Much of the conversation about investing focuses on US technology companies. Yet Europe is home to some of the world’s largest drug makers, luxury brands, chip equipment makers and consumer goods businesses.
This guide explains how European markets are organised, what makes them different, and the practical points beginners should check, wherever in Europe they live.
Part 1
Europe’s main markets and indices
Europe has many exchanges, and indices group their largest companies together.
Large exchanges include Euronext (covering Paris, Amsterdam, Brussels, Dublin, Lisbon, Milan and Oslo), Deutsche Börse in Frankfurt, the London Stock Exchange and SIX in Switzerland.
Indices such as the Euro Stoxx 50, Stoxx Europe 600, DAX, CAC 40 and FTSE 100 track groups of companies, and many funds are built to follow them.
Part 2
Well-known European companies
Europe’s largest companies are often global leaders in their field.
Examples include ASML (chip-making equipment), SAP (business software), LVMH (luxury goods), Nestlé (food and drink), Novo Nordisk and AstraZeneca (medicines). Many earn most of their revenue outside Europe.
Part 3
How Europe differs from the US
European markets lean less on technology and more on healthcare, industrials, financials and consumer goods.
That mix means European markets can behave differently from US markets, which is one reason people hold both. European companies have also often paid a larger share of profits as dividends.
Rules also vary by country, including how dividends are taxed and which accounts are available to individual investors.
Part 4
Currency and costs
Exchange rates can add to or reduce your returns, and currency conversion has a cost.
If you earn euros and buy a Swiss or UK share, a change in exchange rates affects your result even if the share price stays still. Check your broker’s conversion fees and whether shares are bought on their home exchange.
Part 5
Getting broad European exposure
A European or global index fund spreads your money across hundreds of companies in one purchase.
For many beginners this is simpler than choosing individual companies. Compare the fund’s ongoing charge, which index it follows and how it is taxed where you live.
How Mesodian helps
Common questions
Can I buy European stocks from anywhere in Europe?
Most brokers authorised in Europe offer shares listed on major European exchanges, but the range, fees and currency charges vary. Check the provider is authorised by your national regulator.
What is the Euro Stoxx 50?
It is an index of 50 large companies from countries that use the euro. Many funds track it, along with broader indices such as the Stoxx Europe 600.
Official and independent sources
- Central Bank of Ireland registers — check a firm is authorised
- Central Bank of Ireland — consumer hub
- Revenue — capital gains tax
- CCPC — investing
- Investor Compensation Company (Ireland)
- Financial Services and Pensions Ombudsman (Ireland)
- Pensions Authority (Ireland)
- ESMA — investor corner
- BaFin (Germany) — financial regulator
- AMF (France) — financial markets regulator
- AFM (Netherlands) — financial markets regulator
- FCA register (UK)
- MoneyHelper (UK) — investing
- Investor.gov — introduction to investing