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How to Buy British Airways Shares UK for Beginners

Tobi Opeyemi Amure
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How to Buy British Airways shares UK for Beginners

In a nutshell, to buy British Airways shares in the UK, start by selecting a reputable brokerage that offers access to the London Stock Exchange, where British Airways shares are listed. Open a trading account with the chosen broker, providing necessary personal and financial information. Once your account is set up and funded, search for British Airways’ ticker symbol ‘IAG’ on the trading platform. Then, you can place an order to buy the desired number of British Airways shares, choosing between different types of orders based on your investment strategy.

In this concise guide on ‘How to Buy British Airways Shares in the UK’, I’ve put together straightforward, essential steps to help you confidently invest in one of the UK’s leading airlines.

From selecting the right broker to making your first share purchase, every aspect is tailored for a smooth start in your investment journey.”

This article was reviewed by Tobi Opeyemi Amure, a trading expert and writer at InvestopediaInvesting.com, and Trading.biz.

How to Buy British Airways Shares in the UK – Step-by-Step Guide

Here’s a simple step-by-step guide to help you invest in British Airways shares.

1. Choose a broker

Select a reputable broker that offers access to the London Stock Exchange (LSE), where British Airways is listed. Compare brokers based on fees, ease of use, customer service, and the tools they offer.

2. Open a trading account

Register for an account with your chosen broker. This process typically involves providing personal details for identity verification, such as your name, address, National Insurance number, and banking information.

3. Deposit funds

Fund your trading account. Most brokers accept various funding methods, including bank transfers and debit/credit card payments. Ensure you deposit enough to cover your intended British Airways share purchase, accounting for any applicable fees.

4. Research British Airways shares

Before buying, conduct research on British Airways. Look into its recent share performance, financial health, market news, and analyst reports. This information will help you make an informed decision about your investment.

5. Place an order

Once your account is funded and you’ve done your research, navigate to the trading platform and search for British Airways’ ticker symbol, ‘IAG’.

Decide on the number of shares you want to buy and select the type of order (e.g., market order, limit order). Review and confirm your order.

6. Monitor your investment

After purchasing British Airways shares, regularly monitor your investment. Keep an eye on British Airways’ performance and relevant market news that could impact the stock price.

Adjust your investment strategy as needed based on your financial goals and market conditions.

7. Selling your shares

If you decide to sell your British Airways shares in the future, you can do so through the same broker.

Simply enter the selling interface on the platform, specify the number of shares to sell, and execute the sale.

Best Place to Buy British Airways Shares UK

In 2023, around 2 in 5 Brits (42%) invest and trade, up from 36% in 20211.

Choosing the best trading platform for investing in British Airways shares is crucial for newcomers in the market.

Having worked in the retail investment sector in London over the last four years, I had the opportunity to experience the rise first-hand.

Additionally, in my role working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”, I was able to work with and test some of the biggest UK stock brokers in the market.

Using my experience in this field, I’ve picked two of the best places to buy British Airways shares in the UK.

Factors such as fees, commissions, usability, trading platforms available, research tools, educational materials, and additional features were considered.

Both of the platforms I’ve reviewed below are regulated by the UK’s financial watchdog, the Financial Conduct Authority (FCA) or similar.

1. eToro – Overall best place to buy British Airways stock UK

eToro – Overall best place to buy British Airways stock UK.

eToro emerges as a standout choice for investors in the UK looking to purchase shares, especially British Airways shares.

This platform is celebrated for its amalgamation of user-friendliness, safety, and cost-effectiveness, making it an attractive option for both beginners and seasoned traders.

As a multi-asset platform, eToro offers a diverse range of investment opportunities, from stocks and ETFs to commodities and cryptocurrencies.

For those interested in British Airways, eToro provides real-time access to its shares under the stock code IAG.

The platform stands out with its 0% commission policy on real stocks, which extends to an impressive range of global shares, including those listed in the UK and US.

What makes eToro particularly appealing is its ease of use. Setting up an account is a quick and straightforward process, requiring a minimal deposit of just £50.

The platform supports various payment methods, including debit/credit cards, e-wallets, and UK bank transfers.

The integrated eToro Money app further simplifies currency conversion for UK customers, reducing foreign exchange costs significantly.

Safety is paramount on eToro, as it is regulated by the Financial Conduct Authority (FCA) and covered by the Financial Services Compensation Scheme (FSCS), ensuring investments up to £85,000.

This high level of regulation brings peace of mind to investors.

In summary, eToro distinguishes itself as an optimal choice for buying British Airways shares in the UK, catering to a wide range of investors.

Its blend of zero-commission stock trading, diverse investment options, robust safety measures, and innovative social trading features makes it a highly recommended platform for anyone looking to delve into the world of stock trading.

Read my complete eToro review.

Zero commission means that no broker fee will be charged when opening or closing the position and does not apply to short or leveraged positions. Other fees apply including FX fees on non-USD deposits and withdrawals. Your capital is at risk. For more information, click here.

2. Plus500 – Good for trading British Airways CFDs

Plus500 – Good for trading British Airways CFDs

Plus500 stands out as a premier platform for traders in the UK looking to engage in CFD trading, especially for stocks like British Airways.

This platform is renowned for its comprehensive coverage, user-friendly interface, and advanced trading tools, making it a prime choice for both novice and experienced traders.

One of the key strengths of Plus500 is its wide-ranging market access. Traders can explore a variety of international markets, including stocks from major countries and regions across the globe.

This extensive access is complemented by the platform’s policy of not charging any trading commissions, which applies to a broad spectrum of asset classes like indices, ETFs, forex, and commodities.

Plus500’s trading platform is designed with the user in mind, offering an intuitive and efficient trading experience. The platform is available as a native app for both iOS and Android, making it easily accessible for traders on the go.

Additionally, Plus500 is authorised and regulated by the Financial Conduct Authority (FCA), ensuring a high level of security and compliance. The funds of users are protected under the FSCS, adding an extra layer of security to their capital.

Overall, Plus500 presents a compelling choice for those interested in CFD trading.

Its blend of diverse market access, advanced tools, strong regulatory compliance, and dedicated customer support makes it a robust platform for both beginners and seasoned traders in the UK.

Read my Plus500 review.

Frequently Asked Questions About Buying British Airways Shares in the UK

Here are some answers to some of the most asked questions regarding purchasing British Airways stock in the UK.

Can I buy British Airways shares in the UK?

Yes, you can buy British Airways shares in the UK. British Airways trades under the stock code IAG on the London Stock Exchange, allowing UK investors to purchase its shares.

To do so, you need to use a share-dealing platform or broker that offers access to the London Stock Exchange. Once you have an account set up with a broker, you can search for the IAG stock and proceed to buy shares.

Should UK investors buy shares in British Airways?

Deciding whether to buy shares in British Airways involves weighing various factors. For UK investors, British Airways presents a notable investment in the airline sector.

Key considerations include the company’s market performance, financial health, and the airline industry’s outlook. Recent trends, such as the impact of global events on air travel, should be analysed.

Investors must also consider British Airways’ recovery strategies and growth potential. Additionally, it’s vital to evaluate how this investment fits within an individual’s portfolio, aligning with their risk tolerance and investment goals.

Is it safe to invest in British Airways?

Investing in British Airways, like any stock investment, carries inherent risks and uncertainties.

The safety of investing in British Airways depends on various factors, including the airline industry’s volatility, economic conditions, and the company’s financial health.

Investors should conduct thorough research and consider their risk tolerance before investing in stocks. It’s advisable to consult financial experts or use reliable investment platforms for informed decision-making.

How to sell British Airways shares?

  1. Log in to your brokerage account where you hold British Airways shares.
  2. Navigate to the trading section and search for British Airways’s stock ticker, ‘IAG’.
  3. Enter the number of shares you wish to sell and choose the type of sell order (e.g., market, limit).
  4. Review and confirm the transaction details.
  5. Execute the sale order and monitor the execution status.

Why invest in British Airways?

Investing in British Airways offers several potential benefits. As a prominent player in the airline industry, British Airways, part of the International Airlines Group (IAG), has a strong market presence.

Investors looking to diversify their portfolio may find British Airways an appealing option, especially given its long-standing brand and global reach.

The company’s efforts to adapt to changing market trends, such as increasing focus on sustainability and customer experience, highlight its potential for future growth.

Additionally, the airline industry’s recovery post-global challenges, like the COVID-19 pandemic, could positively impact British Airways’ stock value.

However, it’s important for investors to note that the airline industry is subject to fluctuations influenced by economic conditions, fuel prices, and regulatory changes.

As with any investment, assessing British Airways’ stock should involve careful analysis of the company’s financial health and industry trends.

What to consider before investing in British Airways shares?

Before investing in British Airways shares, several key factors should be considered. First, understanding the airline industry’s nature, which is prone to volatility due to factors like economic shifts, fuel costs, and global events, is crucial.

Potential investors should assess British Airways’ financial performance, including its revenue growth, profit margins, and debt levels.

It’s also important to analyse the company’s strategic plans, such as its response to industry challenges and initiatives for future growth.

Additionally, investors should consider how British Airways’ shares fit within their overall investment strategy and risk tolerance.

Market trends, regulatory changes, and competition within the airline industry can significantly impact the company’s stock value.

Finally, staying informed about global travel trends and economic conditions will help in making a well-rounded investment decision regarding British Airways shares.

How to buy British Airways shares UK for beginners?

  1. Choose a Trading Platform: Select a reputable online trading platform or broker that offers access to the London Stock Exchange where British Airways shares are listed.
  2. Open an Account: Register for an account on the chosen platform, providing personal details like name, address, and National Insurance number.
  3. Verify Identity: Complete the identity verification process, usually requiring documents such as a passport or driver’s license.
  4. Deposit Funds: Fund your trading account using a bank transfer, credit card, or debit card.
  5. Search for British Airways Shares: Look up British Airways on the platform, typically listed under the stock code IAG.
  6. Research the Shares: Before buying, research British Airways’ financial health, market performance, and future prospects.
  7. Place an Order: Decide on the number of shares you want to buy and place a buy order through the platform.
  8. Review and Monitor Your Investment: Regularly monitor the performance of your British Airways shares and stay informed about market changes.

What are the risks of investing in British Airways shares?

Investing in British Airways shares carries certain risks that potential investors must consider.

Firstly, the airline industry is highly sensitive to global events such as economic downturns, pandemics, and geopolitical tensions, which can significantly impact airline operations and profitability.

Additionally, fluctuations in fuel prices directly affect British Airways’ operational costs and financial performance. The company also faces intense competition from other airlines, which can influence market share and revenue.

Another factor to consider is regulatory changes in the aviation sector, which may lead to increased operating costs or restrictions.

British Airways, like other airlines, is also subject to environmental regulations and the growing demand for sustainable practices, which could entail additional investments and policy adaptations.

The impact of technological advancements and consumer trends on the travel industry must also be taken into account.

Changes in consumer preferences, such as the shift towards low-cost carriers or alternative modes of travel, can affect the demand for British Airways’ services.

Finally, currency fluctuations can influence earnings and costs for British Airways, as it operates in a global market.

This adds an extra layer of risk for investors, especially those based in the UK, investing in a company with international revenue streams.

Is it worth buying one share of British Airways?

Determining the worth of buying a single share of British Airways depends on various factors.

For small-scale or beginner investors, purchasing one share can be a cost-effective way to enter the stock market and gain exposure to the airline industry.

It allows investors to diversify their portfolios with a minimal initial investment. However, the impact of owning just one share on overall investment returns is usually limited due to the small stake it represents in the company.

It’s also important to consider transaction costs. When buying a single share, fees charged by trading platforms or brokers may reduce the potential profit from the investment.

Therefore, investors should weigh the cost of transaction fees against the expected returns from one share.

Additionally, investing in a single share limits the potential for significant gains. The growth or decline of one share will have a minimal impact on an investor’s portfolio.

Investors looking for more substantial returns might consider buying a larger number of shares or diversifying across different stocks and sectors.

What’s the best time to invest in British Airways stock?

Determining the best time to invest in British Airways stock requires considering several market factors. Typically, the ideal time is influenced by the airline industry’s cycle, economic conditions, and the company’s financial performance.

Investors should monitor British Airways’ earnings reports, industry news, and economic indicators that impact the travel sector, such as changes in consumer travel habits or fuel prices.

It’s also beneficial to invest when the stock is undervalued or when the market predicts a positive future for the airline industry.

This could be during a period of economic recovery or when British Airways announces favorable business developments, like new routes or partnerships.

Seasonal trends in the travel industry can also play a role. For instance, investing before peak travel seasons might yield better returns as airline stocks often perform well during these times.

However, timing the market can be challenging and risky. A more consistent approach is to invest based on long-term growth potential and personal financial goals.

Diversifying investments and staying informed about British Airways’ and the broader market’s performance is key.

What’s the minimum required investment for British Airways?

The minimum required investment for British Airways shares depends largely on the trading platform or broker you choose.

Most online brokers allow investors to purchase fractional shares, which means you can invest in British Airways with a smaller amount of money than the cost of a full share.

This feature makes investing in British Airways accessible even to those with limited capital.

For instance, some trading platforms may enable investments with as little as £10 to £50. This low entry point is ideal for beginners or small investors looking to diversify their portfolios without a significant initial outlay.

However, it’s important to be aware of any transaction fees or charges that might apply, as these can vary between platforms and can impact the overall cost of your investment, especially for small amounts.

Additionally, investors should also consider the share price of British Airways at the time of investment, as this will determine how much of a share your minimum investment can buy.

Monitoring market conditions and the current share price can help in deciding the timing and amount of your investment.

Final Thoughts

Buying British Airways shares in the UK is a straightforward process that can be initiated with a careful selection of a trading platform, followed by account setup and verification.

While the investment in British Airways shares offers potential opportunities, it’s essential for investors to consider various factors such as market volatility, the airline industry’s dynamics, and British Airways’ financial performance.

Understanding the risks and conducting thorough research are key steps before making any investment decision.

FAQs

Does British Airways pay dividends?

British Airways, under its parent company International Airlines Group (IAG), has suspended dividend payments. This suspension was a response to the financial impact of the COVID-19 pandemic on the airline industry. It is important for investors to check the most current financial reports or company announcements for updates on dividend status.

What’s the cheapest way to buy British Airways stock?

The cheapest way to buy British Airways stock is through platforms offering commission-free trading, such as eToro. eToro allows investors to purchase British Airways shares without paying any commission fees, making it a cost-effective option. Additionally, eToro supports fractional share purchasing, enabling investors to buy a portion of a British Airways share if they cannot afford or do not wish to buy a full share. However, it’s important to be aware of any potential non-trading fees, such as withdrawal or currency conversion fees, that may apply on the platform.

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Sources:

  1. https://www.finder.com/uk/investment-statistics ↩︎

Will Fenton is the founder of Sterling Savvy. He is a personal finance expert and writes about trading, investing, budgeting, and other financial topics.

Along with his education in Economics & Finance, he has experience working in the financial services industry in London working for one of the UK’s leading financial companies, “a trustworthy and respected provider of news, education and market analysis for the everyday investor”.

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