How to Buy Amazon Shares in the UK – A 2024 Guide
Trading is risky and you might lose part, or all, of your capital invested. The information provided is for informational and educational purposes only and does not represent any type of financial advice and/or investment recommendation.
How to Buy Amazon Shares in the UK:
Find the right provider and account: look for a broker with access to US markets
Deposit funds: never invest more than you can afford to lose
Complete the W-8BEN form: this ensures tax compliance
Decide on an investment strategy: define your goals and choose a trading style
Place trades: you’re now ready to buy Amazon shares
With a diverse range of products and services and its expanding presence worldwide, Amazon offers an attractive investment opportunity for both beginner and experienced traders.
This guide is intended for beginner traders in the UK. It gives an overview of Amazon as a company and its investment potential, as well as a step by step guide on how to buy Amazon shares in the UK.
What Is Amazon?
Founded by Jeff Bezos in 1994, Amazon is a globally renowned eCommerce giant.
Originally introduced as an online bookstore, the business has evolved into a multifaceted platform, providing an extensive array of products, services and digital offerings, as well as a prominent marketplace for third-party sellers.
Amazon’s headquarters are in the US, but over the years it has expanded its operations and established a significant presence worldwide.
Currently trading in 50 countries, its reach extends to around 2.7 billion people, approximately 40% of the global population.
Can I Buy Amazon Shares in the UK?
Amazon offers shares to the public to raise capital, which it then uses for various purposes such as expanding operations, funding R&D and investing in new technologies.
So for anyone wondering, ‘Can I buy Amazon shares’, the answer is yes, even for investors based in the UK.
However, it’s important to note that Amazon is listed on the Nasdaq exchange in New York, rather than on the UK based London stock exchange. This means there are some additional considerations you need to take into account when buying UK shares in Amazon.
The main consideration here is the tax treatment of US investments for UK residents.
When investing in US stocks like Amazon, UK investors must adhere to specific regulations and obligations. To comply, they are typically required to complete a W-8BEN form, confirming they are not tax residents of the US.
The Best Places to Buy Amazon Shares in the UK
1. Plus500
Plus500 stands out as a suitable platform for UK traders looking to engage in Contract for Difference (CFD) trading, particularly for Amazon stock. It's regulated by the Financial Conduct Authority (FCA) and offers the security of the Financial Services Compensation Scheme (FSCS), ensuring a safe trading environment. Plus500's user-friendly native apps for iOS and Android make trading accessible and convenient for both new and experienced traders.
One of Plus500’s key strengths is its commission-free trading across a wide range of markets, including stocks from major international exchanges. The platform offers leverage up to 1:5, allowing traders to amplify their trading capital and potential profits, though it’s important to be mindful of the associated risks. Additionally, Plus500 provides advanced trading tools, including market sentiment indicators and predefined stops and limits, to help traders manage their positions effectively.
The Plus500 platform is also equipped with its own analytical tool, ‘Insights’, which offers valuable analysis of trades and market trends, aiding traders in making informed decisions. However, it’s worth noting that Plus500 does not support the MetaTrader platform and has minimal educational resources, which may be a consideration for some traders.
Plus500 offers a comprehensive range of trading instruments, including commodities, currencies, cryptocurrencies, ETFs, futures, indices, stocks, and options, all traded through their CFD platform. The broker provides a user-friendly trading experience across its mobile and web platforms, though it does not support automated trading and is not as customizable as some other platforms.
For those interested in buying and selling Amazon shares in the UK, Plus500 could be a robust and competitive option for trading Amazon stock CFDs. The platform offers a range of tools and features to support effective trading strategies, backed by strong regulatory compliance and a user-friendly interface.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% 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 and sell Amazon shares via CFDs with Plus500
2. eToro
eToro is a popular online trading platform that allows users to buy and sell stocks, ETFs, commodities and cryptocurrencies. It is a good option for investors who want to buy Amazon shares because it offers a number of advantages, including:
Commission-free trading: eToro does not charge any commission on stock trades. This can save investors a significant amount of money, especially if they are trading frequently.
Fractional share ownership: eToro allows users to buy fractional shares of Amazon stock. This means that investors can start investing with as little money as they want, even if they cannot afford to buy a full share.
Social trading: eToro is known for its social trading features. This allows users to copy the trades of other successful investors, known as Popular Investors. This can be a great way for beginner investors to learn how to trade and potentially make money.
In addition to these advantages, eToro is also a well-regulated platform. It is authorized and regulated by the Financial Conduct Authority (FCA) in the UK.
To buy Amazon shares on eToro, users simply need to open an account and deposit funds. Once they have done this, they can search for Amazon stock and click on the ‘Buy’ button. They will then be asked to enter the amount of money they want to invest.
Once the trade has been executed, the Amazon shares will appear in the user's portfolio. Investors can then hold the shares for as long as they want, or they can sell them at any time.
Overall, eToro is a good option for investors who want to buy Amazon shares because it offers commission-free trading, fractional share ownership, and social trading features. It is also a well-regulated platform.
Here is a step-by-step guide to buying Amazon shares on eToro:
Open an eToro account and deposit funds.
Search for Amazon stock and click on the "Buy" button.
Enter the amount of money you want to invest.
Review the trade details and click on the "Open Trade" button.
Your Amazon shares will now appear in your portfolio.
You can sell your Amazon shares at any time by clicking on the "Sell" button next to the stock in your portfolio.
Please note that this is not financial advice. You should always do your own research before investing in any stock.
74% of retail investor accounts lose money when trading CFDs with this provider. Don’t invest in unless you’re prepared to lose all the money you invest.
3. XTB
XTB is an online trading platform that offers a wide range of financial instruments, including stocks, ETFs, forex, and CFDs. It is a good option for investors who want to buy Amazon shares because it offers a number of advantages, including:
Commission-free trading: XTB does not charge any commission on stock trades. This can save investors a significant amount of money, especially if they are trading frequently.
Competitive spreads: XTB offers competitive spreads on Amazon shares. This means that investors can get a better price when they buy and sell shares.
Leverage: XTB allows investors to trade Amazon shares with leverage. This means that investors can borrow money from the broker to increase their position size. This can be a way to amplify profits, but it can also lead to larger losses if the market moves against you.
Short-selling: XTB allows investors to short-sell Amazon shares. This means that investors can profit if the price of Amazon shares falls. Short-selling can be a risky strategy, but it can be a way to hedge against losses in your long portfolio or to profit from a market downturn.
In addition to these advantages, XTB is also a well-regulated platform. It is authorized and regulated by the Financial Conduct Authority (FCA) in the UK.
To buy Amazon shares on XTB, users simply need to open an account and deposit funds. Once they have done this, they can search for Amazon stock and click on the "Buy" button. They will then be asked to enter the amount of money they want to invest and the amount of leverage they want to use.
Once the trade has been executed, the Amazon shares will appear in the user's portfolio. Investors can then hold the shares for as long as they want, or they can sell them at any time.
Overall, XTB is a good option for investors who want to buy Amazon shares because it offers commission-free trading, competitive spreads, leverage, and short-selling capabilities. It is also a well-regulated platform.
Here is a step-by-step guide to buying Amazon shares on XTB:
Open an XTB account and deposit funds.
Search for Amazon stock and click on the "Buy" button.
Enter the amount of money you want to invest and the amount of leverage you want to use.
Review the trade details and click on the "Place Order" button.
Your Amazon shares will now appear in your portfolio.
You can sell your Amazon shares at any time by clicking on the "Sell" button next to the stock in your portfolio.
Please note that this is not financial advice. You should always do your own research before investing in any stock.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.
4. AvaTrade
AvaTrade is an online trading platform that offers a wide range of financial instruments, including stocks, ETFs, forex, and CFDs. It is a good option for investors who want to buy Amazon shares because it offers a number of advantages, including:
Commission-free trading: AvaTrade does not charge any commission on stock trades. This can save investors a significant amount of money, especially if they are trading frequently.
Competitive spreads: AvaTrade offers competitive spreads on Amazon shares. This means that investors can get a better price when they buy and sell shares.
Leverage: AvaTrade allows investors to trade Amazon shares with leverage. This means that investors can borrow money from the broker to increase their position size. This can be a way to amplify profits, but it can also lead to larger losses if the market moves against you.
Short-selling: AvaTrade allows investors to short-sell Amazon shares. This means that investors can profit if the price of Amazon shares falls. Short-selling can be a risky strategy, but it can be a way to hedge against losses in your long portfolio or to profit from a market downturn.
Wide range of trading tools and resources: AvaTrade offers a wide range of trading tools and resources to help investors make informed trading decisions. This includes news and analysis, technical indicators, and charting tools.
In addition to these advantages, AvaTrade is also a well-regulated platform. It is authorized and regulated by the Financial Conduct Authority (FCA) in the UK.
To buy Amazon shares on AvaTrade, users simply need to open an account and deposit funds. Once they have done this, they can search for Amazon stock and click on the "Buy" button. They will then be asked to enter the amount of money they want to invest and the amount of leverage they want to use.
Once the trade has been executed, the Amazon shares will appear in the user's portfolio. Investors can then hold the shares for as long as they want, or they can sell them at any time.
Overall, AvaTrade is a good option for investors who want to buy Amazon shares because it offers commission-free trading, competitive spreads, leverage, short-selling capabilities, and a wide range of trading tools and resources. It is also a well-regulated platform.
Here is a step-by-step guide to buying Amazon shares on AvaTrade:
Open an AvaTrade account and deposit funds.
Search for Amazon stock and click on the "Buy" button.
Enter the amount of money you want to invest and the amount of leverage you want to use.
Review the trade details and click on the "Place Order" button.
Your Amazon shares will now appear in your portfolio.
You can sell your Amazon shares at any time by clicking on the "Sell" button next to the stock in your portfolio.
Please note that this is not financial advice. You should always do your own research before investing in any stock.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% 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.
How to Buy Amazon Shares in the UK
Find the Right Provider and Account
If you’re a trader in the UK, where to buy Amazon shares is the first decision you’ll need to make. This involves finding a reputable broker or trading platform.
Do your research and keep the following things in mind when choosing your provider and trading account:
Access – As Amazon is listed on the Nasdaq, you’ll need to be sure your chosen broker permits access to US shares, and that you can trade them efficiently.
Account fees – Lower fees can have a positive impact on your investment returns, so compare things like withdrawal fees, inactivity fees and any other account charges that may apply.
Commission on trades – In addition to account fees you may be charged a fee per transaction, so evaluate and compare each broker's commission structure.
Research and education tools – Robust research tools help you stay up to date on the latest news and trends related to Amazon and the stock market, while educational resources help you become a better trader.
When choosing your provider, opt for one that offers a good combination of fees, services and features to support your investment goals.
Deposit Funds
Once you’ve chosen your provider, you’ll need to open an account and deposit funds to be able to buy UK Amazon shares.
Each platform or broker will have specific minimum deposit requirements, and you’ll need to weigh these up against your own affordability.
Remember that investing in stock carries inherent risk and you should never deposit more than you can afford to lose.
When depositing funds, you can typically do so by bank transfer, credit card or debit card. Some brokers may also support mobile payment options like Apple Pay and Google Pay.
Complete the W-8BEN Form
The W-8BEN form is a tax form specifically designed for non-US residents, allowing them to trade in the US.
Completing The W-8BEN form is essential as it ensures compliance with tax regulations, confirms your non-US tax residency status, and potentially enables you to benefit from reduced withholding taxes on any eligible investment income from your Amazon shares.
It's important to carefully review the form, provide accurate information and consult with a tax professional or advisor if you have any questions or concerns regarding your specific tax situation.
Decide on an Investment Strategy
Before you buy UK Amazon shares, it's important to think about your long-term goals and choose a trading strategy to suit. Some common approaches to consider include:
Buy and hold – Where you buy UK Amazon shares with the intention of holding them for an extended period to benefit from long-term growth potential.
Spread betting – A speculative strategy where you place bets on the price movements of Amazon shares without owning the underlying asset.
Regular investment plans (RIPs) – This involves regularly investing a fixed amount in Amazon shares and can help mitigate the impact of short-term market volatility.
Your chosen strategy should align with your financial goals, risk tolerance and time horizon.
Place Trades
With your account funded and your trading strategy in place, you can begin placing trades to buy Amazon shares.
Choosing the right timing for buying and selling Amazon shares is crucial for maximising potential profits so keep an eye on market trends, news and company performance, and monitor your trades closely using the analytics tools provided by your chosen platform.
You might also consider diversifying your portfolio with other stocks or assets to manage risk and potentially enhance your overall investment plan.
Does Amazon Issue Dividends?
As is common with many big tech companies, Amazon does not currently issue dividends to its shareholders.
While this may not suit those seeking regular income from their investments, it can be beneficial to those with a long-term strategy. This is because, instead of issuing dividends, Amazon reinvests its profits with the goal of future growth and expansion.
By reinvesting profits into the business, Amazon can potentially generate higher earnings and increase the value of its shares over time, which is good news for Amazon shareholders.
How Much Are Amazon Shares to Buy?
How much Amazon shares are to buy can fluctuate significantly over time, as share prices are subject to external factors such as market conditions, investor sentiment, company performance and broader economic trends.
As an example, Amazon shares have experienced a range of prices over the past year, with a low point of $81 and a high point of $171.
Investors who were able to purchase Amazon shares at the low point and sell at the high point would have seen a significant increase in the value of their investment, effectively doubling their initial funds.
However, achieving such returns relies on accurate market timing, which can be challenging to predict consistently.
Amazon’s Expansion and Diversification
One of the most attractive things about Amazon for investors is the company’s expansion and diversification efforts.
Over the years, it has made a number of strategic acquisitions across different sectors including AI, robotics and logistics.
Each time a successful acquisition is made, it opens up a new revenue stream and subsequent growth potential and as a result, the stock price of Amazon typically goes up.
Of course, there are no guarantees, and while expansion efforts can contribute to stock price appreciation, it’s important to conduct a full analysis of Amazon’s financials and strategic initiatives before investing.
Stock Splits at Amazon
A stock split is when a company divides its existing shares into multiple new shares. For example, in a 2:1 split investors receive two shares for each share they own, effectively halving the share price.
Stock splits happen to make shares more affordable to a wider range of investors and increase trading activity. It doesn't change the overall value of an investment, but it can attract new investors and signal confidence in the company's growth prospects.
Amazon has undergone multiple stock splits in the past:.
June 1998 – A 2:1 split saw the share price go from $85.68 to $42.84
January 1999 – A 3:1 split saw the share price go from $354.96 to $118.32
September 1999 – A 2:1 split saw the share price go from $199.06 to $99.53
In March 2022, Amazon announced a 20:1 split, resulting in a share price reduction to 1/20th of its original value.
Stock splits are generally good for potential investors, as they lower the share price, making it more affordable to buy. However, Amazon's recent 20:1 split makes another split unlikely in the near future, though not impossible.
Buying Amazon Shares Through Funds
So far we’ve talked about how to buy Amazon shares directly but there is another option, and that’s to buy Amazon shares through funds.
Funds are investment vehicles that offer a diversified portfolio of assets, allowing investors to gain exposure to multiple companies or sectors in a single investment.
There are many funds that include Amazon shares as part of their portfolio, particularly those focused on technology companies.
These funds might also include other tech giants like Apple, Google or Tesla, offering exposure to a broader range of technology stocks.
If you’re a beginner, funds can be a convenient and cost-effective way to access Amazon shares and other assets without directly purchasing individual stocks.
Frequently Asked Questions
How to buy Amazon shares in UK?
To buy Amazon shares in the UK you first need to find a reputable online broker with access to US markets, as Amazon is listed on the Nasdaq.
From there, the question of how to buy shares in Amazon is easy to answer.
Simply open an account, deposit funds, and search for Amazon stock through the broker’s platforms.
Place a buy order for your desired number of shares and confirm to complete your purchase.
How much are Amazon shares to buy?
The price of Amazon shares can vary and is subject to market fluctuations. As of the current market conditions, the price of Amazon shares is typically in the higher range due to its status as a large and well-known company.
However, it's important to note that share prices can change rapidly, so it's recommended to consult with a licensed broker for the most up-to-date pricing information before making any investment decisions.
Do I need a brokerage account to buy Amazon shares?
Opening an account with a reputable broker or trading platform is a necessary step for buying shares in Amazon UK, and any other securities you may be interested in.
A brokerage account gives you access to the stock market and enables you to execute trades.
Where to buy Amazon shares UK?
Amazon shares can be bought in the UK through various brokers and trading platforms, though it’s important to choose one that deals with US shares and offers access to the US stock market.
Popular options for where to buy Amazon shares UK include online brokerage platforms, traditional banks with trading services, and specialised investment firms.
How many shares of Amazon should I buy?
If buying shares in Amazon, the extent of your investment will depend on several factors including your long-term goals, risk tolerance and available capital.
Carefully consider your financial situation and conduct thorough research before making any investment decisions.
It’s also a good idea to seek personalised guidance from a financial advisor, based on your specific circumstances.
Is it safe to buy Amazon shares?
While Amazon is a well-established and successful company, the stock market is subject to volatility and uncertainties. That means investing in any stock, including Amazon shares, carries inherent risks.
To mitigate these risks, it's wise to diversify your portfolio and follow a tried and tested strategy.
Remember, no investment is entirely risk-free, and past performance is not indicative of future results.
What are the best brokers to buy Amazon shares in the UK?
There are several reputable brokers you can use for buying shares in Amazon UK.
Some popular options include eToro, Interactive Brokers, Hargreaves Lansdown, IG and AJ Bell Youinvest.
When choosing a broker, look at things like fees, commissions, platform usability, research tools, customer service and account features. Conducting thorough research and comparing these factors can help you find the best broker to suit your investment needs and preferences.
Do I have to pay taxes if I buy Amazon shares in the UK?
As a UK resident, you may be subject to taxes on capital gains when you sell your Amazon shares, depending on the profit you make.
The specific tax implications can vary based on factors such as your overall income, tax allowances and applicable tax rates.
It’s advisable to consult with a tax professional or financial advisor to understand your individual tax obligations and ensure compliance with the UK tax regulations.
What will be the price of Amazon shares in 2025?
It’s impossible to accurately forecast the exact price of Amazon shares in 2025, and any attempt to do so would be highly speculative and uncertain.
Amazon share prices will be influenced by several factors including financial performance, market conditions, industry trends and macroeconomic factors.
What payment methods can I use for buying Amazon shares?
When buying Amazon shares, you can use various payment methods depending on the brokerage platform or trading service you choose.
Common payment methods include bank transfers, credit or debit cards, and mobile payment options such as Google Pay or Apple Pay.
Check with your chosen provider on the specific payment methods they accept and any associated fees or limitations that apply.
Is buying Amazon shares a good idea for a beginner?
Amazon is a well-established company with a track record of growth, making it an attractive investment option for beginners.
That said, if you're new to trading, you should always start small and take the time to understand the basics of market dynamics before making any significant investment decisions.
Can I sell my Amazon shares at any time?
As a shareholder, you generally have the ability to sell your Amazon shares at any time when the stock market is open.
However, it's important to note that market conditions and liquidity can impact the ease and speed of selling.
Final Thoughts
If you’re a beginner trader, buying Amazon shares may be a good option for you. The company is one of the many that can be considered a good investment opportunity with its stock regularly increasing in price and the company in a stable position.
That said, trading in stocks and shares always carries a level of risk, so be sure to invest with caution. Do your research, think carefully about your goals, and never invest beyond your means.
Being well-prepared and disciplined will help you navigate the stock market with greater confidence and improve your chances of long-term success.