How to Buy IAG Shares UK – With 0% Commission

International Consolidated Airlines Group SA, also known as IAG, is a British-Spanish multinational airline holding firm and the parent company of British Airways, Iberia, Aer Lingus, IAG Cargo, Level, Avisos Group, and Vueling. The IAG group was formed in 2011 after a merger between British Airways and Iberia and its share price enjoyed a steady upward climb for 8 years up until 2020. With all the Covid-19 pressure, it’s not a surprise that IAG shares dropped nearly 80% since the beginning of the year.

However, as many governments have announced that domestic and international flights will be resumed soon, investors can keep an eye on IAG shares as the situation develops.

If you are considering buying shares of International Airlines Group, this guide can help you get answers. We’ll explain what is the best way to buy shares of IAG in the UK, and discuss the company’s past performance and key strengths going forward.

Step 1: Find a UK Stock Broker That Offers IAG Shares

International Consolidated Airlines Group currently trades on several exchanges including the London Stock Exchange. This means that you’ll find many UK stockbrokers that offer you to buy and sell IAG shares. With that said, you do need to make sure that your chosen broker is licensed in the UK and gives you access to a good and reliable trading platform. You should also take into consideration your trading strategy as some stockbrokers offer better terms for long-term trades while others have a better pricing structure for active day traders.

To help you find the right broker, below you will find two popular UK stockbrokers that allow you to buy and International Airlines Group shares.

1. eToro – Buy IAG Shares with No-Commission

eToro is our favorite choice when it comes to stock trading in the UK. Founded in 2006, this online share dealing platform offers a huge selection of CFD products including more than 800 shares from various exchanges. On top of that, you can not only buy shares in the form of CFDs but also you may choose to buy shares in the traditional way, meaning you buy shares outright directly from a stock exchange.

If you do choose to buy shares in the form of CFDs, you can do this with a leverage ratio of 5:1. eToro also allows to short sell CFDs shares with a margin requirement of just 20%, the same as a long buying position. A short position is a way to make a profit from the declining price of an asset, so you can trade in both directions.

One of the reasons why eToro is very popular is that it’s a social and copy trading platform. The platform enables you to engage with other members, view posts and market news, and even automatically mimic the trades of other investors. Another thing you can do on this platform is to invest in CopyPortfolio, which are basically built-in market portfolios that collect different instruments on a specified sector or trading strategy. As such, you can invest in the CryptoPortfolio, CannabisCare, Golden Energy, InTheGame (gaming) portfolio, and many more.

To get started, you will need to meet a minimum requirement of 200, which is equivalent to around £150. In terms of the security and the safety of your funds, eToro is fully licensed and regulated in the UK by the Financial Conduct Authority (FCA).

Pros:

Cons:

67% of retail investor accounts lose money when trading CFDs with this provider.

Step 2: Research IAG Shares

The Covid-19 pandemic has had a huge impact on the airline industry due to restrictions on traveling and the lockdowns implemented by many governments. Like most aviation companies, IAG had a difficult year, with a drop in sales, profits, and the share price. With this in mind, the IAG share appears to be trading at a fairly reasonable valuation so it is important to do your own research before you make an investment and find out whether it is the right time to buy shares of IAG.

How Much Are IAG Shares Worth? IAG Share Price History & Market Capitalisation

International Consolidated Airlines Group SA is one of the world’s largest airline groups was formed on January 21, 2011, following a merger of two airlines – British Airways and Iberia. Since then, the firm made several acquisitions including BMI, Aer Lingus, Vueling, and Air Europa. In 2012, International Airlines Group has created IAG Cargo, which is the handling division of IAG.

IAG (ISIN: ES0177542018) is part of the FTSE 100 and is publicly listed on the London Stock Exchange (LSE) and the stock exchange in Madrid. Since the merger, IAG shares were trading in an upward trajectory, reaching the all-time of £292.17 per share on the 22 of June 2018. The IAG share had a minor drop in 2019 but then reached another peak in early 2020 (January) of 270.31 GBX. But since the Covid-19 pandemic was declared as a global pandemic in February-March, the IAG share dropped to £66.37 on 31 July 2020, the lowest level since 2013. Over the next three months, the share recovered to £93.26.

The recovery of the IAG share can be attributed to the announcement of Hedge fund Marshall Wace to take a large stake in IAG and the fact that some governments have lifted the lockdown restrictions. In addition, the multinational airline company launched a discounted €2.75bn rights issue in September to cover the Q2 losses.

At the time of writing, IAG has a market cap of 9.6B.

IAG EPS & P/E Ration

The EPS for IAG is 57.09 EUX at the time of writing, with an EPS growth of -2%. The current p/e ratio is 5.7.

IAG Shares Dividend Information

International Airlines Group has been a favorite share for dividend investors as the company pays annual dividends since 2015. Typically, IAG has a dividend yield of around %7-%8, which is way above in the aviation industry. However, like many other aviation companies operating in the industry, IAG has scrapped the 2020 annual dividend for shareholders due to the losses and the impact of the coronavirus pandemic, and it is not yet clear when the company will resume paying dividends.

Should I Buy IAG Shares?

IAG shares dropped significantly in 2020, largely due to the coronavirus pandemic that has hit the travel industry. After all, this company makes its income from domestic and international flights. But the company is expected to make a recovery at some point. As a matter of fact, the share price quickly recovered thanks to the company’s issue of €2.97 billion of new shares at 92 cents and the announcement that the giant hedge fund Marshall Wace has taken a large stake of 3% in the total holding of IAG. The rights issue that was launched on September 10 will definitely strengthen IAG’s balance sheet which could help the airline to prevail the current economic storm.

Another factor to take into consideration is the company’s announcement to make several senior management changes. As such, Sean Doyle, the chief executive of the Irish carrier Aer Lingus, will replace the current British Airways CEO, Álex Cruz. Finally, IAG is also highly affected by the coronavirus stimulus packages that would provide aid to airline carriers.

Overall, International Airlines Group is far from being in a stable condition right now, largely due to external factors like the Covid-19 pandemic. The coronavirus situation has caused passenger demand to collapse and it is not yet clear when the travel industry will rebound.

That said, the company is well-positioned to face the challenges ahead. And as the travel industry is about to make a positive comeback at some point, IAG, which holds two of the largest airlines in the world under its umbrella, could be a great long term buying position.

Step 3: Open an Account and Deposit Funds

Once you feel confident about your decision to buy IAG shares, the next step is to open a share trading account with a trusted UK brokerage firm. In this section of our guide, we’ll show you how to place a market order with eToro.

First, you need to complete a short sign up process. On the eToro website, click on the ‘Join Now’ button to create a new account and then simply enter the requested information on the registration form.

Next, as eToro is an FCA regulated broker, it will require you to enter your personal information and financial status and then verify your identity. This can be done by uploading a copy of your passport or driver’s license along with a copy of a recent financial statement or utility bill.

Whenever eToro approves your account, you can then fund your account using one of the following payment methods:

• Debit Card
• Credit Card
• Paypal
• Skrill
• Neteller
• UK Bank Transfer

Keep in mind that eToro requires UK investors to deposit a minimum of £160 to start trading.

Step 4: Buy IAG Shares

To place a market order to buy International Airlines Group shares, go to eToro’s trading dashboard and type IAG in the search bar. Once you click on the first result that pops up, you will then be channeled to the company’s instrument page.

On the International Airlines Group’s instrument page, click on the ‘Trade’ button.

Next, you will see an order form to buy IAG shares. In this form, enter how much money you want to invest, starting from a minimum of £40. This means you can buy a fractional share of the company. To get market execution, make sure that the set rate field is ‘At Market’ and then click on the ‘Place Order’ button.

IAG Shares Buy or Sell?

Investors are growing increasingly bullish about IAG, and we are, too. The rollout of vaccines from Pfizer and Moderna means that international air travel could resume as early as the summer of 2021. While the airline industry as a whole – and IAG in particular – will take longer to recover, that bodes extremely well for this airline stock.

There’s a lot of potential upside for investors if IAG can recover. Right now, 17 analysts at MarketBeat provide a price target of 308.25 GBX for IAG in the upcoming year. In addition, the shares remain 55% below the price they held just before the COVID-19 pandemic shut down air travel

Over the long term, IAG’s dividend is very attractive. While there’s no guarantee that the company will restore the 7% yield offered before the pandemic, a dividend in this range would send the shares soaring.

If you are willing to hold the IAG share for decades or at least several years, it could be a great investment decision. We think IAG shares are a strong buy at today’s prices.

How to Sell IAG Shares

Shorting a share involves selling a borrowed financial instrument with the anticipation of purchasing the same share back at a lower future price. IAG seems to be trading at a fairly cheap price right now, and as such, it might be a great long term investment opportunity. However, it is important to know that you also have the option short sell the IAG share in order to make a profit from the expected fall in price. This simply allows you to trade the IAG share in both directions and is particularly useful for active day/swing traders.

The easiest and most cost-effective to short-sell shares like International Airlines Group is via CFD brokers like eToro, IG, and Plus500. This is because they do not maintain high margin requirements like other UK brokerage firms. The majority of CFD brokers require you to hold only 20% of the total value of the position.

The Verdict

In summary, many investors will be waiting to see the true impact of the Covid-19 pandemic before investing in any airline company. After all, the implications of the coronavirus pandemic will be profound and are likely to last for the next years. However, the airline industry has already experienced a similar situation following the 9/11 terror attack, and while it is estimated that one-third of all airlines will not survive the pandemic (particularly low-cost carriers), the International Airline Group is one of the airlines that is more than likely to survive the current economic crisis.

Ready to buy IAG shares? Simply click the link below to get started!

eToro – Buy IAG Shares UK With No Commission

67% of retail investor accounts lose money when trading CFDs with this provider.

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