How to buy Amazon (AMZN) shares in the UK

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in. Tax treatment depends on your individual circumstances and may be subject to future change. The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice.

Investments in a currency other than GBP are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in GBP terms. You could lose money in GBP even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

Interested in investing? If you like the idea of putting your money behind a major global company, one option to consider is Amazon (AMZN).

One of the largest companies in the US by market capitalisation, retail giant Amazon regularly occupies a top position of leading stock exchanges such as NASDAQ.

But how exactly do you buy shares in Amazon as a UK investor? Read on for everything you need to know as a new investor. This includes options for investing in Amazon, a step-by-step guide to buying shares, the latest share prices and what fees are involved.

Can I buy Amazon shares in the UK?

Yes, UK investors can buy shares in Amazon via online investing platforms, such as:

• eToro
• XTB
• Hargreaves Lansdown
• Trading 212
• Webull
• Interactive Brokers.

Alternatively, you could use a broker service for buying and selling shares in stock markets all over the world.

How to buy Amazon shares

The easiest way to buy shares in Amazon from the UK is to use an online investment platform. Here’s how to do it, step-by-step:

1. Find an investment platform

You should find that most major platforms offer trading in Amazon shares, as it’s such a major company. This includes online investment platforms such as eToro, XTB, Trading 212, Webull and Interactive Brokers.

To choose the right platform for you, a key thing to look for and compare are the fees and charges. You’ll also want one that is user-friendly for beginner investors.

2. Open an account

You’ll usually need to provide some personal details as part of the application process, as well as verifying your identity. Remember, always check that the company is listed on the FCA register to ensure that they are a legitimate company before you sign up.

3. Add funds to your account

You’ll need to transfer funds from your bank account over to your investment platform, ready to purchase shares.

4. Search the platform for Amazon stock

You’ll need to search using the company’s stock ticker symbol, which is AMZN.

5. Choose your order type

There are two ways you can place an order for shares. The first is to choose the number of shares you want to buy (i.e. 50 shares), while the second is to enter the maximum amount you want to invest.

6. Submit the order

Check the details of the order and submit. Your shares will be purchased immediately, as long as it’s within market hours. Otherwise, you may need to wait until the stock market opens.

How to invest in Amazon via a fund

Buying shares directly isn’t the only way to invest in companies like Amazon. You can also invest in alternative ways, such as via global funds, investment trusts and exchange traded funds (ETFs).

These are ready-made portfolios, made up of shares in different companies. It’s a way of spreading your investment across multiple stocks and thereby diversifying your portfolio.

As Amazon is a major global company included in the likes of the S&P 500, it is included in many funds, trusts and ETFs.

You can also buy these through online investment platforms, provided you have an investor account.

Amazon (AMZN) share price

The current Amazon (AMZN) share price as at the time of writing (26th August 2024) is: $173.33 USD (£131.66 GBP).¹

Bear in mind though that share prices fluctuate. The above is the accurate share price at the time of writing, but it’s likely to be different at the time you’re buying your shares.

You can check the latest Amazon share prices at any time using the Wise stock ticker.

Check latest AMZN share price

Does Amazon stock pay out dividends?

Dividends are payments made by a company to its shareholders, based on annual overall profits. The aim is to reward shareholders for their investment, and potentially to encourage future investment.

It’s most common for dividends to be paid as cash payments, but it’s also possible to receive dividends in the form of additional shares in the same company.

Amazon stock doesn’t pay out dividends in either form, and never has done. In fact, it’s quite unique in that it is the only company in the S&P 500 with a trillion-dollar market capitalisation that doesn’t pay a dividend.²

This is unlike similar companies such as Microsoft, Apple, Alphabet (Google’s parent company), and Meta Platforms (Facebook’s parent company) which all pay dividends in some form.

This isn’t to say though that it may not pay dividends to shareholders at some point in the future. So, you might want to keep an eye on the latest stock market updates.

What does it cost to buy and sell Amazon shares?

When you buy shares in the UK, you’ll usually have to pay fees of some kind. However, these charges will vary depending on the investment platform or broker service you use.

The main fees you’re likely to encounter are platform or account fees, as well as charges per trade. If you’re buying US stock, you’ll also need to pay foreign exchange fees to convert your money from GBP to USD.

Here’s an idea of what these trading and foreign exchange fees are with popular online investment platforms:

Platform	US trade (commission) fees	Foreign exchange fees
eToro	£03	1.5%4
XTB5	£0	0.5%
Hargreaves Lansdown6	£11.95	1%
Trading 2127	£0	0.15%
Interactive Brokers8	£1.45	0.03%

Note: All above investment platform fees were correct as of 5th September 2024.

The fees for investing in Amazon via a fund, trust or ETF will be different. You’ll need to check the individual platform for details of these.

Avoid hidden currency conversion mark-ups

In this article, we’ve looked at how to buy shares in Amazon here in the UK, covering everything you need to know to get started. This includes the latest share prices, info on fees and steps to buy your first Amazon shares.

But if you’re planning on buying and selling shares and funds listed abroad, there’s another crucial thing to consider - currency conversion.

Trade in different currencies and you could be hit with extra cost for cross border money transfer.

The good news is that you can use Wise to avoid hidden currency exchange markups and fees when buying and selling shares, stocks and funds listed in the US and worldwide.

You may wish to hold your money in a Wise account until you decide to invest it in your chosen platform. Open a Wise account and you can convert currency at mid-market exchange rates, for low, transparent fees*.

You can also use your Wise account to conveniently manage your money in up to 40+ currencies, sending payments worldwide a the mid-market rate for low fees*.

There’s even an extra feature, Wise Interest. With a Wise account you can earn returns on GBP, USD and EUR by opening a Wise account and investing in a fund that holds government-guaranteed assets. Capital at risk.

Open your Wise account

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in. Tax treatment depends on your individual circumstances and may be subject to future change. The content of this article is provided for informational purposes only and is not intended to be, nor does it constitute, any form of personal advice.

Investments in a currency other than GBP are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in GBP terms. You could lose money in GBP even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

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Sources used:

1. Wise - current Amazon.com Inc stock price (AMZN)
2. Barron’s - Amazon doesn’t pay dividends
3. eToro - eToro fees and charges
4. eToro - eToro conversion fees
5. XTB - XTB fees
6. Hargreaves Lansdown - Hargreaves Lansdown fees
7. Trading 212 - Trading 212 fees
8. Interactive Brokers - Interactive Brokers fees for UK residents

Sources last checked on date: 05-Sep-2024