How To Buy Amazon Stock (AMZN) – Forbes Advisor Canada

Amazon.com Inc. (AMZN) has grown from a humble bookseller that Jeff Bezos started in his garage to the biggest e-commerce company on earth, complete with web services and advertising business verticals. AMZN has over 200 million Prime members worldwide, and it reported $150 billion ($117 billion USD) in revenue for the first quarter of 2022.

Over the last five years, Amazon’s share price is up almost 125%—and that’s after the big stock market downturn of 2022. At the time of the stock’s last all-time high in November 2021, shares of AMZN had gained more than 250% over five years. If those numbers have you eager to hitch your wagon to Amazon, here’s what you need to know.

How to Buy Amazon (AMZN) Stock

1. Open a Brokerage Account

To buy Amazon stock, you’ll need an online brokerage account. If you don’t have one already, check out our list of the best brokerages and best investment apps to jumpstart your search. Most brokerages these days allow for fee-free stock trading, but make sure to keep an eye out for any fees and account minimums.

You’ll also want to think about your goals for investing to figure out what kind of account you want.

If you’re aiming to save for retirement, choose a Registered Retirement Savings Plan (RRSP). If you keep your AMZN shares within this account, you won’t have to pay any tax to either the IRS or CRA since the account is tax-deferred in Canada and is recognized by the IRS as tax-exempt.

Not all registered accounts have this designation in America, but there are limits with an RRSP. You will income tax in Canada on any money you take out of an RRSP and there’s a limit to how much you can contribute every year ($29,210 in 2022).

If you’re saving for a more general goal, like wealth building or a home down payment, you may simply want a taxable investment account that allows you to access your money at any time with no penalties.

2. Decide on an Investment Budget

Even Bezos doesn’t have an…

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