Investing in Amazon: How do you get started? And is it safe at all?

amazon-logo

Amazon was part of the group of popular IT companies that were part of the so-called "dot-com" investment bubble at the turn of the new millennium.

And that's not all, because Amazon shares are also doing remarkably well. Recent years have shown that investing in the shares of this company can be a financially interesting decision. 

The question is, however, whether this still applies? Read on and discover everything about Amazon stocks, such as Amazon's long journey, its formula for success and the change in its share price over time.

At the end you will also find out whether it can still be interesting to invest in this venture.

It goes without saying that you must first choose a broker to be able to invest in Amazon shares.

This should not be a hasty decision as certain aspects such as the size of the transaction costs, the type of tools and the general trading experience depend on it.

Do you not (yet) know much about online brokers? Then you don't have to worry at all, because below you can read more about the different brokers to trade stocks.

eToro

eToro logo

While it is certainly not the only advantage of eToro, it is an important point: this platform does not charge any fees to trade stocks.

This means that you can buy or sell assets for free. In addition, it is interesting to note that this is not a promotional stunt of the platform, as this offer is available at all times and is not even limited by certain limits.

A second advantage of eToro is the range of numerous financial tools. Through this platform you can buy both CFDs and synthetic shares.

For example, traders benefit in the short term from leverage and short positions, while people with a long-term view can also trade without additional costs.

You may have heard about it already, but eToro is also known for its social functionality that offers you numerous interesting possibilities.

For example, you can quickly and easily get in touch with other traders to exchange knowledge and experience, and copy transactions from successful users. This way you can even earn money thanks to other people's skills.

eToro also scores well in terms of security, as it is audited by reputable financial institutions such as the FCA and the CySEC† They ensure that your capital and private data are optimally protected.

The only downside of the eToro platform is the fixed commission on withdrawals it charges its users. This is approximately € 4,20.

Libertex

libertex logo

Are you a short-term trader?

Then the Libertex platform can be an interesting choice† You can buy shares there in the form of CFDs, so you can use short positions and leverage effects just like with eToro. Unfortunately, Libertex does not offer the option to buy synthetic stocks.

In terms of costs, Libertex stands out from the competition because it makes its profit from spreads. This means that the platform only makes money from the commission on transactions. For equities, this percentage fluctuates between 0,1 and 0,2%.

If you are an experienced trader, it is nice to know that in addition to its own platform, Libertex also offers access to the MetaTrader 4, popular for its numerous analysis tools.

Finally, you can also sleep on both ears when using this platform, because Libertex is regulated by the ICF and the CySEC.

Capital.com

logo capital.com

Capital.com also bases its offer on CFDs. This means that you can speculate, with or without leverage, on the decline and rise of Amazon shares.

However, with the Capital.com platform, you don't have to pay any commissions, because it takes its profit from the spread. For Amazon shares, this is 0,1%, although this percentage is dynamic and fluctuates according to the market situation.

Like eToro and Libertex, at least Capital.com is not a scam as this broker is under the supervision of various regulatory bodies such as the NBRB, FCA and the CySEC.

What is Amazon?

While unlikely, you may have never heard of Amazon† On an international level, it is the largest e-commerce store in existence.

As a company, it also has a presence in several other industries, which has certainly benefited its founder, Jeff Bezos. He has become the richest man in the world. 

Amazon was founded in 1994 as an online bookstore under the leadership of Jeff Bezos† The headquarters of this company is located in the American city of Seattle.

Today Amazon sells hundreds of different types of products, with dozens of product categories to choose from.

In the United States, it controls more than 50% of the e-commerce market, and continues its course to the top in other parts of the world.

Are Amazon Stocks a Reliable Investment?

If you zoom out on the Amazon price chart, you will see that the stock price has only increased over time.

This is mainly due to the company's successful e-commerce business. However, Amazon's AWS segment has also been on the rise for a number of years.

 

In fact, the profits of this business unit have exceeded most forecasts in recent years.

Could even a limited investment of $200 in Amazon stock be interesting? Definitely! No amount is too small to invest.

Although it goes without saying that the more money you invest, the higher the potential return, but also the higher the risk† That's why you should never invest more than you're willing to sacrifice.

In any case, a monthly, quarterly or semi-annual deposit of €200 or €250 can be a very interesting and feasible strategy!

 Is it still interesting to invest in Amazon?

Because the answer to this question can best be explained with the help of numbers, you can read more about Amazon's past earnings below:

 

It is clear that Amazon investments are extremely lucrative and generate profit† Do you also choose an interesting broker with low trading costs, such as eToro? Then you can earn even more money!

 

Even better results thanks to the pandemic

The international health crisis has caused the value of Amazon stock to nearly double.

The reason for this was that more people started making their purchases online. Earnings are expected to remain this high in the coming quarters, as it looks like the virus will be with us for a while yet.

But Amazon is not only doing well in the short term, because the number of subscribers to the Amazon Prime service has also increased enormously.

With this service, you as a customer not only benefit from faster shipping, but it is also free. And even when we get out of this pandemic, most people will keep their Amazon Prime subscription.

In addition, the separate cloud services (AWS) business has also benefited from COVID-19† AWS has experienced tremendous growth and thus generated a lot of revenue.

Can you roughly imagine what the charts will look like after the pandemic?

How do I buy Amazon stock? A handy 3-step guide

Today, you can even buy Amazon stock without leaving your home† For this you only need to create an account with a broker and have a (limited) starting capital.

If you are not sure how to start with this, you can go through the step-by-step plan below† To illustrate, we will use eToro as our experience shows that it is the best broker to trade stocks.

Step 1: create an account

Go to the broker's website in question and click on the 'Join' button. You must fill in the following empty fields on the registration form:

· Your username;

· Your password;

· Your e-mail adress.

Then accept the broker's platform terms and conditions and create an account.

You will then receive an email with an activation link. Clicking on this will redirect you directly to the investment platform.

colorful banner eToro

Although your account is already active at that point, it will only work in a demo version† So you don't have access to the fair yet, but you can try everything in test mode.

The relatively large amount of nominal money in this account can therefore be used to practice as much as possible and with different strategies.

If you already know the basics of trading, you can fully activate your account† For this you need to complete your personal profile with the following details:

  • Your first and last name;
  • Your PESEL number;
  • your place of residence;
  • Your date of birth.

Once this is in order, you should check this information again. For this you send a scan of your ID and a document that confirms your place of residence to your brokerr.

All this may seem complex, but it is a requirement to meet the strict safety criteria of the regulatory authorities.

Step 2: make a deposit

Now all you need to do is transfer money to your account† For this you simply choose the method that best suits your wishes and needs.

You determine the amount completely yourself, but it is useful to know that most brokers have a minimum amount. With eToro, for example, this is €200.

Step 3: Buy Amazon Stocks

Is your money in your account? Then you can search for Amazon shares on your chosen platform.

If you don't know where to start, you can just enter 'Amazon' in the search box and you will see the relevant results appear in the list.

Once you find the stocks, you can go through all the information about Amazon.

From the most recent news to the opinions of other traders and stock market charts ... On this page everything can be consulted!

When you have enough information and want to get started, click the 'Act' button† Now a new window will appear where you can adjust your transaction parameters.

Some examples are the leverage effect, the stop loss and the take profit. Once you are done with this, all you need to do is click on the relevant button to buy the shares.

eToro Trading Charts

FAQ

FAQ

Amazon stocks are traded on the NASDAQ.

As the value of Amazon stock has soared in recent years, it has left every shareholder with a great source of income.

In the article above you can read more about some brokers where you can buy shares of Amazon.

Here you have the choice of investing in real assets, or limiting yourself to CFD trading, which also includes access to leverage and short positions.