How to Buy NASDAQ in Europe

Can I Buy the NASDAQ in Europe?

Yes, residents of Europe, including countries like the UK, Germany, France, and the Netherlands, can invest a NASDAQ index like the QQQ. To do this, you must register with a European brokerage that offers access to U.S. markets. It's important to choose a platform regulated by authorities like the European Securities and Markets Authority (ESMA) or your country's financial regulator.

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How to Buy the NASDAQ ETF in Europe

Europeans looking to invest in the NASDAQ can use platforms like eToro, a well-regulated and popular choice with access to over 6,000 assets, including NASDAQ-indexed funds like Invesco QQQ. With a user base exceeding 30 million, eToro makes it easy to deposit Euros (EUR) through multiple payment methods such as bank transfers, debit, or credit cards.

Here’s a quick guide to get started:

1. Create an Account: Sign up on eToro and complete the verification process.
2. Deposit Funds: Select 'Deposit Funds' on the dashboard to add money to your account.
3. Choose Payment Method: Set 'EUR' as your currency and choose a payment method supported by your European bank.
4. Find NASDAQ Funds: Use the search feature to locate NASDAQ-indexed ETFs like the QQQ

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What is the Invesco QQQ ETF?

The Invesco QQQ ETF is one of the world's largest and most liquid ETFs, tracking the Nasdaq-100 Index. It gives investors access to 100 of the biggest non-financial companies on Nasdaq, including Apple (9.15%), Microsoft (8.08%), and NVIDIA (7.66%). With over $277 billion in assets, QQQ is highly traded, providing excellent liquidity for investors looking to buy and sell with ease.

Launched in 1999, QQQ has consistently outperformed the broader market, delivering a 10-year return of 418.22%, far exceeding the S&P 500. With a low expense ratio of 0.20%, it offers a cost-effective way to gain exposure to some of the most innovative, high-growth companies in the world.

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NASDAQ Investing Fees

When investing in NASDAQ ETFs from Europe, it's important to account for platform fees, spreads, and expense ratios, as they can significantly affect your returns.

For a $1,000 investment in the Invesco QQQ ETF through eToro, here’s a breakdown of the costs. The fund’s expense ratio of 0.20% would result in an annual cost of $2. Additionally, eToro’s average spread of 0.15% would add $1.50 to your transaction costs when buying or selling the ETF. If you decide to withdraw funds, there’s a $2 withdrawal fee.

Therefore, the total initial cost would be $3.50, with an ongoing $2 annual cost for the expense ratio. These fees are manageable, but it’s important to consider them when planning your investments.

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Bottom Line

Investing in the NASDAQ from Europe is easy, especially with platforms like eToro that offer access to popular funds like Invesco QQQ. As a favorite for many investors, QQQ provides a solid way to bet on the long-term growth of big tech and AI, featuring companies like Apple, Microsoft, and NVIDIA. While fees like spreads and expense ratios are low, it's still smart to factor them in when planning your investments. If you're looking to add big tech exposure to your portfolio, QQQ is a great option to consider.