Boohoo Group plc. (BOO) is a leading online retailer established in the United Kingdom. Boohoo, which was founded in 2006, is one of the UK’s fastest-growing online apparel stores. It recently surpassed a market valuation of £6 billion. Boohoo shares are traded on the Alternative Investment Market (AIM), despite the fact that the firm has a multi-billion pound market capitalization. Boohoo shares fell 20.35 percent in the week leading up to October 5th, finishing at 203.9p. The share price of boohoo has dropped 20.03 percent from 250.1p in the last year. Boohoo is listed on the London Stock Exchange.
Because it is the UK’s secondary stock exchange, finding an appropriate stockbroker is a little more difficult. Is Boohoo, however, a wise investment? We not only explain you How to Purchase Boohoo Shares in the UK in this tutorial, but we also go over all you need to know more about Boohoo before investing.
Follow these easy steps to Buy Boohoo Shares:
- STEP 1: Look for the Best UK trading platform to Buy Boohoo Shares
- STEP 2: Examine that Is it a good idea to invest in Boohoo stock?
- STEP 3: Set up an account and make a deposit
- STEP 4: Buy Boohoo share with 0% commission
1. Look for the Best UK trading platform to Buy Boohoo Shares
As your first point of contact, find a UK stock broker that allows you to buy shares of Boohoo online. However, the brokers listed below are arguably the best in the financial industry for trading or purchasing Boohoo shares in the UK. Let’s take a closer look at our top two picks:
- Capital.com – Commission-Free Trading Platform
You will be ‘trading’ Boohoo shares with Capital.com, a specialized CFD broker. As a result, you will no longer own the underlying asset. CFD trading, on the other hand, allows you to open a position that best suits your needs. You can, for example, place a purchase or sell order.
For those who are unaware, this means that you can profit not just if the value of Boohoo shares rises, but also if they fall in value. This is something that standard stock trading systems do not allow you to do. While investing in Boohoo stock CFDs, you will have the choice of applying leverage.
This brokerage application stands out in a few key areas. To begin with, it offers 100% commission-free trading with some of the UK’s tightest spreads. Capital.com is regulated by both the UK Financial Conduct Authority and the Cyprus Securities and Exchange Commission. Another benefit of trading Boohoo stock CFDs is the possibility to leverage your investment. In the United Kingdom, retail traders can use the leverage of up to 1:5 on stocks and up to 1:500 on all other assets. This means that a £50 investment in Boohoo stock CFDs would yield a transaction value of £250.
It simply takes a few minutes to register with Capital.com, and the minimum deposit is merely £20. This enables you to practice trading Boohoo CFDs with a little amount of money. A demo account at Capital.com provides a risk-free trading environment. Capital.com has been authorised and regulated by the FCA, ensuring that your investment is safe and secure.
- IG – Low-Cost Share Trading Platform
IG is a reputable internet brokerage organization with roots dating back to 1974. In contrast to possessing licences from the FCA and ASIC, its main company is listed on the LSE. IG offers regular shares, CFDs, and spread betting as part of its online financial services. This provides you with several opportunities to profit from the growth and fall of equities such as Boohoo.
Its share dealing platform has approximately 10,000 equities, covering hundreds of firms in the United Kingdom. You can acquire shares in multinational companies outside of the LSE and AIM in the United Kingdom. Everything from the US, South Africa, Australia, Canada, and Germany is covered. If you want to trade stock CFDs, it has over 13,000 products in its repertoire. This also includes Boohoo CFDs.
When it concerns to pricing, IG is decently competitive.You’ll only have to pay £8 for each trade as an entry-level commission. This implies you’ll have to pay a fee both when you buy the stock and when you sell it. This is especially appealing if you trade in high numbers because you will not be penalized by a changing rate. Your fee will be decreased to £3 if you succeed to place more than 3 orders in a 30-day period.
It’s also important to note that IG offers very cheap spreads. Right now, the purchase and sell prices for Boohoo shares are 276.10p and 275.80p, respectively.Given that you are dealing with AIM shares, this is appropriate. You’ll have to set up a £250 investment to begin trading with IG. You can do so with a debit card, credit card, or a bank account in the United Kingdom.
2. Examine that Is it a good idea to invest in Boohoo stock?
Since its IPO in 2014, Boohoo has done amazingly well, and early investors have been richly rewarded. This isn’t to say that you should immediately go out and purchase something. Rather, you must step back and do your own inquiry.
We’ve compiled a list of the most critical factors that should be considered before buying Boohoo shares to point you in the right way.
Boohoo is a UK-based lifestyle company that sells clothing, shoes, accessories, and cosmetic goods to teenagers and young adults. It was founded in 2006.
Customers and sales have increased dramatically since the company’s £300 million IPO in March 2014. Some refer to boohoo as a fast-fashion company, arguing that it mass-produces global trends and high-fashion items at a low cost. With over 13.9 million engaged users in 2020, up from 1.5 million in 2013, the company’s appeal is apparent.
During the 2019-20 fiscal year, the company processed 42 million sales for around 14 million consumers, generating £1.235 billion in sales.
Dividend Details for Boohoo
You’d think that a company with a multi-billion pound market valuation and three-digit percentage development since its IPO in 2014 would pay dividends. However, because the company is still in its early stages, it has yet to pay any dividends to its stockholders. Profits are re-invested back into the organisation, which is standard procedure for businesses in their early stages of development. We do not even predict boohoo to deliver a dividend in the coming twelve months.
What effect has the Covid-19 had on Boohoo’s stock price?
The stock market meltdown that began in February 2020 has had a substantial negative impact on boohoo’s share price. Its most recent market close was 200p, down 38.86% from its pre-crash value of 327.1p and up 50.26% from the lowest point reached during the March 2020 crisis, when the shares plunged as low as 133.1p.
If you had purchased £1,000 amount of shares at the beginning of February 2020, they would have been valued at £539.72 at the depths of the March collapse, and if you had hung on to them, they would be worth £640.62 as of the final market close.
Should I Invest in Boohoo?
Boohoo is known as the ‘King of the AIM,’ owing to the fact that it is the largest firm on the exchange by market capitalization. It stormed through a capitalization of over £6 billion before The Sunday Times piece published, as previously stated. Despite this, Boohoo continues to be the most valued stock on the AIM.
The demand of Boohoo is currently on the rise. It has taken advantage of exceptional market conditions, but when the world exits from quarantine, it remained to be seen how, if at all, consumers’ purchasing habits will be influenced. Boohoo has no plan of decelerating, with a new fashion line coming out on a monthly basis, the company paying close to £100 million on marketing, and having recently bought defunct high-street retailer Debenhams.
With this in perspective, going to invest in the company now could be a smart decision as it prepares for future growth. Furthermore, the volatility produced by the unusual economic circumstances may provide many opportunities for short-term traders to profitably sell boohoo shares.
Although there are many online fashion competitors, boohoo appears to have broken the code when it comes to attracting a large number of young adults. Aside from a few minor incidents, the corporation doesn’t appear to have stepped on any toes, though that could change at any time.
3. Set up an account and make a deposit
Now that we’ve gone over the benefits and drawbacks of Boohoo shares, we’ll show you how to invest right now. While there are other brokers to pick from, we’ll walk you through the process with Capital.com, the top-rated platform.
To begin, go to Capital.com and click ‘Trade Now.’ You’ll next be directed through the registration procedure, which comprises providing your email address and generating a password.After that, you’ll have to establish your identity.
- Place of birth
- Date of Birth
- Contact details
You will now be required to provide some documents because capital.com is regulated by the FCA. This includes the following:
- Driver’s License or Passport
- A recent bill from utility or a bank statement
Until you can continue trading, you’ll need to deposit the needed minimum deposit from your bank account to your trading account. With a debit/credit card, Skrill, Paypal, or Neteller, you can deposit funds instantly at capital.com. Bank transfers are also accepted.
Capital.com requires a minimum deposit of £15.
4. Buy Boohoo Shares
You can trade or purchase the shares once your deposit at capital.com has been validated.
Now that you’ve loaded your capital.com account, you’re ready to buy Boohoo shares in the United Kingdom.
Browse to your account dashboard and use the magnification to look for Boohoo. Press it when it appears, then tap ‘Trade’ to open a new order page.
In the box that will appear beneath, enter the value you want to spend in a Boohoo share. When investing CFDs, you have the opportunity of using up to 5:1 leverage. To reduce your investing hazard, you can also establish a limit loss or take profit position.
All that is required for you to do now is to approve the order.
Boohoo Shares are a Buy or Sell?
We believe that Boohoo stock is a good investment. Boohoo established its economic stability and popularity by weathering the brunt of the COVID-19 outbreak with only a slight drop in its stock value. As the pandemic draws to an end, we anticipate an increase in retail purchases, which could benefit Boohoo.
What excites us the most about Boohoo is that the stock is still inexpensive relative to when The Sunday Times report broke. If the shares can return to 443p apiece, investors will have made a 27 percent profit. The road to get there may be bumpy, but there’s a lot of upside for this stock.
This step comprises selecting a broker and completing an order for boohoo shares, as described in the steps earlier up this article.Ideally, you should invest when the stock’s rate is affordable so that you can earn from selling the shares later when their value has increased.
To make a profit, you’ll want to sell any boohoo shares you’ve purchased at a higher price than when you first bought them.
When you chose to sell, it is totally up to you. You can decide to invest for retirement, buying long term in the hopes of profiting from the company’s consistent growth. However, if you notice that boohoo’s shares has already risen significantly since you bought it and the stock market is beginning to fall apart, it would be a smart time to sell and invest your profits elsewhere. Similarly, if the stock has decreased since you acquired it and appear to be falling further; selling your shares may be a sensible way to reduce your losses.
Trading is the same procedure as investing; the difference is that it is done over a shorter length of time with the goal of making small returns on a regular basis. This means you may gain money faster and spend your profits in your daily life – on the other hand, it also means you might lose money faster. Instead of placing many trades in a short time, we usually advise beginner people to invest for at least 6 months to a year.
Buying and selling boohoo shares, as well as trading with CFDs, are all options for trading boohoo shares. These allow investors to bet on share values and trade using leverage to boost their earnings. The next part delves deeper into CFD trading, although it’s important emphasizing that beginners should avoid using leverage. It has a high level of risk and should only be undertaken by experienced investors.
Our Verdict on Boohoo Shares in the UK
Boohoo was on the verge of breaking records when news came of one of its suppliers’ alleged bad working conditions. This includes low pay of £3.50 per hour for employees and a failure to follow social distancing standards.
With that said, depending on the latest Boohoo share price, you may be able to purchase the shares at a discount.
If you believe this is the case, Captial.com permits you to trade Boohoo stock with a single click. There are no commissions to pay, spreads are extremely narrow, and you may deposit funds instantaneously using a UK debit or credit card.
Frequently Asked Questions
Boohoo is listed on what stock exchange?
- Boohoo is listed on the secondary stock market known as Alternative Investment Market (AIM)
Are dividends paid by Boohoo?
- Boohoo is in its infant stage and does not pay any kind of Dividend, and reinvest its profit for its own growth.
Who is the founder of Boohoo?
- The founders of Boohoo are Mahmud Kamani and Carol Kane.
How much were Boohoo shares during its Initial Public Offering?
- Before the Initial Public Offering on the AIM in 2014, you would have paid only 70p per share.