- Would you like to buy British Airways shares for exposure to the travel sector?
- Learn what to look for in an online broker and how to open an account.
- Get the basics of investing and placing orders to buy your shares.
British Airways (LON: IAG) is a truly global brand with one of the world’s largest fleets and a reputation for turning customers into lifelong users. Their customer loyalty program has more than 13 million members worldwide.
Scroll down for our step-by-step guide to buying shares in British Airways using an online broker.
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Step 1: Get a share broker
British Airways is owned by International Airlines Group, which is listed on the London Stock Exchange. Your broker will need to have access to this market if you want to buy shares in the company.
When comparing options, here are some things to check for.
- What commission and foreign exchange fee does the broker charge? Many now offer free trades, but charge a foreign exchange fee when exchanging to a different currency to buy shares in companies listed on overseas exchanges. The foreign exchange fee is typically in the region of 0.5%.
- What markets can you trade? Some brokers have access to a small number of stock markets. Others have access to those in Europe, North America, and Asia.
- What can you invest in? Some brokers are focussed on shares and funds. Others have a broader range of instruments including commodities, forex, and crypto.
- Can you buy fractional shares? If you can, it makes it easier to diversify your portfolio into the more expensive US tech shares.
Step 2: Fund your trading account
To buy shares you'll need to have cleared funds in your account.
Brokers typically accept deposits made using a bank transfer or debit card. Although less widely accepted, credit cards and PayPal are supported by some brokers.
Funds transferred may take several days to clear. Funding your account with a card is typically the fastest option.
Step 3: Choose how much to invest
The value of shares can go down and up. Don’t invest more money than you can afford to lose without getting into financial trouble.
Step 4: Decide between investing with shares or in an ETF
ETFs (Exchange Traded Funds) invest in a basket of stocks. They are a way to build a diversified portfolio without having to choose which individual companies to invest in.
Among the various ETFs that hold shares of British Airways / International Airlines Group are U.S. Global Jets ETF (JETS), Vanguard FTSE All-World ex-US Index Fund ETF Shares (VEU), Schwab International Equity ETF (SCHF), and Vanguard Total World Stock Index Fund ETF Shares (VT).
Step 5: Configure the order
A market order is an easy way to buy. Simply specify the number of shares to buy, and the broker will immediately buy at the next market price.
Trigger orders can be used to execute a strategy. You can configure a trigger order to automatically execute at a specific price, which gives flexibility. For example, you can automatically buy or sell at a specified price. They are typically used to buy the dip or take profit.
Alternatively, some brokers support recurring buys so you can buy shares on a recurring basis. This is useful if you want to build your position in a company over time.
Step 6: Place your order
Once you have configured your order, submit it to buy your shares.
What is said about British Airways in the press will have either a positive or negative impact on the value of your investment. So, keep an eye out for news stories relating to British Airways and the other airlines in IAG.
For example, the British Airways brand has been tarnished by a series of technical problems that brought the airline to a grinding halt and a huge security breach that resulted in millions of their customers having their details stolen.
Tracking the share prices of British Airways’ competitors can alert you to significant changes within the industry. The list of companies you may wish to track includes:
- Domestic and LCC: easyJet (LON: EZJ), Ryanair (LON: RYA), and Wizz Air (LON: WIZZ).
- Transatlantic: Delta Airlines (NYSE: DAL), Southwest Airlines (NYSE: LUV), and American Airlines (NASDAQ: AAL).
- Global. Air France KLM (Euronext Paris, Amsterdam: AF), Lufthansa (ETR: LHA), and Qantas Airways (ASX: QAN).
Disclaimer: We put our customer’s needs first. 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.