How To Buy Microsoft Shares In Australia

Last Updated on 27 January 2024 by Ryan Oldnall

Microsoft Corporation is a multinational technology company based in the United States. It was founded by Bill Gates and Paul Allen on April 4, 1975. Microsoft is primarily known for its software products, including the Microsoft Windows operating system and the Microsoft Office suite.

For many investors, they want to know how to buy Microsoft shares in Australia. Microsoft Shares like all stocks can be purchased by investors living in Australia. Investors residing in Australia have the opportunity to purchase Microsoft shares, along with other stocks.

Similar to many stocks, Microsoft shares are available for purchase through Australian brokerage accounts that facilitate international share trading.

These brokerage accounts enable investors to buy shares of companies listed on various international stock exchanges, including Microsoft.

In addition to Microsoft, investors in Australia can also access and purchase stocks of other companies such as Amazon.

How To Buy Shares In Microsoft (MSFT)

Microsoft went public and had its initial public offering (IPO) on March 13, 1986. The IPO was a significant milestone for the company, as it made Microsoft a publicly traded company and allowed it to raise capital by selling shares to investors.

The IPO price was $21 per share, and the offering generated substantial wealth for the company’s founders and early investors.

Investing in stocks, such as Microsoft, can be a great opportunity for investors in Australia. To start investing in Microsoft today, you’ll need to open a brokerage account that allows you to trade shares internationally.

Choosing the right brokerage account can seem overwhelming with the many options available. Here are some key factors to consider:

Transaction Fees: Brokers charge fees for buying and selling shares. It’s important to understand the costs associated with each transaction, as they can vary among brokers.

Forex Exchange Fees: When purchasing stocks listed in a different currency, like US dollars for Microsoft shares, you’ll need to consider foreign exchange fees. These fees cover the conversion of Australian dollars to the relevant currency.

Monthly Fees: Some brokers may have monthly fees for accessing additional features or research tools. Evaluate whether these extras are necessary for your investment strategy.

Website and App Functionality: The functionality of the broker’s website and app is crucial for seamless trading. Look for platforms that provide intuitive interfaces, real-time market data, and helpful research tools based on your preferences.

Trade Options: Different brokers offer various trade options, such as market orders, limit orders, or stop orders. Consider the types of trades you plan to make and ensure the broker supports them.

Access to Market Data and Research: Brokers may provide live market data, including price charts, trade volumes, and historical data. Additionally, some platforms offer research tools to assist in analyzing stocks. Assess the availability and quality of these resources.

Order Types: Brokers offer different order types, allowing you to set specific conditions for buying or selling shares. These options can include specifying quantities or setting time limits for orders.

By carefully evaluating these factors, you can make an informed decision when choosing a brokerage account to purchase Microsoft stocks.

Remember to approach stock investing with a long-term perspective, considering potential market fluctuations and the inherent risks involved.

Considerations for Buying Microsoft (MSFT) Shares in Australia

Investing in US stocks from Australia is a straightforward process that closely resembles buying Australian-listed shares. However, there are important distinctions due to the fact that these companies are headquartered in other countries, despite their global presence.

As these shares are “domiciled” outside of Australia, it’s essential to take into account additional tax implications. When it comes to dividends, it’s important to note that US stocks do not provide franking credits.

This is because they are not subject to Australia’s dividend imputation system, which helps prevent double taxation. To invest in the US market, there are some necessary paperwork requirements, such as completing the W8BEN Form.

The US government mandates this form for non-US residents who intend to invest. By filling out the W8BEN form, Australian investors can benefit from the special tax arrangement between Australia and the United States.

Failing to submit this form would result in a 30% tax on any shares sold, as well as a 30% withholding tax on dividends. However, correctly completing the W8BEN form effectively reduces the American tax component to 15%.

It is crucial to ensure accurate and timely completion of this document. Seeking investment or financial advice as needed is highly recommended to navigate this process successfully.

Microsoft Share Price

After experiencing a decline in 2022 along with many other tech-related stocks, Microsoft (MSFT) has made an impressive recovery and is currently trading at an all-time high of $331.83.

It’s truly remarkable to consider that just a decade ago, Microsoft shares were valued at a mere $35.69.

Microsoft’s journey to becoming a household name spans generations, with many individuals associating the company with their earliest experiences using a personal computer.

In terms of recent performance, Microsoft has shown substantial year-to-date growth, with a 38.50% increase in share price. This growth aligns with the overall trend of tech stocks rallying strongly on the NASDAQ in 2023.

Microsoft’s ability to rebound and achieve significant growth highlights its position as a key player in the tech industry and a preferred investment option for many.

Microsoft Bigger Than Just Windows

Microsoft, a global tech giant, has established itself as a leader in various sectors of the technology industry. Microsoft has vastly outgrown its decades-long dominance of the operating system market.

Microsoft’s Azure cloud platform offers infrastructure, platform, and software services, enabling businesses to deploy applications, store and analyze data, and leverage AI and machine learning capabilities.

Microsoft is currently a backer of chatGPT which has revolutionized the way the average person views artificial intelligence. Microsoft is planning on using this intelligence in their search engine, Bing

Microsoft continues to incorporate AI capabilities into its other products and services. They offer AI tools and frameworks to developers and businesses for enhanced productivity and innovation. This has been an ongoing endeavour of Microsoft to maintain pace with its competitors.

Microsoft has maintained its focus on enhancing and expanding its suite of productivity tools, including the widely used Microsoft Office. Applications such as Microsoft Word, Excel, PowerPoint, and Outlook have become staples in the daily lives of many individuals.

In addition to these core productivity tools, Microsoft also offers a range of collaboration solutions that have gained significant prominence, especially during the work-from-home periods prompted by the Covid-19 pandemic.

Tools like Microsoft Teams, SharePoint, and OneDrive have played a crucial role in enabling remote collaboration, facilitating communication, and ensuring efficient file sharing and storage.

Microsoft’s Xbox gaming console, along with Xbox Live online gaming service and Xbox Game Pass, positions them as a major player in the gaming industry. They have for generations competed with Sony PlayStation for the console market.

To compliment their gaming division they also own game development studios like Bethesda Softworks and Mojang Studios. Microsoft paid $7.5 billion in 2020 to acquire ZeniMax Media and its game publisher Bethesda Softworks.

Summary

As of July 11, 2023, Microsoft has experienced a noteworthy year-to-date increase of 38.50% in its share price. Over the past five years, Microsoft’s share price has exhibited significant growth, recovering from a substantial decline encountered in 2022.

During this five-year period, Microsoft’s share price has still grown by an impressive 214.74%!

As they continue to evolve, Microsoft remains a front-runner in the dynamic tech landscape and would expect to see continued growth

While this growth is impressive, it is important for investors to approach their investment decisions with a long-term perspective to navigate potential market fluctuations.

Additionally, investors should carefully consider the tax implications that may arise from investing in foreign markets.

To make informed investment decisions, it is advisable to seek the guidance of a financial advisor or a qualified accountant who can provide personalized advice based on individual financial goals and circumstances.

Furthermore, this article does not endorse the purchase of Microsoft shares.