Summary
In 1994, Jeff Bezos launched Amazon in Washington. Amazon began as an online bookstore but has now evolved into a web-based company primarily specialising in e-commerce, cloud technology, digital streaming, and artificial intelligence (AI) applications. Investors can buy Amazon shares to diversify their portfolios. However, buying Amazon stock involves using an internet broker. Deposits must be made after opening a broker account, then the trader can buy Amazon shares as they choose.
To avoid putting money at danger, there are numerous things to take into account when buying shares of Amazon. The decision of the buyer on how to buy shares in Amazon is influenced by a number of factors, including the broker’s performance in the past, regulatory requirements, and many more. Amazon stocks can be purchased on trading platforms for both desktop and mobile
devices, such as those offered by eToro. When purchasing Amazon shares, both trading and non-trading fees incurred are also discussed here.
The buying of Amazon stock has received positive responses from Reddit and Quora members. This article also includes a comprehensive FAQ that addresses the most frequently asked questions of traders considering buying Amazon stock.
Traders can buy Amazon shares by following the steps below.
- Select an Online Stock broker
- Create a Brokerage Account
- Deposit Funds
- Buy Amazon Shares
- Manage your Amazon Positions
The following are the pros and cons, if a trader/investor wants to buy shares in Amazon.
Pros
- Competitive Share Price
- Higher Revenue Mix as a result of Cheap Capital Expenditure.
- Ability to Strive in any Industry.
- High Cash Flow
Cons
- Too much Reliance on Jeff Bezos
- High Stock Volatility
- Not a Quick Profit Making Stock
There are so many factors to be considered when buying shares in Amazon with online brokers. Some of them are as follows.
Commissions & Fees
The share price at which the share is trading, along with the transaction fee, determine the cost to buy a single share of Amazon. You’ll pay a commission to the brokerage firm for this. A broker like eToro offers stock trading with no commission. As a result, you will not have to pay commissions when using this broker to buy Amazon shares.
Stock Brokers Regulation
If traders buy shares from or trade with an unregulated broker, they are essentially risking their entire investment. They are unable to predict how events will unfold and cannot infer from a few meetings that brokers have ulterior motives. It is essential to choose a broker with a variety of regulations in order to protect yourself from abuse and fraud. Some of these regulatory authorities include the Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), the Financial Services Authority of Seychelles (FSAS), the Money Services Business (MSB), and many more.
Trading Platforms
In an effort to generate greater profits, many investors have been urged to experiment with the stock markets. Online trading systems have benefited by allowing users to invest in the stock market directly, bypassing a financial advisor. With market-leading systems like MT4, MT5, and other proprietary platforms provided by online brokers, traders can buy the most well-known stocks such as AMZN on the web and on mobile devices.
Leverage Availability
Buyers can choose share CFDs if they desire leverage. Shares are available as either real shares or share CFDs. As leveraged products, Contracts for Differences, or CFDs, a trader only needs a modest amount of cash to establish a position; a CFD broker like eToro will cover the remainder. Leveraged trading can generate bigger returns despite having a higher risk. Trades involving CFD stocks don’t include actual ownership of the underlying asset. CFDs enable features like leverage and short (SELL) orders.
The Amazon Leverage Shares are available in the form of ETFs and ETPs naming, 1x Amazon ETP, 2x Amazon ETP, 3x Amazon ETP, -3x Amazon ETP, that can be used for leverage trading. The Amazon leverage shares are offered by Trading 212, Investing.com, and Leverageshares.com.
Amazon Stock Performance
On the day the firm announced its financial results for the first quarter of 2022, Amazon’s shares dropped 14%. Around then, the business disclosed a $3.8 billion net loss as a result of a $7.6 billion write-down of its investment in Rivian (RIVN). Despite the US Federal Reserve raising interest rates to 4.25–4.5% at its meeting in December, the stock price has not increased. Fears of a US recession have been raised as a result of the forceful credit crunch and the conflict in Ukraine. The AMZN stock is currently in a bearish trend.
Amazon Past Dividends
A company will pay out dividends to its shareholders out of earnings or available cash. If a corporation’s board of directors or executives feel that free cash would be better used within the business rather than paid to shareholders, they may decide not to declare dividends. Currently, Amazon is not paying dividends. Amazon’s business model has traditionally been built on innovation and to enter new areas of the market. As a result, it is simple to understand why Amazon decides against paying dividends; the corporation would rather invest its funds in corporate expansion.
If investors want to buy shares in Amazon on their own, they search for an online broker. When customers open an account with a reputable and regulated brokerage, they can deposit money and buy Amazon shares. The goal when designing trading platforms was to make them available to all different kinds of traders. To help their clients manage their finances and trading activity, they developed a user-friendly interface with a wealth of cutting-edge features.
To conduct trading with ease, every trader needs access to a user-friendly and modern desktop trading platform. Users truly favour eToro’s desktop trading interface due to its “user-friendly” design. Customers can swiftly and conveniently start a new position for their preferred instrument with the help of one click trading. Trading professionals will find it easy to compare charts for numerous assets and/or time periods using ProCharts.
The MetaTrader 5 is also available for traders for stock buying. The platform offers outstanding analytical tools and embodies the idea of a one-stop solution. There are up to 100 stock quote charts that can be opened at once.
Most brokers offer mobile applications for the ease of traders so that they can buy shares anywhere and anytime. For instance, to buy Amazon shares, traders can make use of the efficient mobile trading app. Users can download mobile trading platforms on both Apple and Android smartphones. Through the mobile trading app, traders can access all of the broker’s financial instruments, including Amazon shares. Almost anybody may now invest in short, mid, and long-term opportunities because of the capacity to trade in these assets with or without leverage.
Furthermore, the MT5 platform is also available as a mobile app for trading. It means it can be downloaded on Android or iOS. A professional analytical system is installed in the app to provide a great trading experience. With just one tap, traders can buy shares on the MT5 mobile app.
The trading and non-trading fees incurred when trading or investing in Amazon shares are mentioned below.
Trading Fees
As part of trading fees, some brokers charge a commission on the buying and selling of shares. For instance, eToro maintains a zero-commission policy for investing in stocks. Traders are not
required to pay commissions on any stocks they invest in. The same will happen if an investor buys shares in Amazon.
Some brokers also charge spreads as trading fees. The difference between the offer and bid prices of security is called as spread. The spread rates vary from instrument to instrument and are significantly influenced by market conditions. Stocks have a 0.15% spread for non-US investors at eToro.
Non-Trading Fees
There are some non-trading fees involved in the process of buying shares. However, there is no ground rule behind this; it varies with the broker. It means every broker has its own rules while charging non-trading fees. These might include overnight currency conversion fees, inactivity fees, deposit & withdrawal fees etc.
On eToro for instance, there is a $5 fee for each withdrawal request a trader makes. Any deposits or withdrawals traders make will also be subject to a currency conversion fee. This is because some brokers only accept US dollars. If the deposit or withdrawal is made in a currency other than the base currency, the payment provider is likely to charge you for the conversion from that currency to the base currency (USD) or vice versa.
There is also an inactivity fee charged by some brokers too. At eToro, the trader’s account will be subject to a $10 monthly fee after a year of inactivity. It’s worth noting that eToro won’t close any open positions in order to pay the charges.
About Amazon
On July 5, 1994, Jeff Bezos launched Amazon in Washington. Amazon aspires to be the world’s most customer-focused business, best employer, and safest workplace. Some of the innovations made by Amazon include one-click shopping, personalised recommendations, customer reviews, Prime, Fulfilment by Amazon, AWS, Amazon Echo, Alexa, Just Walk Out technology, Amazon Studios, and much more. The four guiding principles of Amazon are: obsessing over the customer rather than the competition, being passionate about invention, being dedicated to continuous improvement, and having a long-term perspective.
The market capitalization of Amazon is $996.03 billion, and the current price of AMZN stock is $97.20. One of the biggest and most well-known businesses in the world is Amazon. Investors continue to swarm to the e-commerce powerhouse despite the stock price’s spectacular growth since the company’s founding. On the day the firm announced its financial results for the first quarter of 2022, Amazon’s shares dropped 14%. Around then, the business disclosed a $3.8 billion net loss. Despite the US Federal Reserve raising interest rates to 4.25–4.5% at its meeting in December 2022, the stock price has not increased. Fears of a US recession have been raised as a result of the forceful credit crunch and the conflict in Ukraine.
Amazon is a sizable e-commerce company, with its North American operations accounting for the majority of its earnings. The state of the US economy has a significant bearing on how the business will behave economically.
Here are some of the reviews of Reddit and Quora users with regard to buying Amazon shares.
Reddit users are found to express mixed reviews regarding buying Amazon Stock. One of the users highlighted that although the stock is down, the Amazon stock will help the buyers enjoy long-term benefits as the company is consistent and bringing innovations in the fields of AI, streaming and cloud computing.
Quora
A question was posted on Quora by a user who said, ‘Is it worth for him to buy AMZN stock’?. One of the members answered that question in two perspectives. He stated that a long-term investment will be beneficial if you hold stock for longer as Amazon is an amazing company. He did not recommend short-term investment as the stock was experiencing a downtrend.
Bottom Line
With the intention to diversify their portfolios, traders can buy shares in Amazon. The shares in Amazon are bought through an online broker. Creating an account with a stockbroker and making deposits are some of the steps to follow on how to buy Amazon shares. There are many pros as well as cons of buying Amazon shares.
Additionally, there are many factors to be considered when buying Amazon shares to not put money at risk. The past performance of Amazon stock, the broker’s regulations and many other factors affect the decision of the buyer. Amazon can be traded both on desktop and mobile trading apps such as the one by eToro. The trading and non-trading fees both incurred when buying shares in Amazon are mentioned.
Reddit and Quora users have great reviews on buying shares on Amazon. A thorough FAQ is also included in this article to answer common questions in the minds of traders who are willing to buy shares in Amazon.
Q & A
Traders can buy as little as $10 Amazon share on eToro for example.
How much should be invested in Amazon shares will depend on the trader’s particular preferences, including investment goals, financial situation, risk tolerance, and diversification plan. Traders should think about diversifying their portfolio by including a range of stocks and other assets, consider the complete financial strategy, and be mindful of the risks involved with stock investing.
Amazon was founded on July 5, 1994.
Amazon became a public company on May 15, 1997, at a price of $18 per share.
Yes, you can buy fractional shares of Amazon on brokers that offer them.
Yes, you can buy Amazon shares online.
Yes, Amazon real shares are commission free on some brokers. Although, some other brokers charge commissions on stocks.
Yes, you can trade Amazon shares as CFD on brokers offering stock CFDs.
No stock is always best performing. The stock market is volatile and so is the performance of Amazon.
The price of Amazon shares this year, as at the time of writing this article, is $97.20.
eToro has the best trading conditions for Amazon shares as it provides zero commission as well as high end trading platforms and many more exciting features.
Yes, you can invest in Amazon shares for a longer term as per your financial goals.
The Automatic Client Account Transfer Service (ACATS) and other systems transfer Amazon shares from one broker to another. It depends on the broker you choose, not every broker allows the transfer of Amazon shares from one to another.
According to the overall AMZN stock forecast published by MarketBeat as of 23 January, the stock was expected to reach $145.87 over the following 12 months. The greatest Amazon stock prediction for 2023 was $270, while the lowest was $97.2 at the time. Analyst projections might be inaccurate; therefore, you should always conduct your own research before investing.
The founder of Amazon.com, Inc. is Jeff Bezos. He is the biggest shareholder and owns 10% shares of Amazon.
