Shares in European satellite operator Eutelsat Communications (ETL.PA) have surged recently. Driven by major developments in the defence space, the shares have delivered triple-digit gains for investors in the blink of an eye. Want to know how to buy Eutelsat shares in the UK? Hereβs everything you need to know.
Quick tips:
- You need a stock broker that offers European stocks like AJ Bell
- Watch out for foreign exchange fees! Interactive Brokers is often the cheapest
- Beware of buying at the top when stocks are in the news
Who is Eutelsat?
Eutelsat is a French company that specialises in satellite technology. Operating a fleet of satellites that covers a wide geographical area, it provides broadband internet access and data connectivity to a broad range of customers.
Following a deal to combine its operations with UK satellite business OneWeb in 2023, Eutelsat is the worldβs third largest satellite operator by revenue today. Offering both low earth orbit (LEO) and geostationary (GEO) satellite services, it competes with Elon Muskβs space satellite business Starlink β a subsidiary of SpaceX.
Why have Eutelsat shares jumped?
Eutelsat shares have skyrocketed this month on the back of the deteriorating relationship between the US and Ukraine. Up until now, US space company Starlink has offered Ukraine its satellite communication services to assist with the war effort amid Russiaβs ongoing invasion. However, in recent weeks, reports have claimed that the US has raised the possibility of cutting Ukraineβs access to Starlink if the two countries are not able to successfully negotiate a deal for the US to secure access to Ukraineβs rare earth minerals.
This is where Eutelsat comes in. It could potentially serve as a replacement for Starlink in Ukraine if the US was to cut access to the US companyβs satellite services as it offers the same capabilities as Starlink in terms of coverage and latency in Europe. Currently, it has a fleet of 35 GEO satellites, in addition to an LEO constellation of more than 600 satellites.
Itβs worth pointing out that right now, itβs not clear if Eutelsat will replace Starlink in Ukraine. However, the company has recently said that it is in talks with the EU to supply additional internet access to the country. “We are exchanging with the EU as to how we can contribute to enhancing Ukraine’s efforts,” a Eutelsat spokesperson told Reuters on 4 March.
How to buy Eutelsat shares in the UK
If you want to buy Eutelsat shares (which trade under ticker ETL on the Euronext exchange) in the UK, youβll need a broker that offers access to European shares. These are not hard to find β today there are quite a few brokers that offer access to this market.
One such broker is Hargreaves Lansdown. It offers access to European stocks like Eutelsat and they can be bought for a Stocks and Shares ISA, Lifetime ISA, SIPP, or General Investment Account. With Hargreaves Lansdown, thereβs a Β£11.95 fee per trade for European stocks. Thereβs also an FX charge of between 0.25% and 1.00%.
Another major broker that offers access to European stocks is Interactive Investor. Like Hargreaves Lansdown, it allows you to buy Eutelsat shares for a Stocks and Shares ISA, Lifetime ISA, SIPP, or General Investment Account. Trading fees here will depend on your plan but range between Β£5.99 and Β£9.99. FX fees are on top and range from 0.25% to 1.50%.
There are also a few low-cost brokers in the UK that offer access to Eutelsat shares. These include eToro and Trading 212. These brokers offer lower trading commissions than companies like Hargreaves Lansdown and Interactive Investor. However, there are other fees to be aware of with these brokers such as trading spreads and withdrawal fees.
Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
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