How to Buy Stocks in Armenia: A Step-by-Step Guide

For many people in Armenia, investing still means keeping money in a bank deposit or buying real estate. These options may provide stability, but they are not the only ways to grow savings over time. Stocks offer another opportunity: a chance to own a small part of a company and potentially earn income through dividend payments and an increase in the value of the shares.

Today, investors in Armenia may be able to buy shares of local companies, as well as well-known international companies listed on major foreign exchanges. This can allow investors to participate in the growth of businesses operating in technology, finance, healthcare, energy, consumer goods, and many other industries. However, unlike a bank deposit, stock investments do not offer a guaranteed return, and share prices can both rise and fall.

The process of buying stocks may also seem complicated at first. Which bank, investment company, or broker should you choose? How much money do you need to start? Which markets can you access? What commissions, custody fees, and currency conversion costs will you pay? And how can you reduce the risk of making a poor investment decision?

Stocks in Armenia can be purchased through a bank, a licensed investment company, or a brokerage platform that serves residents of Armenia. To do this, an investor opens a brokerage account and a securities account, funds the account, selects the desired stocks, and places a buy order through an app, an online platform, or the brokerage department of the selected provider.

Armenian stocks are usually purchased through providers that offer access to the Armenian Stock Exchange, while foreign stocks are purchased through brokers that provide access to international markets. Below, we will explain how this process works, which stocks are available to investors in Armenia, and which risks and fees should be considered.

This guide explains how to buy stocks in Armenia step by step, from choosing a broker and opening an account to purchasing shares and managing your investment.

What Are Stocks and How Can You Earn from Them?

A stock, also known as a share, represents a small ownership in a company. When you buy shares, you become one of the company’s shareholders. The percentage of the business you own depends on the number of shares you hold compared with the total number of shares issued by the company. Some shares may also provide voting rights, allowing shareholders to participate in certain corporate decisions. However, most individual investors purchase stocks mainly to seek financial returns.

There are two main ways to earn from stocks.

The first is an increase in the share price, also known as a capital gain. For example, suppose you buy 10 shares of a company at $50 per share, investing a total of $500. If the share price later rises to $65 and you sell the shares, you receive $650. Your profit before commissions and taxes would be $150.

The second way is through dividends. A dividend is a payment that a company may distribute to its shareholders from its profits. For example, if a company pays an annual dividend of $2 per share and you own 10 shares, you may receive $20. However, companies are not required to pay dividends, and they may reduce or cancel them.

However, stock returns are never guaranteed. Share prices can fall because of weak financial results, economic changes, industry problems, political developments, or broader market conditions. If you sell your shares for less than you paid, you will incur a loss. Dividend income is also not guaranteed, as companies are not required to distribute dividends and can reduce, suspend, or stop payments at any time.

Stocks vs Bonds

Stocks and bonds are both investment instruments, but they represent different relationships between the investor and the issuer.

When you buy a stock, you become a partial owner of the company. Your return depends mainly on changes in the share price and any dividends paid by the company. Neither capital gains nor dividend payments are guaranteed.

When you buy a bond, you lend money to a government, bank, or company. The issuer is contractually required to make the coupon payments specified in the bond terms and repay the bond’s nominal value at maturity. This makes bond income generally more predictable than returns from stocks. Unlike shareholders, bondholders do not become owners of the issuer and do not normally receive voting rights.

Are Stock Profits and Dividends Taxed in Armenia?

Income received by an individual investor from the ordinary sale of shares is generally exempt from income tax in Armenia under Article 149 of the Armenian Tax Code. Dividends are generally taxed at 5% under Article 150, Part 8. However, dividends received from shares listed or admitted to trading on the Armenia Stock Exchange are exempt. Foreign dividends are generally subject to the 5% Armenian rate, but tax withheld abroad can be credited against the Armenian liability within the limits established by Article 20 of the Tax Code.

Types of Stocks

Stocks can be classified in different ways. The most important distinction is between common stocks and preferred stocks. Investors may also describe stocks according to the company’s size, growth potential, dividend policy, or level of risk.

Common Stocks

Common stocks are the most widely traded type of shares. When investors buy common stocks, they become partial owners of the company and may receive voting rights. These rights can allow shareholders to vote on matters such as the election of board members or major corporate decisions.

Common shareholders may also receive dividends, but these payments are not guaranteed. The company can decide to reduce, suspend, or cancel dividends. If the company is liquidated, common shareholders are generally paid only after creditors and preferred shareholders.

Preferred Stocks

Preferred stocks combine some characteristics of stocks and bonds. Preferred shareholders usually receive dividends before common shareholders, and the dividend amount may be fixed.

However, preferred shares often provide limited or no voting rights. Their prices may also be less likely to experience strong long-term growth compared with common stocks. Preferred stocks may appeal to investors who prioritize regular income over voting rights and high capital growth.

Stocks Available to Investors in Armenia

Investors in Armenia have access to several types of stocks. These include shares traded on the Armenia Stock Exchange, shares offered through new public or private placements, unlisted shares sold through private transactions, and foreign stocks available through Armenian brokers.

Shares Traded on the Armenia Stock Exchange

Armenia’s stock market consists of shares admitted to trading on the Armenia Stock Exchange, also known as AMX. These shares can generally be bought and sold through banks and licensed investment companies that are members of the securities market.

However, the number of Armenian companies whose shares are traded on AMX is relatively limited. As of June 2026, these are the 12 companies, the shares of which were traded in AMX.

Investors do not normally buy shares directly from AMX. Instead, they open a brokerage and securities account with a bank or investment company and submit a purchase order. The broker then executes the transaction and records the shares in the investor’s securities account.

It is important to understand that the availability of a company on AMX does not always mean that its shares are traded frequently. Armenia’s equity market is relatively small, and some stocks may have limited liquidity. This can make it more difficult to buy or sell shares quickly at the desired price.

New Share Offerings

An Armenian company does not necessarily need to have its shares already listed on AMX in order to sell them to investors. A company may issue new shares and organize a public offering through a bank or licensed investment company. New share offerings are usually available only for a limited period, unlike exchange-traded shares that may remain available for continuous buying and selling.

Foreign Stocks

Residents of Armenia may also invest in foreign companies listed on international exchanges. Depending on the broker, investors gain access to companies traded in the United States, Europe, Asia, and other markets.

The available selection includes stocks in technology, finance, healthcare, energy, consumer goods, and many other industries. However, access depends on the broker’s partner network, trading platform, fees, minimum investment requirements, and supported markets.

How to Buy Stocks in Armenia: Step-by-Step

Investors in Armenia can buy stocks through banks, licensed investment companies, and international brokerage platforms that accept Armenian residents. The available options depend on the provider. Some offer access to Armenian shares traded on AMX, while others allow investors to buy stocks listed on exchanges in the United States, Europe, Asia, and other international markets. Certain providers offer access to both local and foreign stocks.

The process is generally the same whether you use a bank or a licensed investment company.

Step 1: Choose the Market

First, decide whether you want to buy: Armenian shares traded on AMX, foreign shares traded in the United States, Europe, or Asia, or both. This is important, because not every broker provides access to every market, so check the available exchanges before opening an account. The available exchanges usually can be found on the website of the broker.

Many providers also give you access to an online platform or mobile application where you can place buy and sell orders and monitor your investments.

Step 2: Open a Brokerage Account

Complete the application and sign the brokerage-services agreement. You will usually need:

1. a passport or identification card,
2. a Public Services Number,
3. contact and residential address details,
4. tax residency information,
5. information about your income or source of funds.

Some providers allow online registration, while others require a branch or office visit.

Step 3: Open a Securities Account

The securities account records the stocks you own. It is also called a custody or depo account. The brokerage and securities accounts are usually opened together. Check whether the provider charges an opening fee, annual maintenance fee, or custody fee.

Step 4: Transfer Money

Deposit money into the brokerage account. Armenian shares are usually purchased in Armenian drams. Foreign stocks require the currency used on the relevant market, such as US dollars or euros. Check the bank’s currency conversion rate and commission before exchanging money.

Step 5: Select a Stock and Submit a Buy Order

When submitting an order you will usually specify: the company or ticker (company code), the number of shares, the order type, the maximum price you are willing to pay. Usually there are 2 types of orders you can place. A market order buys at the best available price. A limit order buys only at your chosen price or lower. Limit orders are generally safer for stocks with low trading activity.

Step 6: Confirm the Purchase

After execution, check the transaction confirmation. It should show: number of shares purchased, purchase price, brokerage commission, currency conversion cost, other applicable charges. The shares are then recorded in your securities account.

Step 7: Receive Dividends

If the company declares a dividend, the payment is credited automatically to your brokerage account, cash account, or linked bank account. To receive the dividend, you must own the shares on the date specified by the company. You do not usually need to submit a separate request.

Step 8: Sell the Shares

When you want to sell, submit a sell order through the broker’s application, online platform, or brokerage department. You can place a market or limit orders. A market order sells at the best available price. A limit order sells only at your chosen price or higher. The sale is completed only when a buyer is available.

After settlement, the sale proceeds are credited to your brokerage or cash account. The broker deducts the selling commission and other applicable fees. You can then use the money to buy another security or transfer it to your bank account.

What Fees Will You Pay?

When buying stocks through an Armenian bank or investment company, expect the following costs:

1. Brokerage account opening: usually free.
2. Securities account and custody: often free or around AMD 5,000 per year. Some providers charge approximately 0.19% to 1% annually based on the portfolio value.
3. Buying or selling Armenian stocks: generally 0.1% to 0.3% of the transaction, with a minimum fee of approximately AMD 500 to AMD 5,000 per order.
4. Buying or selling foreign stocks online: generally 0.1% to 0.25%, or around $0.01 to $0.02 per share. Minimum commissions are commonly $1 to $5 for US markets and €1 to €5 for European markets.
5. Currency conversion: usually around 0.1% to 0.5%, in addition to the exchange-rate difference.
6. Deposits and withdrawals: local transfers are often free. International withdrawals and securities transfers can cost 0% to 3% or include a fixed fee.

Conclusion

Buying stocks in Armenia has become more accessible through banks, licensed investment companies, and online brokerage platforms. Investors can choose between Armenian shares traded on AMX, foreign stocks listed on international exchanges, and, in some cases, new or unlisted share offerings.

Before investing, compare the markets offered by each broker, trading commissions, minimum order fees, custody charges, currency conversion costs, and withdrawal conditions. It is also important to research the company, understand the difference between market and limit orders, and consider how easily the shares can later be sold.

Stocks can provide income through dividends and an increase in the share price, but neither source of return is guaranteed. Prices can fall, dividends can be reduced or cancelled, and low-liquidity shares can be difficult to sell. For this reason, investors should start with an amount they can afford to keep invested and avoid choosing stocks based only on recent price movements.