Amazon is the best known online retailer in the world. Read this article to learn about how to buy amazon shares in Australia, and why you should.
Where to Buy Amazon Shares in Australia
Since Amazon shares are not directly available at ASX, you can consider any of the following brokers instead:
eToro (Most recommended)
The company is ASIC licensed and offers a number of financial services to Australians. eToro facilitates the trading of different types of financial instruments through Contract for Difference (CFD) trades.
If you don’t actually have a lot of money to own Amazon stock, you can consider a CFD through eToro. CFDs allow investors to profit through marginal price differences for any trading instrument. That means you can profit if you properly predict whether Amazon stock go up or down in price in a given period.
CFDs are speculative and thus very risky. However, it’s might be a good option for those interested in investing in Amazon but don’t actually have the cash to buy and hold onto the company’s stock
IG is a competitive broker that offers both local and international shares, like Amazon. You can start sharing as soon as you open an account. IG is notable for offering responsive, 24-hour customer support.
The broker charges some of the lowest fees in Australia. The cost per trade would cost around 8 AUD in most cases. You can expect fees around this range when buying Amazon stock.
This broker is considered highly reliable. The broker’s website offers a platform that is easy to use for even new investors. There are even some currency conversion offerings.
Saxo Capital Markets
A classic account with Saxo Capital would give you access to international stock exchanges. You can buy Amazon stock on Nasdaq or the NYSE via this broker.
Saxo Capital is a subsidiary of the Saxo Bank Group of Denmark. The local entity is licensed by ASIC. The global brand is quite reliable and Australian investors can expect competitive prices.
While Saxo doesn’t specialise in tech stocks, the range of offerings is impressive. You can add other major tech stocks like Google in addition to Amazon with this broker.
Why Buy Amazon Shares?
Amazon is a huge brand mainly in the US. In Australia, the company doesn’t have such an impactful e-retail presence. So why should Aussie investors bother with Amazon stock?
There are several excellent reasons you might want to, as mentioned below:
1) Amazon is one of the most valued businesses in the world
In 2018, Amazon briefly surpasses the one trillion dollar valuation benchmark and continues to grow. It was only the second company in the world to do so. While the valuation only lasted a matter of minutes, it was still significant.
If you are looking for more good stock to buy try these:
Amazon presents an excellent opportunity for Australians to invest in a major international business. There are no equivalent local options.
2) Diversify your stock with Amazon
The ASX, unfortunately, is heavily inclined towards mineral and mining company stock. Big tech stock are mostly not included. As a result, Aussie investors are losing out on a major opportunity to diversify.
Buying international stock like Amazon is a great way to expand your existing portfolio. Diversification hedges you against market volatility for the most part.
Too many local stocks put you at a disadvantage. Adding Amazon to the list is a great way to change that.
3) Amazon is one of the most steadily growing companies in the world
Amazon’s growth isn’t a trend. The company has been unprofitable for years. However, it has been steadily growing since its inception in the late nineties.
If you invested 1,000 USD in Amazon in 1997, you would have earned 1,362,000 USD by now. Amazon’s share prices have jumped 134,390 percent since its beginning.
Amazon’s insane growth can be attributed to its subsidiary portfolio. The company is not just an e-retailer anymore. It’s the owner of Whole Foods and a major cloud services provider in the world. No Australian company matches this level of growth.
Ways to Buy Amazon Shares in Australia
You cannot buy direct Amazon shares in Australia as it is not listed in the ASX.
Here’s a list with ways to buy Amazon Stock in Australia:
- Use a broker
- Invest in an ETF
- Via a Managed Fund
Using a broker is perhaps the easiest way to purchase Amazon stock. You can choose either a traditional full-service broker or an online brokerage platform like eToro. The former charges hefty commission fees. The latter doesn’t.
Online brokerage platforms charge fees per transaction. So, the costs vary but they are not as high as full-service options. Additionally, eToro allows you to buy Amazon stock through CFDs.
As Amazon grows, it’s share prices increase. CFDs allow you to predict share increases and profit when your predictions come true. Essentially, you are investing in the price movement of Amazon stock.
While it’s speculative, CFDs allow you to profit from Amazon stock without actually owning any. As share prices of the company have gone through the roof, this approach may suit any budget.
The other option is a managed fund, which pools resources from investors. A manager oversees the fund. Managed funds can give you access to a certain market, such as big tech with Amazon stock. But this option is not for everyone.
An Exchange Traded Fund (ETF) is made up of many stock. You will have access to a number of international stock including Amazon.
What is Amazon?
Amazon is best known as one of the biggest online shopping sites in the world. Originally American, the site now operates around the world. The site connects sellers with buyers. Users can both buy and sell on the platform.
Jeff Bezos, now the richest man in the world, founded the company in 1995. In its current form, Amazon is a conglomeration of a number of services. It’s most profitable sector is the cloud-based services unit. Amazon is also involved in entertainment and digital advertising.
Amazon’s competitors include other online retail businesses like Alibaba and eBay. In the US, Amazon dominates the retail market. Alibaba has a bigger share in Asia. However, Amazon is considered to be more stable as it is not subject to political instability in its home country.