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How to Invest in Amazon UK: How to Buy Amazon Shares

Are you considering investing in stocks and shares? Perhaps you’re thinking about investing in a company like Amazon? If you want to learn how to invest in Amazon in the UK, you’ll find this Moneyfarm blog invaluable.

How to Invest in Amazon UK: Summary Table

🏛️ Is Amazon stock on the UK stock market?Yes, Amazon stock is listed on London Stock Exchange
🤔 Can I buy 1 share of Amazon stock?You can buy 1 share or as many as you can afford
🤑 How do I buy shares in Amazon?Through an online brokerage
📅 When was Amazon’s last stock slit?June 6, 2022

When Jeff Bezos founded Amazon in his garage in Seattle, he probably didn’t realise the monster he was creating. Today, Amazon is the world’s largest non-travel e-commerce business, known to pretty much everyone in the civilised world. If you’d like to know how to buy shares in Amazon in the UK, all you have to do is to read on.

How to set up to buy shares in general

If you want to create an investment strategy based on the shares trade, the first thing you must do is to find a reputable stockbroker.

With the World Wide Web now the leading communications platform, and the availability of technologies like Cloud computing, it makes sense to seek out an excellent online shares trading platform, or if you like using your mobile for trading, a trading app such as

  • Degiro
  • etoro
  • IG
  • Interactive Investors
  • Fineco

Amazon shares can only be bought in the USA. They are quoted on the NASDAQ stock market and are traded on the S&P 500 Index. All the platforms listed above have the appropriate access.

If you are indeed thinking about buying shares and you are interested in investing in Amazon, here’s how to proceed.

How to buy shares in amazon

As you now know, Amazon shares are only available to buy on the USA stock exchange. You can, however, buy them here in the UK on one of the platforms listed above. For more options and a list of their fees, please click here.

Once you have chosen your preferred platform, you will need to confirm your payment details with which you intend to fund your account. You can fund your account either via a direct bank transfer or by using a debit card or a credit card.

Before you buy Amazon shares, you need to do a little research. This is where having a good platform is essential. It should provide you with all the information you need. Once you’re satisfied you’ve done your research properly, buying shares is just a click away.

The Answer to How to Invest Money in Amazon in the UK is With Care

Before you ask yourself, how do I invest in Amazon from the UK, you should know that Amazon completed a 20:1 stock split on the 6th of June 2022.

It means that the number of shares has been increased by 20 to 1. But unsurprisingly, it has resulted in a share price drop, so depending on your outlook, it could alter whether you think now is the right time to buy Amazon shares.

Amazon performed the split to attract more investors, particularly investors with little to invest but want whole shares, instead going down the fractional share route.

If you’re thinking about how to invest £10,000, and you are considering buying shares in Amazon stock, you ought to be considering a long-term investment.

The drop in the Amazon share prices is almost certainly only a temporary one, but it will take some time to climb back to their previous highs. Your plans will be influenced by whether you consider yourself a bull or a bear, or even a pig. Naturally, you won’t want to be considered a pig.

In the investment world, the saying goes, “pigs get slaughtered.” This type of trader is most likely to invest heavily, looking for short-term results, but instead lose all or most of their investments.

So, when it comes to how to invest £100,000, being a pig investor is a potentially enormous risk. So, the advice on how to invest in Amazon in the UK is not to follow pig-type investing practices.

Is It worth buying one share in amazon?

If you had asked this question before Amazon decided to split its shares, the answer would have been yes. Before the split in June 2022, one share was worth $2,447. Post-split, they are now only worth something like $122 per share. But that doesn’t mean you shouldn’t buy.

Buying when the time is right

According to the Bank of America, stock splits usually result in higher returns long term. For instance, S&P businesses that split their shares since 1980 have, on average, followed up with a 25.4% return. In comparison, the S&P 500 norm is only 9% over the same time span.

So now is probably a good time to invest, but not just with one share. You could buy several. It means that the answer to how do you invest in Amazon in the UK now is by opening a general investment account and buying a few shares as part of a diverse portfolio.

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If you want dividend payouts – Amazon is not for you

Many shares pay dividends, but Amazon stocks do not. They never have in the entire 23 years since they were first floated. It’s because their philosophy is one of expansion. If they paid dividends, it would reduce the amount of capital they need to grow the business, so for now and in the foreseeable future, dividend payouts are off the table.

Are Amazon shares a good investment in 2022?

Amazon’s expansion philosophy for the products and services they offer is a good thing for investors. If the share split results follow the usual patterns, then existing shareholders could be looking at an excellent return over the next 12 months.

However, the NASDAQ stock exchange is no different from stock exchanges around the world like the London or Shenzen stock exchanges. They are volatile places, and you must bear in mind that the value of investments can appreciate and depreciate, which is why to ensure that Amazon shares are a good investment, you should think long term.

Putting investment risk into perspective

There can be no doubt that investing is a risky business. So before entering into it, you need to consider your short vs long term financial needs.

Your short-term financial needs are best served by having savings readily available to cover unexpected emergencies. Putting your money into an ordinary bank and building society savings accounts is the safest way of setting money aside to access when needed.

For your medium to long-term financial needs, putting your money into ordinary savings accounts means that it loses value in real terms – especially given the high inflation rates we are currently experiencing here in the UK.

Investing is the best way to offset inflation and get returns above inflation. Yes, an element of risk exists, but it can be offset by investing in the long-term, as discussed above in how to invest in Amazon in the UK and having a diverse investment portfolio.

Diversifying your Investment portfolio

When we discussed how to buy shares in Amazon in the UK earlier, we suggested buying a number of shares following the stock split. However, it’s not a good idea for your portfolio to consist only of Amazon shares. Why put all your eggs in one basket?

If you look at the investor profile page on the Moneyfarm website, it explains and shows options of the products available to help you to make financial decisions. One of the products referred to is the Stocks and Shares ISA.

When discussing how to invest in Amazon in the UK earlier, we talked about share trading. But share trading is not for everyone and shouldn’t be entered into lightly without a good understanding of stock exchanges and the buying and selling of shares. In addition, you need to actively manage your investments, by keeping a meticulous eye on their performance.

With a Stocks and Shares ISA, however, all the hard work is done by a team of professional financial experts. Their experience, coupled with complex algorithms currently updated to reflect the latest trends in stocks and shares movements, enables you to take a back seat and enjoy the ride.

Stocks and shares ISAs, also known as investment ISAs, contain a carefully selected range of equities covering many companies working in a wide range of industries, thus giving you that all-important diversity.

Avoiding scam merchants

Unfortunately, many scam merchants operate on the Internet, particularly in the financial sector.

The best way of ensuring the trading platform or wealth specialist adviser you work with is 100% bona fide is to check that they are authorised and regulated by the FCA (Financial Conduct Authority). In addition, ensure that they are members of the FSCS (Financial Services Compensation Scheme), as we are here at Moneyfarm.

Don’t just assume it must be so because it’s published on the website. Be sure to check out their allotted authorisation number.

FAQ

Does Amazon pay a dividend?

Amazon stocks do not pay investors dividends, and it has never paid dividends since its inception. Amazon is a growth stock, not a dividend stock. 

How many stock splits has Amazon done since 2022.

Amazon has gone through four stock splits. It had a 2:1 stock split in June 1998, a 3:1 stock split in January 1999, a 2:1 stock split in September 1999, and a 20:1 stock split in June 2022. The share price after each split was $42.84, $118.32, $59.52, and $139.28, respectively.

What is a 20 to 1 stock split?

Companies use a stock split to increase the number of their outstanding shares. So a 20 to 1 stock split is when 1 stock is split into 20 new stocks, and the price of each new stock will be worth one-twentieth of the original share price before the split. 

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