EU Resident (Austria): Should I Buy Stocks Listed on NYSE (USD) or DAX (EUR)?

📊 Investing
1

I’m an Austrian resident whose primary currency is EUR. Until now, I’ve been purchasing shares listed on the NYSE (USD). However, given the recent unfavorable exchange rates, the additional FX charges on Trading 212 are becoming costly, making this strategy less appealing in the long term.

I’ve noticed that several stocks I’m interested in are also listed on the German DAX exchange, with trading hours similar or even more convenient compared to the NYSE. Is there any downside or potential issue with shifting my purchases to the DAX exchange? I’d appreciate your thoughts and advice on this strategy.

2

They’re not charges.

3

Only you can decide this based on research of each stock you want to trade/invest in.

Some stocks like say Ryanair, the ADR can be trading at a premium or discount when you convert back to the local EUR line. This can change over time.

Nasdaq:

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IMG_01961674×1378 171 KB

Euronext which I think is 5 hours behind:

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IMG_01971918×1494 315 KB

The USD to EUR rate at 2pm gmt:

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Each ADR is 2 Ryanair shares.

And so 20.51EUR / 0.879581x 2 = 46.63584

It might not always be the case that it’s more expensive to buy the same 2 underlying shares through the ADR however, so it’s complicated.

You also might find one of the listings has a larger spread between the bid/ask price.

You might also find one of the listings is more liquid than the other.

There are lots of factors you might want to consider.

4

That’s what I was going to point out too: the spread and liquidity.

You want to be able to enter & especially exit at as close to your ideal price as possible.
And also when you’re looking to sell, you want to have traders to sell too - otherwise you could be 2,000% up on a stock and nobody’s there to buy your shares from you, you’re stuck.

So definitely a liquid stock is a must, and it being non-spready is ideal.

5

Is there an easy way to see the spreads in Trading 212 as you can on some other sites?