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how to buy amazon stock in nigeria review

How to Buy Amazon Shares in Nigeria

How to Buy Amazon Shares in Nigeria revealed. We tested and verified the best way to buy Amazon Shares in Nigeria.

This is a complete guide on how to buy Amazon shares in Nigeria. 

In this in-depth guide you’ll learn:

  • What are Amazon Shares?
  • How to buy Amazon Shares in Nigeria? 
  • How to buy Amazon shares for beginner traders?
  • Which broker can you use to buy Amazon shares?
  • Which broker offers a signup bonus? 
  • Which brokers offer a $5 minimum deposit for investing in Amazon shares?
  • How many Amazon shares should you buy?


And lots more…

So if you’re ready to go “all in” with the Amazon share for Nigerians…

Let’s dive right in…

Updated : July 21, 2022

👉 Definition: a share is a percentage of ownership in a company, such as Amazon,  or a financial asset. Investors who hold shares of any company are known as shareholders.

Step by Step how to buy Amazon Shares in Nigeria

Step 1: Sign up with a reputable broker

Step 1: Choose a Reputable Broker

👉 Open a brokerage account in Nigeria to buy and sell assets including stocks, mutual funds, and ETFs (ETFs). Even if Nigerians have access to AMZN through a brokerage, there is more to it than that.

 

👉 In addition to a wide range of investment accounts aimed at achieving certain goals, a good broker provides all the resources and information Nigerians require to be successful investors.

 

👉 If Nigerians expect to purchase an Amazon stock in the next few years, they should open a taxable brokerage account.

 

👉 Nigerians can invest for as long as they want and for as much as they want, but they must pay taxes on any profits or dividends they receive when they sell their investments.

 

👉 Due to the fact that no two brokerages are the same, it’s crucial to compare and contrast a number of different businesses before settling on one.

 

👉 Using a trustworthy broker is an easy approach to buy Amazon stock. To purchase shares, enter the ticker symbol (AMZN) and the desired quantity of shares.

 

👉 Additionally, a monetary sum can be supplied and the broker will calculate the number of shares (or parts of shares) that Nigerian users can purchase.

Step 2: Budget for your investment

Step 2: Budget for your investment

👉 Before you invest in Amazon, be sure you have all of your bases covered. Having enough money to pay your bills, develop an emergency reserve, and prepare for retirement is required. Once these are taken care of, the remaining funds can be used to invest in Amazon stock and other businesses.

 

👉 If you’re short on cash, look for a brokerage that allows you to purchase fractional shares, or pieces of a single share. There are some who don’t.

 

👉 Dollar cost averaging is a second option that can help you pay less per share on average over the course of time. It puts your money to work and grows in the stock market as soon as feasible, rather than requiring you to wait until you reach a certain amount.

 

👉 AMZN isn’t likely to be the only investment you make. As a result, you’ll need to think about how this investment fits into your overall portfolio and long-term goals.

 

👉 A long-term investor is a person who believes that the company will continue to identify new business prospects in order to retain its long-term sales growth and premium value.

Step 3: Conduct adequate stock research

Step 3: Conduct adequate stock research

👉 Make sure you’re comfortable with the company’s direction and performance before deciding to invest in Amazon shares. A requirement of Amazon’s status as a publicly traded corporation is that it submit financial reports to the US Securities and Exchange Commission (SEC).

 

👉 On Amazon’s investor relations page or on SEC.gov, you may find these annual and quarterly reports. Aside from the publicly available information, you can consult third-party analyst reports like those from Fidelity, Morningstar, or Forbes to assess if Amazon appears to be a sound investment.

Step 4: Place an order for the stock

Step 4

👉 Access your online brokerage account or trading app and begin the process of purchasing Amazon shares if you’re so inclined. Enter the stock symbol AMZN and the amount of money you want to invest in Amazon’s stock.

 

👉 When placing a purchase, you may also have to decide on the sort of service you desire. There are two main types of orders: market orders and limit orders.

 

👉 A market order is an order to purchase or sell stock at the current market price.

 

👉 In order to buy or sell shares, you must select an upper and lower limit for the stock. Additional pre-and post-market trading hours may be available through your brokerage.

Step 5: Continue to review the stock’s performance

Step 4

👉 A good rule of thumb is to examine your investment’s performance at least once a quarter or once every year, regardless of how many stocks you own. That way, you can observe how your account is doing and decide whether or not you need to make any changes.

 

👉 You may compare the performance of your Amazon investment to that of benchmark indices like the Nasdaq 100 or S&P 500 to get an idea of how well it is doing. It’s also possible to follow Amazon’s financial performance over time using the information supplied in its public filings.

Amazon Stock Overview for Nigerians

👉 In the United States, Amazon is the largest online retailer and a cloud computing behemoth. Jeff Bezos started the company in 1994.

 

👉 Since its inception as an online bookstore, Amazon has expanded its offerings to include everything from lawn furniture to janitorial supplies, as well as customer service, inventory, and shipping.

 

👉 Video games and music are also available for purchase, along with digital downloads. One of its subsidiaries, Amazon Web Services (AWS), is a multibillion dollar cloud computing service provider for a wide range of clients, including government organizations and institutions.

 

👉 At CES 2017, the company’s Alexa AI assistant service was integrated into anything from LG refrigerators to Ford automobiles; this was just one example of Amazon’s growing presence in consumer goods.

 

👉 In an unexpected turn, Amazon has invested heavily in brick-and-mortar stores, opening its first one in Seattle at the end of 2015 and quickly expanding to 13 more across the city.

 

👉 Whole Foods was purchased by Amazon in 2017 and the company’s headquarters in Seattle was opened to the public in early 2018.

Overview

👉 Nigeria’s stock exchange has experienced a rise in interest from retail investors in recent years, as online stock trading has become increasingly popular over the last decade.

 

👉 The stock market is becoming increasingly popular among young Nigerians, who see it as a chance to supplement their income or increase their savings.

 

👉 Electronic trading is becoming increasingly popular among institutional investors as a means of making real-time investment decisions. The minimal barriers to entry, access to real-time information, and quick order execution are the key advantages of online stock trading.

 

👉 Trading stocks over the internet is now possible thanks to online trading systems that link stock exchanges like the Nigerian Exchange and its brokers.

 

👉 Because of low-cost trading apps, this has become a reality for the general public, thanks in large part to the internet and electronic trading technology. It is possible for anyone to trade stocks online as long as they are aware of the risks.

 

👉 The use of an electronic trading program or platform to buy and sell stocks on a Nigerian or other stock exchange is known as “online stock trading.” Investing in a publicly-traded firm is done through the purchase of stock, often known as a share. Through online stock brokers, you can buy and sell stocks in Nigeria.

 

Top 10 Brokers in Nigeria

Broker

Rating

Regulators

Min Deposit

Leverage

Sign Up Bonus

Spreads

Website

1

9/10

FSCA, FSA, CySEC, FCA, CBCS, FSC (BVI), FSC

$10

1:Unlimited

10%

0.1 pips

2

8/10

ASIC, FSA

$100

1:400

40 USD

0.91 pips

3

8/10

FSA, FCA, CySEC, FSCA

$100

1:20

30 USD

0.07 pips

4

8.7/10

CySEC, FSC, CFTC

$5

1:500

30 USD

1 pips

5

8.5/10

FSA, FSCA

$100

1:200

20 USD

0.9 pips

6

8.4/10

FSA, CySec

$1

1:3000

30 USD

0.3 pips

7

8.3/10

IFSC, CySEC

$100

1:3000

100 USD

0 pips

8

8.2/10

FSC, IFSC, MFSC

$10

1:400

50%

0.4 pips

9

8.1/10

IIROC, ASIC, CFTC, NFA, FCA, FFAJ, MAS, MFSA

$0

1:200

1000 USD

0.2 pips

10

8/10

CySec, FSC, FSA, BaFin, NFA

$100

1:200

30%

1.5 pips

Top 10 Brokers

Broker

Deposit

Leverage

Website

1

$10

1:Unlimited

2

$100

1:400

3

$100

1:30

4

$5

1:500

5

$100

1:200

6

$100

1:3000

7

$100

1:3000

8

$10

1:400

9

$0

1:200

10

$100

1:200

 

👉 To get in on Amazon’s prospective long-term growth, here is everything you need to know to purchase AMZN stock.

Pros and Cons of buying Amazon shares

👉 The portfolio diversification which Amazon has demonstrated as part of its long-term growth strategy bodes well for growth investors, but there are still a number of drawbacks to investing in the stock. Here, we consider both.

 

Pros of buying Amazon shares in 2022

👉 Amazon has shown to be a long-term investment, rather than a short-term one for Nigerian investors. Despite the current lack of clarity, the Seattle-based giant has demonstrated its prowess in other areas and is well-positioned to dominate the e-commerce business in the next years.

 

👉 Amazon’s primary focus these days isn’t on online selling at all. In 2021, Amazon’s cloud division generated 75% of the company’s operational income. For the last few quarters, the division has demonstrated a two-digit growth rate (and is expected to keep up that pace). And the company’s growth isn’t tied to any macroeconomic factors.

 

👉 Any industry where Amazon believes it has an advantage over its competitors, it appears to be willing to enter.

 

👉 To demonstrate this, look no further than Amazon’s ongoing efforts to expand its flywheel of offerings. The company has the potential to become a major advertising player. It has one of the most extensive streaming services on the market.

 

👉 Secondary businesses including gaming, logistics, streaming platforms, and gadgets and venture capital investments are also available.

 

👉 Amazon’s stock is a great value. We can see that the company’s P/E multiple during the last five years is still much below its historical average.

 

👉 Moreover, top-tier analysts believe that the stock is being undervalued by the market. There are 29 TipRanks analysts who follow Amazon stock, and all of them recommend buying the stock at an average price of $4,200, implying a potential upside of 27 percent.

 

👉 To get in on Amazon’s prospective long-term growth, here is everything you need to know to purchase AMZN stock.

 

Cons of buying Amazon shares in 2022

👉 Saudi Arabia is in charge of one-third of the world’s oil production. global oil consumption decreased as a result of COVID. Because of the fall in oil production, OPEC (the Organization of the Petroleum Exporting Countries) took action.

 

👉 As a result, Amazon’s operating costs for its e-commerce businesses could rise significantly. This is especially true when we consider that Amazon’s “Last Mile Delivery,” the most expensive aspect of its e-commerce business, relies heavily on gas-powered vehicles to deliver products to customers.

 

👉 For e-commerce, the post-COVID macroeconomic environment is not favourable. Inflation remains a key problem for the United States, especially.

 

👉 Despite the fact that gasoline prices have played a significant part, housing and food expenses have also played a significant influence in the rise in U.S. inflation.

 

👉 We could expect e-commerce growth to be slower than it would be if inflation weren’t so high, as it is typically a barrier for the retail business.

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Should you invest in Amazon in 2022?

👉 Aside from its retail operation, Amazon’s cloud business is swiftly becoming Amazon’s most profitable and fastest-growing. As of 2021, Amazon Web Services (AWS) had revenue of $62,2 billion, a rise of 37% from the previous year.

 

👉 Amazon Web Services (AWS) produced $17.8 billion in sales in the fourth quarter of calendar 2021 alone, putting it on a revenue run rate of nearly $70 billion. There is a good chance that Amazon’s next $100 billion in revenue will come from cloud computing.

 

👉 What’s perhaps even more promising than the steady rise in revenue is the source of that growth. As a means of spurring business expansion, firms frequently devote significant resources to sales and marketing.

 

👉 Amazon Web Services is expected to sign and expand a number of high-profile customers, including Rivian, Meta, Under Armour, Goldman Sachs, Pfizer, and Nasdaq.

 

👉 Because of Amazon’s success in acquiring new customers and growing its existing clientele, the company’s cloud division has exceptionally good profit margins. In 2021, Amazon Web Services produced an operating profit of $18.5 billion, a 37% increase from the previous year.

 

👉 On the surface, Amazon may appear to be a failing company. For the trailing 12 months ending Dec. 31, 2021, the company’s operating cash flow declined by 30 percent to $46.3 billion, while free cash flow decreased to an outflow of $9.1 billion from an inflow of $31.0 billion.

 

👉 In the e-commerce business, however, management has acknowledged that supply chain and inflation issues, both lingering effects of the pandemic, are directly related to low profit margins.

 

👉 In spite of these setbacks, Amazon has remained focused on its long-term goals. A dollar invested today will be worth far more in the future, the company believes, even if some losses are incurred up front, because it understands the broader economic dynamics.

 

👉 Higher wages and other strategic efforts in entertainment, consumer electronics, and other areas demonstrate to investors that Amazon is aggressively investing in its business.

Best Brokers for Buying Amazon Shares in Nigeria

Exness

Exness

👉 Overall, Exness is considered a low-risk broker and can be summarised as a trustworthy and reliable market making broker for buying Amazon stock in Nigeria. Regarding spread and security, Exness guarantees fast trading speeds from a few milliseconds when buying Amazon stock in Nigeria. In terms of users, Exness has over 204 000 registered clients in the UK.

 

FXTM

FXTM

👉 Overall, FXTM is considered a low-risk broker and can be summarised as a trustworthy and reliable ECN broker for buying Amazon stock in Nigeria. Regarding spread and security, FXTM guarantees fast trading speeds from a few milliseconds when buying Amazon stock in Nigeria. In terms of users, FXTM has over 4 million registered clients around the world.

 

XM

XM

👉 Overall, XM is considered a low-risk broker and can be summarised as a trustworthy and reliable market making broker for buying Amazon stock in Nigeria. Regarding spread and security, XM guarantees fast trading speeds from a few milliseconds when buying Amazon stock in Nigeria. In terms of users, XM has over 5 million registered clients around the world.

 

Tickmill

Tickmill

👉 Overall, Tickmill is considered a low-risk broker and can be summarised as a trustworthy and reliable ECN broker for buying Amazon stock in Nigeria. Regarding spread and security, Tickmill guarantees fast trading speeds from a few milliseconds when buying Amazon stock in Nigeria. In terms of users, Tickmill has over 38 000 registered clients in the UK.

 

Pepperstone

Pepperstone

👉 Overall, Pepperstone is considered a low-risk broker and can be summarised as a trustworthy and reliable agency-execution broker for buying Amazon stock in Nigeria. Regarding spread and security, Pepperstone guarantees fast trading speeds from a few milliseconds when buying Amazon stock. In terms of users, Pepperstone has over 8000 registered clients in the UK.

 

Broker Comparison

🥇 Exness🥇 FXTM🥇 XM🥇 Tickmill🥇 Pepperstone
⚖️ RegulationFSA, CBCS, FSC, FSC BVI, FSCA, CySEC, FCACySEC, FSCA, FCA, FSC MauritiusFSCA, IFSC, ASIC, CySEC, DFSAFSA, FCA, CySEC, Labuan FSA, FSCAASIC, BaFin, CMA, CySEC, DFSA, FCA and SCB
💻 Trading PlatformMetaTrader 4, MetaTrader 5, Exness Terminal, Exness Trader appMetaTrader 4, MetaTrader 5, FXTM TraderMetaTrader 4, MetaTrader 5, XM Mobile AppMetaTrader 4, MetaTrader 5• MetaTrader 4,
• MetaTrader 5,
• cTrader,
• TradingView,
• Myfxbook,
• DupliTrade
💰 Withdrawal FeeNoYesNoNoNo
✔️ Demo AccountYesYesYesYesYes
📈 Min Deposit41,000 Naira10,000 Naira2,000 Naira41,500 Naira60,700 Nigerian Naira
📊 Leverage1:20001:10001:8881:5001:200
💸 SpreadFrom 0.0 pips EUR/USDFrom 0.0 pipsFrom 0.0 pipsFrom 0.0 pipsFrom 0.0 pips
💳 Commissions$3.5 on Zero AccountYes, variableUSD7/100 0002 per side per 100,000 tradedUSD 0.04 (USD 0.08 round turn)
🛑 Margin Call/Stop-OutNone40%50%100%/30%50%/0%
📲 Order ExecutionNoneMarketInstantInstantInstant
💰 No-Deposit BonusNoYesYesYesNo
💳 Cent AccountsYesYesYesNoNo
💻 Account Types• Standard Account, Standard Cent Account,
• Raw Spread Account,
• Zero Account, Pro Account
• Micro Account,
• Advantage
Account,
• Advantage Plus Account
• Micro Account, Standard Account, XM Ultra-Low Account, Shares Account• Pro Account, Classic Account,
• VIP Account
• Standard account,
• Razor Account,
• Professional Account,
⚖️ CBN RegulationNoNoNoNoNo
💰 NGN DepositsYesYesYesNoYes
✔️ Nigerian Naira AccountYesYesNoNoNo
📞 Customer Service Hours24/724/524/524/524/7
🛍 Retail Investor Accounts52412
☪️ Islamic AccountYesYesYesYesYes

Best Mobile Apps to buy US Stocks in Nigeria

👉 The United States stock market is one of the most enticing venues for investors whatever their investment style, experience, or objective.

 

👉 As a Nigerian or non-US citizen, it used to be quite difficult to acquire and invest in United States securities. However, Nigerians can now invest in the US stock market using their smartphone, tablet, iPad, or computer, attributed to technology progress and advancement.

 

Bamboo

Bamboo

👉 Bamboo, also known as “BamBoo Investment,” is a free mobile app that allows Nigerians to invest in over 3,000 securities listed on the US stock markets and the Nigerian stock exchanges.

 

👉 An established platform, Bamboo is protected by the Securities Investor Protection Corporation (SIPC) and keeps all of its accounts with a top-tier US brokerage firm.

 

👉 Bamboo Inc. is registered with the Securities and Exchange Commission (SEC) in the United States and Nigeria, and every Bamboo account is covered by an insurance policy with a maximum payout of $500,000.

 

Rise

Rise

👉 Nigerians can invest as little as $10 (or the equivalent in Nigerian Naira) in US shares through the Rise app. Rise professionals may manage and invest Nigerians’ money in a portfolio of carefully selected US equities rather than doing it themselves.

 

👉 The Rise app is available for both Android and iOS smartphones and focuses on long-term performance, growth potential, and high-quality earnings when selecting stocks.

 

Chaka

Chaka

👉 Aside from providing access to the stock markets of Nigeria and the United States, Chaka also provides access to global blue-chip companies from more than 40 countries.

 

👉 With Chaka, you may start trading international shares with as little as $10, or N1, 000 in local money, and work your way up.

 

Trove

Trove

👉 Trove, often known as the “Trove app,” is an online investing platform that allows Nigerians to participate in both domestic and international financial investment opportunities. Included are equities from countries such as the United States, China, and Nigeria.

 

👉 Nigerian traders can begin investing in Tesla stock with an investment of as little as 1,000 Nigerian Naira (about $1,200). Trove’s mobile application is accessible for both Android and iOS smartphones and tablets, as well as for desktop computers.

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97%

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RECOMMENDED JSE BROKER

🛡️ Trust Score

97%

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FAQ

How do I buy Amazon stock?

To buy Amazon stock in Nigeria, traders should take the following steps:

  • Open a brokerage account
  • Budget for your investment
  • Conduct stock research
  • Place an order for the stock
  • Continue to review the stock’s performance

 

Is Amazon stock safe?

Amazon stock is considered a good growth stock for those investors seeking returns over the long term.

 

What is the stock split for Amazon?

The Amazon board recently approved a 20-for-1 stock split. This means if you already own Amazon stock, you’ll receive 20 shares for each single share you own, and if you don’t own Amazon stock, you’ll be able to buy it at a much lower price.

 

Does Amazon pay a dividend?

Amazon doesn’t pay dividends to its stockholders, which has been on since it was first publically listed. Amazon’s major enticement to stockholders has always based on its potential business growth and expansion into new markets.

 

Is Amazon a good investment for 2022?

While Amazon stock recently suffered a depreciation due to the post-Covid economic climate as well as rising inflation, the stock is considered a good investment in 2022 due to expected growth in other areas of the business, such as its cloud services.

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