Pent up travel demand in both leisure and corporate sectors is bubbling. With countries finally opening their borders to tourists, travel-based companies expect to do brisk business as travellers return to the market.
Flight Centre Travel Group Limited (ASX: FLT), an Australia-based travel services provider with global operations, experienced a sharp decline in its stock price due to pandemic-related travel restrictions in the past two years. Now experts believe a positive travel outlook could push this price upwards. This guide will walk you through the process of trading in Flight Centre Travel Group shares, which is remarkably easy even if you are a beginner.
About the company
Flight Centre overview
The Flight Centre Travel Group Limited (FLT) is one of the world’s largest travel groups, offering travel retailing in the leisure and corporate travel sectors. Headquartered in Brisbane, the company owns and manages travel businesses in multiple countries, spanning Australia, New Zealand, Europe, the UK and the Americas.
FLT was registered on the ASX in 1995. The company provides travel services through other brands, including the flagship Flight Centre leisure travel brand, Independent by Liberty Travel, and Discova.
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Step 1: Select a broker
To buy Flight Centre shares or any other shares online, you’ll need to sign up with an intermediary called a broker. There are numerous online brokers, offering various options. You’ll need to sign up with one that gives you access to shares of companies listed on the Australian stock exchange.
Here are some key features to look for when choosing an online broker.
Brokers sometimes charge you a fee to facilitate trading. However, the fee structure for different brokers varies. It’s usually preferable to select a platform that charges low brokerage fees, but you must check for other services that the broker may or may not offer.
Easy to use
If you are new to the world of investing, an easy-to-use online trading platform with a competitive fee structure is generally the way to go.
Market research and reports
Select a platform with a robust research and reporting section to make informed investment decisions. It’s advisable to check for information like company overview and price history before purchasing stocks in a company. Some trading platforms also provide investors with price forecasts and buy and sell suggestions.
Step 2: Fund your account
The next step is adding money to your trading account. When transferring money, make sure to check for any minimum transaction amount that may apply for an initial investment.
It can take up to three days for the funds to clear and reflect in your trading account, so you cannot purchase any shares immediately.
Step 3: Decide on the amount you wish to invest
It’s worth assessing how much risk you are willing to take before deciding the amount of money you want to invest in shares. You should only consider buying shares with an amount you are ready to lose.
Step 4: Shares or ETFs?
If you wish to take a more cautious approach, you may want to consider investing in an exchange traded fund (ETF). An ETF allows you to invest in a basket of stocks instead of purchasing shares in an individual company like Flight Centre. As ETFs track the market, they are less likely to experience sudden spikes and dips, which reduces your potential risk but also the ability to make big gains with shares.
Vanguard Total World Stock Index Fund ETF (VT), Franklin FTSE Australia ETF (FLAU), and Invesco FTSE RAFI Developed Markets ex-U.S. Small-Mid ETF (PDN) all hold Flight Centre Travel Group Ltd shares.
Step 5: Decide your order type
It’s good to learn about the popular order types available to execute your trade.
A market order is an order to buy or sell a stock at market price. A market order is generally executed immediately, but the price at which a market order will be executed is not guaranteed.
A limit order is an order to buy or sell a security at a specific price or better. Suppose you want to purchase Flight Centre shares for $15 or less. You could submit a limit order by setting the limit price at $15, and the order will only execute when the stock reaches the nominated price or lower.
A stop-limit order can be used to mitigate your trade risks by specifying a price for selling or buying shares. Additionally, the limit price defines the number of shares you wish to buy or sell at a specific price.
A stop order is used to buy or sell a stock at the market price once it has traded at the stop price (which is the price nominated by you). Once the stock reaches the stop price, the order becomes a market order and is executed at the next available market price.
Step 6: Execute your order
Once you have made all your choices, it’s time to place your order. Open your trading platform, type in the Flight Centre share code (ASX: FLT) and execute the order you want. It’s as simple as clicking a button on most trading platforms.
Whether you are an investor or trader, you’ll still need to monitor your portfolio’s performance.
Keep track of your investment by regularly checking the news for Flight Centre-related stories and general developments in the travel sector that could help or harm your share price. Besides company news and announcements, watch out for competitors like Expedia Group, Thomas Cook and TUI AG. If you are interested in the travel sector, you can also purchase shares in individual airlines like Qantas (ASX: QAN).
Disclaimer: The views expressed in this article are those of the writer’s alone and do not constitute financial advice. Advertisers cannot influence editorial content. However, Finty and/or the writer may have a financial interest in the companies mentioned. Finty is committed to providing factual, honest, and accurate information that is compliant with governing laws and regulations. Do your own due diligence and seek professional advice before deciding to invest in one of the products mentioned. For more information, see Finty’s editorial guidelines and terms and conditions.