multinational corporation that encompasses the Louis Vuitton brand, among many others.  

On April 24 2023, LVMH achieved a historic milestone by becoming the first European company to reach a valuation of $500 billion. LVMH boasts an impressive portfolio of prestigious brands, including Tiffany & Co, Christian Dior, and Loewe. The company produces an extensive range of luxury goods, encompassing wines, spirits, perfumes, watches, jewellery, and clothing. Investors seeking to include a major player in the luxury stocks industry in their portfolio should keep a close eye on LVMH.  

However, the luxury fashion brand sector is heavily dependent on the health of the consumer in Asia. Luxury brand stocks suffered for many years as China continued its lockdown period longer than Western countries. When the government lifted restrictions it fuelled a boom in the luxury sector which may be now starting to peak.

ASML Holding NV - The Most Advanced Producer of Computer Chip Printers Globally 

ASML stands out as the leading producer of highly advanced machines responsible for creating computer chips. While they don't manufacture the chips themselves, they specialise in producing cutting-edge machines that utilise lasers to imprint intricate patterns onto ultra-thin wafers. These wafers are then stacked to form integrated circuits, which are the building blocks of computer chips.  

Impressively, in 2016, ASML's machines were utilised in the production of 80% of all computer chips worldwide. ASML's technological processes are so advanced that no other company can match the precision and detail with which their machines manufacture chips. This unique capability grants ASML an unrivalled strategic advantage in the chip sector industry. 

While ASML does not make the chips themselves, the company is still dependent on the health of the consumer. This is because if consumers buy fewer electronic goods, then the manufacturer needs to produce fewer chips which can affect the demand for ASML’s products. Therefore, it is important to keep track of the consumer and chip stock sectors globally.   

BMW - Staple Car Producer that Delivers High-Quality German Engineering to the Mass Market

While Tesla dominates the electric vehicle conversation, BMW takes a more diversified approach by maintaining a focus on traditional combustion engine cars and hybrids. BMW has set an ambitious target to have over 25% of their vehicles electrified (fully electric or hybrid) by 2025. Investing in BMW implies having faith in the notion that electric cars will not completely dominate the market in the next decade and that there will still be a demand for combustion engine cars.

As a well-established combustion engine car manufacturer, BMW boasts a solid reputation. In 2022, the German company generated a revenue of $150 billion, representing a 14% increase compared to its approximately $131 billion revenue in 2021. Despite the challenges posed by the COVID-19 pandemic, BMW's financial performance remained strong with revenue growth in 8 out of the past 10 years. Additionally, BMW is renowned for manufacturing high-quality, low-maintenance vehicles in both mass market and luxury segments, enhancing its appeal to a wide range of consumers. 

However, the growth of BMW also depends on the health of the consumer and employment levels. When consumers are cutting back on costs, luxury car purchases are one of the first things to be affected. As many individuals buy cars on finance, higher interest rates can also pose a risk to BMW’s car sales so be sure to keep track of the global macroeconomic environment. 

Sony Corp - Globally Established Producer of Electronics and Large Media Conglomerate

Sony Corp. is a multinational conglomerate with a workforce of nearly 150,000 employees worldwide. The company engages in the production of a wide range of consumer electronics, including DVD players and gaming computers. Additionally, Sony has a strong presence in the creation of media content, such as films and music. 

Its diverse business portfolio extends beyond electronics and entertainment, as it also offers financial services like insurance and loans within Japan. Given its expansive reach, Sony Corp. has earned the moniker of a "corporate octopus." 

The thriving nature of Sony Corp.'s business is evident in its earnings, which soared to $80 billion in 2022. With a modest price-to-earnings ratio of 13, some would say the company's stock is reasonably priced using this valuation metric (which should not be used alone to make investment portfolio decisions).   

Sony Corp.'s diversification across various branches of media and entertainment, coupled with its consistent growth trajectory, makes it an interesting option for investors seeking to diversify their portfolios beyond other sectors. However, it is another company that is heavily reliant on a thriving consumer market to buy its products. Therefore, keeping an eye on the health of the global macroeconomic environment will be important for investors in Sony. 

Rio Tinto Ltd - One of the Largest Metals and Mining Companies in the World 

Rio Tinto is primarily engaged in the extraction of various minerals, including copper, gold, and iron, as well as the refinement processes for bauxite and iron ore. Investing in mining companies like Rio Tinto allows investors to participate in the price movements of the commodities they mine. For instance, if the value of gold increases, a major gold mining stock like Rio Tinto may receive some benefit - although this could be offset by another commodity falling in value.

In 2022, Rio Tinto generated a revenue of $55 billion and possessed assets worth nearly $100 billion. While the year-over-year growth of Rio Tinto and mining companies, in general, may not match the impressive rates seen in technology giants like Apple and Tesla, they still hold significant value. With access to numerous precious mineral and metal deposits across the globe, Rio Tinto is an interesting stock to watch for this year.  

However, much of Rio Tinto’s growth is down to China which is typically the largest purchase of commodities. If China is not growing then the fall in demand for commodities can hurt commodity trading companies like Rio Tinto. Keeping track of how China is growing is an important factor when investing in commodity companies.  

How to Invest in International Markets

With Admiral Markets, you can invest in international stocks with the following commissions:  

• US stocks - $0.02 per share, 1 USD minimum commission 
• UK, France and German stocks – 0.1% of trade value, 1 GBP or 1 EUR minimum commission 
• Australia stocks – 0.15% of trade value, 8 AUD minimum commission 
• Japan stocks – 0.15% of trade value, 1250 JPY minimum commission 

You can learn more about investing commissions on the Admiral Markets Contract Specification page. 

You can search for global stocks from the Invest.MT5 web platform and invest in four steps: 

1. Open an account with Admiral Markets.   
2. Click on Trade on one of your live or demo investing accounts to open the web platform.   
3. Search for your stock at the bottom of the Market Watch window and drag the symbol onto the chart to view its live price.   
4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level.   

Why Invest in International Markets?

One of the primary advantages of incorporating international stocks into your portfolio is diversification. Diversifying your investments across a wider range of companies can help mitigate risk. By spreading your investments across different sectors and geographies, the impact of setbacks in any particular sector is less likely to drag down your entire portfolio. 

To illustrate this further, consider the example of the UK's exit from the European Union. This event caused uncertainty and downward price movements for domestic UK stocks, while the impact on American stocks was relatively small since the USA had less involvement in the operation. 

Another advantage of investing in international stocks from the UK is the availability of a diverse range of investment options. Restricting your portfolio solely to the domestic stock market may cause you to miss out on potential future returns generated by innovative companies overseas. Although identifying the top international stocks at the forefront of innovation can be challenging, thorough research and reliable guides can assist in this process.  

However, it is also important to consider the downsides of international investing as well. Buying stocks on foreign exchanges often entails additional costs and transaction fees. These fees can eat into your profits. investing in international stocks involves a currency conversion. For instance, as a UK investor purchasing Apple stocks, you would need to convert British pounds into US dollars. This exposes you to currency fluctuations.  

Lastly, investing in any stock, whether domestically or internationally, comes with the usual risk of investment. You can lose money as stock prices move up and down. Therefore, keeping the risk small and diversifying your portfolio is important.  

It's worth mentioning that for those who are hesitant about international investing or wish to proceed cautiously while diversifying their portfolio, there is the option of starting with a demo portfolio. This allows you to simulate trading and investing without using real money. By monitoring your performance and honing your skills in a risk-free environment, you can gain confidence before venturing into actual investments. 

FAQs on International Stocks

 
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