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Share Trading Finder™ – Compare Online Stock Trading Accounts
Want to trade South African and global stocks without paying a fortune in brokerage fees? We can help you find the right share trading platform for you.
Online stock trading makes it easy and affordable for anyone to begin investing in stock through the Johannesburg Stock Exchange (JSE) and other markets. Brokerage fees are an important factor when comparing trading platforms, however there are other things to consider too. While share trading accounts tend to highlight their lowest available brokerage fee, this is usually impacted by how often you trade and how much you trade. Some accounts also have monthly inactivity fees if you don’t place any trades for a specific period of time.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
Shares or stocks represent partial ownership of a company and they’re sold in order to raise funds for that company’s expansion. Shareholders buy and sell shares through stock markets, such as the Johannesburg Stock Exchange (the JSE).
A company’s stock price changes several times throughout the day as people buy and sell the stock, so most shareholders aim to buy a stock when they’re low in cost and sell when the price of the stock increases to make a profit.
Where do I trade stocks in South Africa?
For South African-listed companies, all trading is done through the JSE, which lists almost 400 companies. Overseas stocks are traded on a variety of exchanges, including the New York Stock Exchange (NYSE), the NASDAQ and the London Stock Exchange (LSE).
How do I buy stocks in a company?
In the pre-Internet era, the only way to buy or sell shares was by hiring a full-service stockbroker, which could be expensive and time consuming. Today, investors can buy and sell shares themselves through online trading platforms with the click of a button.
Using an online platform is far cheaper for individual investors than using full-service brokers. When you buy shares online, you’ll pay a brokerage fee for each transaction, which typically ranges from R70 to R100 for JSE trades, as opposed to R200 to R300 for full-service brokers.
The standard JSE trading hours are 9am to 5pm GMT+02:00 Monday to Friday, while other global exchanges keep similar hours. Along with shares, you can trade in index funds such as exchange traded funds (which track the performance of a range of stocks) and other products.
Unlike with many other trading markets, there’s no minimum amount of money that you need to invest when buying shares in a company on the JSE, however there are other cost considerations to take into account. If you decide to use a stock broker then they will charge a minimum brokerage fee depending on the transaction value. To buy stocks online, simply open an account with an online stock trading platform.
How can I make money from shares?
There are two main ways to make money from stock trading:
- Capital growth. If you can sell your shares for a higher price than what you paid for them you’ll make a profit. This is known as capital growth, given that your initial capital (your shares) has increased in value. This is possible both with short-term investments (where you sell the shares after a brief period of time) and over longer periods.
- Dividends. Some (but not all) companies pay regular dividends to their shareholders, based on the amount of profit they make, which can provide an ongoing income stream plus tax advantages for certain investors. Dividend payments are a great form of passive income and it means investors may never need to sell their shares in order to make a profit.
What is a blue chip stock?
Blue chip stocks are large companies that are financially strong and have a solid track record of producing good earnings to shareholders. Typically, they are industry leaders and household brands. Investing in blue chip shares could be a good strategy for beginners, as they are usually considered to be very stable and have been in the market for a long time. For example the large manufacturers like Sappi and Tiger Brands are considered blue chip shares.
How can I choose the best share trading platform for me?
When choosing an online share trading platform, consider the following factors:
- Broker fees. This is the fee that is charged every time you buy and sell shares. Brokers charge different fees depending on the product you’re trading (e.g. global shares, local shares, options), how often you trade in a month and the size of the trade.
- Monthly fees. Some broker’s charge ongoing subscription fees or additional inactivity fees if you don’t make any trades within a certain period of time. This may or may not suit you depending on your trading requirements.
- Availability of advice and research options. Online brokers sometimes offer market news and updates, as well as other research tools that will let you investigate the trading history of individual stocks.
- Integration with bank accounts. Some services let you transfer money easily from your trading account to a transaction or savings account. Others offer linked debit cards to use with your accounts.
- Access to global markets. If you want to invest in offshore exchanges, such as the New York Stock Exchange (NYSE), check what options are available with each service.
- Foreign exchange fees. If you’re interested in trading global stocks, you’ll want to check what the foreign exchange (FX) fee is for converting your ZAR to the foreign currency of choice.
- Other trading options. Other products offered by some online brokers include forex, CFDs, managed funds and options trading.
- Customer support. Check what level of customer support is available, what hours it’s available and if the support team is based locally in South Africa. This is particularly important for new traders.
Tips for online stock trading
Here’s some tips to help get you started:
- Read the news. It’s important to stay up-to-date with the broader economy, and learn how major events such as national elections impact the share price of various companies.
- Research companies before buying. If you want to buy shares in a company, research as much as you can about the company before making your final decision. It’s a good idea to read the company’s annual reports and meeting minutes to learn what’s in the pipe-line, and what changes will be made that could affect their share price.
- Consider blue chip companies. This is good strategy for people new to the share market, as blue-chip often have more stable returns, are less volatile and often pay dividends.
- Diversify. Say you had R50,000 to invest in the share market. Rather than invest it all in one company, consider spreading it out across a few companies from different industries. Diversification will help lower your risk, and ensure you don’t have all your eggs in the one basket.
Share trading glossary – learn the key share trading terms and what they mean
- JSE: The abbreviation for the Johannesburg Stock Exchange, South Africa’s primary stock exchange
- Bear market: This term refers to when prices on the market are falling and further falls are expected to occur
- Blue chip stock: A blue chip stock is a large company with a steady history of turning a profit
- Brokerage fee: This is the fee you must pay to a share trading platform when you use the platform to buy or sell shares
- Bull market: Opposite to a bear market. This term applies when share market prices are rising and expected to continue to rise
- Contract note: This confirms a buy or sell transaction and includes details such as the type of share, the price paid and the quantity traded
- Dividend: Companies can distribute their profits or earnings to shareholders in the form of dividends. A dividend is calculated as a number of cents for each share you own
- Float: The initial raising of capital through public subscription to a security
- Fundamental analysis: This involves analysing the financial statements of a business to determine its overall financial standing
- Futures: Futures are contracts to buy or sell an asset at a specified future date
- Limit order: A limit order specifies the maximum (when buying) or minimum (when selling) price you are willing to accept for a share transaction
- Listed company: Listed companies have shares that are purchased and sold through the JSE
- Live price: This is the price of a share at a precise moment in time
- Market order: A market order is an order to buy or sell a share at its current market price
- Short selling: This is when you borrow a security and subsequently sell it, with the obligation to buy it back in future at a much lower price
- Volatility: This reflects the amount of fluctuation in share prices
- Warrant: This gives its holder the right to purchase a security at within a certain time frame and at a specific price
- Yield: This is your return on an investment and is expressed as a percentage
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