You may think it is out of your range to buy stock in Amazon. Even though the share price was $18 when the company first had its IPO on May 15th, 1997, the size and power of the company, alongside the stock price, has skyrocketed to now stand around $3200.
This does make it difficult for every investor to buy-in. Here though, we will guide you on how to buy Amazon stock cheap using three main methods. These can get you started with Amazon, but also show you how to invest in expensive shares with 1 USD only.
The three main ways you can buy Amazon (AMZN) shares cheaper are, to invest in Amazon fractional shares, buy shares on margin, or invest in ETFs with exposure to Amazon. Keep reading to find out exactly how.
How to buy Amazon (AMZN) shares cheaper
Here is a detailed description of the three main ways that you can start to invest in Amazon shares cheaper:
Amazon Fractional shares: Where to buy them?
Fractional shares trading has become hugely popular of late. While it is not offered by all stockbrokers, it is increasingly being offered by many of the big names.
As mentioned below, you can trade fractional shares at eToro from $50, and through Trading 212 and Interactive Brokers from just $1. These brokers typically provide commission-free trading as well for even lower costs.
Though you can access fractional shares from as little as $1, Interactive Brokers does have a larger minimum deposit requirement of $2,000. This is significantly more than the $200 minimum at eToro, and $1 minimum deposit Trading 212 offers. Due to this, many new traders may feel more comfortable with these two brokers that both also provide unlimited demo account access.
In fact, they have many similar great features. If you need help choosing you can always check out and compare Trading 212 and eToro with our comparison tool.
|Amazon Fractional shares||Fractional Shares From:||Fees*||Minimum Deposit||Link to the broker|
|eToro||$50||$0||$200||Visit eToro (77% 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.)|
|Trading 212||$1||$0||$1||Visit Trading 212 (83% of retail CFD accounts lose money)|
|Interactive Brokers||$1||From $1||$2000||Visit IB (74-89% of retail CFD accounts lose money)|
* Only for real stock trading
Amazon with Margin: Invest in Amazon with CFDs
Another way to trade Amazon Shares cheaply is as CFDs. These CFD shares in the company are offered by many of the major forex brokers who also tend to offer CFD trading.
If you need help to choose a broker, you should definitely take a look at our selection of best brokers offering CFD Stocks.
CFDs are excellent for shorter-term investing, though they may not suit everyone and you have to be mindful of daily rollover fees as a longer-term investor, and also some of the risks associated with margin trading. As a long-term investor, fractional shares trading may be perfect.
Nonetheless, CFD trading has its benefits, and we have selected the brokers below as some of the best you can choose from. eToro not only offers CFDs but also real stock trading, and while the prices may run a little higher, there are many great features on offer.
You can check these in the chart or try comparing eToro vs Pepperstone using our comparison tool.
|Amazon CFD shares||Minimum CFD Investment||Fees||Minimum Deposit||Link to the broker|
|eToro||$50||0,09% per share||$200||Visit eToro (77% 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.)|
|Pepperstone||20% share value||$0.02 per share||$0||Visit Pepperstone (74-89% of retail investor accounts lose money when trading CFDs)|
|Admiral Markets||20% share value||$0,20 per share||$100||Visit AM (76% of retail CFD accounts lose money)|
ETF with exposure in Amazon: Where to find them
There are many great ETFs that include some exposure to Amazon, particularly those with a focus on the retail sector. You can use these to invest not only in Amazon but other great names.
All of the choices listed below are possibilities, though one that stands out is investing in XLY through eToro. This will be commission-free with the broker if you invest in the real asset which means a non-leveraged, long position.
|ETF||Issuer||AMZN exposure||TER (total expense ratio)|
AMZN Real shares vs CFDs vs ETFs: Pros and Cons
In the chart below you will see some of the pros and cons to consider with each type of investment:
|Real AMZN Stocks||AMZN CFDs||AMZN ETFs|
|Can you lose more than you invested?||No||Yes||Yes (with margin)|
|Spread||May be applied||May be applied||May be applied|
|Environment||Stock Market||Broker Market||Stock Market|
|Margin Trading (leverage)||No||Yes||May be offered|
|Overnight Fees||No||Yes||Yes (with margin)|
Amazon stock split: When will it happen?
Amazon has split its stock 3 times since launching the IPO in 1997. This has made for a cumulative split of 1:12 meaning if you bought 1 AMZN share at the IPO launch for $18, you would now own 12 shares worth a total of around $38,000 in June 2021.
While there is no news on when or of the next stock split might happen, you can see a breakdown of the previous Amazon stock splits below:
Investing in Amazon – FAQs
How do I invest in Amazon?
In order to invest in Amazon you need to open an account with a stockbroker, and deposit the amount of money required by the broker as a minimum deposit, then the amount needed to buy an Amazon stock. The amount ranges from $1 to the full price of the Amazon Stock depending on the broker chosen.
Can you buy 1 share in a company?
Yes, it’s possible to buy one share of a company. Some brokers even allow investors to buy a fraction of a share through fractional shares trading which has become extremely popular, so you may even be able to buy as little as 0.1 or less of a share.
How much would I have if I invested $1000 in Amazon?
If you invested $1000 at the launch of the IPO in May 1997, you would now have 55 Amazon shares for a total worth of around $176,000 USD as of June 2021.
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