Summary
eToro is a trading platform that is well-known for its social trading feature. Founded in 2007, eToro has grown into one of the largest and most recognizable online trading brokers globally. It offers a wide range of financial instruments for trading, including stocks, cryptocurrencies, commodities, forex, and more. It is regulated by well-known regulatory bodies like the Commodity Futures Trading Commission (CFTC) in the US, the Financial Conduct Authority (FCA) in the UK, and the Australian Securities and Investments Commission (ASIC) in Australia.
This broker allows the trading of stock CFDs for traders interested in speculating on the price movements of individual stocks without owning the underlying shares. One of such stocks is Amazon, one of the most traded stocks around the world. This guide article will go through how to buy Amazon (AMZN) stocks on eToro, the pros and cons, factors to consider, trading platforms you can use, payment methods available, and what other traders say about buying Amazon shares on the platform.
Amazon (AMZN) Stocks
Amazon is a multinational technology and e-commerce company founded by Jeff Bezos on July 5, 1994. It has grown to become one of the largest conglomerates in the world, spreading its tentacles into dozens of industries including e-commerce, cloud computing, grocery and food delivery, healthcare, logistics and delivery services, entertainment and publishing, robotics and automation, and many others.
The company had its Initial Public Offering (IPO) on May 15, 1997. The share was priced at $18, and Amazon raised around $54 million, valuing the company at approximately $438 million. With the current market cap. of over $1.4 trillion, Amazon is one of the highest-valued companies in the world and is generally viewed as a blue-chip stock. There are about 10.25 billion outstanding Amazon shares available at the time of writing, although the number is always increasing. Each share is currently worth $135 per share.
How to Buy Amazon (AMZN) Stocks on eToro
To buy AMZN stocks on eToro, all you have to do is follow these few steps:
- Open a Trading Account on eToro
- Verify the Trading Account
- Deposit Funds
- Search for Amazon Stocks
- Buy Amazon Stocks
- Manage your Amazon Positions
Pros and Cons of Buying Amazon (AMZN) Stocks on eToro
As with everything, there are benefits and downsides to buying Amazon stocks on eToro. Here are some of them:
Pros
- Zero Commission on Stock Trades
- Access to Fractional Shares
- Good Option for Social Trading
- Well-Regulated for Stock Trading
Cons
Factors to Consider Before Buying Amazon (AMZN) Stocks on eToro
In the quest to learn how to buy Amazon (AMZN) stocks on eToro, it is important to be aware of the various factors that could affect your trading experience. Some of them are:
Fees and Commissions
Trading Amazon shares on eToro costs more than just the actual price of the stock. When you trade on eToro, you have to pay some fees. eToro is a commission-free trading platform, so there are no commissions. However, you do have to pay spreads, the price difference between the buy and sell price of a stock, when you buy Amazon shares on eToro. You will also pay a flat $5 withdrawal fee when you withdraw from your trading account, and a currency conversion fee if you withdraw to a non-US account.
Check the eToro website to see the various fees you will be likely charged before you start trading with them.
Trading Platforms
A trading platform is a software application that allows you to buy and sell financial instruments, or Amazon shares in this case. It offers you access to the market and allows you to trade quickly and easily. eToro uses its own proprietary trading platform, which is designed for users of the platform.
You can test the eToro trading platform with a demo account before you start trading with real money, just to see if you are comfortable with it.
Leverage
Leverage trading involves borrowing money from a broker to open a position much bigger than would be possible with your investment capital. You can open positions more than ten times the size of your trading account and potentially profit from the trade. In the same way, you could also lose a lot when you trade with leverages, as they can also amplify losses. eToro offers leverage to traders interested in buying and selling Amazon shares this way.
Stock Offering
You can either buy real Amazon stocks to hold or day trade, or CFDs to speculate the price movement of the shares without owning them. Both trading methods have their advantages and disadvantages, and are both suited for different trading strategies. Also, for CFDs, there are leverage limits depending on where you are trading from and the regulatory body overseeing that region. It could range from 1:2 to 1:10 on stocks like Amazon.
eToro Trading Platforms to Buy Amazon (AMZN) Stocks
eToro is a unique trading broker that offers its proprietary trading platform for all kinds of stock trading. It doesn’t offer other third-party trading platforms like MetaTrader and cTrader. The proprietary trading platform offers features like order entry, market data, charts and analysis, and account management. It also offers CopyTrader, a feature which allows you to automatically copy the trades of other successful traders, and Smart Portfolios, a basket of stocks managed by eToro’s investment team.
This proprietary trading platform is available on both desktop and mobile devices. You can choose one or more to start trading with today.
Desktop Trading Platform
The desktop trading platform is accessible on a desktop or laptop device. Since eToro only offers a web-based trading platform, you can only gain access to the desktop trading platform by visiting the eToro website on your computer.
The desktop trading platform offers you access to different features, with the added advantage of a bigger screen real estate. However, it has a major disadvantage in that it isn’t the best method for trading on-the-go. Because you cannot take your computer everywhere you may miss out on some real-time news and notifications that might have been important in making trading decisions when buying Amazon Stocks.
Mobile App
eToro has a mobile version of their proprietary trading platform for people interested in trading with their mobile devices, like smartphones and tablets. You can download this mobile app on the Google PlayStore or Apple Store for Android and iOS devices respectively.
When you trade on the mobile app, you have access to all the features available to traders on the eToro proprietary trading platform, including CopyTrader. The mobile app has the advantage of being able to provide traders with real-time news and information. However, the major downside of using a mobile app is that it has a smaller screen real estate which could be a problem for some traders.
eToro Fees and Commissions on Amazon (AMZN) Stocks
While eToro doesn’t charge commission, they charge some fees for trading stocks. There are different kinds of fees you will pay on the eToro platform, and they can all be broadly categorized into two: Trading and Non-Trading Fees.
Trading Fees
These are fees you pay for actively trading on the eToro platform. You will only get charged trading fees when you actively trade on your account, not when you leave your account dormant. Some trading fees you are likely to encounter when trading on eToro are:
Spread: Spread is the price difference between the bid (selling) and ask (buying) price of an asset, or an Amazon share in this case. Spreads on eToro start at 0.15% for US stocks, but can vary a lot depending on the asset and market conditions.
Overnight Fees: Also known as rollover fees, these fees are charged by eToro when you hold a CFD position overnight. They are charged to finance CFDs charges, i.e. to cover interests for leverages when trading CFDs.
Overnight fees on eToro are charged at 17:00 New York time (00:00 GMT). If you close your CFD position before 17:00 New York time, you will not be charged an overnight fee. However, if you close your position after 17:00 New York time, you will be charged an overnight fee for the full day. However, eToro doesn’t charge overnight fees on weekends or holidays.
Non-Trading Fees
These are fees you pay when you aren’t actively trading on the eToro platform. Some examples of non-trading fees on eToro are:
Conversion Fees: Conversion fees on eToro are charged when you deposit or withdraw funds in a currency other than USD. The conversion fee is typically around 0.5%. For example, if you deposit $1000 into your eToro account, you will be charged a conversion fee of $5.
Withdrawal Fees: Traders are required to pay a $5 fee for each withdrawal on eToro. The platform doesn’t enforce a mandatory minimum withdrawal amount. The withdrawal fee is charged in USD, regardless of the currency of your withdrawal, and is non refundable.
Inactivity Fees: The eToro platform charges an inactivity fee of $10 per month if you do not log into your account for 12 months.
Payment Methods You Can Use to Buy Amazon (AMZN) Stocks on eToro
There are many payment methods you can use to buy Amazon stocks on eToro and here are the major ones:
- Credit & Debit Cards (Visa, American Express & Mastercard)
- Paypal
- Bank Wire: (SEPA, SWIFT, and Faster Payments.)
- Skrill
- Neteller
There are other payment methods you can use to fund your accounts on eToro.
Stock Trading on eToro
As one of the best stock trading brokers in the world, eToro puts a lot of measures in place to ensure traders have a smooth experience when trading stocks on the platform. Some of the measures taken on eToro for stock trading are:
Leverage on Stock CFDs: eToro offers leverage on stock CFDs, which allows traders to control a larger position with a smaller deposit. The maximum leverage available on stock CFDs varies depending on the underlying stock and the regulations in the region a person trades from. The leverage limit is 1:5 in the UK, Australia and the European Union, and 1:10 in Seychelles.
Minimum Stocks to Buy: eToro does not have a minimum number of stocks that you can buy. This means that you can start trading with as little as $10 in the US and the UK, and $50 in other countries except Israel. Shares like Amazon are higher than the $10 and $50 minimum, so you need to deposit more money to buy a significant amount of shares.
Fractional Shares: eToro allows you to buy fractional shares, which means that you can buy a portion of a share. You can decide to buy fractional Amazon shares if you don’t have the money to buy a complete share.
CopyTrader: CopyTrader is a trading feature on eToro which allows you to copy the trades of other successful traders. By studying the trading pattern of successful traders, you can make trading decisions that improve your chances of success.
Education: The eToro academy is a free resource that provides users with a variety of educational materials on topics related to trading and investing. You can view articles, videos, webinars, and courses on topics related to how to invest in stocks, cryptocurrencies, and ETFs, how to manage risk when trading, how to build a solid trading strategy, and how to read financial charts.
You can check the eToro website for more information on these measures.
What Reddit and Quora Say About Buying Amazon (AMZN) Stocks on eToro
Before you start trading stocks, it is important to do extensive research. One part of the research process involves reading reviews of traders who have gone through the same trading path as you. We went through two of the most popular social platforms to see what people thought about how to buy Amazon (AMZN) stocks on eToro.
With more than 400 million registered users and 55 million daily active users, Reddit is one of the most popular social platforms in the world. Many Redditors are interested in stock trading, especially of blue chip stocks like Amazon, so we went through some subreddits to see what they thought about buying shares in Amazon on eToro.
The first thread we saw was on r/stocks. The Redditor wanted to know if buying Amazon stocks was a good idea. They (the Redditor) thought it was a good investment, but wanted to see what others thought about it.
Another Redditor disagreed with the Original Poster (OP), saying that Amazon’s growth might erode quickly as competitors like Google Cloud and Azure become stronger. This Redditor believed that Amazon might begin to go down in the next ten years at this rate.
Another Redditor was more optimistic, stating that federal organizations like the FBI, CIA, NYSE, NASDAQ, US Military, and companies like Spotify, Apple, and even Reddit use the Amazon Web Service to keep their websites running, so the company isn’t dying anytime soon. They also explained that the fact that they are in every industry and expanding their reach every time means that more growth is on the way, predicting that the company would pass the $2 trillion valuation in less than 5 years.
On another thread, we saw a Redditor ask others if trading stocks on eToro was a good idea as they were interested in investing in some stocks.
The response from Redditors were mostly positive, with many of them stating that they’ve had a great experience since they started using the trading broker.
Quora
Just like Reddit, Quora has hundreds of millions of users who talk about a wide variety of topics, including stock trading. We went through a few posts to see what we could find on buying shares in Amazon on eToro.
In the first post we came across, a user wanted to know if buying Amazon shares was a good idea. Another Quora user advised him not to buy stocks at all, but no-load mutual funds and/or exchange traded funds (ETFs), as buying individual stocks could be risky.
In another post, the poster wanted to know if Amazon stocks were overvalued and if buying them was a good idea. A user in the comment section explained that Amazon wasn’t overvalued, as it had Amazon Web Services, new advertising opportunities, and a developing healthcare system in collaboration with Berkshire Hathaway.
Bottom Line
Amazon is a trillion-dollar conglomerate and its stocks are widely regarded as blue chip stocks in the world of investing. This guide article discussed how to buy Amazon (AMZN) stocks on eToro, a stock trading broker known for its tight spreads, zero commission and social trading features. We discussed the pros and cons, factors to consider, trading platforms available, fees, payment methods, and everything else you need to know before buying shares on eToro.
It is highly recommended that you do your own research on Amazon stocks to see if they are worth investing in before you put in your money. Also, read more about eToro on their website before you register and start trading with them.
Q & A
You can buy Amazon (AMZN) shares from stockbrokers that offer access to the NASDAQ Stock Exchange. Some good examples of such brokers are eToro, Capital.com, and Interactive Brokers.
eToro is one of the best stock brokers for traders to buy Amazon shares.
Yes, eToro is a stockbroker.
Yes, you can invest in Amazon shares on eToro.
Yes, eToro offers stock CFDs.
The minimum deposit required by eToro depends on the payment method you use. For most payment methods, the minimum is $10 for traders in the US and UK and $50 for traders in other countries. However, for bank wire, the minimum deposit is $500.
There is no minimum amount of Amazon shares to buy on eToro.
You can’t directly transfer your Amazon shares from eToro to another broker. You cannot transfer your open positions from eToro to another broker, even through the Automated Customer Account Transfer Service (ACATS). You need to close your position in Amazon and then sell the shares back to eToro, and then use the capital to buy the stocks from another broker.
You need two kinds of documents to open a Stock Trading Account on eToro: Proof of Identity (any valid government-issued ID) and Proof of Address (utility bill, bank statement, etc.).
Yes, eToro offers fractional Amazon shares. This means that you can buy a portion of an Amazon share, even if you don’t have enough money to buy a whole share.
No, Amazon doesn’t pay dividends on its shares.
The largest Amazon shareholder is Jeff Bezos who holds 9.65% of Amazon stocks.
To buy Amazon shares on eToro, you need to register on the platform and deposit funds. Go to your trading page and search for Amazon shares, type in the number of shares you want to buy, and start trading.
Buying Amazon shares on eToro is a good choice because the platform is well-regulated and offers a variety of features that make it easy to use for investors of all levels of experience. These features include fractional shares and social trading.
Yes, eToro is a trustworthy broker to invest with, thanks to its solid regulation and security.
There is no limit to the number of Amazon shares you can buy on eToro.
No, you cannot buy Amazon shares without ID verification on eToro. eToro requires identity verification for all users.
Yes, you can buy Amazon shares with PayPal on eToro.
The current Price of Amazon shares on eToro is $135.
Whether Amazon shares are a good buy depends on your individual investment goals and risk tolerance. You might want to consider the fact that Amazon is a well-managed company with a strong track record of success, and its stock price has been rising steadily for many years. There are also risks involved when trading stocks, so you might want to consider the fact that you might lose money in a short-term price swing.
