Stock Brokers in South Africa
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In South Africa, are you interested in buying and selling stocks from your home? Well, in that case, you should seek out appropriate stockbrokers in South Africa. The following guide looks at the best stock brokers South Africa has to offer for 2022.
We offer some tips for finding an online stock broker ideal for your long-term investing goals as part of this discussion.
Global stocks can be traded through various stockbrokers available to South Africans. FXVC is our preferred stockbroker. Either directly or through derivatives such as contracts for difference (CFDs), stocks can be traded.
Fees and commissions vary from broker to broker. Brokers typically charge a spread or a percentage commission on the bid/ask price. Several top-tier stockbrokers in South Africa are regulated by top-tier agencies, such as the FCA in the UK or ASIC in Australia.
Who is a stockbroker?
You will need a stockbroker to buy shares in South Africa. Recent years have seen sweeping changes in this industry. Some preferred to buy stocks through a traditional brokerage firm in the past.
If you want to purchase s in a time not so long ago shares over the phone, you need to call your broker. You will pay the broker if the broker finds the shares through the secondary market.
By 2022, South Africans will pick and choose which shares they wish to purchase by clicking on a button.
The best South African stockbrokers can open an account, deposit funds, and buy shares within minutes. As a result, the entire investment process is easier than ever before.
All transactions stem from your brokerage account, which allows you to deposit and withdraw money when you want, buy and sell stocks when you want, and research companies whenever you want.
South Africa’s stockbrokers: how do they operate?
Online stockbrokers make it simple to use their services. You will need to do the following, regardless of which platform you use:
- Choose a stockbroker and open an account with them
- Verify your identity by uploading some ID
- Using your debit or credit card or even your bank account, deposit some funds.
- Make a decision about which shares to buy
- Invest in the project
You will now be the primary or proud owner of your selected stocks. Until you decide to sell your shares, you don’t have to do anything else. It is typically possible to do this at any time during standard market hours. If you want to easily invest in a liquid asset class, South African stockbrokers are a good choice since you can easily convert your shares back into rands.
Several companies – both locally and internationally – pay dividends. In the case of dividend-paying companies, dividends are credited to your brokerage account if you own at least one share. Once the funds have been withdrawn, you can withdraw them to your South African debit card or bank account. You may also decide to reinvest dividends in other shares.
South Africa’s top stockbrokers for 2022
It has never been easier to buy shares online in South Africa. After all, you only need to open an account with a trustworthy broker, deposit some cash, and choose which stocks you want to invest in. After that, finding the right platform is the hard part.
We have also compiled a full list of the top stockbrokers in South Africa below to guide you. In addition, the platforms provide many shares with easy deposit options using local payment methods.
Nowadays, Libertex is a name that is familiar to most investors. But in addition, if you are interested in trading low-cost Libertex CFDs on the movements of assets such as forex or commodities, stocks, cryptos, ETFs, and more, you may want to consider it.
Since 1997, Libertex has offered its clients CFD trading services. The company has been operating in the financial and online trading markets for more than 20 years. There are more than 250 CFD assets available at Libertex.
The Libertex native and MT4 or MT5 trading platforms are available to customers. However, for new traders looking for a straightforward online trading platform with minimal technical jargon, Libertex’s proprietary web trader platform is the ideal solution.
MetaTrader offers a variety of technical indicators, customisable charts, drawing tools, and Robo-advisory services for advanced traders. MT4 is highly recommended for those interested in forex trading.
Others at one of the South African stock brokers focus on traditional stock investment, while some of you are looking to trade. In this case, you would be speculating on the direction of the markets by trading share CFDs.
With thousands of financial instruments available for trading, Plus500 is the market leader in this area.
A staggering 2,000+ instruments cover a wide range of markets. Even share CFDs are available on the JSE.
You can always trade shares through CFDs, regardless of which shares you choose to trade (buy or sell orders).
Also, Plus500 offers leverage, which means you can borrow money to trade. According to our rules, you should have a maximum of 1:30, although it may depend on your asset class and (retail or professional) status.
Plus500 doesn’t charge commissions when you trade share CFDs. Instead, you’ll only pay the spreads.
A good stockbroker in South Africa is Capital.com. If you are searching for a stockbroker in South Africa, Capital.com is an excellent option. Over 3,000 shares can be traded through this broker from the US, UK, and Europe.
The selection of shares from emerging markets on Capital.com isn’t huge, but it makes finding and trading hot stocks easy.
With this broker, you can trade stocks completely commission-free. Share trading spreads at Capital.com are usually lower than the industry average, and there are no withdrawal or deposit fees.
Additionally, Capital.com does not have an inactivity fee – so if you buy and hold or take a few months off from trading, you won’t be charged.
Investing with Capital.com is easy because the platform is available on the web and through a mobile app on iOS or Android devices. You can use it very quickly, and it comes with dozens of technical studies that help you make investment decisions.
Additionally, the platform has valuable tools such as a news feed and an economic calendar, making it easy to stay on top of market news.
There is also AvaTrade in South Africa, a top stockbroker. More than 600 share CFDs are available on this platform, including US, UK, and Europe. It offers 100% commission-free trading on all share CFDs.
AvaTrade provides up to 10:1 leverage on most US-listed stocks, which is what makes it stand out from other brokers.
You are most likely not able to use any leverage at all, as most competitors allow maximum leverage of 5:1. You can buy a stock worth $1,000 with just $100 at AvaTrade.
AvaTrade’s trading platforms are also a big plus for traders. In addition to offering a web and mobile trading platform, the broker offers charts, stock news feeds, alerts, watchlists, and more.
In addition to automated trading, AvaTrade has a stock earnings calendar to help you track upcoming reports.
5. Absa Stockbrokers
Absa Stockbrokers may be interested if you are looking for JSE stock brokers. You can even buy shares in some of your favourite South African companies through the South African platform because it simply gives you access to the domestic stock exchange.
Additionally, Absa offers a wide range of JSE indexes, making it very popular with South Africans. Stock markets allow you to speculate across a wide range of companies rather than buying individual shares. Additionally, ETFs can be used to diversify your portfolio.
Brokerage fees will be charged on shares bought on the JSE at a minimum of 120 rands for shares in JSE companies. Lastly, there is a 75 rand plus VAT administration fee each month.
When three or more traders are placed in the same month, you will not be charged an administration fee. However, a minimum of 60 rands is required for ETF fees of 0.2%. Absa Stockbrokers also offers access to numerous international stock markets.
With 178,000 clients in over a dozen countries, including South Africa, IG is a leading brokerage firm in the UK. Customers can trade shares and CFDs on the platform.
You can trade CFDs with IG from the comfort of your home to gain access to the South African financial markets.
Most of the JSE 40 index companies fall into this category. Anglo-American, Anglo-American, Naspers, BHP, and Sasol, for instance, are all available for trading. In addition, you will be able to place buy and sell orders and use leveraged facilities, similar to Plus500.
IG offers you the opportunity to speculate on the short-term price movements of the JSE 40, as well.
IG has very competitive fees when it comes to trading. Nevertheless, this is only possible if you are trading in reasonably large volumes. Minimum commissions apply here.
In this case, IG charges a 0.20% commission on the total order value. The minimum amount is 100 rands. As a result, it offers some of the most competitive spreads for trading share CFDs. In this regard, the firm’s fees must also be considered.
Are South African stock brokers safe?
Ask any South African stockbroker whether they are safe, but note that it depends on their respective provider. On the other hand, other platforms are relatively new and lack experience.
Therefore, we recommend joining a share broker with only a tier-one licence. The fact that institutions like the FCA (UK), ASIC (Australia), and CySEC (Cyprus) are highly regarded is one of the primary reasons why South Africans opt for an international platform.
When you choose a stockbroker who holds at least one of the licences mentioned above, you will receive the following benefits:
The broker’s working capital is held separately from the client’s funds in segregated bank accounts. In theory, this means your funds would be safe if the platform went under.
Regulations against money laundering require platforms to verify all users’ identification per regional and national regulations. Therefore, providing proof of address and your passport/driver’s licence is required.
Brokers licensed by tier-one regulatory bodies must clearly explain the risks of investing. So you can avoid investing more than you can afford to lose by doing so.
If you work with a domestic brokerage house, ensure their platform is FSCA-licensed.
The best stockbrokers in South Africa: where to find them?
You may encounter a new platform that we have not reviewed, despite our extensive coverage of the best stock brokers in South Africa. Therefore, before joining the broker in question, you should explore a few metrics.
The following are included:
- Regulation: As discussed above, you should only register with a regulated stockbroker. ASIC or the FCA are reputable licensing bodies to look at. But, again, make sure the FSCA regulates the broker you choose if it is domestic-based.
- High commissions and fees: Brokerage fees can add up very quickly – especially if you’re attempting to build up an extensive portfolio of stocks. Therefore, you should consider the share dealing fees you will need to pay. Of course, your ideal broker would not charge commissions, such as Capital.com.
- Markets: You need to discover which shares are offered by the broker. Would you like to buy shares in companies listed on the JSE or overseas? Before signing up, you can investigate this.
- Tools: Trading tools vary widely between brokers. Libertex, for example, has tools such as a news feed, an economic calendar, and artificial intelligence to analyse your trades. IG (IG) is a broker that supports MetaTrader 4, which offers a wide range of advanced charting and analysis tools.
- User-Friendliness: Some brokers are more suitable for experienced traders, while others are more suitable for beginners. On the South African share brokers’ website, you can generally understand their target audience.
- Support: Having the ability to contact a dedicated customer service team is vital. Ultimately, this will be a significant investment. While many South Africans prefer live chat to obtain assistance, some prefer to talk on the phone.
Listed above are not all the essential metrics. A good stockbroker will take time to research before you decide to work with them.
There are various online brokers available to South Africans. Here, traditional share trading platforms and more advanced instruments such as stock CFDs are included.
Before signing up with a stockbroker, it is essential to ensure that they are suited to your specific needs. In addition, it should consider all the fees, commissions, tradable shares, and payment methods offered by the platform, as well as regulations.
Across all of the metrics we examined, Capital.com topped the list. You’ll also be able to buy shares on a commission-free basis since the broker is heavily regulated and offers a lot of shares.
Jason Morgan is an experienced forex analyst and writer with a deep understanding of the financial markets. With over 13+ years of industry experience, he has honed his skills in analyzing and forecasting currency movements, providing valuable insights to traders and investors.
Forex Content Writer | Market Analyst