How to buy American Electric (AEP) stock

Use our step-by-step guide to learn how to buy AEP stock and compare the best American Electric trading platforms.
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Updated: Jul 6, 2023
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A big part of learning how to buy American Electric stocks is finding the best place to make your investment. American Electric stocks are available to invest in through an online stock broker, and it usually takes just a few minutes to buy shares in American Electric when following our step by step guide.

Where to buy American Electric stock?

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The best stock trading platform to use to buy American Electric stock is eToro .

Based on our research, we’ve ranked the top three brokers where you can buy American Electric shares, according to how easy they are to use, how low their fees are, their safety and security rating, and average customer reviews.

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1
Min. Deposit
$ 10
Best offer
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:
CySEC, FCA

eToro offers real assets only, no CFD products. eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the BD.

2
Min. Deposit
$ 100
Best offer
User Score
9.9
Trade +2000 CFDs on Shares, Options, Commodities & more
Unlimited risk-free Demo Account
0 commissions & attractive spreads with up to 1:5 leverage
Start Trading
Payment Methods:
American Express, Apple Pay, Bank Transfer, Credit Card, Debit Card, Discover, Google Pay, Mastercard, PayPal, SEPA, Trustly, Visa, , skrill
Full Regulations:
ASIC, FCA, FSA, MAS, cysec-250-14-regulator, isa-regulator

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

3
Min. Deposit
$ 0
Best offer
User Score
9.7
Diverse stock selection providing investors with a diverse array of options for their portfolios.
Advanced trading tools aiding in executing trades with precision in the dynamic stock market.
Easy portfolio management.
Start Trading
Payment Methods:
ACH, Bank Wire, Check
Full Regulations:
CFTC, FCA, FINRA, IIROC, NFA, NYSE, SIPC
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Register Entry Number 208159. Products are only covered by the UK FSCS in limited circumstances.

Read more about how we test, rank & review platforms.

How to buy stock in American Electric in 3 simple steps

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Buying American Electric stock is quick and easy, all you need is an internet connection and a copy of your photo ID. Here’s how to do it.

Step 1. Sign up to eToro

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eToro is the best stock trading platform for beginners. Fill in your details to set up a brokerage account and attach a copy of your ID to verify it.

1
Min. Deposit
$ 10
Best offer
User Score
10
Up to $240 bonus!
Deposit with ACA, Wire, Pay with my bank
Invest for dividends and get payout on stocks on Ex-Dividend day
Start Trading
Payment Methods:
Bank Transfer, Credit Card, Debit Card, PayPal, Wire Transfer
Full Regulations:
CySEC, FCA

eToro offers real assets only, no CFD products. eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the BD.

Step 2. Make a deposit

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Transfer money to your new account with your credit or debit card, a bank transfer, or an alternative payment method, like PayPal. The minimum deposit is £10.

Step 3. Buy American Electric shares

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Search for American Electric using the ticker, AEP. Click the ‘trade’ button and enter the details of your investment, such as how many shares you want to buy or how much you want to spend. Hit ‘trade now’ to invest in American Electric and complete your purchase.

It’s as easy as that! You can buy American Electric shares in just 10-15 minutes and now you’re a American Electric shareholder.

Compare the best platforms to buy American Electric stock

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1. eToro. Best for beginners, copy-trading & demo-account

0% commission

Fees

$50

Minimum deposit

4,000

No. assets

Yes

Demo/virtual account

Pros & Cons

Great for beginners, simple to set up and get started Competitive, industry-leading commissions Popular ‘Copy Portfolios’ function lets you follow top traders Excellent customer service, with live chat support provided Over 2,000 CFDs available to trade for UK & EU users (not US, real assets only)
Comparatively high fees for withdrawals and account inactivity Does not integrate with the MetaTrader platform High spreads on some assets

Overview

We love eToro because you can trade more than 3,000 stocks, commission free. When you buy stocks on eToro, you’re buying the underlying asset, which means you can earn dividends. Or you can trade fractional shares, which means you can invest in even the most expensive stock from just $10.

As well as being a broker that offers lots of investor protection, eToro offers a very social trading experience. You can easily see what’s trending on the stock market every day, browse the latest analyst opinion about every one of those stocks, and copy other people’s trade suggestions from your desktop or the eToro app.

The fees: Stock and ETF trades are commission free. Stock CFDs are charged a 0.15% spread and overnight fees can apply. You can deposit money for free but you have to pay $5 per withdrawal, and there’s a minimum withdrawal of $30. A $10 per month activity fee is charged if you don’t log in for a year.

Highlights

Visit eToro eToro Review

eToro offers real assets only, no CFD products. eToro securities trading offered by eToro USA Securities, Inc. (‘the BD”), member of FINRA and SIPC. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the BD.

2. Plus500. Best for international CFD trading*

From 0.08%

Fees

$100

Minimum deposit

3,000

No. assets

Yes

Demo/virtual account

Pros & Cons

Can get a free demo account A great mobile platform Well regulated in multiple jurisdictions Wide variety of CFDs to trade Several good risk management tools
No support on trading information and education Website isn’t brilliantly designed to help users find answers to their questions No MetaTrader trading platform compatibility

Overview

We love Plus500 because it is one of the industry’s most transparent and reliable brokers. Its fees are clear and you’ll know exactly what you will be paying before you make a trade. Its technology driven platform gives access to CFDs on over 2000 stocks.

Plus500 has something for all types of stock trader, no matter what level of experience. Its zero commission and tight spreads make it a top choice for day traders and its trading academy is packed with educational content, perfect for beginners just starting.

For accurate instrument availability, visit plus500.com.

The fees: There are no commission fees on any trades with Plus500 and it makes it money through the Bid/Ask spread. Spread starts from 0.01% and varies depending on the instrument. Additional fees include overnight funding depending on trade size and guaranteed stop orders, which add a minimum of 10% to the spread. There is an inactivity charge of £10 per month for accounts not logged in for three months. 

*Based on a comparison of 60+ leading brokers and trading platforms.

Highlights

Visit Plus500 Plus500 Review

Buy or sell stock CFDs with Plus500. 82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

3. Interactive Brokers. Best online broker for range of markets

Commission-free for US exchange-listed stocks

Fees

...

Minimum deposit

10,000

No. assets

Yes

Demo/virtual account

Pros & Cons

Regulated by several financial authorities Free stock and ETF trading for US traders Earn interest on cash balance Free demo trading account available
The desktop trading platform is complex to navigate Customer service not available 24/7 Credit/debit card payment not available

Overview

We love Interactive Brokers because it has one of the widest selections of tradable assets we’ve ever seen. IBKR is one of the best-known and longest-running brokers in the world and when you create an account you’ll have access to tens of thousands of stocks, ETFs, funds, indices, currencies, bonds, and cryptocurrencies. 

Besides lots of markets, Interactive Brokers also offers a good range of additional tools and features including risk management tools, cutting-edge portfolio management services, and the ability to automate your trading system through ready-made or custom-built algorithms. 

The fees: Charges vary depending on the asset you’re trading. Stocks and ETFs are commission-free, as are most funds. Options fees range from $0.15 to $0.65 per option contract. Cryptocurrency fees range between 0.12% to 0.18% of the trade value. Forex trades have commissions which can be as low as a fraction of a pip. 

Highlights

Visit Interactive Brokers Interactive Brokers Review
Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Register Entry Number 208159. Products are only covered by the UK FSCS in limited circumstances.

4. Public. Best for sharing beginner trading ideas

public.com logo

...

Fees

...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Commission free stock and ETF investing Share and compare your portfolio on a social trading platform Trade crypto, fractional shares, and alternative investments
You can't trade on margin or use leverage No forex, options, funds, metals, or bonds

Overview

We love Public because it’s a social platform where you can share trading tips and get ideas from other people. Public offers 9,000+ financial instruments, including cryptocurrencies and stocks from around the world.

Alongside a community of other investors all sharing their ideas, Public offers real time news and information so that you can see the full picture before you invest. And the assets don’t just include your run-of-the-mill assets; you can make alternative investments in things like handbags and comic books as well.

The fees: There are no fees for investing in stocks during regular trading hours in the US – 9.30am-4pm EST. There is a $2.99 fee for trades outside of regular hours.

Highlights

Visit Review
Cryptocurrency execution and custody services are provided by Apex Crypto LLC (NMLS ID 1828849) through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC. Crypto trading on Public platforms is served by Public Crypto LLC and offered through APEX Crypto. Please ensure that you fully understand the risks involved before trading.

5. Degiro. Best for 0% commission on US stocks

...

Fees

...

Minimum deposit

...

No. assets

No

Demo/virtual account

Pros & Cons

Low trading fees No minimum deposit required Segregated client funds
No US customers No forex or cryptocurrencies offered for trading Limited educational resources

Overview

We love Degiro because it offers a simple trading platform so that you can trade quickly and easily wherever you are. Degiro offers stock trading on 50 stock exchanges in 30 countries, including the US, UK, and all leading European markets, with free stock trading on all US stocks.

Degiro has won 86 international awards and is one of the largest companies in Germany. All its services are available online or via the Degiro app. The website also boasts a huge range of educational material, including an Investor’s Academy, to help you get started.

The fees: All stock trades come with a €1 handling fee. US stock trading has no other fees, UK stock trading costs $1.75, and European stock trading costs €3.90. The rest of the world costs €5. A core selection of ETFs are free to trade, other global ETFs cost €2 plus a €1 handling fee. Derivative trading costs €0.75. There are no inactivity, deposit, or withdrawal fees.

Highlights

Visit DEGIRO DEGIRO Review

Investing involves risk of loss

Fundamental analysis of American Electric shares

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What is American Electric’s total worth?

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American Electric’s total net worth is $48.42 billion. This is its total market capitalisation, calculated by multiplying the number of shares outstanding on a stock exchange by the current share price.

How has American Electric’s share price performed in recent years?

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The current American Electric stock price today is $94.43, which is 10.68% below its all time high of $105.60, which it reached on 12 September, 2022. 

Overall, AEP is up 31% over the last five years. The AEP share price is up 6.66% in 2024 with a 52 week high of $105.60 and a 52 week low of $80.30.

What is American Electric’s EPS?

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American Electric’s EPS is $4.82. EPS stands for earnings per share and is calculated by dividing American Electric’s net profit by the number of shares outstanding. It gives you an idea of how valuable a company is.

What is the American Electric P/E ratio?

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American Electric’s P/E ratio is 19.55. The P/E, or price to earnings ratio, tells you how much you would have to pay per share for $1 of American Electric’s earnings. 

It is calculated by dividing the share price by the earnings per share. You can use American Electric’s earnings estimates to predict its future (or forward) P/E and set a target price you think the stock can reach.

What is American Electric’s dividend yield?

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American Electric’s dividend yield is 3.54%. The dividend yield tells you how much of American Electric’s share price it gives back to shareholders in dividend payments every year.

Is American Electric stock a buy or sell?

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The indicator below shows you live technical ratings for American Electric stock on time frames from one minute to one month. 

It tracks a selection of key technical indicators on live market data, including moving averages, relative strength index (RSI), oscillators, and momentum.

This indicator should be used when you research American Electric to help you decide whether to buy American Electric shares. Past performance is no guarantee of future results. It is not investment advice or a recommendation from Invezz to buy this stock.

Is American Electric a good investment for me? 

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The right answer is different for each person, so here is some information to help you decide whether to buy stocks in American Electric.

  • American Electric is one of the key energy players in the USA. With the resources and strategic partners needed to deliver energy at scale to the American public, AEP is one of the key energy players in the Western Hemisphere.
  • It has a large consumer base. Given its half-a-million consumer base, it is little surprise that AEP’s infrastructure is vast. It has a coal handling terminal with an annual capacity of around 18 million tons, along with 411 barges, six towboats, and 3,016 rail cars.
  • AEP has the potential to move to clean energy. You should consider investing in American Electric if you buy into the overall value of the company and its potential for expanding its customer base. With a potential expansion of its wind, solar, nuclear and hybrid technology operations, AEP could be well-equipped to grow in the long run.
  • American Electric is a dividend-paying company. This large-cap stock pays a dividend of around 3%, meaning that along with the growth of its stock price, American Electric can provide shareholders with consistent and reliable returns.
  • Its share price has continued to rise over the past few years. The company’s share price growth has been gradual but continuous for the last five years, and while revenues haven’t soared in recent years, much of this is due to the impact of COVID-19. Still, American Electric Power generates upwards of $8 billion in revenue and $1.5 billion in income per annum 

It’s always a good idea to think about any potential risks there might be as well. Use this summary of American Electric’s pros and cons before you make a final decision on whether to buy American Electric stock.

Pros

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  • AEP is a dividend-paying stock
  • Its share price has risen slowly and steadily
  • Growth in an ESG-focussed era is possible

Cons

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Are there other ways to buy shares in American Electric?

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Yes, you can invest in American Electric stock in a few different ways. One option is to buy stock in American Electric directly through an investment platform as laid out above, while another popular choice is to invest in a fund. 

Mutual funds provide instant diversification to your investment portfolio by investing in lots of companies at once. You can invest in a Nasdaq index fund to get exposure to American Electric, or choose an energy ETF.

Another option is to use a social copy trading platform, like eToro . Find a trader who you like and copy their American Electric trades directly to your own account. 

This can be a good investment strategy for beginners and a way to learn how to buy American Electric shares from someone with more experience.

What are the fees for investing in American Electric stock?

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It depends on the stock broker. Some platforms charge a flat fee per trade, others charge a commission as a percentage of the total trade value each time you buy American Electric stocks.

Consider that there may be other costs to trading too. Other fees can include deposit and withdrawal fees, or inactivity fees if you don’t use your account for three months or more. 

These are the trading platforms that charge the lowest fees for buying stocks in American Electric.

Trading platformTrading fees
eToro $0
Skilling $0
Capital.com $0
Degiro $0 (US) / £1.75 (UK)
AvaTrade 0.13% commission

How to sell American Electric stock

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When you decide the time is right to sell and lock in some profit (or cut your losses), log into your broker account and navigate to your portfolio. 

From there, find your American Electric stock and you’ll see a ‘sell’ option next to it. Click that to set the details of the trade (you don’t have to sell all your stocks at once) and sell back to cash.

Should I buy American Electric stock now?

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It’s your investing goals and style that define whether now is a good time to buy. The current American Electric stock price plays into it but ultimately it depends on your investment horizons.

  • If you’re a short term trader: the goal is to make money by buying and selling stocks regularly to secure a profit or avoid a loss. That can mean trading hourly, daily, or weekly but the focus is always on the near future. Traders learn how to buy stocks in American Electric based on short term technical analysis and don’t hold shares for a long time, so any time can be a good time to buy AEP.
  • If you’re a long term investor: you’re more interested in long term price appreciation than whether a stock is up or down on any given day. The important thing is finding a stock with a strong foundation where you think the share price will be up over a period of months or years. If you think American Electric’s fundamentals are solid then the best time to invest in American Electric stock is after a dip or a pullback in price.

Most new traders sit somewhere between these two positions. You don’t want to actively trade American Electric stock all hours of the day but you don’t want to wait years for a return either.

Either way, following AEP price news and analysis will help you decide when to dip your toe into the market.

The US consumer prices rose 5% in May, the bureau of labor statistics reported on Thursday. The market expected inflation to increase by 4.7% after increasing 4.2% in April. The upside surprise would typically be positive but not under the current circumstances.  There is concern that inflation
Register now & buy AEP stock

FAQs

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Is American Electric stock overvalued?
Do I have to pay capital gains tax on any profits I make?
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Is American Electric ESG friendly?


Sources & references
Risk disclaimer
Prash Raval
Financial Writer
Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.