How to Trade European Stocks with Switch Markets

Not many are aware of the fact that trading shares that are listed on exchanges outside your country can be quite difficult. Unlike stocks that are listed in the US on leading exchanges like the New York Stock Exchange and the NASDAQ exchange, European shares listed on the European stock market are not very often accessible on any brokerage firm.

One easy method to trade European stocks is through CFD brokers like Switch Markets.  

Switch Markets lets traders access hundreds of major companies listed across Europe on the popular MetaTrader 4/5 platforms. In practice, trading EU stocks on Switch Markets involves opening an account, depositing funds, and then using MT4 or MT5 to select and trade stock CFDs for EU companies in France, Germany, Italy, Spain, and beyond. 

Throughout this guide, we explain why EU shares can be attractive, the different ways to trade them, and how Switch Markets makes it convenient. By the end, you’ll understand how to begin trading European stocks via Switch Markets.

Why Should You Consider Trading EU Shares?

European shares (that is, stocks of companies based in EU member countries) represent ownership in some of the world’s most renowned businesses. EU stocks span a diverse range of industries like high-end luxury, industrial manufacturing, energy, and technology. In other words, by adding EU equities to your portfolio, you move beyond domestic stocks and gain international exposure to markets and sectors that may not be accessible at home.

There are several key benefits to trading European stocks:

• Diversification: Europe accounts for roughly half of international market capitalization, so investing in EU shares expands your exposure beyond any single country or sector. This means that European shares can diversify risk outside of one’s home country.
• Access to leading industries:  European companies often lead globally in certain fields: for example, the Netherlands’ ASML is a world-leading semiconductor-equipment maker, and France’s LVMH dominates luxury goods. Other EU sectors — industrials (Germany’s Siemens, UK’s (former) Rolls-Royce), auto (Germany’s Volkswagen), and finance (France’s BNP Paribas, UK’s HSBC) — offer opportunities different from U.S. markets. By trading EU shares, you tap into these sectors.
• Potential growth opportunities:  It’s important to note that European markets can be relatively cheap compared to the U.S., implying potential for higher relative returns. With the right approach, an EU share portfolio could capture growth as Europe’s economy recovers and evolves.

In short, EU stock trading can expand your investment universe and let you participate in different economic cycles.

Different Ways to Trade European Shares

There are two main methods to trade European equities:

Direct Share Trading

This is the traditional way. You open a brokerage account (often with a local broker or international) that grants you access to European exchanges (e.g., Euronext Paris, Deutsche Börse Xetra, Borsa Italiana, etc.), then buy and sell shares on those stock exchanges. When you buy a share directly, you own that piece of the company, giving you voting rights and any dividends the company pays. However, there is no leverage (you pay 100% of the share price), and costs usually include high commissions or fees. This method is simple and best suited for investors seeking long-term ownership, passive income from dividends, or a direct stake in foreign companies.

CFD Trading

The second method to trade European shares is via CFD, aka Contract for Difference. A CFD essentially lets you speculate on a stock’s price without actually owning the share. CFDs use leverage (for example, up to 1:10 on stocks with Switch Markets) so you can control a larger position with less capital. You can also go long or short. With Switch Markets, you can trade CFDs on thousands of EU stocks and exchange-traded funds.

The key difference between direct share trading and CFDs is that with CFDs, you do not own the underlying stock. You can view CFDs as a vehicle to express a view on the movement in the price of the underlying share without ownership. The only things you gain are price changes (and dividend adjustments). This means you have no voting rights.

However, CFDs offer greater flexibility and access. This means that you can trade dozens of foreign markets from one MT4/5 account, often with tight commissions or spreads and the ability to use leverage.

Another key difference is dividend handling: Notably, Switch Markets credits dividend payouts for long CFD positions on stocks and cash index CFDs. In other words, if you hold a long CFD when a company pays a dividend, you’ll receive a cash adjustment (as if you had owned the stock), whereas short positions pay the dividend amount. This feature means CFD traders don’t miss out on dividends (apart from taxes/fees).

If you prefer not to physically own shares but still want dividend exposure, CFD trading on Switch Markets can achieve that.

In practice, many traders use CFDs for active trading, and use direct share purchases for buy-and-hold investing and dividend income. However, as companies like Switch Markets provide dividend payouts on CFD positions, it allows investors to not only actively trade CFDs but also use these financial instruments for long-term investments. 

Switch Markets EU Shares List

Switch Markets offers a broad range of European stock CFDs. While the exact list is updated periodically, the table below illustrates the scope of EU shares available by country.

Country	Number of Shares
Belgium	19
Denmark	27
Finland	25
France	123
Germany	98
Italy	46
Netherlands	30
Norway	31
Portugal	13
Spain	67
Sweden	33
Switzerland	24
UK	225

This table shows that Switch Markets gives access to hundreds of stocks from each major European exchange. For example, France and Germany each have on the order of around a hundred large-cap and mid-cap stocks available, including all CAC 40 and DAX 40 constituents and many more. In the UK, Switch Markets offers a variety of 225 shares from the London Stock Exchange. Here's what it looks like on Switch Markets' trading platform:

As you can see, Southern Europe (Italy, Spain) and the Benelux (Belgium, Netherlands) are well represented, as are Scandinavian markets. In total, Switch Markets advertises “1,000’s of Stocks” globally, of which about 761 are EU-listed equities. This variety allows traders to diversify across European economies and various sectors, and get access to some of the most popular EU stocks.

How to Trade European Stocks on Switch Markets

Trading EU stocks on Switch Markets follows a straightforward process. Here is a step-by-step outline:

1. Open and fund an account: Register on switchmarkets.com and complete any required identity verification. Deposit funds via your preferred method (bank transfer, credit card, crypto, etc.) .
2. Launch the MT4 or MT5 platform:  Download the MetaTrader 4/5 desktop or mobile app (available from Switch Markets) and log in with your account credentials. Note that Switch Markets also offers a free VPS for all clients who open a trading account.
3. Locate the Shares category: In the platform’s Market Watch or symbols list, select “Shares” then choose “EU Shares” and filter by country. For example, you might look under “France” to find listed shares.
4. Choose a stock to trade: Click on a company name (e.g., “MC.FR” or “BAVA.DK”) to load the chart.  You can review its real-time price and chart before trading.
5. Place an order: Decide on the trade direction. Buy (long) if you expect the stock price to rise, or Sell (short) if you expect it to fall. Enter the volume (number of CFDs or lot size). Switch Markets allows trading in fractional shares, so you can invest partial lots if desired. If needed, it is also advisable to use our lot size calculator to manage your position size.
6. Set risk management: It’s wise to set a stop-loss and take-profit on your order to manage risk. You can also use guaranteed stops, trailing stop loss orders, or other advanced and basic order types if needed. Day traders can visit our guide on the 5 risk management techniques for day traders.
7. Monitor and close your positions:  Once your order is active, the position will appear in your platform’s Trade tab. Track its performance; you can adjust the stop-loss or exit at any time.  When ready, close the position to realize profit or loss.

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Ready to get started?  Explore Switch Markets’ demo or live account and browse the EU shares section. With practice and due diligence, Switch Markets could become your gateway to trading Europe’s biggest companies. 

Open a Trading Account Today

FAQs

Before you start trading European stocks on Switch Markets, it’s natural to have a few questions. Below, we’ve answered some of the most common ones to help you trade with clarity and confidence.

What is the best way to trade European shares?

It depends on your goals. For buy-and-hold investing (seeking dividends and ownership), direct stock trading via an exchange is ideal. For active trading or leverage, CFDs are often better.  

Switch Markets provides stock CFDs, which let you speculate on European shares with margin. In practice, many traders use CFDs on Switch Markets for flexibility, leveraged exposure, and access to advanced trading tools and platforms. 

Can I receive dividends when holding stock CFDs?

Yes. If you hold a long CFD on a dividend-paying stock, your account is credited a dividend amount (according to lot size and any applicable percentage). Conversely, short positions pay the dividend.

How many EU stocks can I trade on Switch Markets?

Switch Markets offers hundreds of EU stock CFDs. As noted, there are roughly 100+ stocks each from France and Germany, dozens from Italy and Spain, and many more from other EU markets. In total, Switch Markets has 761 EU stocks at the moment.

Which accounts and platforms do I use?

You can open either a Standard or Pro account on Switch Markets. All accounts support trading EU stocks and other international securities with the MT4 or MT5 platform. The choice of account mainly affects spreads and commissions, but the process of trading stocks and securities is the same.

What are the most popular EU shares I can find on Switch Markets?

Switch Markets offers a wide range of European stocks, with the most popular ones including Barclays, Glencore, HSBC, Adidas, Bayer, Porchs, BNP Paribas, Airbus, and many more.