- Do you want to buy easyJet shares for exposure to the airline and travel industry?
- Learn how to choose a broker and open a trading account.
- Find out how the different types of trades work.
Since 1995, easyJet (LON: EZJ) has provided low-cost point-to-point domestic and international flights from a network of bases located throughout Europe.
As a constituent of the FTSE 250, easyJet is a dynamic business that constantly innovates by testing and entering new markets.
Continue reading to learn how to buy shares in easyJet.
Compare investing platforms with Finty. Research fees, commissions, tradable assets, markets, etc.
Step 1: Choose what broker to use
Make sure that whatever broker you choose has access to the London Stock Exchange, where easyJet shares are traded.
When comparing brokers, consider things such as their commission on trades, what markets and tradable assets are available, if they support fractional share investments, their currency conversion fee when buying on overseas markets, and the general usability of their trading platform.
Note that some brokers offer a demo account so you can try out their platform before trading with real money.
Step 2: Transfer funds to your trading account
You'll need to have funds in your account before you can start buying shares.
After registering your account, you can fund it with a bank transfer or debit card. You may be able to fund your account with a credit card, although this is a less commonly available funding method.
It can take some time for the transfer to be completed and the funds to be ready for trading. The fastest way of funding your account is with a debit or credit card (if possible).
Step 3: Decide what to spend on your investment
You could potentially make money from investing in stocks, but they aren’t called a risk asset for no reason. Keep in mind that shares of any company fluctuate up and down over time and there's no guarantee you'll make a single penny.
Step 4: Decide between buying shares or an ETF
ETFs are an investment that exposes you to several companies, usually within a specific sector or theme. For example, there are aviation-themed ETFs, ETFs for the UK, and ETFs for dividend-paying companies.
Passive investing through an ETF does not necessarily take the risk out of investing. During periods of volatility or a market downturn, the ETF value can also drop.
ETFs that hold easyJet shares include U.S. Global Jets ETF (JETS), iShares Core MSCI EAFE ETF (IEFA), and Vanguard FTSE All-World ex-US Index Fund ETF Shares (VEU).
Step 5: Set up your order
The easiest order to configure is the market order, which means the broker will buy EasyJet shares at the next available price. Note that there can be a slight difference in the price quoted on the screen and the price you pay. This is because of trades that have been executed in the interim period of time.
If you want to use a trading strategy, you can use trigger orders to buy or sell at a certain price. These are often used to sell at highs so you can take profit, buy when prices are cheap, or sell when a price drops in order to protect your profit.
Step 6: Place your order
Once you have configured your order, submit it to invest.
What is said in the press about a company can have both positive and negative impacts on the value of its shares. For this reason, it is essential to keep track of what is said about easyJet in the news. Unfortunately, being a low-cost carrier means easyJet often attracts the ire of media and irate customers alike.
You can glean very useful information just by reading their announcements to the market and results.
Perhaps one of the biggest risks to easyJet’s profitability is the oil price. While airlines hedge against future oil prices, they are vulnerable to swings in the price per barrel. More expensive oil squeezes margins and can reduce demand if prices have to be raised to maintain margin.
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