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Amazon stands as the world’s largest internet retailer and the most successful consumer cyclical company today. Aside from selling third-party products, they also have a successful line of electronic devices, tech services, and their popular Amazon Web Services.

Do you want to know how to invest in Amazon stock? In this guide, we’ll go through different brokers and assess the best-suited ones for you to buy Amazon stock.

How to Buy Amazon Stock in South Africa – Quick Steps

The basic list of steps that you need to follow in order to quickly trade Amazon stocks are as follows:

  • Open a live trading account with Capital.com – Capital.com is one of the most popular trading platforms, offering stock trading at 0% commission. To open an account, simply head over to their website, click Sign up, and create a new account using your personal credentials.
  • Upload ID – Being a well-regulated broker, users who wish to open live accounts need to verify their identity by uploading valid IDs on the platform such as a driver’s license or passport.
  • Deposit funds – Before you can start trading, you’ll need to fund your account through a credit or debit card (Visa/Mastercard, etc.), bank transfer, or any of the available e-wallets.
  • Buy Amazon stock – Type ‘AMZN’ in the search bar and click on Amazon. You will see a Trade button which you can click to open the trading modal. Simply enter your total stake or how much Amazon stock you want to buy and press Open Trade to execute the order.

Below, you will find a detailed guide that you can follow in order to buy Amazon stock.

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71% of retail investor accounts lose money when trading CFDs with this provider.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.3% of retail investor accounts lose money when trading CFDs with this provider.

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72% of retail investor accounts lose money when trading CFDs with this provider.

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80.18%% of retail investor accounts lose money when trading CFDs with this provider.

Rating
5.0
4.7
4.6
4.4
4.4
Mobile App Rating
9/10
9/10
8/10
9/10
9/10
Min. Trade
N/AN/AN/AN/AN/A
Leverage
1:201:101:51:51:5
Margin trading
No. of Shares
1000+N/AN/A500+N/A
No. of ETFs
250+N/AN/A100+N/A
Cost per trade
$0$0$0.07$0$0
Cost per Month
$0$0$0$0$0
ETFs
0.52%0.13%N/A0.04%N/A
Funds
N/AN/AN/AN/AN/A
CFDs
N/A0.007%N/A0.01%0.005%
Savings Plans
N/AN/AN/AN/AN/A
Crypto
0.33%0.20%0.2%0.30%0.07%
Bonds
N/A0.02%N/AN/AN/A
Trading Fees
SpreadsSpreadsCommissions or SpreadsSpreadsSpreads
Withdrawal Fees
$0$029$ or 1%$0$0
Inactivity Fees
$0$50 after 3 months, $100 after 12 months$5/month after 90 days$10/month after 3 months$0
Deposit Fees
$0$00% to 4%$0$0
Overnight CFD Position
N/AN/AN/AN/AN/A
Credit Card
Neteller
Skrill
Paypal

Step 1 – Choose a Broker to Buy Amazon Stocks

Before anything else, it’s important to first choose the right broker depending on your needs. Whichever broker you choose will be crucial as it will limit you to certain platforms, fees, and other features. If, for example, you get a broker that does not accept your main method of payment, you’ll have more difficulty funding your account.

For your convenience, we’ve rounded out the top five brokers that will help you buy Amazon stock. The key features, benefits, and platforms have been mapped down in each mini-review below.

1. Capital.com – Overall Best Stock Trading Platform in South Africa

amazon stock The overall best stock trading platform for trading Amazon stock in South Africa is Capital.com. It is also our recommended broker. The platform provides access to stock, cryptocurrencies, commodities, and forex CFDs at 15 different international markets. Coupled with a wide array of financial instruments, Capital.com also has zero commission with all trades. All trades are made via contracts for difference (CFDs).

This means that when buying Amazon stock through Capital.com, you’re not purchasing the underlying asset but rather betting that Amazon stock price will increase. An advantage of using CFD trading is that it enables you to employ leverage. For example, if you wish to buy $5000 worth of Amazon stock, traditionally you would need an equivalent $5000 in your account to execute the trade. However, if you choose to invest through CFDs on Capital.com, then through a 5x leverage CFD, you only need to have $1000 in your account to complete the trade.

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Aside from having zero commissions and CFD trading, Capital.com also offers some of the most competitive spreads among popular brokers. For example, you can trade Amazon stock with spreads as low as 0.09 pips. In terms of technical analysis, Capital.com’s proprietary trading platform can show Bollinger Bands and MACD.

The platform also allows for customization of the interface, allowing users to see what particular fundamental analysis or news they want at once. Capital.com offers real-time market updates in many chart formats. It’s compatible with Windows and macOS and features a mobile trading app compatible with Android and iOS devices.

Capital.com fees:

Fee Amount
Stock trading fee Spread. 1.83 pips for Amazon.
Forex trading fee Spread. 0.8 pips for GBP/USD.
Crypto trading fee Spread. 100 pips for Bitcoin/USD.
Inactivity fee Free
Withdrawal fee Free

Pros

  • Commission-free trading of stock
  • Trade leveraged CFDs
  • Wide variety of methods to deposit funds into your account
  • 24/7 customer support available
  • Low minimum deposit of just $20
  • Regulated by the FCA as well as the CySEC

Cons

  • Does not allow for traditional stock ownership

75.26% 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.

2. Libertex – Best Platform South Africa for High Leverage and Technical Analysis

amazon stock price today Known for having extremely tight spreads, Libertex is the second most popular broker for trading Amazon stocks. The drawback for having crucially low spreads is that the platform charges commission of 0.1% per slide.

In terms of financial instruments, Libertex offers a wide variety of assets including commodities, indices, cryptocurrency, and forex pairs. Retail accounts can enjoy CFD trading with up to 30x leverage, however, if you meet the criteria to qualify for a professional account, you can trade with leverage of up to 1000x.

Forex traders and seasoned investors will be pleased to hear that Libertex is also compatible with the MT4 trading platform, which allows you to carry out advanced technical analysis and set up trading bots for a variety of instruments. And for those on the move, Capital.com has a mobile app that is available for both Android and iOS.

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The minimum deposit required to get started is $100, but Libertex also offers a demo account which is great for beginners who still need to learn the technique. You can meet the minimum deposit with a debit/credit card, bank wire, and a selection of e-wallets.

Libertex fees:

Fee Amount
Stock trading fee Commission. 0.034% for Amazon.
Forex trading fee Commission. 0.008% for GBP/USD.
Crypto trading fee Commission. 1.23% for Bitcoin.
Inactivity fee $5 a month after 180 days
Withdrawal fee Free

Pros

  • Extremely tight spreads for CFD trading
  • One of the best Forex brokers with ZAR accounts
  • Fixed commissions from 0.03%
  • High leverage provided on a variety of instruments
  • Good resources for education and awareness
  • Compatible with the Mt4 trading platform
  • Large choice of markets
  • Regulated by the CySEC

Cons

  • Does not allow for traditional stock ownership
  • Copy-trading facilities not available

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

3. AvaTrade – The Best Platform For Automated Trading Strategies in South Africa

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The third most popular trading platform that can be used for your trading needs is the CFD trading platform AvaTrade. The broker offers a huge variety of financial instruments spanning stocks, commodities, forex, digital currencies, bonds, futures, options, indices, ETFs, and more.

As an all-in-one trading platform with zero commission, AvaTrade also offers spreads that are very competitive, especially when trading major FX pairs. Opening an account is super quick with AvaTrade too as the broker offers one of the fastest account opening processes among all the other brokers. When it comes to trading, choose from several trading platforms including the MT4 trading platform, MT5 trading platform, ZuluTrade, and more.

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To start trading Amazon stock with AvaTrade, a minimum deposit of $100 is required. Payment methods for depositing include debit/credits and bank transfers. Lastly, AvaTrade is regulated with six different jurisdictions, meaning account safety and security is well established.

Avatrade fees:

Fee Amount
CFD trading fee Variable spread
Forex trading fee Spread. 0.9 pips for EUR/USD
Crypto trading fee Commission. 0.25% (over-market) for Bitcoin/USD
Inactivity fee $50 per quarter after three months of inactivity
Withdrawal fee Free

Pros

  • Supports the MT4 and MT5 Trading Platforms
  • Excellent user experience
  • Commission-free trading
  • Wide range of instruments and markets accessible through the platform
  • Live chat support available from within the trading platform
  • Regulated in South Africa

Cons

  • High inactivity fee

71% of retail CFD accounts lose money with this provider.

4. Skilling – The Best Platform for Beginners South Africa

how to buy amazon stock

Another platform atop our list is Skilling, an excellent all-in-one broker with access to over 800 instruments, competitive spreads, and an intuitive trading platform. Perhaps the highlights of Skilling are their transparency, relevance for beginners and beyond, and their platforms.

For example, newbie traders looking to buy Amazon stock might be too overwhelmed with platforms such as MT4 and other advanced trading platforms. To help ease new traders, Skilling recommends their proprietary platform Skilling Trader which allows for demo trading, viewing of education resources and more.

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On the other hand, seasoned traders can still get loads of value with Skilling through their other platforms such as Skilling cTrader which has advanced risk management and a larger range of indicators. Experienced forex and CFD traders who use MT4 would also benefit from Skilling’s compatibility with MetaTrader 4.

Skilling fees:

Fee Amount
Stock trading fee o% Commission on Skilling’s Trader Account
Commodity trading fee Spread. 0.03% for Oil
Crypto trading fee Spread. 0.20% for Bitcoin.
Inactivity fee $10 per month after one year
Withdrawal fee Free

Pros

  • Integration with MT4 and cTrader
  • Commission-free trading
  • Tight Spreads
  • More than 800 financial instruments
  • Great for beginners
  • Support for algorithmic trading
  • User-friendly mobile app for iOS and Android

Cons

  • No ETF trading available

67% of retail investor accounts lose money with this provider.

5. CM Trading – Best Broker in South Africa with FSCA License

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Lastly, another very popular trading platform that can be used for your trading requirements is CM Trading, which is an online CFD trading platform supervised by the FSCA. They offer over a hundred fifty tradable assets with low spreads and up to 200:1 leverage, especially in forex. CM Trading also supports three trading platforms, including Sirix Web Trader that allows you to execute trades from your mobile phone, computer, or tablet without downloading or installing any software. MT4 is also supported, as is a fully-fledged CM Trading mobile app.

When it comes to trading fees, CM Trading takes everything into account via spread. Users should also note the prevalence of overnight financing fees with the broker. This means that CFD positions kept past market hours are subject to fees based on the amount traded.

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Opting for this South African trading platform means that citizens can deposit funds easily. The provider supports wire transfer, debit/credit cards, Neteller, and M-pesa. Lastly, an important feature to consider with CM Trading is their CopyKat system which allows users to watch, learn, and trade like experienced and professional investors.

CM Trading fees:

Fee Amount
CFD trading fee Variable spread
Forex trading fee Spread. 0.7 pips for EUR/USD
Crypto trading fee Variable spread
Inactivity fee $15 per three months of inactivity
Withdrawal fee 2% conversion fee

Pros

  • Regulated by the South African FSCA
  • Trade stock indices, forex, and commodities
  • Minimum deposit of just $250
  • CopKat feature allows for automated trading
  • MT4 platform supported

Cons

  • Only about 150 financial markets supported

Your capital is at risk when trading at this platform.

Step 2 – Research on Amazon Stocks

After selecting a broker for trading, the next step is to research any stock you want to invest in, which in this case is Amazon. When looking at whether or not you should invest in a stock, there are many different strategies and things you might want to look at. From the Amazon stock price chart to the news on Amazon stock, to the Amazon stock forecast, you’ll need to know what to look at based on your strategy.

There are two main types of analyses when it comes to investing – technical and fundamental analysis. Technical analysis relies on the company’s stock price history, movements, and certain key levels that might give indications of price falling or rising. On the other hand, fundamental analysis focuses on the value of a company given its balance sheet, future prospects, and the state of industry among others to figure out whether the stock is overvalued or undervalued.

Key information that will help in your Amazon stock price forecast as well as your decision to invest in the company has been given below.

What is Amazon?

Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS). It sells merchandise and content purchased for resale from third-party sellers through physical and online stores.

Aside from this, the company also manufactures and sells electronic devices, such as the Kindle, Fire tablets, Fire TVs, Rings, and Echo among other devices. The conglomerate also provides Kindle Direct Publishing, an online service that enables independent authors and publishers to make their books available in the Kindle Store.

In addition, Amazon offers programs that enable sellers to sell their products on its websites, as well as its stores; and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content. Further, the company provides compute, storage, database, analytics, machine learning, and other services, as well as fulfillment, advertising, publishing, and digital content subscriptions.

Amazon.com, Inc. was founded in 1994 and is headquartered in Seattle, Washington. It serves consumers, sellers, developers, businesses, and content creators. Amazon stock is also part of the Nasdaq 100 index.

Amazon Stocks Fundamentals

We can look to Amazon stock’s fundamentals to determine whether you’d want to invest in the company or not – and there’s plenty to go through. For starters, the Amazon stock prices are down around 8% over the past month, and there seem to be several factors as to why the price has shot down.

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67% 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.

With the Federal Reserve’s recent hawkish stance on policy earlier this month, the market has not been receptive to big-cap tech stocks like Amazon stock. The general consensus is that tech stocks have benefited greatly from the low-interest rate policy over the past few years, which has helped move up tech stock trading multiples. Furthermore, the looming Omicron variant has left investors second-guessing how this holiday season will fare for the big retailers.

With the argument to Amazon stock’s current downside and potential future downside risks, we’ll now bring about upside fundamental analysis for the company. Several pros expect Amazon to deliver on a strong holiday season, suggesting upsides of up to 30%. One key driver for Amazon stock prices is that the company has doubled its fulfillment system since the beginning of the pandemic and is no longer space-constrained.

Another point is that Amazon has managed its labor issues by creating about 125 thousand new fulfillment/transportation positions and hiring around 150 thousand seasonal workers. Although the company did miss their Q3 2021 earnings report by $2.80, Amazon is projected to report earnings of $3.90 per share for their Q4 2021. The latest consensus estimate is calling for revenue of around $138billion, up around 9% from the prior-year quarter.

Amazon Stocks Dividends

When considering how good of an investment a company is, the dividends that it releases is a crucial factor. There are upsides and downsides to dividends when it comes to companies. Dividends bid well for shareholders as they get more returns from the actual stock they earn. Because dividends come from the profits of a company, however, this means that the company isn’t using those profits for potential growth.

In any case, dividends are parts of the profits of a company that it chooses to return to its shareholders. Amazon chooses not to pay dividends to its stockholders, which has been the case since its inception. However, the company’s major promise to its shareholders has always hinged on its potential business growth and expansion into new markets. Amazon believes investors will be more willing to buy Amazon stock once it starts generating more profits, thus pushing the price up.

Should I Buy Amazon Stocks?

Based on the research and Amazon stock price history, you should only invest in Amazon stocks if you know and are willing to take the risks associated with the trade. The Amazon stock price today does not necessarily reflect its current value. Although there is an argument for a definite upside in the company with its appropriate changes for a strong holiday season, it is not without risk. Traders should understand their time-frame for buying and invest accordingly.

67% 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.

Is it Worth Investing in Amazon Stocks Nowadays?

As the third quarter of 2021 showed lower-than-expected earnings for the retail giant, we’ve recently seen Amazon stock falling. As mentioned previously, share prices now have dipped to about 8% less as compared to last month. However, since the inherent value of Amazon hasn’t changed (their plans, systems, and other strategies), it can be easily argued that you’re seeing quite a bargain for Amazon stock – especially in the long run. It’s worth investing in Amazon stocks nowadays given positions are unleveraged and traders are comfortable with the risks involved.

Amazon Price Prediction

As mentioned earlier, there are upsides to the Amazon stock price. According to Yahoo Finance, Amazon’s stock price as of today, December 21, 2021, is at $3,374, About 3.60% up year-to-date. The momentum has been downwards in the past couple of months and is reaching support levels at around the $3,170s. Currently, there are downsides of up to about 16% in the stock this year, with the potential of moving back to highs at an increase of about 11.74%.

Step 3: Open Account & Invest with Capital.com

With steps one and two done, you’re now ready to open an account and invest with Capital.com. Below is a step-by-step guide on how to open an account and how to trade Amazon stock.

1. Create Your Account

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To open a live trading account with Capital.com you’ll need to head over to the Capital.com website and press the ‘Trade Now’ button. A Sign Up form should appear, requiring you to fill in an email address and password or sign up through a Google, Apple, or Facebook account.

67% 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.

2. Verify Your ID

news on amazon stock

Once your account has been created, you’ll need to verify your account in order to add funds and start trading. At the top right of the platform, you should see and click the button that says ‘Verify’ or you can find the same verification process in your account settings. Simply one of the several IDs that Capital.com can use to verify your account.

3. Deposit Funds

amazon news stock

Depositing funds into your new Capital.com account is an easy and straightforward digital process. Choose among a wide variety of payment methods and fill in the necessary fields depending on the payment method of your choice. In this example, the payment option is via credit card.

4. Buy Amazon Stocks!

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To buy Amazon stock, simply type the ticker symbol ‘AMZN’ or simply ‘Amazon’ in the search bar and click on the relevant result. Tap on the ‘Buy’ button of the bar and a side panel should appear showing the trading size as well as options of buying when the price reaches a certain level, closing at a loss, and closing at profit. Fill in these details and then press the final ‘Buy’ button to execute your trade!

67% 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.

Buy Amazon Stock in South Africa – Fee Comparison

Trading Platform Fees Stock trading

fees

Forex trading

fees

Overnight

fees

Capital.com Variable Spread Variable spread Yes. Based on leverage for stocks, crypto, and thematic assets. Based on the entire value of position for forex, commodities, and indices.
Libertex 0%-0.46% commission Commission Yes. Taken at the end of each trading day at 9 pm GMT as interest, which may be positive or negative. For CFDs, the overnight fee is triple when holding from Friday to Monday.
Avatrade Variable Spread Spread. 0.9 pips for EUR/USD Yes. Charged on positions that remain open at 22:00 GMT. Applies to all instruments.
Skilling Variable Spread EUR/USD spread at 0.4 pips Yes. Based on the size of leveraged positions for stocks, crypto, and thematic assets. Based on the entire value of position for forex, commodities, and indices.
CM Trading Variable Spread Spread. 0.7 pips for EUR/USD Yes. Based on leverage for stocks, crypto, and other assets. Based on the entire value of position for forex, commodities, and indices.

Conclusion

In the end, there is definitely an upside if you’re interested in investing in Amazon stocks now. Keep in mind however that all trading comes with risk, even big-cap tech stocks like Amazon. If you’d like to start investing in Amazon stock today, we recommend using Capital.com. With commission-free trading, full regulation, demo accounts with virtual equity, and competitive spreads, Capital.com is an ideal stock trading platform to buy Amazon stock.

To buy Amazon stock today with as little as $20, simply set up an account with Capital.com and start trading stock CFDs.

Capital.com – Best Broker to Buy Amazon Stock in South Africa

how to invest in amazon stock

67% 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.

FAQs

What is Amazon?

Amazon is the largest technology company based in the US under the consumer cyclical and online retailer industries.

Can I buy Amazon stocks in South Africa?

Yes, most offshore and overseas brokers also provide access to the US markets, most especially those of big companies such as Amazon.

Are Amazon stocks a buy?

Purely on a fundamental aspect for the company, Amazon stocks are a good buy for steady and consistent gains.

Is it legal to invest in Amazon stock from South Africa?

Yes, all you need is to set up an account with the right broker, and you will be able to invest in Amazon stocks.

Can I buy Amazon stock in Capital.com?

Yes, Amazon stocks on Capital.com can be found by searching for either the company name (Amazon) or the company’s ticker (AMZN).

How do I invest in Amazon stock?

To invest in Amazon, you should set up an account with a broker, perform your research on the company, and then buy or sell the stock through your registered trading account.

aquinoapa@gmail.com'
About Jose Rafael Aquino
About Jose Rafael Aquino

Jose Rafael Aquino is a Filipino writer and entrepreneur that specializes in finance, technology, cryptocurrency, and sports. Versed in the startup tech space, he has written for websites such as The GUIDON, StockApps, and BuyShares.

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