Wednesday 16 September 2020 11:13 amFXCM Talk

In 2020, How Can Anyone Afford to *Trade* Amazon’s Stock?

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Craig has worked in the foreign currency and CFD trading industry for the last 10 years, and is currently the CFD Product Manager of FXCM, where he primarily oversees the suitability and expansion of the tradeable product line.

In July 2020, Amazon’s stock was over $3,000 per share. With disposable income at a premium in 2020, how can anyone actively trade this stock?  For most retail traders it is just too much money locked up on a daily basis.  

You could find a broker who allows you to trade a full share with leverage and likely get your margin requirement down to 10% of your investment, but even that can be pretty steep. For every mouse click you have locked up over $300!

Click. $300. 

Click. $600. 

Click. $900. 

The required capital adds up very quickly and that’s just the margin to open a trade, without considering the commissions you will be charged. Most brokers don’t want to deal with trades of this size and have minimum commission charges that make share trading not viable for your average retail trader.So, do you then just not trade in stocks like Amazon?  No, that shouldn’t be the answer. Amazon is a volatile stock. It’s one of the world’s most valuable companies. It’s at the centre of companies impacted by Covid-19 and presents a great trading opportunity in 2020 and beyond.

If you trade stock CFD’s with FXCM, you can have access to this market, requiring only a fraction of the capital.

FXCM offers fractional shares where the minimum trade size is one-tenth (0.1) of a stock on every company we offer – this comes especially viable on expensive shares like Amazon (AMZN.us). Therefore, where the minimum trade at brokers offering only full share trading was locking up $300, at FXCM you can trade that same market, but only lock up $30, significantly reducing the barrier to entry. 

On top of that, single stock CFD trading with FXCM is minimum commission free*. No painful commission on open and close for placing a trade on a single stock.  

FXCM’s fractional Share CFD offering is available on MetaTrader4, the Trading Station platform, as well as on mobile devices – allowing seamless trading for both new and existing customers according to their needs. As a result, trading companies like Amazon, Tesla, Google, or Facebook has become more accessible than ever before.

In a time when the market is in a constant state of change, it is important to have a reliable provider. As one of the world’s largest retail brokers and a leader in online trading with over 20 years of experience, FXCM has a wealth of expertise and knowledge to share with traders. Whether it’s foreign exchange, cryptos, commodities, or stock indices, FXCM is the broker that partners with you at every call, click, or tap.

* FXCM’s CFD transaction costs are built within the spread and vary per instrument, and can be as low as 1 cent a trade for US Stocks.

Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 

75.38% of retail investor accounts lose money when trading CFDs with this provider. 

You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

FXCM is a leading provider of online foreign exchange (FX) trading, CFD trading, and related services. Founded in 1999, the company’s mission is to provide global traders with access to the world’s largest and most liquid market by offering innovative trading tools, hiring excellent trading educators, meeting strict financial standards and striving for the best online trading experience in the market. Clients have the advantage of mobile trading, one-click order execution and trading from real-time charts. In addition, FXCM offers educational courses on FX trading and provides trading tools, proprietary data and premium resources. FXCM Pro provides retail brokers, small hedge funds and emerging market banks access to wholesale execution and liquidity, while providing high and medium frequency funds access to prime brokerage services via FXCM Prime. FXCM is a Leucadia Company.

Trading Forex/CFDs on margin carries a high level of risk and may not be suitable for all investors. Leverage can work against you. The products are intended for retail, professional and eligible counterparty clients. Retail clients who maintain account(s) with Forex Capital Markets Limited (“FXCM LTD”) could sustain a total loss of deposited funds but are not subject to subsequent payment obligations beyond the deposited funds but professional clients and eligible counterparty clients could sustain losses in excess of deposits. Clients who maintain account(s) with FXCM Australia Pty. Limited (“FXCM AU”), FXCM South Africa (PTY) Ltd (“FXCM ZA”) or FXCM Markets Limited (“FXCM Markets”) could sustain losses in excess of deposits. Prior to trading any products offered by FXCM LTD, inclusive of all EU branches, FXCM AUFXCM ZA, any affiliates of aforementioned firms, or other firms within the FXCM group of companies [collectively the “FXCM Group”], carefully consider your financial situation and experience level. If you decide to trade products offered by FXCM AU (AFSL 309763), you must read and understand the Financial Services Guide, Product Disclosure Statement, and Terms of Business. Our FX and CFD prices are set by us, are not made on an Exchange and are not governed under the Financial Advisory and Intermediary Services Act. The FXCM Group may provide general commentary, which is not intended as investment advice and must not be construed as such. Seek advice from a separate financial advisor. The FXCM Group assumes no liability for errors, inaccuracies or omissions; does not warrant the accuracy, completeness of information, text, graphics, links or other items contained within these materials. Read and understand the Terms and Conditions on the FXCM Group’s websites prior to taking further action. 

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