How to buy Australian shares in the UK

5 steps to investing in Australian shares

1. Decide how you want to invest – direct shares or trading
2. Open an account with IG
3. Check the costs involved
4. Research and choose your Australian stocks
5. Place your trade or investment

Step 1: Decide whether you want to invest or trade

There are two ways to get exposure to Australian stocks: buying shares outright, or trading on price movements using derivatives.

• Investing in Australian shares means purchasing stock at full value and holding it over time. This suits investors who want dividends, voting rights, or long-term portfolio diversification across a different economy.
• Trading Australian shares uses derivative products  (such as spread bets or CFDs)  to profit from price movements without owning the underlying stock. You can open positions with a smaller upfront deposit (called margin), and profit whether prices rise or fall. Spread betting profits are also free from UK tax. However, leverage amplifies both gains and losses, so it's essential to understand the product before you trade.

Why would I invest?

• You want to receive dividends or income from your investment
• You want to diversify your investment portfolio
• You want to access investment opportunities in another economy
• You plan to invest over a lengthy period, often several years
• You want to own shares outright in a particular company
• You want voting rights in the companies you invest in

Why would I trade?

• You can open a position with a small initial deposit, called margin
• You can make a profit whether the stock’s value goes up or down
• You won’t need to pay tax on spread betting profits (UK only)
• You can offset any CFD losses against profits, as a tax deduction

When trading on margin with leveraged products, it’s important to remember that your exposure is based on the full value of the position. So while this can lead to magnified profits, it can equally lead to magnified losses. It’s important that you fully understand the product before trading.

Step 2: Open an account

With IG, you can open a share dealing account for direct investment, a spread betting or CFD account for trading, or both.

You can sign up online or via the app in minutes. We'll ask a few straightforward questions about your experience and financial situation before you get started.

We also offer tax-advantaged investment accounts to qualifying UK citizens, including ISAs and SIPPs.

Step 3: Understand the costs

If you're buying Australian shares outright, the minimum commission with IG is A$10 per trade. Currency conversion from pounds to Australian dollars costs 0.7%.

Here's how that compares to other UK providers:

If you're trading derivatives, spread bets carry no commission, you pay the spread instead. CFD trades can incur a low commission charge.

The above refers to online dealing only. Phone charges are different. We charge 0.1% commission per trade, minimum $50. 

Step 4: Choose your Australian shares

Australian stocks are listed on the Australian Securities Exchange (ASX). The market is particularly strong in mining, financials, and healthcare, and includes several globally recognised companies:

BHP Group (ASX: BHP)

Founded in 1851, BHP is widely regarded as the world's largest diversified mining company. It operates across copper, iron ore, and coal, and also produces gold, zinc, uranium, and silver. The company is increasingly focused on copper (a metal central to the global energy transition) making it a stock that blends traditional mining exposure with longer-term thematic appeal. BHP has historically offered a competitive dividend yield, which may appeal to income-focused investors.

Rio Tinto (ASX: RIO)

Rio Tinto is one of the world's largest mining groups, with operations spanning iron ore, aluminium, copper, and lithium. Its iron ore business is anchored in Western Australia, while its aluminium division covers everything from bauxite mining through to smelting and recycling. The company's growing push into lithium positions it alongside BHP as a miner with significant exposure to the clean energy supply chain, as well as its traditional commodities base.

CSL Limited (ASX: CSL)

CSL is one of the world's leading biopharmaceutical companies, researching, developing, and distributing specialist medicines and vaccines across more than 100 countries. It operates through three divisions: CSL Behring, which focuses on plasma therapies and gene treatments; CSL Seqirus, which manufactures influenza vaccines and provides pandemic preparedness services to governments; and CSL Vifor, which addresses iron deficiency and kidney disease. For investors seeking healthcare exposure, CSL is one of the most globally recognised and consistently performing companies on the ASX.

Commonwealth Bank of Australia (ASX: CBA)

Founded in 1911, Commonwealth Bank of Australia is the largest company listed on the ASX by market capitalisation. It provides a broad range of financial services including retail and business banking, funds management, superannuation, insurance, and broking, with operations spanning Australia, New Zealand, the UK, the US and Asia. As one of Australia's 'Big Four' banks, CBA is one of the most stable and widely held stocks on the exchange, making it a common anchor holding for investors seeking Australian financial sector exposure.

Woolworths Group (ASX: WOW)

Woolworths is one of Australia and New Zealand's largest retailers, operating a network of supermarkets alongside online shopping and complementary retail services. The group covers food retail, business-to-business food supply, and general merchandise. As a consumer staples business, Woolworths tends to offer more defensive characteristics than mining or financial stocks, which can make it a useful counterbalance in a diversified portfolio.

Step 5: Buy your chosen Australian stocks

You can buy Australian shares directly with a share dealing account, or alternatively you might choose to trade on the prices of Australian shares with spread bets and CFDs. Here’s how to get started on each type of account.

Buying Australian shares with a share dealing account

1. Create or log in to your IG share dealing account
2. Use the search panel in the platform to find the ASX stock you want to buy
3. Choose whether you want to deal ‘at quote’ or ‘on exchange’
4. Enter the number of shares you want to buy
5. Buy the shares and monitor your investment

Trading on Australian shares with a spread betting or CFD account

1. Create or log in to your IG trading account
2. Decide whether you want to spread bet or trade CFDs
3. Use the search panel in the platform to find the ASX stock you want to buy
4. Choose your position size and add a stop if you like
5. Confirm the trade and monitor your position

Buying Australian shares summed up

• You can invest in or trade on Australian shares if you’re interested in the Australian market
• Open a CFD or spread betting account with us to trade on share prices, or open a share dealing account to buy the stock outright
• Charges on buying Australian shares with us start from a minimum of A$10
• There are many popular and well-performing stocks in the Australian market to choose from