How to Buy Amazon Stock Without Investing $1000s

Are you interested in buying shares in this retail giant? Here’s how to buy Amazon stock — even if you don’t have a lot of money.
Last updated Sep 8, 2020 | By Miranda Marquit
How to Buy Amazon Stock

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Amazon is one of the most valuable stocks in the world. How much is Amazon stock? Well, it costs nearly $3,000 per share (as of midmorning July 24, 2020). However, that doesn’t mean buying Amazon stock is out of reach for you. In fact, it’s possible to invest in Amazon even if you don’t have enough money to buy a single share.

Let’s take a look at the history of Amazon stock as well as a couple of different ways you can buy Amazon stock. We’ll even show you how to buy Amazon stock even if you don’t have a lot of money.

How to buy Amazon stock

If all this has you interested in investing in Amazon, there are two main ways you can purchase Amazon’s shares. Before you try one of these ways, though, it’s also worth noting that you can also get exposure to Amazon stock by investing in index funds. As a major component of U.S. stock indexes, when you invest in index funds or ETFs, you get exposure to Amazon stock.

You can indeed buy more directly, though. Here’s how to buy Amazon stock:

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  • Get $10 to make your first investment
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  • Fractional shares available
  • Start investing with just $1

1. Open a brokerage account

When you buy and sell shares of stock on the market, you need to use a broker. Most brokers offer online brokerage accounts that allow you to invest without too much trouble. Some of the more traditional brokerage accounts are Schwab and Fidelity. You can also use an online broker like Robinhood to buy Amazon stock.

When you trade with a brokerage account, you have the most control over when and how you trade. However, as you decide how to choose a brokerage, take into account that you might need to buy full shares or meet an account minimum. For some investors, this can present a financial obstacle to getting started in the stock market. In the past, some brokerages also charged transaction fees for each trade, but some brokers have waived those fees in recent months.

Realize, though, that if you have to meet minimums, or if you need to buy full shares of companies, you might not be able to invest in Amazon until you’ve saved up enough money. But don’t let that stop you — this problem is what our next option for buying Amazon stock can solve for you.

Robinhood Benefits

  • When you sign up, a surprise stock appears in your account
  • Commission-free trading with no account minimums
  • Trade stocks, options, and cryptocurrencies

2. Buy fractional shares

There are some online trading platforms that don’t make you purchase full shares. In some cases, with services like Stash, you can actually buy fractional shares, which are essentially fractions of shares. This allows you to buy Amazon stock without needing to have $3,000 saved up to buy even a single full share.

So, in the case of Amazon, you might be able to purchase an eighth of a share. You would only need to invest $375 to get an eighth of a share of Amazon, instead of needing to come up with $3,000 at once. Over time, you could keep buying fractional shares and benefiting if stock prices rise. Even without a full share, your investment will gain in value if the stock price goes up. In this way, you can still reap the potential benefits of buying Amazon stock without a large outlay of money upfront.

Stash has additional convenient investing features as well. You can set up automatic transfers of as little as $5 and automatically invest in fractional shares of any available stock. Stash also offers banking products that can complement your investments and even earn you Stock-Back® rewards when you use your debit card.

Even better, Amazon isn’t the only hot company you can invest in through Stash. You can also get fractional shares of Tesla, Apple, and Netflix. Plus, for those interested in index investing, there are index ETFs available via Stash.

Is buying Amazon stock the right move for you?

Anytime you’re evaluating a stock, you need to decide whether it’s the right investment decision for you and your personal finance goals. One of the hazards of investing in individual stocks is that you could end up losing out if that company declares bankruptcy or goes out of business. Although it’s hard to imagine such a fate for Amazon, it’s still a possibility.

Another thing to take into account is that because Amazon had such an amazing run-up in stock price, getting in now isn’t likely to provide you similarly dramatic returns. Many people who have made a lot of money picking individual stocks did so because they bought shares early on and benefited from the big gain in value. The time is past where you can buy Amazon for less than a few dollars per share and reap the big gains. However, you might still be able to meet your portfolio growth goals even when you buy fractional shares of Amazon.

It's important to do your research before you buy any stock.

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If your goal is income investing, Amazon probably won’t work for you. Amazon has never paid a cash dividend (a portion of the company’s profits paid out to eligible shareholders). It doesn’t appear that Amazon is likely to adopt a dividend in the near future, though the company could decide to at some point. For the most part, Amazon stock is likely to work best for those who are looking for growth in their portfolios and believe Amazon still has room to increase in stock price.

Bottom line

It’s important to note we aren’t financial advisors, and we aren’t offering investing advice. This information about Amazon is designed to help you learn more about the stock so you can make your own choice about whether it makes sense to add Amazon stock to your portfolio.

There are many ways to build a portfolio, and before you decide how to go about starting in the stock market, it’s a good idea to consider your goals and risk tolerance and create a plan that matches your individual situation.

Stash Benefits

  • Get $10 to make your first investment
  • Invest in stocks, bonds, and ETFs
  • Fractional shares available
  • Start investing with just $1

Author Details

Miranda Marquit Miranda Marquit has been covering money for more than a decade and is a nationally-recognized financial expert and journalist, appearing on CNBC, NPR, Forbes, Yahoo! Finance, FOX Business, and numerous other outlets.