As air travel returns to normality after COVID-19 restrictions, many traders are investing in airline companies again. EasyJet, one of the largest currently operating airlines, is an obvious candidate. This guide will show you how to buy easyJet shares and walk you through the process. Furthermore, it will provide information on the advantages and disadvantages of investing in the airline, tips for safe investing, and investment platform recommendations.
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What is easyJet?
In spite of the global pandemic forcing easyJet to ground their entire fleet in 2020 and close their three UK bases, namely Stansted, Southend, and Newcastle, the airline has managed to weather the storm and is now thriving as it expands its operations.
EasyJet went public through an initial public offering (IPO) in November 2000 with the ticker EZJ. As of December 2023, the company has a market capitalization of $4.83 billion.
Where to buy easyJet shares?
Investing may seem difficult for people who did not buy stocks and shares before. Contrary to the initial belief, buying easyJet shares and investing in stocks in the UK, in general, takes just a few simple steps. While you can hire professional assistance, it is more efficient to invest by yourself using an online brokerage platform, such as eToro.
Before you buy any shares, however, you should take investing seriously. Investing does not necessarily have a positive outcome. You are liable to lose money at any time. However, if you stick to the guidelines, you will have better odds and a higher chance of earning a profit.
Buying easyJet shares is straightforward and done in a few simple steps, as described below.
How to buy easyJet shares: step-by-step
EasyJet is a publicly-listed company, so anyone can buy EZJ stock via a brokerage. Let’s delve into the details of each step of the process.
Step 1: Choose a broker
To buy easyJet shares, you must first create an account on a brokerage platform. Many platforms offer services online, but which one is right depends on your investor profile and financial goals. Passive, long-term investing differs from active day trading, and platforms have different financial products and trading features.
To securely invest in easyJet shares, consider these brokers:
1. eToro
Searching for the most optimal brokerage can be a laborious and lengthy task. If you want a top-quality candidate without the difficulties associated with this search, consider buying easyJet shares through eToro, a platform that provides:
- Commission-free stock trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
2. Interactive Brokers (IBKR)
Another exchange platform of choice, Interactive Brokers allows buying easyJet shares with the following perks:
- Commission-free stock trading;
- Global stock-trading on 90+ market centers;
- Fractional shares available;
- Extra income on fully paid shares;
- Lowest financing rates for margin accounts in the industry;
- No account minimum.
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IBKR pays up to 4.58% interest on cash balances of $10k or more
Tips for choosing the brokerage
When you make the selection, consider these factors:
- Fees: Investing services can charge specific fees for transactions and maintenance. It is in your financial interest to go with lower fees. Some platforms even offer commission-free stock and exchange-traded funds (ETF) trading. However, lower costs should never come at the expense of other essential factors;
- Security: Preserving your safety and privacy should be among your top priorities. When picking a platform, make sure that the brokerage of your choice is registered with the authorities such as the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). Additionally, check for extra measures like 2FA (two-factor authentication) and SSL technology;
- Trading tools: Depending on your investing needs, you might require additional tools and features. Some platforms go further to provide comprehensive analysis tools and insights but have higher associated costs, so you can lower the bills by skipping if you do not need them. For stock trading beginners, it is perhaps best to go with a platform that is easy to use while still having a competitive fee structure;
- Access to market data: Look for a platform that provides workable and regularly updated market research and data tools to improve your trading odds;
- Fractional stock trading: Fractional shares allow traders to buy less or more than a whole number of shares. They are utilized in cases of limited funds, a hefty price of an individual share, or for those looking for a new method of diversifying their portfolios or setting up a dollar-cost averaging strategy.
Also, traders can opt for online, full-service brokers or discount brokers, as well as robo-advisors.
Step 2: Fund your account
The next step is to fund your newly-registered account. Depending on the brokerage, you will have several payment methods at your disposal, like linking a bank account directly, using a debit, credit, or prepaid card, or relying on a third-party transaction service like PayPal (PYPL).
Step 3: Research the company
It is essential to research everything you can about the company you want to invest in. Before you buy easyJet shares, get informed about the current price of easyJet shares, their price history, general valuation, and media reports about expansions, launches, or other significant events.
You can start from the London Stock Exchange’s website and easyJet’s official page with annual and quarterly reports, among other relevant documents.
Remember, all investing bears a level of risk; no one can guarantee a specific outcome. However, the more knowledge you have about the stock, the better the odds of making a good call.
Step 4: Decide how much you want to invest
Once you have researched easyJet shares and performance and confirmed that you want to invest, you must decide on the amount.
How much you are willing to spend depends on the current price of shares and your financial preferences.
You can use our stock average calculator to calculate and get the average stock price of your investments.
Remember
Step 5: Place your order and buy easyJet shares
You should now be ready to make a purchase. First, you need to place your order. Log into your investment platform (eToro in our case), enter the ticker symbol EZJ in the search bar, and specify the amount.
When it comes to the order itself, there are a few options to pick from, including:
- Market order: A market order is the standard, straightforward order to buy the stock at the current market price. It gets executed immediately if the shares are available and if the market is open;
- Limit order: A limit order goes through if the shares reach the desired price. For example, you may want to buy easyJet shares at £480 or lower. The order will remain inactive until the price reaches or goes below the limit (in this case, £480), when it will execute;
- Options contract: Options speculation offers leveraged positions in a security at a portion of the cost of the underlying financial asset. A call option allows investors to profit if the stock price rises, and a put option enables them to benefit if the stock price falls. Derivative products can only be traded on a margin account, which typically has higher minimum balance requirements than standard brokerage accounts.
Step 6: Monitor your investment
Investing in single stocks and shares is a form of active trading, and it requires a significant input of time and effort for optimal investment performance, as opposed to some passive investment options like ETFs.
Traders should keep track of press releases and reports, business performance indicators (like debt and revenue), the overall health of the airline industry, and the state of the global economy. Once you have this assessment, use it to see whether it is best to hold or sell.
easyJet share price UK
Should I buy easyJet shares?
There are no simple and conclusive answers here. Whether you should or shouldn’t buy easyJet shares really comes down to your personal risk tolerance and research. Investing always carries a degree of hazard with it. However, if you understand volatility, have a disciplined approach, and have your research done, you have improved odds of finding yourself with a hefty profit.
We have already discussed doing the necessary research on easyJet through fundamental analysis, but it is wise to consider some technical factors as well. Technical analysis interprets various factors, chart patterns, trends, and indicators (like moving averages and oscillators) to produce real-time recommendations.
This gauge displays a real-time technical analysis overview for your specified timeframe.
Disclaimer: TradingView does not recommend trading financial instruments based exclusively on the advice of the Technical Rating indicator. These recommendations cannot predict future movements and are meant as assistance for spotting potentially favorable buy/sell conditions if this is consistent with their strategy.
Common mistakes to avoid when investing
Mistakes always happen, and an occasional wrong assessment is to be expected. However, there are mistakes others have made before you, and you will perform better by learning from their example, not yours.
We have a complete guide on the most common mistakes in investing. Here are some key points from there:
- Lack of research: A large portion of errors gets made by lacking proper research. You should never enter the market mindlessly;
- Lack of strategy: You should trade with a goal in mind to ensure the efficiency of your investment decisions;
- Short-term thinking: A single impulsive decision in the market can cost you a lot. Investing in stocks and shares requires a cool head and a long-term outlook;
- Staking everything on one asset: Theoretically, you can put all your cash in easyJet shares. In practice, however, that decision is hazardous. It is always better to diversify your investments across a broader portfolio;
- Inexperienced use of leverage: Leverage is a great tool and a cost-efficient way to make cash quickly, but it is also the riskiest financial feature you can use. With higher rewards come higher risks. Do not use leverage if you are not fully aware of its dangers;
- Falling prey to scams: Avoid shady services and unverified platforms. If you sense danger, double-check everything or stay clear of it altogether.
How to sell easyJet shares?
If easyJet shares reach the point where you are looking to sell (either because you want to or because you need to), the process is simple.
Log into your investment platform account, navigate toward the stock’s detail page, type in the number of shares or cash amount you want to discharge, and press sell.
Pros and cons of buying easyJet shares
All investments come with a risk. Here are some factors that can help you decide whether you want to invest in easyJet:
Pros
- Catching up to the pre-Covid period: The company has yet to reach the performance it had before the global pandemic and air traffic restrictions, but 2023’s quarterly reports have shown positive signs of catching up;
- Low stock valuation: The current price of shares (as of December 2023) is low compared to its historical performance, which can be an indicator for those who wish to buy.
Cons
- Industry volatility: The global air traffic industry has experienced disaster for the last few years due to travel restrictions. While this isn’t necessarily a bad thing for easyJet shares buyers, it shows that the industry is sensitive to adverse economic events;
- No dividends (as of now): easyJet used to pay dividends. However, due to low performance, shareholders received no dividends in 2023. While there are indicators that the shares will pay dividends in the future, there are no guarantees;
- Conflicts within the company: Stelios Haji-Ioannou, the company’s founder, has been feuding with the senior management of easyJet since 2010. The hatchet was buried last year, but his family remains the largest shareholder in the company;
- Environmental effects: Air travel is a major environmental issue, and activists worldwide have called for air travel reductions. The consequences are manageable, but the problem still has no clear solution.
Conclusion
Since the pandemic was declared to be over, easyJet has been growing steadily. It aims to reach its pre-pandemic levels soon. The company can recover if the market conditions do not change.
The company is large and still growing. The price of easyJet shares is close to its historic low, and these circumstances favor those who decide to buy. Be reminded that no outcome is guaranteed in investing.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about easyJet
What is easyJet?
EasyJet is a budget airline company. It is among Europe’s largest airlines. While it has been hit hard during the pandemic, it shows signs of revitalization.
Who owns easyJet?
There are indicators that the Haji-Ioannou family still owns a significant stake in the company. However, the London Stock Exchange does not provide information about individual shareholders.
How to invest in easyJet?
The best way to invest in easyJet is to buy easyJet shares with the help of an investment platform such as eToro.
How to buy easyJet shares?
EasyJet is a publicly-traded company, so anyone can buy easyJet shares. The best way to buy easyJet shares is to use eToro as a third-party intermediary service.
Should I buy EasyJet shares?
Many factors affect the answer to whether you should or shouldn’t buy easyJet shares, including your aversion to risk, portfolio size, level of experience, and financial goals. Investing in individual shares is riskier than passive investment forms, so you should diversify your investments.
Where to buy easyJet shares?
You can buy easyJet shares at a number of online brokerages. Our recommendation is to go with eToro.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
