How to Invest in Amazon UK – Invest in Amazon Shares Today!
If you’re based in the UK and looking to invest in Amazon, the process could not be easier. All you need to do is register an account with a safe and low-cost online broker, deposit some funds with your debit/credit card, and then proceed to invest in Amazon shares.
If this is your first time buying stocks online, this guide will show you how to invest in Amazon shares in the UK with a 0% commission broker in under five minutes.
#1 Stockbroker to Invest in Amazon UK – eToro
How To Invest in Amazon UK – Choose a Stockbroker
In order to invest in Amazon shares in the UK, you will first need to choose a suitable stockbroker. We found that the stockbrokers listed below offer the best service to UK investors looking to buy Amazon shares in a safe and low-cost environment.
- eToro – Overall Best Place to Invest in Amazon UK
- Capital.com – Trade Amazon Shares in the UK at 0% Commission
- AvaTrade – Invest in Amazon via Leveraged CFDs
You will find a comprehensive of each Amazon investment platform further down in this guide.
How to Invest in Amazon UK – A Quick Guide For 2021
If you already have a bit of experience in the stocks and shares space – you might only require a quickfire walkthrough on how to invest in Amazon in the UK.
In the five steps below, we show you how to invest in Amazon via FCA-regulated broker eToro at 0% commission.
- Step 1: Open an Account with eToro – Visit the eToro website and open an account by entering some basic personal information.
- Step 2: Upload Your ID – If you are looking to invest more than $2,250 (about £1,600), you will need to upload a copy of your passport or driver’s license. If not, you can come back to this step at a later date.
- Step 3: Deposit Funds – Before you can invest in Amazon shares in the UK, you will need to deposit some funds. eToro supports a wide range of UK payment methods – such as debit/credit cards, Paypal, Skrill, and bank transfers.
- Step 4: Search for Amazon – eToro offers thousands of stocks, so it’s best to use the search box by entering ‘Amazon’. When you see Amazon shares appear, click on the ‘Trade’ button.
- Step 5: Invest in Amazon – You now need to enter the amount of money that you wish to invest in Amazon. Although Amazon trades for thousands of dollars per share, you only need to meet a minimum investment of $50 (about £36) at eToro.
Once you hit the ‘Open Trade’ button, eToro will place your Amazon shares investment in real-time. The shares can then be viewed in your eToro portfolio, where they will remain until you decide to cash out.
Note If you are trying to invest in Amazon shares in the UK outside of standard market hours, you will need to click the ‘Set Order’ button. In doing so, eToro will execute your investment when the NASDAQ market reopens – which is where Amazon shares are listed.
67% of retail investor accounts lose money when trading CFDs with this provider.
Where to Invest in Amazon UK – Full Stockbroker Reviews
Amazon is one of the largest companies globally – so although its stocks are listed in the US, investing from the UK could not be easier. The most important thing is that you choose a suitable stockbroker for your investment.
In order to do this, you need to see what fees apply to invest in the US markets – such as commissions and FX charges. You also need to ensure that your chosen stockbroker is regulated and assess whether or not it supports fractional investments.
To save you from having to perform countless hours of research, below you will find the best stockbrokers that allow you to invest in Amazon in the UK.
1. eToro – Overall Best Place to Invest in Amazon UK
Irrespective of whether you are a stock market newbie or an experienced pro – we found that eToro is by far the best stockbroker to invest in Amazon in the UK. The platform – which is now used by over 20 million investors, is heavily regulated – so safety should be of no concern. This includes regulation from the Financial Conduct Authority (FCA), as well as coverage from the Financial Services Compensation Scheme (FSCS). Additional regulation comes from licensing bodies in the US, Cyprus, and Australia.
In choosing eToro as your go-to broker, you won’t need to invest thousands of dollars into a single Amazon share. On the contrary, the minimum stock investment at eToro is just $50. This means that you can purchase just a small fraction of one Amazon share – which is ideal for those on a budget. When it comes to fees, this is where eToro really stands out from the crowd – as you can invest in Amazon in the UK on a 0% commission basis.
This is unheard of in the UK stockbroker arena, as virtually all platforms charge a premium to invest in international shares. Nevertheless, at eToro, you will have access to thousands of other stocks of all shapes and sizes. In fact, this top-rated brokerage site covers 17 UK and international markets. The latter includes stocks from the US, Europe, Hong Kong, and more. If investing in UK-based stocks, eToro will also waiver the standard stamp duty charge of 0.5%.
In terms of making a deposit, eToro supports a wide variety of UK payment methods. The easiest option is to fund your account with a UK debit/credit card, albeit, bank transfers are also supported. You can also deposit funds via Paypal, Neteller, and Skrill. You can complete the registration process in under five minutes online or via the eToro trading app. Finally, we should note that eToro offers several passive investment tools that are popular with investors of all skillsets.
First, you have CopyPortfolios, which allow you to invest in a huge basket of assets via a single trade. The portfolio that you choose is professionally managed by the eToro team, so once you invest there is nothing else for you to do. Examples of popular eToro CopyPortfolios include investments that focus on renewable energy, growth stocks, and even cryptocurrencies. You then have the Copy Trading tool. This allows you to invest in a specific eToro user – so any positions that they place will also be replicated in your account.
- Invest in stocks at 0% commission and ZERO stamp duty
- Minimum investment per stock investment is $50
- Supports debit/credit cards, e-wallets, and UK bank transfers
- Regulated by the FCA and covered by the FSCS
- Used by over 20 million people
- Perfect for beginners
- Social and copy trading tools
- Perhaps too basic for technical traders
- No support for MT4 or MT5
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Trade Amazon Shares in the UK at 0% Commission
Although eToro is the best stockbroker to invest in Amazon in the UK, other options do exist. At the forefront of this is Capital.com – an FCA-regulated broker that allows you to trade Amazon shares via CFDs. This simply means that you can speculate on the future value of Amazon without needing to own the underlying shares. In choosing this option, you will benefit from a number of trading tools that you won’t find at traditional stockbrokers in the UK.
For example, Capital.com allows UK investors to trade Amazon shares on margin. This means that you can multiply the value of your stake – with UK limits allows up to 1:5 on stocks. In other words, by risking £100 on your Amazon trade, you can amplify this to £500. Be sure to tread with caution when applying leverage to your Amazon trades, as your losses will also be amplified. An additional benefit of using Capital.com to trade Amazon is that you can attempt to profit from both rising and falling stock prices.
For instance, if you think that Amazon’s share price will rise, you place a buy order. If you think it will fall, you place a sell order. What we really like about Capital.com is that you can trade Amazon shares in the UK at 0% commission. Much like eToro, this means that you only need to cover the spread, which is very tight at Capital.com. In addition to Amazon, Capital.com offers thousands of alternative shares from more than a dozen stock markets.
This includes the London Stock Exchange and AIM in the UK, alongside markets in the US, Canada, Singapore, Japan, Germany, France, Russia, and more. The minimum deposit to get started at Capital.com is just £20 when using a debit/credit card or one of the platform’s supported e-wallets. Bank transfers require a minimum of £250. The registration process at Capital.com takes just minutes, so it won’t take long before you can start buying and selling Amazon shares in the UK via leveraged CFDs!
- Top-rated spread betting and CFD broker
- Licensed by the FCA
- £20 minimum deposit (debit/credit cards and e-wallets)
- 0% commission on all markets
- Tight spreads and no fee on deposits or withdrawals
- Supports thousands of financial markets
- Convenient for newbies
- Experienced traders might consider the broker too basic
- £250 minimum deposit on bank transfers
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.25% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
3. AvaTrade – Invest in Amazon via Leveraged CFDs
AvaTrade offers a similar service to the previously reviewed Capital.com, insofar that you won’t be investing in Amazon shares directly. Rather, you will be buying Amazon shares via CFDs. Once again, this means that you will have access to leverage, low fees, and short-selling facilities. At AvaTrade, you can access Amazon shares in the UK at 0% commission alongside competitive spreads. The minimum deposit to get started is just £100 – which is ideal for those looking to trade CFDs on a budget.
With that said, AvaTrade also offers a free demo account to all registered users. This will allow you to trade Amazon shares in a risk-free environment – as you will be placing orders with paper funds. In terms of supported markets, AvaTrade offers a reasonable number of alternative stocks, which cover the FTSE 100 in the UK, and the NASDAQ and NYSE in the US. AvaTrade also supports commodities, indices, forex, and ETFs.
In choosing AvaTrade, you will have access to a wide range of trading tools and features. This includes a choice between MT4, MT5, or the main AvaTrade platform. All three of these investment suites come packed with advanced charting tools and technical indicators – which is great for trading Amazon shares via a day or swing trading strategy. There is also a good range of education tools at AvaTrade, so you can learn the ins and outs of trading CFDs via a single hub.
Trading CFDs and FX Options entail risk and could result in the loss of your capital.
How to Invest in Amazon UK – Detailed & Explained in Full
In this section of our guide on how to invest in Amazon UK, we are going to walk you through the process every step of the way. This will include the process of opening a stockbroker account with eToro, deposit some funds, and finally – completing your Amazon investment.
From start to finish, you should be able to invest in Amazon at eToro in under five minutes by following the walkthrough below!
Step 1: Open a Stockbroker Account
Opening a stockbroker account with eToro is simple and fast. First, visit the eToro website and hit the ‘Join Now’ button. In doing so, you will see a registration form appear on your screen – like the image below. Here, you will need to enter your first and last name, email address, telephone, and a preferred username and password for your login credentials.
eToro will also ask you to upload a copy of your government-issued ID – which can be a passport or driver’s license. However, if you are going to be investing less than $2,250 into Amazon, you can do this at a later date.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Deposit Investment Funds
Now that you have an eToro stockbroker account, you can proceed to make a deposit. The easiest way of doing this is to use your everyday debit or credit card, as the payment will be processed instantly. This is also the case with supported e-wallets like Paypal and Skrill. If you opt to transfer funds from your UK bank account, expect to wait a couple of days for eToro to credit the funds.
The minimum deposit requirement for new UK customers at eToro is $200 – or about £145. There is a small 0.5% FX to convert GBP into USD. But, this is offset by the fact that you will not pay any commissions or stamp duty when buying shares at eToro!
Step 3: Search for Amazon
You should now have funds in your eToro stockbroker account. To find the relevant investment page for Amazon – simply search for the company.
You can see from the image above that once we enter ‘Amazon’, the market for this stock appears from the drop-down list. When you see it, click on the ‘Trade’ button.
Step 4: Invest in Amazon UK
You should now see the required order box appear for Amazon shares. By default, you will be placing a market order, which means that you simply need to enter your stake. The minimum Amazon investment amount that eToro permits is $50. This means that you don’t need to buy a full share – which is great for beginners.
Finally, hit the ‘Open Trade’ button to complete your Amazon investment. If, however, the blue button shows ‘Set Order’ – like in our example, this means that the NASDAQ exchange is currently closed. Not to worry, eToro will execute your Amazon investment as soon as the market reopens!
Step 5: How to Sell Amazon Shares UK
Once you confirm your Amazon investment at eToro, the shares will be added to your portfolio. Most investors will hold on to their shares in the long run – as this will allow you to ride out short-term market fluctuations.
- Nevertheless, at some point in time, you will likely want to sell your Amazon investment – hopefully at a profit.
- To do this, simply login to your eToro account, head over to your portfolio, look for Amazon, and click the ‘Sell’ button.
If the market is open, the cash proceeds will be added to your eToro account instantly – which can then withdraw.
Buy Amazon Shares UK – Best Place to Invest in Amazon UK
When learning how to invest in Amazon in the UK, you need to think about the best place to complete your purchase. This is typically done through a stockbroker that gives you access to the NASDAQ exchange in the US.
When choosing the best place to invest in Amazon in the UK – consider the following points.
- Is the stockbroker regulated by the FCA?
- Are you able to buy a fraction of one Amazon stock, or do you need to purchase a full share?
- What is the minimum deposit amount and what UK payment methods does the stockbroker support?
- Does the stockbroker make the process of investing in Amazon simple?
- What fees will you need to pay to invest in Amazon?
If you’re still looking for the best place to invest in Amazon in the UK, you might want to revisit our stockbroker reviews. To recap, we found that eToro is by far the best broker offering Amazon shares in the UK – as you can complete your investment on a 0% commission basis and from a minimum purchase amount of just $50.
Is Amazon a Good Stock to Buy?
As a UK investor, you have access to thousands of stocks and shares – both domestically and internationally. With this in mind, you should never invest in a stock without having first done some adequate research. In contemplating whether or not Amazon is a good stock to buy, you need to cover a variety of factors – such as where you see the company in five years’ time.
To ensure you only invest in Amazon in the UK with your eyes wide open – be sure to consider the following research sections.
Amazon Stock Price History
Amazon as a company was first founded in 1994 by Jeff Bezos. Just three years later, Bezos floated Amazon on the NASDAQ exchange. Based on adjusted prices for its previous stock splits, Amazon shares were initially trading at just $1.73 each. It goes without saying that had you invested in Amazon shares back in 1997, you would now be looking at life-changing gains.
For example, at the time of writing in late 2021, Amazon shares are trading at well over $3,100. In percentage terms, this translates into end-to-end gains of almost 180,000%. In simpler terms, had you invested just £1,000 into Amazon back in 1997 and you were still holding onto your shares in 2021 – you would be looking at a portfolio balance in excess of £1.8 million.
Does Amazon Pay Dividends?
Although Amazon is one of the biggest and most successful stock stories of the past two decades years, the firm is yet to pay a single dividend. This is unheard of in the stocks and shares industry, as large-cap companies will almost always share their profits with stockholders via a regular dividend policy.
However, in the case of Amazon, the firm prefers to reinvest its excess capital into new projects and ventures. This shouldn’t concern you as an investor, however, as Amazon has more than rewarded its stockholders via its continued share price increase!
Should I Invest in Amazon?
Whether or not you should invest in Amazon should be based on your own fundamental research. If you’re still sitting on the fence and need a little bit of inspiration, below we discuss some of the main reasons why you might consider investing in Amazon in the UK.
One of the first points to note about Amazon is that much like its fellow tech-oriented stocks, the company has flourished since the COVID pandemic began. This is a major benefit to consider, not least because it shows investors that even when the wider markets were turbulent, Amazon continued to increase in value.
For example, at the start of 2020, Amazon shares were trading at just over $1,800. By the end of 2020, the same shares were trading at over $3,200. This means that in a year dominated by global lockdowns and movement restrictions, Amazon shares increased by more than 77%.
Services Division is Flying
When analyzing Amazon’s business model, many investors will fixate on its online retail platform. Although this is the firm’s largest and most successful division, Amazon’s services department is growing at an exponential rate. This once again proves that management is continuously looking at ways to diversify away from its core retail division and into new and innovative markets.
At the forefront of this is Amazon Prime – which at the start of 2020 – was home to just over 150 million subscribers. While many consumers were tightening their belts in 2020, this wasn’t the case with Amazon Prime members, as its user base has since increased to over 200 million paying customers.
then have Amazon’s TV and movie streaming service, which is also seeing a rapid increase in customer numbers. Perhaps even more interesting is the success of Amazon Web Service (AWS), which now dominates the cloud storage industry by some distance.
Amazon is continuously looking to innovate with new products, services, and most importantly – target markets. This is made possible through the firm’s non-dividend policy, which allows Amazon to reinvest its cash flow into research and development.
Just some of the new markets that Amazon has recently entered or is looking to explore further include:
- Space tourism
- Retail groceries
- Same-day drone deliveries
- Artificial intelligence
- Original TV and movie content
- Virtual reality
Ultimately, Amazon has the required resources to succeed in all the markets and new divisions that it seeks to target. As such, this is why even after two decades as a public company, Amazon is still referred to as a growth stock in many circles.
Ways to Invest in Amazon UK
If you’re looking for the best ways to invest in Amazon in the UK – check out the payment methods supported below.
Invest in Amazon With Debit Card
You can easily invest in Amazon in the UK with a debit card. In fact, this is by far the quickest and most convenient way of entering the market. Just make sure that your chosen stockbroker supports debit cards and be sure to assess what fees you will be charged.
Invest in Amazon With Credit Card
Although investing in the stock markets with a credit card can be risky, this payment method is supported by several brokers. At eToro, for example, you can invest in Amazon shares via debit and credit cards with ease.
Invest in Amazon With Paypal
New-age brokers like eToro also allow you to invest in Amazon in the UK with Paypal. In fact, the platform supports several other e-wallets too – such as Skrill and Neteller.
Risks of Investing in Amazon in the UK?
Although Amazon is of the best-performing stocks of the past two decades, this doesn’t mean that your investment is free from risk. On the contrary, like all financial instruments, there is every chance that you will lose money.
These are the main risks that you need to consider before you invest in Amazon in the UK:
- Market Timing: Amazon shares cannot move in an upward trajectory indefinitely. All stocks go through bearish periods, especially when there is a wider stock market downfall. With that said, while most industries suffered during the midst of the COVID pandemic, Amazon shares performed extremely well in 2020 by closing the year 77% higher.
- Anti-Monopoly Laws: It goes without saying that Amazon dominates the US retail industry by a considerable margin. Although this is good news for investors, there have been rumors that Amazon’s market dominance could one day be in breach of anti-monopoly laws.
- FX Fluctuations: Amazon is listed on the NASDAQ exchange, so naturally, its shares are priced in US dollars. This means that when you invest in Amazon in the UK, you need to factor in currency exchange rate fluctuations. Depending on how GBP/USD performs, this could either be a risk or a benefit.
By considering the above risks before investing in Amazon, you will be well prepared for potential market downturns.
The Cost of Investing in Amazon in the UK?
You need to do your homework when choosing a suitable broker to invest in Amazon in the UK – as several fees will come into play. This is especially the case when you consider that Amazon is listed in the US.
The main costs of investing in Amazon in the UK are as follows:
Brokerage Deposit Fees
Some online stockbrokers in the UK charge a fee when you fund your account. This can depend on the type of payment method being used too – so be sure to check this before proceeding.
Share Dealing Fees
Brokers in the UK will charge share dealing fees when you buy and sell stocks. This is irrespective of where the stock is located. For example, Hargreaves Lansdown charges a share dealing fee of £11.95 per trade for both UK and international stocks.
Halifax is slightly more competitive at £9.50 per trade. With that said, you then have stockbrokers like eToro – which allow you to buy and sell Amazon stocks at 0% commission.
As noted above, Amazon shares are priced in US dollars. This means that when you have British pounds in your brokerage account, the platform is likely to charge you an FX conversion fee.
- This will vary depending on your chosen broker – with the likes of Hargreaves Lansdown charging 1% of the purchase amount.
- eToro does things differently to other stockbrokers in this space, as you will initially pay 0.5% when you deposit funds into your account.
- This is because the platform operates in US dollars, so after making the deposit, your balance will be quoted in USD.
In turn, this means that you can invest in thousands of US-listed stocks – such as Amazon, without needing to worry about constantly fluctuating exchange rates.
How to Invest in Amazon UK – Conclusion
In conclusion, when learning how to invest in Amazon in the UK, your main focus needs to be on the service offered by your chosen broker. For example, by completing the process with Hargreaves Lansdown, you will pay a share dealing fee of £11.95 to invest in Amazon in the UK – alongside an FX charge of 1%.
By completing the same process at eToro, you can invest in Amazon at 0% commission alongside a competitive deposit fee of just 0.5%. Plus, unlike Hargreaves Lansdown, eToro allows you to invest in fractional shares – meaning you only need to meet a minimum trade size of $50.
eToro – Best Broker to Invest in Amazon UK
How do you invest in Amazon in the UK?
Where to invest in Amazon UK?
Is Amazon a buy or sell?
Does Amazon pay dividends?
How much do you need to invest in Amazon UK?