Summary
Direct investment in stocks may be exciting and, with any luck, lucrative adventure. It may also make you eligible for shareholder benefits offered by the corporation. However, investing in single firms exposes you to the volatility of the stock market and sudden swings in share price.
The availability of London stock exchange access should be the first priority when selecting a broker to buy Easyjet shares. You should also compare the commission rates, trading platforms used, and fees offered by various brokers. Luckily, many discount brokers, eToro for instance, offer zero commissions on trading shares. Similarly, Capital.com offers commission-free trading with a leverage of 1:5 on UK share CFDs. Furthermore, choosing an FCA-regulated broker to buy UK shares is always recommended.
Brokers often provide mobile apps in addition to desktop platforms, so traders can engage in transactions regardless of where they happen to be. When assessing how to buy Easyjet (EZJ) shares, it is vital to consider the company’s stock performance and dividend history. In this guide, we will discuss all you need to know about online brokers, such as their trading platforms, trading and non-trading fees, and user feedback on Easyjet stock.
The investment process may intimidate people who have never purchased stocks or shares. Although it may seem complicated at first, purchasing Easyjet stock and investing in the stock market of the United Kingdom involves only a few easy steps. Here’s a step-by-step guide on how to buy shares in Easyjet online.
- Select an Online Stock broker
- Create a Brokerage Account
- Deposit Funds
- Buy Easyjet Shares
- Manage your Easyjet Positions
Investing in anything is never without peril. Consider these pros and cons before buying Easyjet shares:
Pros
- Low Cost Valuation
- Growth Potential
Cons
- Halted Dividends
- Environmental Effects
- Volatility
You should consider investing seriously before you purchase any shares. An investment’s outcome is not always favorable. You could, at any point, experience financial loss. But if you follow the rules, your chances are better, and your likelihood of making profit is also high. Similarly, consider the following factors before signing up is always in your best interest when choosing an online broker.
Commissions & Fees
Before making any decisions, it’s crucial to consider the costs. Most platforms will charge you a share trading fee or commission; some can even charge you an annual fee to hold your shares. Commissions are frequently determined by the type of investment and the broker’s fee schedule. Brokers often charge commissions on trades in one of two ways: a flat rate (such as £15 per trade) or a percentage of the trade value (such as 0.5% with a minimum commission of £25). Some companies may also set a maximum commission per trade.
Fortunately, many online stock brokers offer shares and share CFDs commission-free. Online brokers like eToro offer zero commissions on trading UK shares, including Easyjet shares. Likewise, traders can buy share CFDs commission-free through capital.com. That being said, traders may incur other fees, such as account maintenance and trading and non-trading fees, which we will discuss later in this guide.
Hence, before buying shares through any online broker, it’s always prudent to look for their fee structure to avoid being taken by surprise.
Stock Brokers Regulation
Regulation refers to the rules and oversight put in place by regulatory bodies to govern the activities of online brokerage firms. These regulations aim to protect investors and guarantee fair and transparent practices within the online brokerage industry. Investors should only work with online brokers adequately licensed and regulated by reputable authorities. Online brokers may be subject to varying sets of rules depending on the country in which they are based.
Brokers that allow traders to buy shares in Easyjet must be authorized by the Financial Conduct Authority( FCA) to operate in the UK. FCA sets norms for internet brokers in the UK, including rules for registration, funding, investor safety, disclosure, compliance, and dispute resolution.
Trading Platforms
Researching the various trading platforms different brokers offer to buy Easyjet shares is advisable. Numerous brokers provide futuristic stock trading websites and mobile apps. If you want to trade with wholehearted assurance, choose a broker offering their trading platform and compatibility for popular third-party platforms like MT4 and MT5.
A broker’s in-house trading platform facilitates traders’ rapid reaction to price fluctuations in the market. These systems are modified to accommodate the specific needs of the broker’s customer base. Traders can also use a mobile app, desktop software, or an internet browser to access these platforms. To make better decisions when trading EZJ stock, evaluating the trading platforms brokers provide is necessary.
Leverage Availability
Another metric to consider when assessing how to buy Easyjet (EZJ) shares online is leverage availability on brokers. Leverage enables investors to control greater market positions than their initial capital would otherwise permit. Leverage can raise earnings but also dramatically increases the potential for loss. Traders can use leverage to trade shares CFDs – financial derivative instruments that allow traders to speculate on the price movements of shares without owning the underlying assets.
Shares CFDs allow investors to speculate on the rising and falling price of a single company share. To buy shares CFDs of Easyjet, brokers such as Capital.com offer leverage of 1:5 to its global retail clients. Note that leverage can be changed depending upon the jurisdiction and the expertise of the trader. eToro offers leverage of 1:10 to clients in Seychelles and leverage of 1:5 specifically for UK shares.
Easyjet Stock Performance
Since its start, EasyJet has expanded tremendously and operates over a thousand routes. After only five years of business, the airline went public on the London Stock Exchange in 2000. When considering an investment in shares, such as buying EasyJet shares, it is wise to assess the company’s stock’s performance.
In terms of its share price history, Easyjet stocks were trading at a price of 310 pence (£3.1) in 2000. Stocks reached a high of 1,870 pence (£18.7) per share in early 2015. Note that the current price of Easyjet shares as of 15 June 2023 is 499.92 pence (£4.99). Compared to its closing price of 499.92 pence (£4.99) on June 12, 2023, EZJ’s stock was worth 929.00 pence (£9.29) on June 14, 2019. Over five years, this amounts to a drop of 46.22 percent. If EasyJet shares are able to regain their pre-COVID-19 levels at 1,477 pence (£14.77), it would require a substantial increase of 195.56%.
Easyjet Past Dividends
The Luton-based company had been delivering reliable annual dividends before the pandemic. Since then, however, returns to shareholders have stalled as earnings have collapsed and debt loads have increased. Before considering how to buy Easyjet (EZJ) shares it’s pertinent to assess its financials and dividends to get a better insight on your investment.
EasyJet shareholders who held GB:EZJ stock before February 27, 2020, were eligible to receive EasyJet’s last dividend payment of 37.59 pence (£0.37) per share on March 20, 2020. During the period from 2017 to 2020, the company distributed dividends worth 197.2 pence (£1.97) per share. However, it is essential to note that easyJet boasts one of the strongest financial records in the business. Analysts expect dividends to be restored by the end of the year if the conglomerate’s top and bottom lines continue to improve. This will be the case if the low-cost airline can profit by then.
In fiscal 2024, we expect distributions to shareholders of 12.4 pence (£0.12) per share; in fiscal 2025, we expect distributions of 19.1 pence (£0.19) per share. As a result, the company’s dividend yield will increase from 2.4% in 2024 to a hefty 3.7% in 2025. EasyJet may also be able to deliver on its promised dividends if its financial health continues to improve.
To make it easier for customers to buy shares in Easyjet and other securities, online brokers often provide a variety of trading platforms. These platforms exist in various formats, including desktop software, mobile trading apps, and online trading platforms. Let’s take a closer look at the multiple platforms brokers offer.
Desktop Trading Platforms
When it comes to analyzing markets, placing trades, and managing investments, traders may do all of these and more with the help of a desktop trading platform, which provides a feature-rich interface and robust features. Traders who open an account with an online broker can use a specialized desktop trading platform. For instance, eToro’s global clientele has access to a cutting-edge web platform to buy Easyjet shares, which can accommodate various trading techniques. The site provides access to high-quality resources that make it possible to put into practice a wide range of stock trading strategies.
Investors can also purchase EZJ shares via the reputed online trading and investment site, Capital.com. It provides users with a one-of-a-kind platform to access various technical indicators and make their charts.
Various brokers also provide the widely used MetaTrader 5 (MT5) trading platform. MT5’s straightforward interface and lightning-fast response times with an advanced technical analysis make it a popular option for traders. Because of the variety of trading instruments they provide, traders worldwide rely on these online platforms.
Mobile Apps
Mobile apps have revolutionized how we trade the financial markets, providing traders with convenient and powerful tools at their fingertips.
Online brokers offer powerful and user-friendly mobile trading apps for buying shares like Esasyjet shares, which have changed trading in the financial markets. Traders may track the market, make trades, and exploit chances from their mobile devices with the help of these apps. eToro provides its global user base with a state-of-the-art mobile trading platform. In a similar vein, Capital.com, for instance, offers a cutting-edge mobile app with technical analysis tools, price notifications, and order limits to simplify the process of buying stocks. Additionally, an increasing number of brokers provide third-party mobile apps like MT5 for traders to meet their preference and needs. These apps offer a wide variety of order forms and in-depth technical analysis to make trading from a mobile device easy and comfortable.
Most brokers are transparent about these fees, but some aren’t, so it’s essential to ask if there are any hidden charges before opening an account. Fees charged by the broker are often categorized into two groups- trading fees and non-trading fees.
Trading Fees
Traders who buy Easyjet stock are subject to different fees and commissions that can impact their overall trading costs. Spreads, commissions, overnight/rollover charges, and swap charges are all such costs. Brokers may impose an extra fee, known as an overnight, rollover, or swap cost, for keeping a trade overnight. The spread is a secondary trading expense calculated as the difference between a stock’s bid and ask price. If your broker doesn’t work on a commission-free basis, you may have to pay a charge of up to 1 percent when you buy shares through them. When calculating the future expenses and rewards of trade, investors must consider the above mentioned fees and commissions.
Non-Trading Fees
Investors who use brokers to buy shares should be mindful of the possibility of incurring additional, non-obvious fees. Withdrawal fees are one example of this, and they can range from broker to broker and withdrawal method to withdrawal method. Investors who buy Easyjet stock in a currency other than their account’s base currency may also be subject to currency exchange costs. Some firms may assess a periodic custody fee based on the value of the account or the number of holdings (e.g., £2 per holding per quarter). If your account balance is large enough or you make enough deals, you may be exempt from paying this.
Moreover, many brokerage firms have a quarterly or annual administration fee. This inactivity fee is typically assessed to accounts that have not transacted in a certain time frame. Some companies charge a percentage (for example, 0.5% of the account assets), although the majority charge a flat rate (for example, £25). Furthermore, fees may be associated with financing the brokerage account depending on the broker and deposit type used.
About Easyjet (EZJ)
Established in 1995 with its headquarters at London Luton Airport in the United Kingdom (UK), EasyJet is a British low-cost airline. EasyJet flights cover a wide range of destinations, both national and international.
After 5 years of its inception, the company went public on the London stock exchange with a ticker symbol of “EZJ”. So, to buy shares of Easyjet, you need to sign up with a broker that offers access to the London Stock Exchange. Notably, EasyJet is part of the FTSE 250 index, with a market capitalization of £3.83 billion as of June 2023.
Moreover, the jet company currently has 758 million shares outstanding. Easyjet is exposed to two key factors that drive investment returns: high quality and a relatively cheap valuation. The company’s stock price may benefit from these variables and be less susceptible to market fluctuations in times of economic uncertainty.
Furthermore, on the plus side, the company has a strong reputation and name recognition, a wide range of destinations served, efficient operations using a single aircraft model, and a cutting-edge approach to selling products online.
The share price, however, could be threatened by other factors. Among these are relying heavily on a small group of suppliers, competing in the low-priced flights sector where margin issues may arise from taxes and other fees, and the need for a loyalty program.
Once we’ve explored the finer points of how to buy Easyjet (EZJ) stocks, we can check out what people on forums like Quora and Reddit have to say about the company.
While browsing through Reddit, we found a lot of threads discussing Easyjet shares. The Redditors have mixed views about investing in EZJ shares. Some were optimistic about Easyjet’s stock performance, while others had a negative outlook.
This user, “mehmehmehwaa,” was optimistic about the EZJ performance. He stated that as UK residents are keen to travel, its demand is expected to increase, leading to an increase in share price.
Conversely, this Redditor, “Pyramidsinspace,” thinks that buying an airline stock is always a bad call. He stated that the performance of major airlines has fallen. He advised people to buy shares in other travel stocks like Airbnb etc.
Quora
While searching through Quora, we only found a couple of threads discussing how to buy Easyjet (EZJ) shares. In general, users have negative sentiments about its shares.
This user was advising others to be greedy when the market is down. In his view, airline stocks are always a risky investment as there are a lot of factors like Aviation Turbine Fuel (ATF) price rise. He further added that for small investors, domestic consumption is always better.
Bottom Line
EasyJet’s popularity has been on the rise ever since the pandemic was declared over. It anticipates quickly recovering to pre-pandemic levels. If the market doesn’t change, the company can get back on its feet.
To ensure you’re making a wise investment, conduct your research before thinking about how to buy Easyjet (EZJ) shares. If you’ve researched beforehand, placing an order and adding funds to your account will be a breeze. Take into account the broker’s regulatory standing, trading fees, and trading platforms before signing up with them. Find out if Contracts for Difference (CFDs) on shares and actual shares are an option with your broker.
Clients of many brokers can choose between the broker’s platform and a widely used industry standard, such as MetaTrader 5. Both approaches have advantages and disadvantages, and the preferences of individual traders will vary according to their level of expertise and personal goals.
The current price of easyJet shares is nearing its historical low, creating favorable conditions for prospective buyers. Keep in mind that investing is risky and has no surefire payoff. Before buying Easyjet shares, learning more about the company’s past performance and dividend payments is a good idea.
Q & A
There are 758 million shares of Easyjet in the market.
Stelios Haji-Ioannou holds the largest stake in EasyJet, with a 9.5% ownership of the outstanding shares.
Sir Stelios Haji-Ioannou established Easyjet in March 1995.
Yes, the company is steadily growing and making profit.
Easyjet became a publicly traded company on 22 November 2000 under the ticker EZJ
The starting price of Easyjet shares was 310 pence (£3.1).
Yes, Easyjet shares are a good buy but it comes with risk.
You should consider your risk tolerance, the size of your portfolio, your degree of experience, and your financial goals before deciding whether you should or shouldn’t buy EasyJet shares.
Total market cap of Easyjet shares is £3.83 billion.
The company does not pay dividends at the moment. But with its consistent growth, it is expected to restart paying dividends in 2024.
To buy Easyjet shares, select an online Stock broker, create a brokerage account and then deposit funds . Next, buy Easyjet Shares and manage your Easyjet Positions.
Yes, you can trade Easyjet shares as CFD via a broker like capital.com.
Investors can only purchase EasyJet shares (LON: EZY) on the London Stock Exchange (LON: EZY). You can buy Easyet shares through an online broker that gives access to the London Stock exchange.
Easyjet shares are listed on the London Stock Exchange(LSE) and are part of FTSE 250 index.
With the emergence of zero-commission brokers and fractional shares, you can use any minimum amount to invest. But remember the money you’ll have to spend on order execution, buying, and clearing. These expenses can significantly impact trading outcomes, particularly when investing smaller amounts.
Considering the company’s revenue over the past 14 years, the average revenue per year is £3.873 billion.
The current price of Easyjet shares as of 15 June 2023 is 499.92 pence (£4.99).
