Buy Amazon shares - how to invest in Amazon shares in South Africa

How to buy Amazon shares

The best method South African investors can use to buy shares in Amazon stock is with a broker online.

Due to the size of this company, their shares are offered through many top brokers. Amazon is publicly traded on the Nasdaq and will be most depicted through their stock symbol, the classic AMZN ticker.

Once you have signed up to your chosen broker, you can make a deposit and start buying stocks right away.

How to invest in Amazon shares

There are several different ways you can invest in Amazon shares.

One way is by directly acquiring the shares through your broker, using the symbol AMZN. This is done as either a market order or as a limit order, with the former option purchasing shares at current market price while the latter allows you to set a maximum price that terminates the trade if the current price of a share goes over this limit.

In this case, you can buy shares, or even fractional shares, in the actual stock of the company. This carries with it the rewards of owning the stock, like capital gains if you decide on a sale of shares down the road.  

Alternatively, you can learn how to invest in Amazon shares using derivative trading, where you are working with the value of the stock and not the shares themselves. In this case, you are making a trade with your broker about how you think the price of the shares will change over time and through this generate a variable income.

The big benefits here are the use of features like leverage, which allows you to rapidly multiply your investment capabilities.

Derivative trading is typically a faster way to invest on the stock market.

Investing in Amazon shares
Investing in Amazon shares

Amazon shares Investment Platform

With such a popular investment opportunity, you can buy Amazon shares on many of the top brokers online. These platforms provide all the tools and features necessary to access the market and initiate trades. They are your gateway into the world of trading, in all its many different forms.

Information about the Amazon shares on the platform
Information about the Amazon shares on the platform

How to start investing in Amazon shares

The primary step to start investing is picking an online broker and joining their community.

This gives access to their platform, where you can make investments on all sorts of different securities, including Amazon. With a reliable broker you can learn exactly how to buy Amazon shares in the South Africa.

How to register

The registration process for most online brokers is very intuitive.

Just visit their homepage on their website and register your brokerage account. This will require no more than an email address and password in most cases. Just registering in this fashion will give you access to the platform that your broker employs and the trade room they offer through it.

Registrating on the investing platform
Registrating on the investing platform

How to open a demo account

Once you are registered with your broker, you will generally be given access to a free demo account. It is often available directly through the platform itself and is a popular tool that many brokers offer their clients. A demo allows you to make virtual trades in the financial market, without any consequences or profits.

A demo is a great way to understand the investments you want to make.

How to open a real account

The real account on almost all platforms properly begins when the first deposit is made.

These funds your investments made through the platform and allows for trading on the marketplace. The process of transferring funds is made much simpler with reputable payment services that are offered. Most broker platforms also have a privacy policy that protects your personal data.

How to open account
How to open account

How to fund a deposit

Since you need capital to invest in the market, you must first fund your deposit. To understand how much you need you should consider the size of your intended investment. This will be relative to the Amazon shares price and how many you would like to invest in. If you are trading with derivatives, then this will be more flexible.

To make the deposit you must use one of the payment services available through your broker. These will allow you to transfer the funds from your bank to your trading account.

Deposit replenishment
Deposit replenishment

Minimum deposit amount

Each platform has a prerequisite deposit you must make before you can properly start trading. Depending on how you want to invest, these amounts can let you start small with trading and slowly work your way up in the long term.

How to withdraw money

Much like making deposits, this requires the use of the available payment services of your broker. Each trading platform will have their own set of services that will enable you to withdraw your returns.

Many platforms also have certain requirements for when and how you can make these withdrawals.

Security of Amazon share Investments

The security of investments largely depends on the financial situation of the company involved.

Amazon is a large company based in the United States and has demonstrated longevity and resilience. This makes investing in shares of this company much more secure than most. Performing your own technical analysis of the securities you invest in will increase the chances of successful trades.

How safe is it to invest in Amazon shares

Generally, there is some risk around investing. The key factor is performing a proper market valuation to understand these risks and find your perfect investments. As stock picks go, Amazon is one of the more stable and secure investments available.

Is it safe to invest in Amazon shares online

Trading online is actually more secure than offline in most scenarios.

As long as you are using a transparent and reputable trading platform, your investments will be largely protected. Make sure you are using payment systems that you are familiar and comfortable with, decreasing any chances for additional risk.

How to safely invest in Amazon shares online

The biggest step in trading safely online is to employ a certified and registered broker. These top platforms take security of their clients very seriously and will utilise all of their protective features to keep traders’ funds safe. When online, be mindful of the sites you visit and where you enter any of your personal information.

Generally speaking, if you practice basic precaution while trading online you will find it to be a secure and inviting experience.

My investments in Amazon shares are protected

Since the primary purpose of an online broker is to facilitate investments safely, the broker you pick will definitely be incentivised to protect your investments as much as possible. With clear transparency and regulatory bodies monitoring their actions, the top brokers have made it virtually impossible for them to interfere with your investments in a harmful way.

FAQ:

Can you buy Amazon shares?

Traders in South Africa can use a broker to get shares from all sorts of securities. The shares of Amazon are not cheap so investors must be wary of this price and the amount they have available to invest. In some cases, you can get fractional shares which are much cheaper and still provide a value investment.

If you are new to trading or have a limiting capital to invest, derivative trading with Amazon shares is also a potential option. This requires much less capital to begin trading.

There are definitely benefits if you buy Amazon stock. Most notable is the potential for high capital gains. A company as big and lucrative as this one will very likely only see further growth in the financial markets, making these gains much more likely than most other companies. It is also a much more stable investment for this reason.

Based on your personal situation and experience, this is probably a good stock to have as part of your growing portfolio.

Amazon shares are available through many online brokers. The reason is because it is such a substantial part of the stock market and even if you are not trading on it specifically, it will likely still be influencing the rest of the market. For South African traders, there are brokerages that will be more than happy to provide access.

The share price of Amazon stock is obviously constantly shifting around over time. As of writing, the price is over $3000 for a share, with a market capitalization of over a trillion. You can get real time stock quotes by searching for it online or through your broker. It will be represented through the ticker AMZN. For a public company as large as this, the investment required to buy shares is relatively steep.

You are definitely able to buy a single share of Amazon stock. Acquiring just one share in a company is still worthwhile to many traders, especially if you can easily enough afford the investment. There are also fractional shares of Amazon stock if the high price of the shares is daunting in the short term.

While the number of shares is not such a factor, the ability to diversify can be. With an expensive share price like with this company, it may be more prudent to invest in fractional shares or go for cheaper shares in several other companies. The benefit of diversification is that you do not put all your eggs in the single basket. Even if that basket is Amazon, this can have a benefit.

Your investments should be dictated by your own financial situation and the current market environment that you find yourself in.

Amazon has never paid out any dividends since they were first publicly traded in 1997. While dividend yield is an appealing part of stock trading strategies, it is by no means essential to making a respectable profit. Capital gains from increasing share prices is the main attraction of this Amazon stock.

In some cases you may want dividend return, so investing in a diversified portfolio of companies that do pay out dividends may be beneficial if this is your pursuit.

The easiest way to buy shares in South Africa, and ultimately the whole world, is through a trusted online broker. These platforms are designed to engage with the marketplace in an easy and intuitive way. Setting up an account is easier than ever before, and traders can just make a deposit through one of the many payment services available online.

Within no time at all, you can be in the trade room and making investments on all the securities you can find

The stock market is constantly moving around and with it the share prices of the different securities on it. There are a lot of reasons the value of a share may change and understanding the primary forces at play is part of the role as an investor.

The fortunate thing about large companies publicly traded like this is that their financial information and daily activities are readily broadcast around the world. The more information out there, the more indication of where the price might move and changes that may happen in the future.

The most recent notable drop in share price of Amazon stock happened in 2019’s third quarter. This was largely attributed to heavy investments made back into the company, impacting profitability ratings on their earnings report. This was a drop of 9% but by the next day this had reduced to just 1%. Overall, the last few years have definitely been good for this company’s share price.

Amazon is a large company with activity all around the world. There are many factors affecting the share price of this organisation and they will have varying effects over time. A big part of the noticeable growth in the price this year can be attributed to the global pandemic and the value Amazon’s services provided people during these times.

SIMPLE AND RELIABLE
MONEY WITHDRAWAL
Neteller
Skrill
Mastercard
Visa
FNB
Capitec
Nedbank
ABSA
Standart Bank
Webmoney
Payguru