Invest in AMC – Investing in AMC Beginner’s Guide 2021

Fact Checked by Gary McFarlane

AMC Entertainment is a holding company. With its subsidiaries, it provides online ticket booking, food distribution, movie screening, theatrical exhibitions, and other similar services. Included within the AMC entertainment companies are SundanceTV, We TV, IFC, AMC cable channels, and the IFC movie theatre.

With the coronavirus pandemic limiting operations, many investors are curious to know whether investing in AMC stock is worth it or not. This comprehensive guide will teach you how to invest in AMC, the pros, the cons and the best brokers to invest with.

#1 Broker to Invest in AMC – eToro

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How to Invest in AMC Entertainment – Step by Step Guide 2021

Suppose you are interested in investing in AMC Entertainment. In that case, here’s a step by step guide on how to invest in it:

  • Step 1: Create an eToro Account – The first thing that you have to do is to make a trading account on a platform like eToro. All you have to do is to go to the eToro website, register, and verify your account.
  • Step 2: Verify Yourself – Provide a photo ID and proof of address. These will include your passport/driving license and a bank statement or utility bill.
  • Step 3: Transfer Funds into Your Account – The next step is to put money into your account once it has been verified. You can do this by clicking on “Deposit Funds” and entering the amount of money that you are planning to invest. To finalize everything, click on “Deposit”
  • Step 4: Invest in AMC Entertainment – Simply need to go to the search bar and type in “AMC Entertainment”. You can also use its ticker which is AMC. Click “trade” and input the amount you want to invest in. Click on “Buy” to confirm it.

Where to Invest in AMC – Choose a Broker

As aforementioned, picking the right brokerage will make it easy for you to purchase and sell AMC stock effortlessly. Here are our top recommendations for the best online brokers on the market.

1. eToro – Best Broker to Invest in AMC

eToro is an investment platform and online broker with over 17 million users. Over the years, it has emerged to be the biggest online broker platform in the market, making it a go-to investment platform for newbies.

Security and Privacy

When it comes to deciding on which online broker to choose, your top priority should be their security and privacy features. These are very important so that you can protect your investment against theft, especially that hacking and scams are very rampant nowadays.

eToro is regulated by the CySEC and FCA. This means that your money is safe along with your data. The platform also uses SSL encryption for added layers of protection against hackers with ill intentions.

Fees and Features

What makes eToro beginner-friendly is its easy to use interface with advanced trading features. One of the best features it offers for beginners is CopyTrading. This allows users to automatically mirror the trade of experienced traders.

eToro Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $10 (Monthly)

 

Pros

  • SSL encrypted
  • Commission-free
  • Regulated
  • Copytrading

Cons

  • Doesn’t have MetaTrader support

67% of retail investor accounts lose money when trading CFDs with this provider.

2. Robinhood – Reputable Platform to Invest in AMC

Robinhood is an online brokerage app that is known for allowing traders to invest in stocks and ETFs for free. Established in 2013, Robinhood is a streamlined trading platform that is a great choice for beginners and investors that prefer trading on their mobile devices.

This no-commission broker is also a Reddit-fueled rally of heavily shorted stocks by hedge funds. Something else that makes this platform stand out is that it offers free cryptocurrency trading.

Security and Privacy

Robinhood is a member of SIPC. This means that your funds in the platform are protected for upto $250,000 for cash claims and $500,000 for securities. Also, it is regulated by the Security Exchange Commission so it is as secure as a brokerage can be.

In terms of privacy, Robinhood is pretty transparent that they do share your data to third-party entities for marketing and personalization purposes. However, users do have a choice on how certain data can be shared through their sharing preferences.

Fees and Features

Robinhood can be a good introduction to investing. It provides cryptocurrency, free stocks, ETF, and options trade. What makes it user friendly is the fact that it does not require a minimum deposit. This means it’s a good platform to use if you are only testing the waters.

However, Robinhood does not offer bonds and mutual funds. Your options here are only limited to taxable investment accounts.

Robinhood Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0 

 

Pros

  • Free trading of stocks, options, ETFs
  • Free cryptocurrency trading
  • Offers fractional shares
  • No account minimum
  • Intuitive mobile app

Cons

  • Lacks mutual funds
  • Account types are limited
  • Customer support is lacking

67% of retail investor accounts lose money when trading CFDs with this provider.

3. TradeZero – Great Platform to Invest in AMC

This is an online broker that was established in 2014 and is regulated by the Securities Commission of the Bahamas. Being a Direct Market Access (DMA) broker, TradeZero gives users access to top trading routes in the US including NSDQ, ARCA, EDGX, or BATS.

TradeZero offers 3 trading platforms to choose from and four software programs to make trading exceptional.

Security and Privacy

Unlike the other platforms in this list, TradeZero is not a member of the SIPC, SEC, or FINRA. However, accounts are insured so there’s a certain degree of protection for your money.

Fees and Features

TradeZero has several noteworthy features. This includes excellent security features and live customer support. They also have level 2 exchanges for non-pro individuals.

TradeZero Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $5
Inactivity Fee $0

 

Pros

  • Allows stocks and options trading
  • Trading fees and commissions are low
  • The mobile app allows real-time trading
  • 24/7 live support
  • Ideal for active day traders

Cons

  • Mobile app features are limited

67% of retail investor accounts lose money when trading CFDs with this provider.

4. Webull – Smart Tools to Invest in AMC

Webull is a mobile app broker that was founded in 2017 and is regulated by FINRA and SEC. Headquartered in New York, this online brokerage offers commission-free stocks, options, ETFs, IRAs, margin accounts, and cryptocurrency trading.

Although Webull is among the brokerages with the lowest fees, it is best suited for active, intermediate, and experienced traders. It is, especially, a good fit for active traders that are looking for low-cost individual cash and margin brokerage accounts.  Nonetheless, novice traders can still benefit.

Security and Privacy

Webull is quite safe, given that it is regulated by top financial authorities. Although its not a member of FDIC, it does have SIPC insurance protection.

In terms of privacy, they do not sell your financial data. You also have the option to control or delete your personal information on the platform.

Fees and Features

Webull is a community-driven online brokerage platform. As such, it has community features that are ideal for new investors. The platform also offers crypto and trade options at $0 fees.

Webull Fees

Fee Type Fee Amount
Commission Fee 0%
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0

 

Pros

  • Low costs
  • Intuitive trading platform with advanced tools
  • Allows cryptocurrency trading
  • No minimum deposit
  • 24/7 customer support
  • Allows trading from one account

Cons

  • Educational resources are limited
  • Doesn’t support mutual funds trading
  • A transfer fee of 75%

67% of retail investor accounts lose money when trading CFDs with this provider.

5. Interactive Brokers – Accessible Way to Invest in AMC

Interactive Brokers is an online trading platform that was initially designed for experienced traders. However, the platform currently has free trades to accommodate casual and beginner traders and investors. This trading platform also gives investors access to more than 135 foreign markets.

Security and Privacy

Investments made with Interactive Brokers are protected by SIPC, making it as safe as the other platforms in this list. They are also pretty transparent when it comes to their financial records which is a good sign for safety.

Fees and Features

Interactive brokers have advanced trading features, given that it was originally designed for more experienced traders. It also has a wide selection of tradable securities, including foriegn stocks.

Interactive Brokers’ Fees

Fee Type Fee Amount
Commission Fee 0.12%
Deposit Fee 1% of deposit amount
Withdrawal Fee $0
Inactivity Fee $0 

 

Pros

  • Detailed mobile app
  • Offers access to foreign markets
  • Provides a wide range of tradable assets
  • Great trading tools
  • Wide range of mutual funds with no transaction
  • No account minimum required

Cons

  • The platform may be too comprehensive for beginner investors

67% of retail investor accounts lose money when trading CFDs with this provider.

Invest in AMC – Broker Price Comparison

Picking a broker can be quite challenging when they all have their fair share of noteworthy features. But, to help you get a better idea of which among them is a good choice for you, here’s a broker price comparison:

 

Broker Commission Deposit Fee Withdrawal Fee Inactivity Fee
eToro 0% $0 $5 $10 monthly (after 12 months inactivity)
Robinhood 0% $0 $0 $0
TradeZero 0% $0 $5 $0
Webull 0% $0 $0 $0
Interactive Brokers 0.12% 1% of deposit amount $0 $0

 

What are the Different Ways to Invest in AMC?

If you are a new investor deciding on which method to invest in AMC can be quite challenging. This is mostly because you need to have a good understanding of the different types of investment options. On top of that, you also need to learn how to invest in them.

But, don’t be disheartened by this steep learning curve. Investing will eventually be easier for you. As to the different ways to invest in AMC entertainment, we have broken down 2 of the main methods that you can try:

Stocks

The main method of investing in AMC entertainment is by buying stocks. When you buy AMC stocks, you are buying part of the company, making you a part-owner.

Moreover, stocks have several benefits. The biggest benefit is that you can receive dividends from the company. You can also get voting rights in AMC shareholder meetings which allows you to have a say on how the company moves forward in the future.

ETFs

ETF stands for Exchange-Traded Fund. It’s a type of fund created by a fund manager or brokerage that allows investors to invest in various companies without the extensive legwork. This makes it a great option for beginners who don’t have a lot of time to learn all the jargons and complex processes of stock market investing.

Best Ways to Invest in AMC

As mentioned above, there are two main ways of investing in AMC which are by buying stocks or an ETF. The best way to invest in it if you are a beginner is by investing through an ETF. This is because you don’t have to do the legwork since a brokerage will take care of everything for you. The downside is that the fees are considerably higher compared to investing through stocks.

Is AMC Entertainment a Good Investment?

AMC is a large company that is pretty stable, making it a good investment option. However, at how things are right now with the pandemic and its performance, it might not be the best if you don’t have a high-risk tolerance. This is because it’s difficult to be sure that the industry will bounce back immediately after the pandemic, given that people are now accustomed to a new type of normal when it comes to watching films and movies.

Investing in AMC Entertainment – What are the Risks

Unfortunately, AMC was still struggling even before the pandemic hit. This is because many people use streaming services to watch movies at home. Also, the accessibility to high-quality TVs and sound systems has greatly improved the home-viewing experience and fewer people are going to movie theatres.

Low Profits

Consequently, AMC Entertainment had to shut down a good number of its theatres and screens. Although the company is making efforts to restructure itself, it is struggling because of poor business. It is losing money every quarter and its IBD rating is down to 70. Truth be told, it is difficult to tell whether the company will make any profits in the end.

Nevertheless, the AMC stock is quickly rising as young investors collectively purchase and hold the stock, causing its price to soar. Most investors, especially, those that are after easy money get excited when they see the stocks soaring.

High Risks of Losing Your Investment

The chances of getting burned and losing your whole investment are pretty high. GameStop, for instance, soared high earlier this year but came crashing down by 85% in just a month.
Last year, AMC Entertainment said that it might consider bankruptcy. Although the CEO announced that the company is no longer going bankrupt, it had to sell its debt notes to get capital. Therefore, AMC stock investors should be cautious and use time-tested rules when investing in shorted stocks.

How to Invest in AMC Entertainment with eToro?

eToro is a user-friendly platform so navigating to buy AMC entertainment stock is made easy. Here are the simple steps that you should follow:

Step 1: Create an Account

You first need to create an account in eToro before you can invest in AMC entertainment using it. To do this, simply go to the eToro website and click on “Create Account”. You will be redirected to a page that would require you to answer details about your name, birthdate, etc. Make sure to answer all of these and click on “Join Now”.

Step 2: Verify Your Account

Before you can use your eToro account, you first need to provide identity verification. This is required because it is a regulated platform with strict money laundering and data protection rules. To verify your account, you need to provide a valid ID with a photo and proof of address.
Your valid photo ID could either be your driver’s licence or passport. Meanwhile, for the proof of address, you can use your utility bill or bank statement.

Step 3: Fund Your Account

eToro has made it easy for users to fund their accounts. You just need to click on the “Deposit Funds” option and input how much you want to invest. Click on “Deposit” to finalize the funding. You can use various payment methods for this, including bank transfer, e-wallets such as Skrill or Paypal, and credit cards.

Step 4: Invest in AMC Entertainment

Now for the final part which is investing in AMC entertainment. You can do this by searching for it in the search bar. Just type in AMC Entertainment or use AMC which is its stock ticker. Press “Trade” and a pop up will appear. Fill in the necessary details such as how much you want to invest then click on “Buy”.

Conclusion

In the end, it may be impossible to value the AMC stock since this will depend on the company’s overall performance. Therefore, the question of whether or not you should buy AMC Entertainment stock will depend on your financial goals in the long term.

If you want to make short-term success, find a reputable online broker and make your purchase or sell. Alternatively, you can hold on to the stock for long-term gains.

#1 Broker to Invest in AMC – eToro

1
$50Exclusive promotion
Our score10
  • Buy over 800 stocks with 0% commission
  • Social trading network
  • Copy over 12 million traders and investors
0% Commissionstart TradingOur score 10

FAQs

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About April Quiñones PRO INVESTOR

April loves writing about all sorts of fun and interesting topics online. Besides her three-year-old daughter, coffee is her best friend.