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How to buy easyJet shares (EZJ)
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82% of retail CFD accounts lose money.
This guide looks at the history of easyJet, its recent performance, and what to look out for before you get some of its shares. You can keep reading for all that information, as well as the best brokers to choose from if you decide to invest.
Compare the best easyJet trading platformsCopy link to section
If you have all the information you need already, you can head to one of the brokers below to get shares immediately. We’ve assessed all the best ones and compared them so that picking the right choice for you is quick and easy. Otherwise, keep reading for more information on easyJet.
77% of retail CFD accounts lose money.
How to buy easyJet stock, a step-by-step guideCopy link to section
The process of buying shares on the stock market isn’t massively complicated, so don’t worry even if you’re new to investing. These are the steps to follow in order to complete your investment:
- Choose a broker. You need to find an online brokerage platform first. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in easyJet shares.
- Place an order for EZJ stock. Search for easyJet’s ticker symbol (EZJ) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to own and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your easyJet shares will be listed in your account. Congratulations, you’ve just bought shares in easyJet!
What is easyJet? And should I invest?Copy link to section
easyJet (LON: EZJ) is a British budget airline that operates domestic and international travel to more than 30 countries around the world. After its formation in 1995, easyJet has capitalised on increasing demand for low-cost travel and, combined with a series of acquisitions, has expanded rapidly to become the second largest budget airline in Europe.
Formed by the extremely outspoken Stelios Haji-Ioannou, who remains the largest shareholder, easyJet floated on the London Stock Exchange in 2000. Since then it has often grown by acquiring other airlines and establishing more bases across Europe and has expanded its own fleet of planes accordingly. It hasn’t all been plane-sailing though, Stelios has repeatedly become embroiled in fights with easyJet’s own board. Any potential investor should keep in mind that his statements can and have affected the share price and he has forced out executives in the past.
Now is a risky time to be investing in the airline industry, which has had to scramble to maintain cash reserves to see it through perhaps the worst crisis to have ever affected aviation. easyJet managed to do so without any government intervention and so there is the possibility of benefitting from a boost once international travel begins again in earnest.
How has the company performed in recent years?Copy link to section
Unsurprisingly for an airline, easyJet’s price collapsed as the pandemic hit and international travel ground to a halt. easyJet responded by grounding its entire fleet of planes and the share price fell from 1500p all the way to 475p. This had somewhat recovered by the end of 2020, but it was still trading at half its pre-pandemic value and its lowest price in nearly 10 years.
International uncertainty isn’t good for airlines and the pandemic was the latest in a string of them which have caused bumps in the easyJet price. The Brexit vote in 2016 saw a substantial fall, while European industrial action and air-traffic restrictions caused a similar drop in 2018. The pandemic was the worst, perhaps the most challenging event the airline industry has ever had to deal with.
easyJet’s response was to raise as much cash as they could to see them through, which included selling off part of their fleet in a lease-back scheme and making use of loans from the UK government. News of successful vaccine tests helped the price recover to some extent, but there is likely to be considerable uncertainty in the airline industry for some time.
Is it a good time to buy easyJet shares now?Copy link to section
Investing in airlines until the post-pandemic picture clears up is going to carry risk. EZJ stock has done well in good times but the industry as a whole is vulnerable to uncertainty as well as unpredictable Black Swan events.
Long-term investors might have to be courageous and trust their long view, while there is potential for short-term share dealers to capitalise on any rebound. Timing it will be difficult, and any investor will need to keep a close eye on government regulations, any sign of government bailouts – which have been mooted for UK airlines – and travel restrictions across Europe before buying shares in easyJet.
Finally, even once the global picture becomes clearer, you will want to keep track of Stelios’s comments and actions. You may even want to consider if you want to have to deal with the distractions he can bring to owning the stock. If that’s something that isn’t an issue, you’ll still want to follow what he says as well as all the latest easyJet news and market analysis, which can be found below.
Buying, selling and trading easyJet shares for beginnersCopy link to section
What to do before buying sharesCopy link to section
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before you start.
- Research the company. You should always examine the fundamentals of a company first. What is easyJet? How did the company get its start? How did it grow? Is easyJet’s revenue and profit growth picking up? Is the company innovating? The more you know about easyJet, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our broker reviews can help you find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bearish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Our latest news can help you keep on top of movements in the financial markets.
What is the difference between buying, selling, and trading shares?Copy link to section
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade easyJet shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for easyJet stock, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
When you sell any easyJet shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold your shares for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that easyJet’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading is the same process, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade easyJet shares through buying and selling shares, or by trading with CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing vs CFD tradingCopy link to section
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealingCopy link to section
Share dealing refers to the practice of holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
CFD TradingCopy link to section
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into EZJ shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take one of our stock trading courses and read our guide to CFD trading to get you up to speed.
How to choose a brokerCopy link to section
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to find the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to place trades and buy shares. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to use a specific payment method, such as PayPal, to fund your account. Not all brokers accept every payment method, but using our comparisons you can search only the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
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Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >