How to buy NIO (NIO) shares from Australia

By   |   Verified by Andrew Boyd   |   Updated 25 Sep 2023

NIO Inc. (NYSE: NIO) is a Chinese company that designs, develops, manufactures and sells smart electric vehicles and provides power solutions and other value-added services. NIO was founded in 2014 and is headquartered in Shanghai. The company listed its shares on the New York Stock Exchange in 2018.

NIO also listed on the Hong Kong Stock Exchange in 2022. To buy their stocks on the NYSE from Australia, follow this guide.

New to trading the US markets? Read our complete guide to buying US stock.

About the company

NIO overview

NIO designs, manufactures and sells smart, connected electric vehicles. It also makes a variety of vehicle charging solutions, including home and public charging. It also offers various value-added services to its users including a service package, battery payment arrangements and vehicle financing and third-party liability and car damage insurance. The company has a strategic collaboration with Mobileye (owned by Intel) for developing automated and autonomous vehicles for consumers.

The company chose Norway, an EV hotspot, for its entry into international markets by offering a European version of ES8, its flagship electric SUV, in September 2021 and its ET7 sedan in 2022.

Unsure about what trading platform to use?

Where to buy NIO shares

eToro

On website

Highlights

  • Trade and invest in top financial instruments, including a wide selection of stocks.
  • eToro is regulated by CySec, FCA, and ASIC.
  • Your funds are protected by industry-leading security protocols.
  • Earn up to 5.3% annual interest on your balance.
Saxo Markets

On website

Saxo Markets

Highlights

  • Invest in 23,500+ stocks from ASX, New York, Hong Kong, and 50+ other global markets.
  • No platform fees, no inactivity fees, and no FX fees on each trade.
  • Analyse, improve and manage your risk using intuitive trading tools.
Pearler

On website

Highlights

  • Enjoy low, transparent fees.
  • An option to Autoinvest. Set-and-forget your investment strategy.
  • Simply invest into any ETF from one of Pearler's ETF managers for at least one year, and it's free.
  • Clearing House Electronic Sub-register System (CHESS) sponsored.
Superhero

On website

Highlights

  • Open an account with just $100 and start investing today with a $5 flat-free brokerage ($0 on US shares) on share trades.
  • Buy and sell US shares & ETFs with $0 brokerage plus trade unsettled funds.
  • Fund your account in minutes with PayID and enjoy realtime FX transfers for fast US share trading.
Tiger Brokers

On website

Highlights

  • Available for ASX, US & HK stocks trading, ETFs, and US options trading.
  • Free market data for ASX and US stocks.
  • More accessible investment to all with a demo account.
Webull

On website

Webull

Highlights

  • Trade AU & US stocks, ETFs, and Options with $0 commission for the first 30 days.
  • Provides intuitive and powerful advanced charts, multiple technical indicators, and premier Level 2 Advance (Nasdaq TotalView).
  • Regulated by ASIC.

Pros

  • Invest from as little as US$5.
  • No deposit or withdrawal fees.
  • Allows you to trade fractional shares.
  • Access to advanced trading tools.

Cons

  • Scarcity of instructional resources for investors.
  • Supports AU and US markets only.
Moomoo

On website

Moomoo

Highlights

  • Trade blue-chip stocks in AU and US markets.
  • Trade multi-markets and multi-products with a lower commission. No custodian fee.
  • CHESS-Sponsored trading is now available.
  • Regulated by the Australian Securities and Investments Commission (ASIC).

Compare online brokers on Finty. Research fees, commissions, tradable assets, markets, etc.

First time buying?

How to buy NIO shares

Step 1: Find a broker

Find an online broker that allows you to trade shares listed on US markets. Most Australian brokers with US market access will have shares listed on the NYSE and NASDAQ.

These are just some of the factors to be aware of when looking for a broker.

Trades without commissions

You can trade commission-free on several platforms in Australia, which can save you plenty over time.

Fractional shares

Brokers who offer fractional shares can let you buy a fraction of the share, instead of buying the entire share. This makes it easier to diversify your holdings.

Easy trading interface

It shouldn't take long to learn how to trade shares. Make sure you choose a broker that has an intuitive interface you can use with no steep learning curve.

Research and analysis

A trading platform with a robust research and analytics section allows you to make decisions based upon price history, market updates, and quarterly earnings reports. Some brokers even offer analyst recommendations.

Step 2: Transfer funds to your trading account

You will need to fund your account before you can start buying shares. You should be aware that funds can take time to clear. This means that it’s unlikely you will be able to trade immediately.

Step 3: Set your investing budget

Because shares can be volatile, you should only allocate money you are willing to lose.

You might consider investing in fractional shares. This gives you more freedom and you won't need to spend more than your budget allows.

Step 4: Decide whether to purchase shares or invest via ETFs

An Exchange Traded Fund (ETF) is regarded as a diversified investment and safer than investing in a single stock.

Vanguard FTSE Emerging Markets ETF (VWO) and First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN) are two ETFs with exposure to NIO.

Step 5: Spec your order

There are many order types you can choose from, and you can customise the price and buying or selling point for each share. These order types can be found on many platforms.

Market order

Market orders are instructions to buy or sell shares at current market prices. However, the actual price at order execution may be different from the one that was offered to you at the time you placed the order.

Stop limit

This type of order allows you to automatically sell your shares at a fixed price. However, if the market is moving quickly against you, the order may not be executed if the price falls past your limit price.

Stop loss

A stop loss order allows you to decide the selling price. It is used often to defend a trade position from market volatility. A stop loss could be set at US$32 per share, for instance. Your stop loss order is executed automatically if the price falls below this level and your order will be filled at the next available market price.

Step 6: Submit the order

Once you've chosen a broker, and determined how you want to invest in your shares, you are ready to place your order.

After you buy

What moves NIO's share price

Whether you invest in shares with a speculative motive or to hold them over the long term, you need to keep track of the company’s performance and its share price movements.

Track NIO’s performance

Keep watching the company’s performance and its stock fundamentals. You can do this by watching news stories and keeping an eye out for company announcements.

A prolonged global chip shortage has affected NIO and car makers worldwide, including Ford Motor Company (NYSE: F), Honda Motor Co Ltd (LON: 0J5T), General Motors (NYSE: GM) and Volkswagen (ETR: VOW3). Many, including NIO, are compelled to curtail or idle production as a result, and the shortage resulting from pandemic-related disruptions is "unlikely to resolve soon" according to China's top car industry body.

Watch for developments in the EV markets worldwide

The actions of electric vehicle makers, and the growing popularity of EVs worldwide, is going to impact NIO because beyond EVs the company is also manufacturing a variety of chargers, which will see surges in demand as the global EV population grows.

Competition

XPeng Motors (NYSE: XPEV), Li Auto, and BYD Company are three of NIO's rivals in the domestic (Chinese) market for electric vehicles. NIO also competes with Tesla (NASDAQ: TSLA) in China, but has the benefit of battery swaps, a core of its business model.

Once it enters the international market, starting in Norway, NIO will be competing with UK-based Arrival (NASDAQ: ARVL) and Lucid Motors (NASDAQ: LCID), Nikola (NASDAQ: NKLA), Fisker (NYSE: FSR) and other US EV makers.

Disclaimer: We put our customer’s needs first. The views expressed in this article are those of the writer’s alone and do not constitute financial advice. Advertisers cannot influence editorial content. However, Finty and/or the writer may have a financial interest in the companies mentioned. Finty is committed to providing factual, honest, and accurate information that is compliant with governing laws and regulations. Do your own due diligence and seek professional advice before deciding to invest in one of the products mentioned. For more information, see Finty’s editorial guidelines and terms and conditions.