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Best Amazon Stock Trading Brokers

When searching the Internet for the most successful online stores, one name always comes up, that of Amazon. The brand is the undisputed leader in the online retail shopping sector. A state-of-the-art technology, almost infinite product catalog, and an aggressive e-commerce business model virtually eliminate the possibility of consumers not coming across and in most cases using Amazon.

The company is part of the so-called Big Five which comprises the largest brands in the information technology industry in the US. The relentless success of the brand arouses admiration, but also envy. Over the past year, Amazon has battled a wave of fake reviews on online platforms aimed at discrediting the company.

How Amazon Stock Trading Works for Traders and Brokers

Amazon Stock TradingAmazon left the private sector and offered its shares to the public via an initial public offering (IPO) in 1997. Notwithstanding the above-mentioned turmoils, AMZN stocks attract the attention of both optimistic traders and skeptics who doubt that share price can continue to grow despite the long existence of the platform in such a highly competitive environment. Millions of Amazon shares are bought and sold on the stock market every day. Between 2012 and 2022, the e-commerce company’s share price rose by about 1,500% which is why AMZN stocks are popular both among retail traders and professional investors.

The Amazon stock is listed on the Nasdaq stock exchange. It is the fourth largest component of the S&P 500 index and is also part of the technology-focused Nasdaq 100 index. Although the brand has gone a long way after its foundation as an online bookstore, it still falls within the consumer discretionary sector.

Amazon Stock Trading Methods

Trading MethodsUnlike stock indices, individual company stocks can be traded directly. Direct investments require using a share dealing platform and involve actual ownership of the respective asset. Traders who prefer operating with lower risk, usually decide to join an online stock broker and perform derivatives trading. Contracts for difference (CFDs) and spread betting enable speculating on price movements of Amazon stocks without possessing them. Another option today’s trading brokers offer is investing in exchange-traded funds (ETFs). They provide for risk diversification as ETFs track the performance of different companies in a particular industry sector.

Top Amazon Stock Brokers

choosing a brokerReliability, trade execution, and fees are key factors you better consider when choosing a brokerage company for your Amazon stock trading experience. Not all stock brokers are created equal of course. Just the contrary, they offer quite a variety of platforms, applications, and tools suitable for traders with different levels of expertise and trading style. To make it easier for you to choose, we have selected ten brokerage companies that have strong regulation and competitive trading conditions.

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Amazon stocks FAQ

1. Is Amazon stock trading profitable?

With very few exceptions such as the dramatic drop in 2018, Amazon has almost always moved with an upward trajectory. However, this does not mean that random stock trading is profitable by default. Here is a hint - Amazon stock's price is affected by quarterly earnings news. If you trade close to the earnings season and successfully identify the upcoming trend, this could result in some very profitable deals.

2. Which is the latest stock split performed by Amazon?

In March 2022, the e-commerce giant announced its first stock split after 1999. The 20-for-1 split was very well perceived by the public and caused an initial increase of 5%. June 6 of the same year was the first date trading at the new price began.

3. Who owns Amazon?

As it is a listed company, Amazon is practically owned by its shareholders. Of course, some individuals and legal entities own much more stock than others. Currently, Jeff Bezos, the ex CEO of the company holds just over 11% of outstanding shares which makes him the biggest shareholder. In second place comes an institutional brokerage company called Advisor Group Inc. with 7.1%.

4. Are there fractional shares of Amazon?

Yes, some of the major stock brokers allow for trading fractional shares. For traders on a tight budget, factionals are the only option to catch their wagon on Amazon since stock prices are considerably high.

5. Why is Amazon not part of the Dow Jones index?

Until recently, the answer to this question was quite obvious. DJIA is a price-weighted stock index and Amazon was just too expensive for it. In other words, accepting Amazon in Dow Jones would give the brand too much power over the other constituents of the index. However, the e-commerce giant just made its first stock split i the last 23 years and it remains to be seen what the respective long-term effect would be.