How to Buy Amazon Stock Without A Broker

Many people want to get in on the Amazon stock (NASDAQ: AMZN) market action because of the company’s outstanding record of growth, dominance in online retail, and leadership in cloud computing. While most people buy stocks through traditional brokers, you can also buy Amazon stock without a broker.
There are a number of ways to buy Amazon shares without a broker and with more flexibility. This article discusses these options, how they work, their pros and cons, and who they are best for.

Using Investment Apps or Fractional Share Platforms

There are a number of investing apps that enable people to buy shares or fractional Amazon shares without having to go via a traditional broker. You can buy stocks instantly through your phone on platforms, such as Robinhood, Public, SoFi Invest, or eToro. Not only that, but their fees are also relatively low.

These companies technically hold brokerage licenses but they bypass traditional brokers by automating transactions, charging low or no costs, and enabling consumers to buy modest amounts of stock. You can buy fractional stock worth as low as $1 on their platforms.

Fractional investing is great for Amazon because its shares cost hundreds of dollars, which makes full shares too costly for many retail investors. Buying fractional shares lets you own a part of Amazon stock without having to put down a lot of money up front.

Robinhood trading interface

SoFi App trading interface

Workplace Retirement Plans (401(k) or Similar)

You can also invest in Amazon indirectly through your 401(k) or other retirement plan alternatives, which means you don’t have to go through a regular broker. Many plans have mutual funds or ETFs that invest in AMZN, and in some cases, they even have individual stock options.

To do this, you should start by looking at the investing options offered by your 401(k) provider. The next step is to allocate your contributions into funds that hold AMZN, such as a NASDAQ-100 index fund. The beauty of it is that you don’t have to buy anything directly; contributions are deducted out of your paycheck. Some plans let you have self-directed brokerage accounts, but they can need a custodian.

401(K) investments grow tax-deferred or tax-free in a Roth 401(K). Employer matching also increases returns. The downside to this option, though, is that it’s not common to find packages that let you buy AMZN stock directly. Also, you can’t take money out without a penalty until you become 59½ and retire.

Exchange Traded Funds (ETF)

ETFs and mutual funds that include AMZN in their portfolios are two of the easiest methods to invest in Amazon without going through a broker. These products are offered by companies that let you buy them directly. ETFs like the Invesco QQQ Trust (QQQ) put around 15% of their money into Amazon, along with other big tech companies like Apple and Microsoft.

ETFs let you invest in a different sectors at once, which lowers the risk that Amazon stock carries. Also, with this option, you won’t have to pay any trading fees on direct purchases. This option is good for those who prefer to sit on their money and wait for it to grow over time.

Using Transfer Agents and Custodial Accounts

If you don’t want to register a brokerage account, you can also buy Amazon shares through a transfer agent or custodial account provider. In addition to keeping track of shareholders’ information, a transfer agent may also help with direct transactions.

Computershare, Amazon’s transfer agent, doesn’t offer new shares directly for now, but it does keep track of who has shares for current investors. So, if you already own Amazon stock certificates, you can use Computershare’s Dividend Reinvestment Plan (DRIP) to move them, reinvest the dividends, or add to your holding.

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