Amazon (AMZN) - All you need to know
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Ways to invest in Amazon
To be able to buy shares in a company you first need to create an account with a stock broker. There are lots of different platforms out there, each boasting their own unique set of features. Once you’ve picked one, you can dive right in to get Amazon stock.
There are other ways to get exposure, though, beyond simply buying and selling a company’s shares. For a more hands-off approach, you can use mutual funds or exchange-traded funds (ETFs) that hold Amazon shares. The links below take you to individual pages which explain all the ways to start Amazon investing in more detail.
What is Amazon?
Amazon is the largest online retailer in the world. The company, which also operates a highly successful cloud computing business, turns over hundreds of billions in revenue every year and employs more than a million people around the world.
If you’re new to the stock market, check out our Stock Markets 101 course, which guides you through everything you need to know in easy-to-understand, simple steps.
How to invest in Amazon
Get to know all the options available before you venture your hard-earned money. Here is a quick summary of the different methods. To learn more, follow the link to our guides on each subject.
- Stock brokers. If you want to own shares outright, the simplest option is to use an online stock broker. Many brokers charge just a few pounds per trade, and some are completely free. They also usually offer some basic research tools to help you better understand the potential risks and rewards.
- Amazon ETFs. There are numerous ETFs which hold Amazon shares. Those ETFs may focus on anything from large-cap technology stocks to retail stocks to other categories. Owning shares through an ETF means you’re spreading your risk, since they typically hold many other stocks too.
- Mutual funds. A mutual fund pools money from lots of different people together to be invested by a fund manager in a way designed to generate profits for all over the long term. As one of the largest and most successful stocks of its era, Amazon is also one of the most widely held stocks by mutual fund managers.
- Investment trusts. A trust is similar to a mutual fund, but it is ‘closed-end’, which means the total amount of money they have to spend is fixed. To gain access to a fund, you have to buy shares in it from someone else.
- Amazon CFDs. Contracts for difference (CFDs) are an alternative way of trying to make money on the stock market. The biggest difference between trading with a CFD vs. buying shares is that with a CFD you don’t own the stock itself. Instead, you use them to speculate on whether the price is going to go up or down. Generally, CFD traders want to see returns in a much shorter time frame than share dealers but take on more risk as a result.
- ISAs. An ISA (Individual Savings Account) is a tax-free savings account that allows you to set aside a portion of your income (in the UK an ISA shields up to £20,000 worth of investments from tax). Within your ISA you can own all kinds of assets, like stocks and bonds.
Where can I buy Amazon shares now?
Latest Amazon price analysis
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >