What Time does Nasdaq Open in South Africa?

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You will be trading one of the world’s largest indices if you trade the NASDAQ from South Africa. As you know, the index includes American heavyweights like Apple, Amazon, Facebook, Microsoft, and Tesla. So you should know what time does Nasdaq opens in South Africa?

This guide explains how you can trade the NASDAQ from the comfort of your own home in South Africa. Aside from covering the basics, we will also discuss which brokers to use and NASDAQ trading strategies.

NASDAQ: what is it?

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In the global market, the New York Stock Exchange (NYSE) is the most critical share market for trading, followed by the National Association of Securities Dealers Automated Quotations, or simply NASDAQ.

Apple, Microsoft, Tesla, NVIDIA, Paypal, Amazon, and Facebook are just a few of the top technology companies listed on the exchange.

If you want to learn how to trade the NASDAQ completely, you will buy securities that track the index. NASDAQ 100, for instance, is a stock market index tracking NASDAQ’s 100 largest companies.

Quick steps for trading NASDAQ in South Africa

Below is a guide to trading the NASDAQ from South Africa.

  1. Opening a Capital.com account is the first step to trading the NASDAQ. To do that, you need to sign up with a broker that offers NASDAQ trading. We like Capital.com because it offers trading the NASDAQ through CFDs without commissions and tight spreads.
  2. Your second step is to deposit funds into your new Capital.com account. Alternatively, you can transfer funds from your bank account or by using a debit or credit card.
  3. Enter the NASDAQ into the search bar and click ‘Trade’ to go directly to the relevant trading page.
  4. You will now need to select whether to buy or sell a NASDAQ share. If you expect the index to decline, choose the latter and if you expect it to rise, choose the former. Once you have entered your stake, you can place the trade.

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Trading on the NASDAQ: A basic guide

This section will completely outline some of the most important considerations to make when trading the NASDAQ to ensure you have the best chance of making consistent profits.

1.   Indices

Indices – also known as indices – are financial instruments used to track the broader stock market. Dow Jones tracks, for example, 30 blue-chip stocks listed in the United States.

With the S&P 500, you can track 500 large-cap stocks in the US, and with the FTSE 100, you can track 100 companies on the London Stock Exchange.

In addition, there is the NASDAQ 100 index, which tracks 100 stocks on the same exchange. As the performance of the respective companies listed on the NASDAQ index changes throughout the day, the overall value of the NASDAQ instruments you are trading will fluctuate.

2.   Points of price movement

Individual stocks like Apple and Amazon are priced in US dollars. A NASDAQ index trade is, however, priced in points. NASDAQ 100, for example, is trading at 13,686 points at the time of writing. In other words, you should calculate your profits and losses in percentage terms.

As an example:

  1. Imagine you place a buy order on the NASDAQ 100 because you think that it will rise
  2. $500 is staked on this trade
  3. As part of your order, you will be charged 13,686 points for the NASDAQ 100
  4. The index trades at 15,054 points a few days later
  5. This figure represents an increase of 10%
  6. Therefore, your profit on a stake of $500 is $50

If you want to enter with a sell order, you can do so as well, as we discuss later in our guide to trading the NASDAQ. A short position on the NASDAQ is a bet that the stock will decrease in value.

3.   Weighting

Additionally, it is essential to understand how the NASDAQ weights its securities. The three biggest companies on the index represent over 28% of the total market capitalization. The top three are Apple (10.77%), Microsoft (9.62%), and Amazon (8.33%).

Consequently, these three stocks will impact NASDAQ value much more significantly than other NASDAQ constituents.

A NASDAQ weighting of 0.30% can be seen in the case of Paychex, Cintas, and Dexcom, for example. Due to this, you’ll need to pay attention to how the Big Three perform when speculating on the NASDAQ.

In addition to Facebook (4.10%), Alphabet Class C (4.03%), and Tesla (3.84%), other top-weighted stocks in the index include Facebook, Alphabet, and Tesla.

NASDAQ trading in South Africa: the best time

NASDAQ is open Monday through Friday, like most stock markets. Trading hours for the NASDAQ are 9:30 AM to 4:00 PM EST. The exchange is located in New York. Can I trade the NASDAQ from South Africa at any time of the day?

The time difference between New York and South Africa is six hours. Thus, NASDAQ trading hours are currently 3.30 PM to 10 PM in South Africa. In light of this, you can trade online on some platforms outside the NASDAQ trading hours.

In this case, the only problem is that liquidity will be substantially lower outside of usual hours. Therefore, your broker’s spreads will be less favourable as a result. Therefore, NASDAQ trading hours are the best times for you to trade.

Strategies for trading on the NASDAQ

The first time you begin trading the NASDAQ, create a trading strategy. Despite the hundreds of possible strategies, we outline a few appropriate for beginners in this section.

1.   Consider the most extensive weighted constituents.

Trading the NASDAQ 100 on a short-term basis requires you to be actively involved. Therefore, the focus must be placed on the NASDAQ constituents with the largest weight.

Amazon, Apple, and Microsoft will again be part of this. As we discussed earlier, these three companies alone contribute over 28% of the overall index.

Look out for quarterly earnings reports if you want to pursue this strategy. This section will report on NASDAQ’s progress over the previous three months. Reports to look for include revenue, operating margin, and operating profit.

The index will likely see a rise in value if one of the big NASDAQ players has a great quarter. As a result, the price of the NASDAQ might decline if the opposite occurs.

2.   Dollar-cost average

CFDs might be one of the more challenging methods of speculating on the NASDAQ when a novice trader. The best investment strategy for you is likely to be long-term.

If you want to be risk-averse, you should take the dollar-cost averaging approach. Your investment will consist of a small amount of money invested at pre-determined intervals in the NASDAQ.

  • Consider investing $100 each month into a NASDAQ 100 ETF.
  • Consequently, each investment will have a different cost price.
  • Consequently, you will yet not need to worry about short-term volatility since this cost price will average out on each subsequent investment.
  • Investing at a lower price is possible even if the NASDAQ declines.

If you use a broker that allows you to make small investments, the dollar-cost averaging strategy will only work for you. Capital.com is one broker we like because it will enable you to invest in a NASDAQ 100 ETF for as little as $50 per trade.

What do you mean by NASDAQ 100 forecast?

Comparatively to individual stocks, analysing the future value of the NASDAQ 100 is considerably more difficult. This is because there are more than 100 companies in the index.

What’s even more relevant is that the performance of these 100 stocks is what determines the value of the NASDAQ 100. Each of the pieces of equity is then weighted according to its performance.

That being said, the technical analysis still plays a significant role in NASDAQ trading, specifically when identifying support and resistance levels. NASDAQ 100, for instance, failed to break through 14,000 points on two separate occasions in 2021. For investors, this represents a physiologic zone.

A NASDAQ 100 trades at 13,686 points at the time of publication. As the index approaches the resistance line, it again approaches the lower end of the range. The NASDAQ could enter a prolonged bullish period if it breaches 14,000 points convincingly.

Nevertheless, if the index fails to breach 14,000 points once more, this could be an excellent opportunity to enter a short position – at least short-term.

NASDAQ brokers to consider

You should also consider your chosen brokerage site when learning how to trade the NASDAQ. NASDAQ trading can only be done safely by a regulated provider. So besides analysing core metrics such as fees, commissions, and payment options – you should also consider whether the broker offers both NASDAQ CFDs and ETFs.

Our review of the best NASDAQ brokers in South Africa for 2022 has already done all the hard work for you.

1.   Capital.com

Capital.com offers traders thousands of financial instruments through its CFD trading platform. You can also trade the NASDAQ 100 like stocks, ETFs, forex, commodities, and cryptocurrencies. In addition, Capital.com offers CFD instruments that allow you to trade this index fund using leverage and short-sell.

No commissions are charged on this top-rated trading platform, and the spreads are extremely tight. Currently, Capital.com is trading the NASDAQ 100 CFD market at just 1.9 points spread.

NASDAQ 100 ETFs are another option available at Capital.com. The ETF itself will not be invested in; instead, you will trade CFDs.

Payments can be made easier with a credit/debit card or e-wallet. For example, the minimum for a bank transfer is $250, but you can also deposit through a credit card.

The Capital.com stock app enables you to open an account, make a deposit, and track your stock portfolio. In addition, you can trade the NASDAQ with this top-rated broker since it is certified by the FCA and CySEC.

2.   Libertex

South Africa also has a CFD trading platform called Libertex. It is regulated and approved by the Financial Sector Conduct Authority (FSCA) and the CySEC.

We like that you can trade the NASDAQ 100 with this broker as there is no spread to pay. Because of this, the ask and bid prices of the index are equal, which makes it ideal for day traders.

Libertex offers zero spreads on the NASDAQ 100 but a small commission for this service. It stands at 0.036% per slide. Therefore, a position worth $1,000 would be paid a commission of $0.36.

Libertex also offers leveraged trading on the NASDAQ 100. There are three platforms that Libertex supports. The Libertex web-trading platform makes trading straightforward. Libertex is also available via the MetaTrader series – including MT4 and MT5 – for those who prefer more advanced features and indicators.

FAQs

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1.   Is it possible for South Africans to trade Nasdaq?

The time difference between New York and South Africa is six hours. This means that NASDAQ trading hours are 3.30 PM to 10 PM in South Africa. Hence, some online trading platforms will allow you to trade outside of the NASDAQ trading hours.

2.   What is the cost of trading NASDAQ in South Africa?

NASDAQ is available on their platform as USTEC. For NAS100 trading on Tickmill, you must deposit $100 to open an account. There is maximum leverage of 1:100 obtainable with this instrument and a typical spread of 1.93 (plus swap fees for overnight trades) with a minimum spread of 0.8 for 0.01 lot contracts.

3.   What are the options for buying NASDAQ shares in South Africa?

Find brokers who offer US stocks in South Africa. Register with an ID. Use a bank account to fund your account. Search for shares that interest you, then buy them.

4.   Is it possible to buy stock on Nasdaq?

Many securities are traded on the New York Stock Exchange and the Nasdaq. Investors can buy shares in public and private exchanges, but they cannot buy holdings through the index since they are both publicly traded.

Bottom line

This comprehensive guide teaches you how to trade the NASDAQ in South Africa. In addition to demonstrating the many ways you can trade this popular index, we also provided some of the best options to consider.

NASDAQ trading can be started by choosing an online broker and placing your first trade. We recommend using Capital.com as your NASDAQ broker since it offers leveraged CFDs and traditional ETFs. Each option requires a $50 minimum stake, and the platform has the industry’s lowest trading fees.

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