Being over a century old, British Airways is not only a transport company but a piece of British heritage and a bedrock of the country’s infrastructure. Now, thanks to online stock trading, you can own a piece of this company. This guide will teach you how to buy shares in British Airways step by step. Additionally, we’ll give you a list of the pros and cons of investing in this flag carrier, share some tips on how to do it efficiently, and recommend a couple of reliable investment platforms.
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Can you buy shares in British Airways?
Yes, you can buy shares in British Airways, but only indirectly, that is, by buying shares in International Consolidated Airlines Group, known as International Airlines Group (LSE: IAG).
International Airlines Group is publicly traded, meaning you can buy its shares like with any other publicly traded company. The availability of shares will depend on a number of factors, most importantly supply and demand, and the share prices will fluctuate based on the company’s performance, its recent financial history, the state of the industry as a whole, etc.
How to buy shares in British Airways: step-by-step
Buying shares in British Airways is simple — all it takes is a few steps:
- Step 1: Choose a broker and register an account (we recommend eToro and Interactive Brokers);
- Step 2: Fund your account;
- Step 3: Research the company;
- Step 4: Decide how much you want to invest;
- Step 5: Place your order and buy IAG shares;
- Step 6: Monitor your investment.
Step 1: Choose a broker
Before investing in British Airways, you have to make an account at a reliable investment platform.
To buy shares in British Airways securely and efficiently, consider these two brokers:
1. eToro
- Commission-free stock trading;
- 2,000+ stocks, 17 different exchanges;
- Fractional shares;
- Ready-made investment portfolios;
- Social trading;
- User-friendly.
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)
- Commission-free stock trading;
- Global stock-trading on 90+ market centers;
- Fractional shares;
- No minimum deposits;
- Added income on fully paid shares;
- Lowest financing rates for margin accounts.
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IBKR pays up to 4.58% interest on cash balances of $10k or more
There are many such platforms online these days, but the ideal option will depend on your financial goals and investing strategies. To figure out which platform might be a good idea, consider factors such as:
- Fees: Fees (i.e., the money taken by the broker to execute your transactions) are the most important factor to consider. eToro, for example, gives clients a commission-free stock and exchange-traded fund (ETF) trading option;
- Security: Investing is always risky, so always make sure your broker is regulated by bodies such as the Financial Conduct Authority (FCA);
- Additional trading tools: As your investment strategy gets more developed, you’ll need more and more trading tools to help you increase your chances of profit. If you are new, however, you should look for user-friendly platforms with good fees first and foremost;
- Market data accessibility: Research is mandatory before each investment, so make sure your broker gives you access to all market data;
- Fractional stock trading: Fractional trading lets you buy less than a whole number of shares, which is terrific for setting dollar-cost averaging strategies;
- Customer support: If you are a new investor, always look for brokers with responsive and knowledgeable customer support. Prompt responses can be crucial when you’re in a pinch or are trying to come up with a short-term trading strategy.
Step 2: Fund your account
When you choose a broker and make an account, the next step is to fund it. You’ll have many options regarding payment methods, depending on the broker. You can link your broker and bank accounts directly using a debit, credit, or even prepaid card, or you can use a third-party payment service.
Step 3: Research the company
Your primary focus should be on analyzing the company’s financial statements, such as annual and quarterly reports. Pay close attention to key factors such as revenue sources, debt levels, and company expenses, as these can significantly impact stock prices. You can even make inquiries about individual shareholders.
Furthermore, taking a broader view of the air transport industry as a whole would be more than beneficial. Understanding the dynamics of the industry can give you valuable insight and help you make informed investment decisions. You can dedicate some time to analyzing trends, market competition, regulatory changes, etc.
Step 4: Decide how much you want to invest
Now that you know you want to invest in British Airways, you need to determine the amount you wish to invest. The exact figures will depend on prevailing stock prices and your available funds.
Remember
Step 5: Place your order and buy shares in British Airways
Now that you know how much you want to invest, you can start placing your order. If you’ve chosen eToro, simply:
- Log into your eToro account;
- Use the search bar to type in the International Consolidated Airlines ticker symbol (IAG.L);
- Specify the specific amount of shares you wish to buy.
Note
Step 6: Monitor your investment
Investing in stocks demands a lot of engagement on the investor’s part.
The first step consists of consistently monitoring the stock price, especially if you’re looking to make a profit based on the company’s short-term performance. Additionally, staying in touch with news relevant to the company’s standing in the industry will let you predict some share price movements.
Moreover, regularly reassessing your investment strategy and adjusting your portfolio accordingly will allow you to stay flexible and adapt as soon as the market changes.
British Airways shares price
Should I buy British Airways shares?
When considering British Airways shares as an investment option, it is important to recognize the inherent risks generally associated with stocks, most of which will depend on your personal trading preferences, risk tolerance, and the overall state of the market.
As mentioned, no investment is entirely safe, but investing solely in one company, even a big one like British Airways, increases those risks even further. To mitigate risks, you must diversify. By spreading your capital across different asset categories, you can protect yourself against unfavorable market fluctuations.
Taking a diversified approach will help you not only mitigate risk but gain experience and become more acquainted with other investment opportunities. In other words, by working with a well-balanced portfolio, you can increase your chances of long-term profit.
- Fundamental analysis: Fundamental analysis focuses on the company’s financial health and involves examining revenue streams and overall business prospects. This kind of assessment helps investors understand the intrinsic value of each share and their potential for long-term gains;
- Technical analysis: Technical analysis revolves around historical price movements and volume patterns, and understanding the company’s past performance can help you predict newly emerging trends.
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 in the stock market
When investing in shares, it is crucial to avoid common mistakes that can prevent you from making a profit. Some of those mistakes include:
- Lack of thorough research: To reiterate: it is essential that you thoroughly analyze stocks before investing in them. Examine the company’s financial health, its position in the industry, current trends, and any other relevant factors;
- No defined financial goals: Setting clear and, more importantly, realistic financial goals is a must. Without a clear end in mind, it is difficult and sometimes impossible to develop a suitable investment strategy and make profitable decisions;
- Not diversifying: Failing to diversify your portfolio and invest in different asset types exposes new investors to additional risk. If you invest in only one asset, your entire success will depend on its performance, which is statistically not a good position to be in;
- Impulse investing: Emotions often cloud our judgment and lead to regrettable choices. You must stay disciplined when investing and try to make decisions based on market data first and foremost.
How to sell British Airways shares?
Investing involves more than buying shares — you’ll also want to sell them when the market conditions are right. Luckily, if you invest through online brokers such as eToro, selling stocks is just as easy as buying them.
With eToro, you can simply go to the broker’s website, find the page with your stocks, type in the specific amount you’d like to sell, and click Sell.
Pros and cons of buying British Airway shares
Pros
- British Airways has a solid market position as a well-established brand;
- The airline industry is experiencing a boom;
- British Airways pays dividends;
- Good for portfolio diversification.
Cons
- Unexpected political and global events, such as the recent COVID-19 pandemic, can affect share prices;
- Other factors contribute to the volatility of the airline industry, such as fuel prices.
Conclusion
The airline industry seems to be experiencing a boom, which might make British Airways shares an appealing investment choice. However, as with any investment, profits are never guaranteed, so it’s essential that you thoroughly analyze the company’s financial health and the state of the industry as a whole before investing.
If you decide to invest, be sure you do it through a reputable investment platform such as eToro.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about buying shares in British Airways
Can you buy shares in British Airways?
Yes, you can buy shares in British Airways, but not directly. Instead, you’ll have to buy shares in International Consolidated Airlines Group (traded as International Airlines Group).
Where to buy British Airways shares?
The best way to buy British Airways shares is through a reputable investment platform such as eToro.
How to buy shares in British Airways?
To buy shares in British Airways, use third-party investment platforms such as eToro and a payment method of your choice.
Should I buy shares in British Airways?
Whether you should buy shares in British Airways will depend on factors such as your risk tolerance, trading experience, and financial goals. Remember, though, that investing in a single stock is inherently risky, so consider diversifying your portfolio.
Who owns British Airways?
British Airways is owned by International Airlines Group.
Is British Airways a public company?
No; British Airways is owned by International Airlines Group.
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.