How to buy shares in Rheinmetall AG in the UK

Rheinmetall AG (RHM) is one of Germany’s principal arms manufacturers and has a market cap of some €50.40 billion and its share price has risen by 167.50% over the last year. Yet with European rearmament almost guaranteed, as Europe is forced to take a more proactive stance in countering Russian aggression, the stock may well have more to run.

Buying Rheinmetall stock in the UK

Rheinmetall trades on Deutsche Bourse, in Germany and is Dax 40 index constituent and so is widely known and reasonably widely traded although volumes traded in the stock can be a little light with only 175,000 shares changing hands on an average day.

Then again, it’s a bit of heavy-weight stock trading at €1166.00 per share.

In fact, it’s the highest priced stock with the Dax 40 index

To buy Rheinmetall shares you will need to have an account with a stock broker that trades in German stocks like IG. With IG you can either buy physical Rheinmetall  shares or trade them as a CFD or spread bet. You will also want your broker to be able to hold that stock on your behalf, and you will also need to be able to pay for those shares, which are priced in Euros. Keep in mind though that there will be an FX charge of 0.5% to covert your GBP to EUR.

See an example of a Rheinmetall buy order on IG below:

Or you can choose from half a dozen alternatives, including many well-known names such as Hargreaves Lansdown, AJ Bell, XTB, and Interactive Brokers, that offer European share dealing.

Opening an account with a broker should be straightforward as long as your identity can be verified online or you can provide the necessary supporting documents to confirm your ID, your address and bank account details.

You can use the Good Money Guide share dealing comparisons and ratings to find the broker that’s right for you.

Once the account has been opened you will need to fund it most likely with a sterling deposit (though some brokers may allow you to have an account in another currency such as Euros) note though that if you are trading a European stock with sterling you are going to incur FX risk and FX conversion fees.

How much money you will need to deposit will depend on how much you want to invest, bear in mind that buying just 10 shares of Rheinmetall AG will cost almost €12,000.

Buying ETFs that contain Rheinmetall shares

Alternatively, you can get exposure to Rheinmetall by buying an ETF that holds the stock, which can reduce your risk through diversification.

An ETF such as the iShares Core DAX UCITS ETF, which is priced in Euros, or the Amundi ETF DAX UCITS ETF (GBP), which is priced in sterling terms which you can buy on AJ Bell or Hargreaves Lansdown.

The iShares Dax ETF has just over a 3.0% weighting Rheinmetall in the fund so although you are getting exposure, you aren’t getting that much comparatively speaking.