How To Buy Apple Shares In Australia
Last Updated on 27 January 2024 by Ryan Oldnall
Apple is an American Multinational Technology Company founded in 1976 by Steve Wozniak, Steve Jobs, and Ronald Wayne.
Apple (AAPL) was first listed in 1980 on the NASDAQ, which has since become the go to exchange for technology companies. For many investors they want to know how to buy apple shares in Australia.
Apple Shares like all stocks can be purchased by investors living in Australia. It is possible for you to buy US shares in Australia with some important considerations.
How To Buy Shares In Apple (AAPL)
To invest in Apple stocks, you’ll first need to set up a brokerage account. Brokerage accounts are your means of buying and selling various shares, ETFs, bonds, and mutual funds.
Modern brokerage accounts now offer the convenience of trading in different markets and even across international borders, all while keeping brokerage fees at an all-time low.
However, selecting the right brokerage account can be a bit overwhelming due to the multitude of options available. Here are some crucial factors to keep in mind:
Fees: Brokers make money by charging transaction fees when you trade stocks. It’s essential to remember that most market orders come with trading fees.
Therefore, it’s wise to approach stock investing with a long-term perspective, as stock prices can experience significant fluctuations over short periods.
Forex Exchange Fees: When buying US stocks, you’ll typically need to convert your local currency, like Australian dollars, into US dollars.
There may be fees associated with this foreign exchange process, although brokers may not always prominently disclose them.
Monthly Charges: Some brokers impose a fixed monthly fee, but not all of them use this subscription-based model.
Typically, platforms that offer extensive features and information beyond what the average investor needs might have such fees.
Website and App Features: Each broker offers its website and mobile app with varying levels of functionality.
Some have straightforward interfaces, while others provide detailed stock charts and market information. Your choice may depend on your preferences and requirements regarding these features.
Types of Trades: Brokers operate in different markets, which can affect the types of trades available to you.
Different markets may come with varying fees and trade minimums, representing the minimum dollar amount required for each transaction.
Access to Market Data and Research: Certain brokerage platforms offer live market data, including current price movements, trading volumes, and historical data.
Additionally, some platforms provide advanced research tools, while others do not.
Order Types: Brokers offer various order types for buying and selling securities. These options can include specifying the quantity of shares or the desired dollar value for your purchase.
Brokers may also allow you to choose between “limit price,” “at market,” or “conditional order” instructions.
You might also have options for order expiry, such as “good till canceled,” “day only,” or a specific date.
Considerations for Buying Apple Shares in Australia
Buying US stocks in Australia is quite straightforward and resembles purchasing local shares, with a key difference being that these companies have their headquarters in other countries.
Since these stocks are based outside Australia, there are extra tax considerations to keep in mind.
Regarding dividends, US stocks don’t offer franking credits due to their exemption from Australia’s dividend imputation system, which prevents double taxation.
Investing in the US involves some additional paperwork, specifically the W8BEN Form, mandated by the US government for non-US residents wanting to invest.
This form allows Australian investors to benefit from the unique tax agreement between Australia and the US.
Failure to submit this form leads to a 30% tax on sold shares and a 30% withholding tax on dividends. Properly completing the W8BEN form reduces the 30% American tax to 15%.
It’s important to ensure accurate completion of this document and seek investment or financial guidance when necessary.
It is crucial to ensure accurate completion of this document and seek investment or financial advice as needed.
Apple Share Price
Apples value has undergone tremendous growth in the past decade. It was the first company to reach the evaluation of $1 trillion in August 2018.
It reached the $2 trillion milestone 2 years later in August 2020.
Since that time Apple has again reached new heights, becoming the world’s first company to surpass $3 trillion dollars. At the time of writing a single share in Apple is worth $191.81 USD.
Summary
Apple share price at time of writing (07/07/2023) has increased 53.36% YTD. However, it is important to consider any investment as a long term strategy.
With foreign markets being easily accessible to investors it is important to understand the tax implications of any investment decision.
Thus, it is important to seek financial advice on these decisions and speak to a qualified accountant. Furthermore, this article is not an endorsement for the purchasing of Apple shares.
