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How to Buy Easyjet Shares UK – Beginner’s Guide
Easyjet is a UK-based budget airline company that operates throughout Europe. The firm is publicly listed on the London Stock Exchange, meaning that you can buy Easyjet shares using an FCA-regulated broker.
In this guide, we discuss how to buy Easyjet shares online in the UK. We also outline the specific steps that you need to take, alongside some popular brokers to do this with.
Find a UK Stock Broker That Offers Easyjet Shares
In order to buy Easyjet shares online, you will need to use a stock broker that gives you access to the London Stock Exchange. If you’re from the UK, you will have hundreds of platforms to choose from. But, this can make it challenging to know which broker to sign up with, not least because no two platforms are the same.
To help point you in the right direction, below we discuss two of the most popular stock brokers that allow you to buy Easyjet shares.
1. Fineco Bank
Fineco Bank is another popular UK broker. The platform is backed by an Italian investment bank that has been operational since 1999. The reason it makes our list is that you will have access to thousands of stocks – including that of Easyjet. This covers heaps of UK and international markets, so you will be able to diversify your portfolio.
Although Fineco Bank doesn’t offer commission-free trades, you will benefit from a headline rate of just £2.95 per investment. You will also need to pay an annual platform fee of 0.25% if you hold a balance of less than £250,000.
Fineco Bank is also suitable if you are keen to explore stock trading. This means that you will be speculating on the future value of stock CFDs. In doing so, you will have the option of going long or short on Easyjet, as well as apply leverage. Regarding the latter, this stands at 1:5 if you are a UK retail trader. Additionally, funds and ETFs are also offered by the broker.
In terms of the specifics, Fineco Bank requires a minimum deposit of £100. You will need to transfer funds from your UK bank account, albeit, the process is relatively straightforward. Finally, Fineco Bank is also heavily regulated. Among several other licensing bodies, this includes the FCA.
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|Monthly Account Fees||No|
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Research Easyjet Shares
Taking into account the wider impact of the COV-19 pandemic on the global travel industry, it will come as no surprise to learn that Easyjet shares encountered a turbulent time in the first two quarters of 2020. With this in mind, it is crucial that you do some homework on the company before making an investment.
Easyjet Share Price History
Launched in 1995, Easyjet is a UK-based low-cost airline that services over 30 European countries. Now operating over 1,000 routes, Easyjet has grown significantly since its inception. In fact, it took just 5 years for the airline to float on the London Stock Exchange, which it did in 2000.
With a July 2020 market capitalization of over £3 billion, Easyjet now forms part of the FTSE 250 index. In terms of its share price history, Easyjet stocks were priced at 310p in 2000. The stocks peak in early 2015 where they hit 1,870p per share. This represents an increase of over 558% in just a 15 year period.
However, Easyjet shares have been somewhat volatile since, with the stocks hitting lows of 952p in October 2016. With that being said, the Easyjet share price on January 2020 price was 1,477p. Much like the rest of the airline industry, the stocks then fell off a cliff. This amounted to lows of 410p in March 2020.
Those entering the market at this point in time are now starring at substantial short-term gains. At the time of writing in July 2020, Easyjet shares are now priced at 691p. This represents an increase of over 68% in just four months. If Easyjet shares are able to regain their pre-COV-19 levels at 1,477p – this would require a further increase of 113%.
Easyjet Dividend Information
As an Easyjet shareholder, you will be entitled to dividends as and when they are distributed. There was, however, a media backlash when the company announced that it would continue to meet its dividend obligations in Q2 2020. The reason for this is that much like the rest of the UK airline industry – Easyjet was forced to utilize the government furlough scheme.
As such, various circles argued that the company should have suspended its dividend policy until further notice. This wasn’t the case though, so unless something changes in the short-term, Easyjet will continue to pay dividends.
Why do People Invest in EasyJet Shares?
As is the case with all investments, it’s crucial that you consider the long-term viability of your Easyjet share purchase. After all, the COVID-19 pandemic showed us just how quickly the stock markets can lose value. Easyjet specifically was hard-hit by the global travel ban, so it’s important to do some homework before making any investment.
With this in mind, below you will find a list of some reasons that people add EasyJet to their portfolio:
Europe is Open
Most European countries began to relax their travel restrictions in June/July 2020. This was nothing short of welcome news for airline companies like Easyjet, whose fleet of planes was largely grounded for near-on three months. As a result, the company is slowly but surely re-introducing its 1,000+ UK and European routes. While arguably it remains to see how long it will take to get back to pre-COV-19 numbers, Easyjet at the very least has incoming cash flow going through its books.
As we briefly discussed earlier, the Easyjet share price plummeted from highs of 1,477p in January 2020, to just 410p in March. However, the shares have since surpassed the 700p mark, resulting in gains of well over 68% in just four months.
Sure, you might have missed the boat on buying this airline stock at 410p.
Once again, nobody quite knows how long volume will take to return to pre-pandemic levels – not just in the case of Easyjet, but across the wider airline and travel industry.
New share issue in the making
In response to the COVID-19 crisis, management at Easyjet has since initiated a new share issue. In simple terms, the company raised an additional £419 million across just under 60 million new shares. This move does have both pros and cons.
On the one hand, this does mean that existing shareholders are looking at a dilution of 15%. On the other hand, the additional capital raised will ensure that Easyjet’s balance sheet is shored up.
Open an Account and Deposit Funds
If upon researching the credentials of Easyjet you want to proceed with a share purchase, the next step is to open an account with your chosen broker. In order to show you how to invest in stocks of Easyjet, the following guidelines will walk you through the entire process with an online broker of your choice.
So, you will first need to visit your chosen broker’s website and elect to register an account. You will then be asked to enter a range of personal information – such as your full name, home address, date of birth, and contact details. You will also need to supply your national insurance number and details of your prior trading experience.
You will then be asked to upload some ID. This is to ensure that the broker remains compliant with the FCA.
The two documents that are usually required include:
- Passport or Driver’s License
- Recent Utility Bill or Bank Account Statement
When it comes to depositing funds, you can usually choose from one of the following payment methods:
- Debit Card
- Credit Card
- UK Bank Transfer
How to Buy Easyjet Shares
Once you have gone through the registration, verification, and deposit process – you are then ready to buy Easyjet shares.
Firstly, enter ‘Easyjet’ into the search box at the top of your broker’s dashboard.
An order box should then appear, where you need to enter the amount that you wish to invest in Easyjet. Some brokers may function in USD, and not GBP, so keep this in mind. Finally, confirm the position to complete your Easyjet share purchase.
Note: If you are buying Easyjet shares outside of standard market hours (8.00 am to 4.30 pm, UK Time), you will need to set the order for later. Your share purchase will then be completed when the markets open.
In summary, the global travel industry is unlikely to return to pre-COV-19 levels for some time. However, if you believe that this will eventually be the case, then you may wish to gain exposure to the broader sector.
If you do want to buy shares in Easyjet, you can complete the process using an FCA-regulated broker. There are many platforms to choose from, so it’s vital to do your research and choose a broker that suits your unique needs.