South Africa is far and away the most economically developed of African states, and, as such, will likely be the continent’s economic gateway for the foreseeable future.
Truth be told, however, the Johannesburg Stock Exchange (JSE) isn’t exactly the most bullish of markets these days. The MSCI South Africa Index has sunk more than 13% over the past 12 months after accounting for depreciation of the nation’s currency, the rand. In fact, the market is now at its lowest point in nearly two years.
But this isn’t necessarily bad news for value investors. Falling prices mean an increasing number of bargains are on offer. Earnings multiples are dropping and dividend yields are rising.
And because the Johannesburg Stock Exchange is one of the most sophisticated in the world, investors can scoop up these deals with a click of their mouse. The market’s accessibility and convenience make it an ideal place for new Africa investors to get their feet wet.
Here’s how to get started.
Comparison Shop South African Stockbrokers
Your first step is to open an account with a South African stockbroker.
Dozens of stockbrokers facilitate trades on the JSE, but only 12 offer online share trading to individual investors.
Online trading platforms are still relatively new to Africa, and they’re not a necessity to invest successfully there, but I find them more convenient. So, I limited my broker research to those that offer them.
I sent an email to each one, asking them if they catered to foreign investors, how much of a deposit they required to open an account, what documentation was required, and for a copy of their fee schedule.
Five of the brokers confirmed that they do take foreign clients and responded to my questions within three business days. I’ve listed them below with their minimum initial deposit amounts, monthly administration fees, and my calculation of the cost of a hypothetical ZAR20,000 trade through each one.
| Broker | Minimum Initial Deposit | Monthly Admin Fee | Fees and taxes on ZAR20,000 (roughly $2,000) share purchase |
|---|---|---|---|
| Anglorand Securities | $50,000 | ZAR121.46 (roughly $12.00) | ZAR270.96 (roughly $27.00) |
| Imara S.P. Reid | None | ZAR20.83 (roughly $2.00) | ZAR285.96 (roughly $28.00) |
| Nedbank Online Trading | None (but does charge ZAR250.00 account opening fee) | ZAR33.50 (roughly $3.00) | ZAR200.96 (roughly $20.00) |
| PSG Online | None | ZAR40.00 (roughly $4.00) | ZAR240.96 (roughly $24.00) |
| Sanlam iTrade | ZAR1,000.00 (roughly $100.00) | ZAR50.00 (roughly $5.00) or monthly brokerage in excess of ZAR300.00 (roughly $30.00) | ZAR235.96 (roughly $23.00) |
As you can see, commissions and fees are pretty comparable across all five brokers, but Anglorand requires a much larger deposit than its peers.
[Be aware that, for South African residents, value added tax is added to many of the above items. If you are not a South African resident, you should not be charged value added tax (VAT). If you do much trading, this can be a significant charge as it amounts to 14% of brokerage and fees. So keep an eye on your trading statements and ask your broker to refund any VAT should it appear.]
Discretionary vs. Non-Discretionary Accounts
Note that some of these brokers offer discretionary accounts. Discretionary accounts give brokers the authority to make trades in your account without the consent of the account holder. They typically are managed in a way that the broker believes is the best way to achieve the investment objectives and acceptable levels of risk that you specify. It’s like having your own personal portfolio manager. You might want to consider this option if you aren’t interested in doing your own investment research.
I’m a bit of a control-freak, so I personally prefer non-discretionary accounts. I want to make my own investment decisions and don’t like the idea that a broker could buy or sell my shares without my permission. If you’re at all like me, make sure you open a non-discretionary or “execution only” account.
What Documentation Will You Need?
To open an account be prepared to provide the following:
- Certified copy of your passport
- Bank details (i.e. a canceled check or a certified copy of a recent bank statement)
- Copy of a recent utility bill showing your physical address (not older than three months)
- Signed letter to your broker stating that you are not registered with the South African Revenue Service for tax in South Africa (some brokers may require your Social Security number)
You will also need to fill out a form or three for the broker that you’d like to open a trading account with. Here’s a rundown as to what else is required by each one.
- Anglorand requires completion of a 12-page trading mandate (only the first six are necessary for non-discretionary accounts) and a three-page particulars schedule.
- Imara SP Reid’s application is a 14-page monster. Fortunately, individual investors who wish to manage their own accounts can skip many of the sections.
- Nedbank, PSG Online, and Sanlam iTrade all offer nifty online registration applications. Find Nedbank’s here,PSG’s at this link, and Sanlam iTrade’s right here.
How to Fund Your Brokerage Account
After opening your trading account, your broker will provide you with its bank details so that you can fund your account and begin buying shares.
The most efficient way to do this is via wire transfer. If you haven’t sent an international wire before, I suggest that you take your broker’s bank details to your local bank branch and ask them to walk you through the process. They’ll make sure that your funds arrive securely. Note that most US banks charge about $25 for outgoing international wires.
Making a Trade
The actual process of making a trade varies depending on the broker you use, but from what I’ve seen their trading platforms look pretty intuitive. You simply buy and sell shares in a similar way that you would through an ETrade or TDAmeritrade account.
Collecting Dividends
In my experience, collecting dividends paid by your South African stocks is a piece of cake. If you bought the shares through an online broker, your dividends will deposited directly into your trading account. You can then decide whether to bring the cash back home or to reinvest them in the market.
Clear as Mud?
Do you have questions about investing on the Johannesburg Stock Exchange that we haven’t covered here? If so, let’s hear them in the comments!
Related Reading
The Case for Investing in South Africa
How to Invest on the Nigerian Stock Exchange
Ryan,
If one is willing to sacrifice on line trading for ease in setting up or in liquidating the account, one could trade on the JSE through Schwab or many other retail brokers. It is very straightforward using Schwab in the US: assuming you have funds in an account, just call their international desk and they can execute on the JSE. I have had good experiences with them on the JSE (and other more obscure exchanges).
Mike
Thanks, Mike! I had forgotten that Schwab will execute trades there. Have you used them on any other African exchanges? How much is the commission for JSE trades?
-Ryan
Is it possible too open an etrade account if you are from south africa
Unfortunately, they aren’t accepting any international clients at this time.
This post was very informative , simple and quick info that a young investor like myself can understand.
Hi,
Besides Investors Europe, are there any other brokers located in Canada that trade on the JSE, online?
Victor
I’m not aware of any, Victor, but that doesn’t mean they don’t exist. Are there any other Canadian investors out there who can help with this question?
Hi Ryan
I noticed that you have not mentioned any of the other banks in SA, like Absa, Standard Bank and FNB. They all advertise online share trading, and if I’m not mistaken Standard Bank offered this feature on its website around 2005. Are they not proper brokerage houses also?
I am in the process of selecting a broker and am looking for the best deal, but also the best quality in terms of charting/technical analysis.
Thanks
Hi Burhaan,
You’re correct. They all do offer online share trading, but I didn’t include them in this article because they didn’t respond to my emailed questions. It could be that I just slipped through the cracks. The brokers listed in the article all responded promptly and helpfully, so I thought they deserved a specific mention.
Good luck on the search and keep us posted on which broker you ultimately find to be the best for your needs!
Ryan
Hi Ryan
I would like to know if you would advise a student who does not get a monthly income to buy shares. Won’t the costs of maintaining your shares or account (let’s say they do not do well) overwhelm you?
Great question, Lewis. You’ve touched on one of the biggest dilemmas in personal finance. Young people have the most to gain from investing because they have the most time to allow their investments to grow. Unfortunately, young people also (generally) have the least amount of money available to invest.
While the cost of maintaining a brokerage account is typically quite small, there is no guarantee that your investment will increase in value over any given time period. Just look how the Johannesburg Stock Exchange has performed this year. It’s down 11% in US$ terms. That means $1000 invested at the beginning of the year is now worth just $890 – a loss of $110.
So, what to do? I usually suggest that you pay off all high-interest debt (anything with an interest rate above 10%) before even considering investing in the stock market. This could be a credit card at Truworths or a furniture loan from Lewis. Maybe a car or school loan.
Why pay off debt first? Because paying off debt is a GUARANTEED way to reduce your expenses. Stocks, on the other hand, are NOT guaranteed to increase in value.
Let’s suppose that you receive a gift of R1000 from your family. Let’s also suppose that you have R1000 worth of debt at an electronics store that carries an interest rate of 20%. This means that you are paying R200 worth of interest charges on that debt every year. If you paid the debt off, you would essentially be earning R200 — a return of 20%. If you decided to invest the gift in the stock market instead, the value of your investment would have to increase more than 20% that first year in order for it to be a better use of your money than paying off the debt. Is it possible that this could happen? Yes. Is it very likely? No. Take the guaranteed return by first eliminating your debt.
The other thing you should do before investing in stocks is to save up an emergency fund that is equal to at least six months of your living expenses (housing, food, transport, medical, school, etc.). Open a bank account and save up that cash for a rainy day. If your family should no longer be able to support you, or you are unable to find a job, that emergency fund can give you some breathing room while you look for a new source of income.
Only after you have done both of these things should you even consider investing in the stock market. And then I would advise you to invest for the long-term. Plan to invest for at least five years and preferably much longer. Start by investing in a diversified fund, like a unit trust, to reduce your risk. Then as your knowledge of investing grows, you might want to start investing small amounts in individual companies that you know well.
I hope this hasn’t totally frightened you! It’s great to begin investing in stocks at a young age, but pick the low-hanging fruit first. Reduce debt, open a savings account, and build a six-month emergency fund.
All the best!
Ryan
Brilliant advice. I always get this question from young friends. I’ll blog part of this to help my readers. Thanks for sharing Ryan.
Thanks, Peagama. I’m glad you found it useful. Keep me posted on how things go for you!
Brilliant advice, you answered some of the questions I was going to ask before I even did. I am also in the market looking for the best option out there and this is the first time I will be getting into the game. Thanks Ryan
Thanks so much for the feedback, Stanna. Happy to hear that you’re keen to begin investing. Keep us posted on your progress!
hi please i really want to buy and sell share i don’t know where to start please help me.
Hi Thabo,
Great to hear that you’re excited about the stock market. Here’s an article that can help you get started on the right track.
https://investinginafrica.net/heres-where-you-start/
Thanks alot Ryan, that was a profound advice now as a young man I know what to do.
Salutations
I’m glad you found it useful, Wiseman. Let me know if you have questions.
Hi Ryan,
I am a student with little monthly income, but debt-free. I wanna know how can i invest , how to find a broker, with how much money can be my capital(R5OO monthly income). I use Standard Bank by the way.
Kind regards,
Siyabonga
Siyabonga
Start with ETF funds first and build up some capital. Look at this website for a good overview and safe way to trade in ETF funds. http://www.etfsa.co.za/
Hi Ryan,
Thanks for the article – quite informative!
I’d like to ask about the reverse of your article – how does a south african citizen / resident go about investing in a company thats listed on the Toronto stock exchange?
Are there “DIY” (eg online) options? what are the regulations / where would I find out about them? what are the costs etc.
Thanks!
Kind Regards,
Shannon.
I would like to ask am a student and am 19 years of age in zimbabwe and am a Zimbabwean. I would love to invest in JSE. How do I get to invest in the JSE and what’s the minimum amount that I can invest.
Hi Jonathan,
As far as I am aware, Zimbabwean citizens are permitted to open trading accounts on the JSE. You can simply follow the instructions in the article above.
Many JSE brokers do not require a minimum deposit amount, but they will charge a monthly administration fee to keep your account open. This fee ranges from $2 to $12 per month.
Happy investing and let us know if you run into any trouble!
Ryan
I would love to invest in JSE. How do I get to invest in the JSE and what’s the minimum amount that I can invest.
Thanks!
Kind Regards
Bothwell
I also wish to practice investing with the JSE. I am a Lesotho citizen with Bachelor of Arts: Economics and Statistics, 31 yrs of age.
Glad to hear it, Posholi. Your educational background will serve you well! Let us know what questions you have as you get started.
Good day Ryan,
I have a question….Me and my father are using the anglo rand trader platform, we covered basic things such as the interface, drawing lines, studying candles and analysing possible strategies. I would like to know if there is a website or any media we can identify strong trading markets since we do this maybe 2 hours a day, we want to make it most affective to learn..and by the way, great site!!
I jst received an invitation from stock market college here in Lesotho stating that they mediate between me and the JSE, can I trust them with my money? I really want to get started to invest with the JSE, how can you advice I get started?
Hi Thandy, Ho joang? I’m afraid I’m not familiar with the stock market college in Lesotho. I would advise you to try to open an account with one of the brokers listed in the article. I’m pretty sure they will open an account for citizens of Lesotho.
Keep us posted!
Ryan
This really really informative, thank you so much. God bless. 🙂
Glad you found it useful, Vuyi! Thanks for stopping by.
Good day Ryan
Great, informative article, im still new at this and the Rand seems to be at its weakest so
I just need to find out, is it advisable to start investing when the currency (rand/ZAR) is weaker or when it is stronger?.
I wanna know how to invest/trade in JSE
Hi Ryan
I’m a young professional who wants to start investing in the stock market. A colleague has told me about satrix and that they offer minimum risk for investors. Is it safe in this day and age with our economy being so weak to start investing and is satrix a good choice for a beginner like me?
Regards
Warren
Hi Warren,
Your colleague is steering you in a sound direction, in my view. Satrix offers a number of ETFs and unit trusts which help diversify your risk while keeping costs low.
There’s not a lot of great economic news coming out of South Africa these days, but it’s important to take a long-term view. I’d advise that you invest a small, set amount at regular intervals (monthly or quarterly) in a diversified unit trust while you get your feet wet.
Satrix offers two well-diversified unit trusts that you might consider (http://www.satrix.co.za/products/unittrusts.aspx). The Balanced Index Fund is diversified across South African and foreign stocks, bonds, and property. The MSCI World Equity Index invests in the world’s largest companies, including Apple, Exxon, Google, and Microsoft and has very little exposure to the South African economy.
Hope this helps and keep us posted on how things go for you!
Ryan
Ryan
I have a question to ask. Is it possible that while investing on the JSE that a person can be paid from the interest rates of the investment monthly?
Hi Elton,
Good question. Yes, there are a few funds that pay a monthly distribution to their investors. You can find a list of a few of them in this article:
http://www.moneyweb.co.za/uncategorized/using-unit-trusts-for-monthly-income/
Happy investing!
Ryan
I own some South African shares, listed on the JSE, the certificates were issued in South Africa, can I trade them through a Canadian broker?
Hi Rhett,
It would be worth asking them, but I suspect the answer will either be “no” or only for a very large fee.
Thanks. The shares in question are listed on the NY exchange. does that make a difference?
That may make it easier, and it’s definitely worth a call to them. You might also check with a US broker, but I’m guessing you’ll likely need to work through a South African broker. Keep us posted on how things go!
Dear Ryan
What financial qualification do you have? The reason i’m asking is that you answer all questions correctly. Please send me your email i think communicating with you will be of great help in my journey to investing. I’m currently doing research on investments and thinking that as a novice we should start with collective investments like ETFS or Unit Trusts for a small amount of money before dealing with common stocks.
Looking forward to your kind co-operation.
Regards
If u have shares in a company that company was deregistered. Could you advise what happens to the moneyyou have invested inthe company.
Can u pls recommend a good stock trading trainer i may find around durban,trusted one.really want to do day trading
Thanks for your question, Ndumiso.
I don’t recommend day-trading. It is high risk and high stress. Very much like gambling.
Your odds of making money in stocks are best when you focus on the fundamentals of the underlying business. Think of yourself as an owner, and buy a business that is profitable, with low debt, and that is easy to understand. Then hold on to the shares and let the business work for you.
All the best!
Ryan
Ryan, thanks so much for posting! I was wondering how to make such investments as Bonds and CD’s (if available) with different FI’s in Africa…? Is there an institution in particular that you recommend? Are there brokers that you can recommend. Is the process the same as it is here in the US? For example, we can walk into the B of A (without a broker) and open a CD or Bond.
Hi there
Thank you very much for the info. I came across the info while I was doing my research on investing in shares. I would like to find out if one decides to open an account with maybe Nedbank stockbrokers, does one have the option to even buy shares like Calgro M3? What I mean is, does it limit you only to unit trusts?
Regards
Hi Brenda,
Yes, you can buy shares of Calgro M3 (one of my favorite South African stocks, btw) or any other JSE-listed company through a broker like Nedbank. They will not limit you to unit trusts.
Great question and happy investing!
Ryan
Thank you very much, Ryan. Another one, I have a unit trust that I track every day. One day it goes up with R5 or more. The next day it’s lower. I fail to understand how that works. Say I want to sell my units, do they come with a certain price that I do not know of? Or will I cash out the balance that I see every day? I love your site, Ry.
Another excellent question, Brenda. Thanks!
Unit trusts are a collection of shares of many different companies. Every day the stock exchange is open, people buy and sell these shares. If the news about a certain company is good, the price of its shares will typically rise because investors believe that the company is more valuable than they previously thought. And, if the news is bad, the price of the shares will typically fall.
It’s a bit like owning a cow or a horse. If your neighbor sees that your cow is becoming very strong, healthy, and producing a lot of milk, he will probably be willing to pay you more for it. If, however, he sees that the cow is becoming sick or thin, he won’t be willing to pay as much.
A unit trust is like a herd of cows. Each individual cow (or share) has its own value. To determine the value of the entire herd (or unit trust), you sum the values of all the individual cows in the herd. And because the cows’ (shares’) value changes on a daily basis, so does the value of the entire herd (or unit trust).
So, when you sell your units, you will be selling at the price that investors believe the underlying shares of your unit trust are worth on that particular day.
Hi
Thank you very much Ryan,
I am learning a lot from your site
Hi, I would like to know if the JSE encourages South Africans to invest directly with them. I received a call the other day from a lady who claimed to call from the JSE, and she told me that one of their brokers would like to make a presentation on how to invest with the JSE without the help of a middleman, the appointment did not materialize, however.
Hi Emsley,
As far as I am aware, you must have a brokerage account to trade on the stock exchange. It’s not possible to purchase or sell shares on the JSE without one.
Hi, Ryan. I’m a bit of a pessimist with regard to stock trading, but I am becoming more interested. Are there people you can mention who have acquired millions through stock trading, in South Africa or anywhere else?
Hi Phillip,
Great question!
In my opinion, pessimists make the best investors. They are always on the lookout for potential problems and generally steer clear of over-hyped, over-priced stocks, focusing instead on bargain companies that may be boring but churn out steady profits year after year after year.
This is the strategy that Warren Buffett used to amass a multi-billion dollar fortune in the USA. He buys shares of good companies at good prices and holds them for a very long time. The same strategy can be employed in South Africa, Kenya, Nigera, and anywhere else where there is an active stock exchange.
Thanks Ryan was wondering where i can get such info
Good Day
Being French and living in South Africa, I was wondering about two things.
1. Is it possible to own a share account or to do online stock broking linked to a business account ? The idea would be to own share via my consulting company. A way to invest the profits of my company.
2. Is it possible via the recommended brokers to own share on other markets : China, Nigeria, Ghana, France, USA ?
Thanks a lot for your answer !
Hi Ryan, on your list of doc requirements to open up an account, one of them says, ‘signed letter to state one is not a registered with SARS for tax’ ….I don’t understand what would happen if one is? I have a tax ref no & registered.
Thanks.
Hi Kiren,
The article is written from the perspective of a non-South African. If you are a South African and registered with SARS, you will just need to supply the broker with your tax number where requested.
Happy investing!
Hi ryan how does x~forex work?
Hi Mpilo,
Xforex is a program for speculating on currency movements. This involves high risk and I don’t advise including it in your investment approach. Much better to invest in shares of a great company at a reasonable price and hold them for the long-term. Hope this helps and happy investing!
Ryan I would really appreciate your help in the following.
I purchased shares in protea holdings in 1973 I lost my certificates and after several house moves I found them again.
I would like to know how to pick up my dividend cheques over all those years and also how to sell my holding. Thank you in anticipation. Cheers. Alan
Hi Alan,
That’s a tough one.
As I understand it, Protea Holdings was acquired by the Malbak Group in the mid-1980s. Malbak was then eventually acquired by Nampak about ten years ago. Lots of share unbundling happened along the way.
Your best resource for tracking down the value of your shares and any dividends due you will be a local stockbroker. You can try one of the brokers listed in the article above or choose one from this list. If you aren’t able to find a broker willing to assist, you might contact Nampak’s share registrar. Their details are:
Computershare Investor Services (Pty) Ltd
70 Marshall Street
Johannesburg 2001, South Africa
(PO Box 61051, Marshalltown 2107)
Telephone +27 11 370 5000
Telefax: +27 11 370 5487
Hope this helps and please let me know how things work out!
Hi Ryan, thanks for your advice. I will keep you informed of the outcome. Cheers. Alan
Dear Ryan
I’m interested in buying shares from computerwholesalers sa because the business seems profitable, with low debt, and it is easy to understand. But the problem is security because the company is not listed with Jse. If the company become insolvent or liquidated how i’m i going to get my shares?
Hi Ryan. .im Zimbabwean living in south africa and I would like to invest my money starting with say R10 000.What low risk high return investment can I start with..thanx
I want to invest on the Johannesburg Stock Exchange.
Terrific! Best wishes, and let me know if you have any questions, Coceko.
hi i also want to be a part of jse my problem is im blank i dont know where to start any help please im a student
It’s fantastic that you’d like to begin investing.
Here are a couple articles that will help you understand the stock market and some things to consider before you purchase your first shares.
https://www.investinginafrica.net/2013/02/what-is-a-stock/
https://www.investinginafrica.net/2013/11/stash-cash-investing-african-stocks/
I hope these are helpful. Let me know what questions you might have after reading them.
Hi Ryan,
Thanks for this very informative platform you’ve availed.
Please advice, I’m based in DUrban and a guy from London School of Investing (do you know them) approached me to start investing on the JSE directly, they ask for about R17000 to set me up with a software for trading online, a device to notify me of good buying and selling times and even a person who will help me make like 40% profits monthly for the first 6 months. They even told me theres a company CTI who will fund that R17000 and I’ll have to pay instalments which they say I will definatly make on profits (minimum 40% monthly).
To me this is news but I am looking to start investing and make some profit as everyone does. Is this all legit and is it advisable to go this route or is there any different advice that you can offer ? Thanks
hi Ryan
please can you confirm if this London School of Investing is legit or not because the presentation done by the consultants sound so confincing.
how can teenagers with a passion for investments get involved in the exchange world
Hello guys
Remember in value investing its not just about buying a good well established profitable company.
The shares of this company should be trading at a discount to their instrinsic value hence providing you what is know as a margin of safety.
Read about Seth Klarman and study value investing intensely for a few months before investing in shares.
Im turning 18 on the 21st of september and ive been studying value investing, private equity and hedge funds since i was 14. Last year i opened up a virtual portfolio on the LSE and whilst the FTSE 100 returned under 4% i made a return of 18%+, value investing works great if you have any questions please do ask i would like to share my knowledge i have gained
To Ryan Hoover, well done your article and comments are really informative and now his is my question
Im half ghanaian half british and i took my IGCSE and A level in Ghana fortunately i passed my A levels with an A in Accounting, B in Economics, B in AICT and B in business studies
Since i am very interested in finance like most people commenting here and i love the african continent i decided to apply to a south african university to get a BCom in Accounting then move into investment banking.
Ive been doing extensive research on listed companies in south africa and found a few comapnies that i believe are bargains and would increase in value to reflect their true prices
My problem is im coming to South Africa from Ghana in January and i would only have the equivalent of a 1000 Rand so which online broker offers the lowest trading costs and admin fee
Please get back to me as soon as possible
And i would be going to Nelson Mandela Metropolitan University In Port Elizabeth so incase any of you guys by any wild chance leave close we could discuss our ideas on finance
Once again thanks alot Ryan Hoover
Dear Lee
Since you have R1000 you can trade via Sanlam ITrade.
Hi Lee
I’m studying at the university that you will be attending and will be there next year as well.
If you would like hit me up at artkudzai@gmail.com and we can discuss.
Would really like to meet you.
Hello Themba
Yes but in order to protect my investment from random short term market fluctuations i would buy a diversified portfolio of undervalued stocks(not overly diversified) probably 6 or 7 shares
The cost of each transaction summed up might probably be over R100 and that would eat away 10% of my initial capital for investment im looking for the cheapest possible online broker with the lowest fees and no advisory services. Thank you for your suggestion through
Hello Gooner
I would be very glad to meet you. Oh wow i have hundreds of questions to ask. Im glad you are interested in investments usually I’m the only one anywhere i go who has studied about investments anyplace i go.
I was a bit fortunate my dad saved and sacrificed a lot for me to go to a private school in Ghana but everyone was always just interested about parties, spending money and becoming more popular even through their parents owned quite large businesses, probably the wealth made them a bit lazy in studying so i ended up gaining the best business student of the year award.
Im really excited about coming to South Africa, its my first time leaving Ghana since arriving in Ghana when i was 4.
I don’t regularly use my email but you can send your whatsapp contact to leeasumah@yahoo.com
and i would get back to you right away
I’f your not on whatsapp then no worries i would use my email, I’m just very excited to experience a new environment
hi Ryan
i have entered in to the virtual trade game online on JSE website, this is the interesting way to understand how stock markets work but i have few questions i need some clarity on.
1. when buying shares of a company what important things to first note other than earnings per share, P/E ratio and capital growth?
2. when reviewing a company profile you’re given market statistics of which there is dividends yield, earnings yield, 12 month high and 12 month low. i do not really understand what is this 12 month high and low all about, can you please clarify on this regard?
thanks in advance.
Good day
sir i’am a 24 year old male i’ve been asking arount for varius investments in and out of banks with no luck to satisfy me.so sir would like to ask you i want to start to invest R15000 from next year in (ETF)SA but can i buy a lumpsome of R5000 three times with that very same R15000 divided 3 times so if possinle how can i get information like the ones you’ve been giving people i’am based in potchefstroom north west pleas if possible sent me information on my wmaol address clifford.galant@gmail.com i would realy appritiate
Thanks
lebogang
Dear Clifford
With R15000.00 you can have diversified portfolio etfs. Invest in SATRIX 40(top 40 blue-chip shares), SATRIX INDI(25 industrial shares), PROPTRAX(16 property shares). Happy investing.
Thanks
Themba
hi guys, i am a university student and i am very interested in the stock market and i am willing to start investing. my question is what minimum amount do i need to start investing?
Dear Jethro
You can invest any money starting from R300 monthly debit order or cash lumpsum of R1000 depending on the product.
Thanks
Themba
Greetings,
I’m a University student. I want if it’s possible for me to buy shares directly from JSE without having to involve a broker?
Dear Mukhethwa
Unfortunately you cannot invest directly without the Jse securities trader certificate.
Thanks
Themba
I would love to invest in JSE. How do I get to invest in the JSE and what’s the minimum amount that I can invest.
Thanks!
Kind Regards
Hi Ryan
Your website is so informative.
I am a young lady of 23 and am in a sales and beauty industry at the same time am very interested in buying shares.The thing is I don’t have enough information, how does one invest, are there any classes ?
Hoping to hear from you soon
Dear Ntswaki
As a novice i suggest starting with mutual funds like etfs which are traded on jse as they are less risky and learn while investing. But if your interested in common stocks, you have to register through a broker. You can also contact SAIFM if you’re interested in trading in shares.
Thanks
Themba
Themba, how did you take over from Ryan? I am happy that you are answering our questions and giving great advice. What are your credentials?
Thanks for keeping the discussion going.
Thandi
how can teenagers that are passionate about the business world and have the financial advantage get involved in the exchange world
interesting
Thanks! I’m glad you liked it, Gift.
Hi Ryan,i am interested in investing in jse but do not know where to start as presently i am still having some debts to pay really i want to start immediately so that i can making money to pay off all my debts,please help me how can i do that as i am hoping to pay off all my debts by the end of the year(2015).
Hi Ryan,i am interested in investing in jse but do not know where to start as presently i am still having some debts to pay really i want to start immediately so that i can making money to pay off all my debts,please help me how can i do that as i am hoping to pay off all my debts by the end of the year(2015. And I would like to find out if its true that I have to buy the software that cost R18000.
Thanks
Hi ryan,im 52 years and jobless for the past 8 years and believe me ,im desperatly looking for a job in building or the mining industry. Since im jobless i would like to invest money and could you tell me where to start,and what should my monthly income be when investing 500000 since i dont want to touch the money but i want a income from it,until maybe one day i manage to find a job.
Lukily i have no dept that is outstanding other than fhone and munisipality bils. Looking forward to your answer
Daan uys
Hi Ryan
I am also a young professional looking to invest on the JSE. What to you make of platforms such as EasyEquities? I’ve heard good and bad things about it which may be rumor or fact, I’m not sure. It seems like an easy way to do things without having to go directly through a broker. Is this a good way to get involved?
Thanks
Dear Ryan
I am a student at University studying. I am interested in investing a sum amount of money. I need to start a business after completing my studies. I need to know who can I contact or where to start and how things go when I just invest 50000 for a start. I saved enough to cover my fees till completion and covered my debts thank you
Hello everyone, I was wondering if there is any chance I could start my “career” or a living out of the JSE. I’ve been interested in stock markets and stock exchanges for some time now and thought why not try my luck, maybe something could happen out of this.
I am still very young, even younger to even be interested in stock markets because I am 17 years old this year and I am in matric (grade 12). I’m interested in studying Business Administration and hopefully furthering it!
I would like to just thank Ryan for his patience. Ryan so many questions and you are very kind to respond to everyone. I have bookmarked ur page and will use all the links u provided in order for me to start buying stocks in SA although I live in Canada.
Thank you, Lucy! I’m happy to share what I know and am so glad that people find the info useful. Don’t hesitate to ask if you have questions as you begin to invest. Would love to hear how the process goes for you.
Hello Ryan I wanna invest and I’m in Johanesburg. who should i contact or should I go to Johannesburg stock exchange?
Hi Ryan
Please answer the question about London School of Investment. Im interest in buying shares and i as approched by their consultant. Are they legit?
Hi Brenda,
I’m not fully acquainted with London School of Investment, but I do know that they are not registered as a stockbroker with the Johannesburg Stock Exchange. If you are new to investing, I advise that you start by opening an account with a registered broker. I’ve found the brokers listed in the article above to be quite helpful and to offer a reasonable fee structure.
Hello I’m from Dbn. I want to share my investment on Jse with you hopefully it helps. I have registered with my local bank Eg Standard Bank. online share trading. I have my own pc which I have log on details that takes me directly to the trading page. I transfer money’s from my Standard bank cheque account to my trading account which you can setup when registering. Once you have done research on a share and ready to buy you just click away until your trade is matched.there are many many features that you will need to learn that will help you ..There are also free course you can attend …I’ am doing pretty well with my investing and having control of my finances , You have to learn n read alot.Exciting Thnks
Fantastic. Thanks for this, Dante! It’s great to hear some user feedback on Standard Bank’s online trading platform.
How can I invest R160000.00 pension fund and how much can I get per month?
Hi, Ryan
Am 26 years old, live in S.A I want to start this business i think I have enough capital to start trading/ investing on stock. Please asisst me with the whereabouts and which broker can genuine help me in to start making money for my family as a starter.
Sydney
Thanks for your message, Sydney. It’s great to hear that you’d like to begin investing.
For beginning investors, I think PSG (https://www.psg.co.za/wealth/stockbroking) and Nedbank (https://nedbankonlinetrading.nedsecure.co.za/) both offer very good and affordable brokerage platforms. They also produce research which can be helpful when deciding which shares to buy.
hi, ryan am a 21 years and i want to start an abattoir ,and i don’t have capital for a start ,now how do i raise capital?
hi Ryan,
I’ve been going through everyone’s posts and I seem to be lost. I’m new to investments. I’m trading forex using Meta Trader4 and planning to trade commodities some time next year. As a result, I would like to know the difference between trading on the JSE and day trading?
Dear Ryan, I want to invest my 1 million rand as I got it from GEPF. What should I do? Please help.
Hi Paul,
Thanks for your question and congratulations on what I presume is your retirement!
As you plan your next steps, you will first need to be clear on your average monthly living expenses. The following article can help you with that.
https://investinginafrica.net/heres-where-you-start/
When you know how much you spend in an average month as a retiree, I would set aside 12 months of living expenses in a savings account at your bank. This money should be available to you within a day or two. So, if, for example, you spend a total of R10,000/month on housing, food, medical, transport, etc, I’d suggest putting R120,000 in a savings or checking account.
Next, set aside the money you will need over the next 2 – 5 years in fixed-term savings accounts or CDs. Capitec Bank has some nice options here: https://www.capitecbank.co.za/global-one/save/rates-and-fees. If your average monthly living expenses are R10,000, I would put R120,000 in a 12-month deposit account, R120,000 in a 24-month deposit account, R120,000 in a 36-month deposit account, R120,000 in a 48-month deposit account, and R120,000 in a 60-month deposit account.
With the funds you have remaining after that, I would suggest investing in an exchange traded funds (ETFs) that provide some dividend income. Here’s one that invests in a basket of the JSE’s most consistent dividend-paying shares:
https://investinginafrica.net/south-africa-dividend-aristocrats-etf/
This will help diversify your risk while still giving you the upside potential of investing in the stock market.
I hope this helps and all the best to you!
Great article Ryan. It was very informative
Lumela hle Ryan
Would also like to start investing and one broker said A software costs R16 000, and If I start buying shares for around R3000 as a lump sum will get around R900 per month which can be able to pay my debt if say i took a loan – told them i dont want a loan nor credit! Would either start with a lump sum or a monthly debit. Kindly advice as I would love to start investing/ trading in JSE- I dont have debts and dont want any. How does this software work?.. Tx in advance..
Khotso, Alina! Ho joang?
I would strongly advise you not to do business with this broker. It sounds like a scam. There is no reason for you to spend any money on software to begin investing, let alone R16,000. And, I’m going to be blunt, if anyone assures you of R900 per month on a R3000 lump sum, they are lying or simply don’t know what they are talking about. Run away from this broker, Alina. Run away!
If you want to begin investing. The cheapest, most efficient way to do so is to open an account with one of the reputable brokers listed above. Then, invest in a broadly-diversified ETF, like the Satrix 40. This will allow you to begin investing while keeping your risk and expenses low. As time goes on and you learn more about investing in shares, you can begin to invest in individual companies. But my advise is to never, NEVER pay for “trading software.”
Hope this helps and thanks for the question!
Thank you so much for the info, kea leboha Ntate!…
Hi I would like to start investing in the Shanghai Stock Exchange or in the A-shares available to non-Chinese residents. How do I find a broker who will take the investment in ZAR and invest in Yuan or RMB for me? Also need guidance on investing in mutual funds of single shares. Thanks and regards, Bronwyn
hi ryian
i just wanted to get a summary brief of investing in jse company and i would realy like to know the formulars and outcomes of investing. when am i going to get the whole inested amounts and how much is the interest every month. i am kind of clueless can you please advice.
HI! Ryan
I would like to get clarity about the monthly fee paid to the broker.Its the monthly fee that i will be paying to the broker,is it the one that will be buying me shares when there are any shares available or is to keep my account active and when the are listed shares the broker inform me?
Hi Lebogang!
The monthly fee keeps your trading account active. In order to purchase shares, you must submit additional funds. You then inform the broker which shares you would like to buy with these additional funds. In most cases, this is all done via an online platform.
Thanks for the great question. I hope this helps to clarify things!
Thanks Ryan
Hi, I would love to ask, how much do I need to start investing?
Hi Joseph,
Technically, you need only enough to pay your monthly administration fee (usually about R50.00 depending on the broker) plus enough money to buy shares of a company. The price of a share of a company varies widely. It can be as little as R1.00 per share for a company like Interwaste or R170.00 per share for something like Shoprite.
Share prices go up and down from day to day. So, investing in them involves a high degree of risk. I would advise investing in shares only if you have some money that you will not need for the next five years. Here’s a series of articles that you may find helpful as you considering investing at the JSE.
https://investinginafrica.net/heres-where-you-start/
If you have any questions after reading them, just let me know in the comments!
Hi! I want to start investing in jse please help me out. I’m in Lesotho.
Hi John,
Ho joang? Great to hear that you’re interested in investing. Here’s an article that will help you get in a position to begin.
https://investinginafrica.net/heres-where-you-start/
Let me know in the comments if you have questions after reading it.
Hi there Ryan
I’m a 19y/o first year student at Stellenbosch Uni and I’m incredibly interested in investing my money. I don’t earn an income, however I’m at res during varsity and my parents provide me with R4000 a month to spend – i’d like to save 600 of that 4000 monthly. During the holidays I shall work as a waiter and make extra money on the side for additional savings. Im at the very beginning, where do you suggest I take it from here?
Thank you!
Hi Rogan,
Excellent question, and I applaud you for taking time to make a plan for how to use the resources you have at your disposal.
Here’s an article (the first in a series) that should help you get started.
https://investinginafrica.net/heres-where-you-start/
If you should have any questions while reading them, please let me know in the comments!
Great website ryan!
Thanks, Sbu!
by sir
I am young man from gauteng I just got a paying job earning +-25000 monthly . I want to invest in shares but don’t know were to start please help
Congratulations on the new job, Nelson! Here’s an article that I would recommend that you read before you start investing in shares.
https://investinginafrica.net/heres-where-you-start/
Let me know if you have questions and all the best to you!
I am a looking at investing, but I do not have the time to be chasing after performing shares etc. I am in the diaspora and my job involves a lot of travelling so much that l hardly get time to do some things. I would like to know which company has reputation to do trading on my behalf
Hi Joseph,
You raise a good point. Investment research can be time-consuming.
Exchange-traded funds are one way to get instant diversification while keeping investment costs to a minimum, and some have assembled excellent long-term track records. Here’s an article on a couple of them that may be of interest to you:
https://investinginafrica.net/south-africa-dividend-aristocrats-etf/
Hope this helps and all the best!
Ryan
I am also new and not very literate in this field. Joseph did actually start and had some luck. I some monies and will need someone to hold my hand- Alan
Can you send me a contact person or name
Hi Alan,
For beginning South African investors, I recommend opening a trading account with EasyEquities (www.easyequities.co.za). They’ve got minimal fees and an intuitive interface.
Begin by investing a set amount in regular intervals (e.g. monthly or quarterly). You can further reduce your risk by investing in a diversified exchange-traded fund (like the Satrix 40) or in shares of companies that you know and understand well.
Feel free to send me any questions here: https://investinginafrica.net/contact/
I am interested in investing on the use but don’t have the know how. Or where to start please advice me
How do I invest with part of my monthly allowance as a tertiary student ? I really want to start.
Hi Luyanda,
The only thing you must do is open an account with one of the brokers listed in the article above. I’d also advise that you first pay off any high-interest debt that you may have and that you build an emergency savings fund at your bank. Here’s an article that you may find of interest:
https://investinginafrica.net/heres-where-you-start/
I am in the UK and tried setting my account up with Nedbank but they want me to post my original passport and will not accept a scan or fax. Is this the case with them all as I am not conforatble posting my passport to South Africa.
Hi Wilbur,
I’ve never heard of a broker requiring that before, and, like you, I’d be reluctant to post my passport. Perhaps this is a new policy. I would try one of the other brokers listed in the article.
All the best and please keep us posted on what you find out!
hi Ryan I wish to register for trading platform so I can buy and sell shares.but I do not know how does the buying and selling of shares works.can advise me when is the right time to buy or sell?buy when the share price is low or high?please help me I want to get started soon it has always been my wish.you can also communicate with me via email.
looking forward to hear from you.
Thank you
Hi Tshidiso,
Great to hear of your interest in investing on the JSE! You raise an important question.
It’s always best to buy when the share price is low and sell when it is high. But that doesn’t necessarily mean that a share selling for R24.00 is more expensive than one that sells for R7.90. To determine the relative value of a share we use a number of different ratios and statistics. These include the price-earnings ratio, the price-book ratio, the dividend yield, and growth rates.
On average, stocks with low price-earnings and price-book ratios will outperform those with higher ratios. Here’s a nice introduction to the P/E ratio that explains how to best use it and avoid pitfalls:
http://www.investopedia.com/university/peratio/
Hope this helps and happy investing!
hi Ryan
i ve just opened an account with nedbank online stock trading..but i have not received my trading acc…what must i do?
reply
That’s great, Bongani. You’ve actually already opened a trading account. Now the next step is to deposit money into the account using the instructions they’ve provided.
hi Ryan
can one open more than one trading account?
Yes. My understanding is that you can have a trading account at multiple different brokers.
plz clarify if you say the jse lost 11% such that an investment of $1000 is now worth $890 having lost $110.-an example.I thought a loss or return on investment depends on the performance of the particular stock you buy and not on the overall performance of the exchange? or more accurately how does the overall performance of the exchange. i.e jse impact on a particular investment or stock coz yes the jse might have gone dwn by watever % but can’t I still come out victorious if I picked a well perfoming stock ? hop u get the drift of my question.thanks
Great question, Mvelo. You are correct. It is possible that individual stocks can increase in value at the same time that the market (on average) loses value.
When we say that the JSE lost 11%, we’re referring to the JSE’s All Share Index, which is a measure of the performance of all stocks that trade on the exchange.
Hi Ryan
I would like to thank you for all the questions answered on stock markets.Please keep up the good work of directing people towards investment.
cheers
Hello
I have been burnt so many times guy. I have tired all sort of money making scheme. From my experience investments that promises guaranteed returns of 10% or more are scams. Investments that ask for you to buy something upfront they are scams. Like those asking you to buy R18000 software. You can do fundamental and technical analysis with free news site like fin24.co.za bloomberg.com Reuters.com . When you are starting out as any investor keep your cost to minimal use free information on the net once you have made some profit you can invest in what Ryan offers like Stock scout. Guys believe me there is a lot of scams/ ponzi scheme out there. Latest being kipi, upliftingsa. org. Just search co HYIP on Google.com you will seek a lot of scams with high returns.
If you are base in South Africa I would suggest using http://www.easyequities.co.za. Its similar to what big for banks offer in terms of online stock trading. The main difference being there is no monthly fees and you have access to JSE listed companies.
If you like investing like me I would like to form some sort of club where we share Ideas. I am now only focusing on long term. my e-mail: ndlovu2ns@Gmail.com
Happy investing.
Many thanks for this, Nhlanhla! EasyEquities.co.za does look like a great, low-cost option to begin trading.
Hi Ryan. How soon after investing does one start receiving the dividends that are paid out by the companies listed on the JSE
Thanks Ryan
Hi Takie,
Great question. Some companies pay dividends twice per year (every six months), some pay only once, and some do not pay any dividend at all.
Each company has a different schedule for when they make their payments. Foschini, for example will make their mid-year payment on Friday, January 8. Their final payment will be issued approximately six months from now. Note that you cannot purchase shares of Foschini today and expect to receive a dividend on Friday. In most cases, you must be on record as a shareholder roughly one month before the payment date in order to receive a dividend.
So, before purchasing shares of a company, have a look at the “Investor Relations” section of the company’s website. This will typically provide information on the company’s dividend policy.
Hope this helps and happy investing!
What is the percentage of whole South African population trading in JSE?
That’s a toughie. I confess I don’t know, but I suspect it’s a rather small percentage who directly trade on the JSE. A far larger number, however, have exposure to the JSE via pensions and savings plans.
Hi Ryan
It seems that you are not too keen on “day trading”. Forgive my ignorance as I only have shares that were issued to me as part of my employment package. It is my understanding that if I invest for the long term I can only benefit from the growth of the share over that period – say 5 years. It means that I will only be able to use the money I made after 5 years to buy more shares and wait another 5 years for them to grow.
I will need a primary income with some spending money left over at the end of the month to continue to buy shares. If I dont have extra cash I cant buy…. Whereas the day trading should (if I do it right) make small profits every day that I can then use to invest – over 5 years or continue day trading. I’m I missing the point? I will retire in 5 years and want to continue playing in the stock market – JSE as I am a South African citizen. Thanks for the fantastic talk site. Charl
Good question, Charl. The problem with day-trading is that on any given day a stock has pretty much a 50-50 chance of going up or down in value – like flipping a coin. The problem is that you must pay a small commission to your broker each time you execute a trade. Therefore, just to break even, you must be right significantly more often than you’re wrong. Only the lucky succeed in doing this. It’s very similar to a trip to the casino.
In contrast, when you hold a share for the long-term, you are acting more like the part-owner of a business. If you pay a fair price for shares of Woolworths, for example, and the underlying business performs well, the odds that the share price will rise over the next months and years are in your favor. Moreover, you pay your broker only twice – when you buy the shares and again when you sell them – which keeps your costs low.
Share prices occasionally rise rapidly to valuations so optimistic that it makes sense to sell your shares after holding them for only a few months, but generally people should prepare to own shares of a given company for 5-10 years to give themselves the best chances of making a decent return.
In your case, you may want to consider investing in shares that pay a consistent dividend. Some JSE-listed shares pay dividends on a bi-annual basis, and if the company is profitable, the dividend payout often increases from year to year. These dividends are paid as cash into your trading account for you to withdraw or reinvest in new shares as you see fit.
Hope this helps and many thanks for the great question, Charl!
Hi Ryan I am a self employed young woman,I am interested in this stock exchange business,the thing is I’m debt free,I’m only planning to buy a house of which I’m in the process, the problem is that I receive lot of money at once as I’m in construction,I do the jobs with my savings so the profit I get 50 percent of it I end up using it carelessly.i want to invest let’s say I spend 20000 a month without the savings for the business,where and how do I start besides the banks which broker can assist for a long term,also I want to invest for my son is 15 years of age also for a long term because I want him to start a business at 21 yrs.i know nothing about this please help?.but your site is great thank you in advance?
I am in S outh Africa me and my husband we want to trade with Jse but we found unreliable brokers. We invested with one of Jse brokers Nov 2014 no statement when we google we cant get them any longer . Help us please
I’m sorry to hear that, Tshedi. I would begin by reporting your situation to the JSE’s Market Regulation Division at surveillance@jse.co.za or call them at +27 11 520 7000. They should be able to advise on how best to track down your funds.
hi I’m looking to invest in Jose for the first time l don’t have enough knowledge I’m looking forward to invest R20000 and another thing I’m a Zimbabwean what do I need, another question is that are those shares differentiated in terms of ordinary shares or preference shares.
By joining and investing in a jse listed company, do you buy shares in the company and wait for a turnover or do you trade personally?
Hi Sinenhlanhla,
As the investor, you ultimately decide when you would like to sell your shares. This may be when you believe the price on offer is higher than the shares are intrinsically worth, when you spot a better investment opportunity elsewhere, or simply when you need the cash.
i want to know more about invsters
Great! What’s your top question?
Thank you Ryan.I would like to ask about trading Forex in Johannesburg stock exchange ,is it available at this stage , if not ,can you advice for.
Hi Raad,
The JSE does maintain a currency derivatives market that is open to individuals. You can find out more about it here: https://www.jse.co.za/trade/derivative-market/currency-derivatives
Good day Ryan
Thank you very much for the information that you offer in this platform. It is highly valuable and will come in very handy in my near future. Thanks a million times
Wow, Ryan you are great.
Pls advise me, is it important to take any course that will help one to understand the fundamentals of JSE trading like one offered by intec, i intended to before i came through your article.
Thanks
Thanks, Skhumbuzo. If you’re new to investing an introductory course can really help to increase your understanding and confidence. But it’s not necessary to enroll in a paid course. There’s lots of great free info out there. In fact, the JSE’s website has a lot of good education material for beginners. Check out their free online courses here: https://www.jse.co.za/grow-my-wealth/setup-wizard.
Let me know if you have any questions and happy investing!
Morning.
I hereby request information, how to invest in JSE i am interest to invest in JSE. I can be happy if i can have information.
Kind regards
Abe.
Hi Ryan.
What are the forms of investment available in Johannesburg Securities Exchange?
Hi Noma,
On the JSE, investors can buy shares (also known as stocks or equities), exchange traded funds (ETFs), bonds, and derivatives.
And again I would like to know the roles of a Stock broker in the JSE.
Regards.
Good question, Noma. The main role of a stockbroker is to buy and sell shares at the instruction of their customer. In exchange for doing this, they collect a small commission on each trade they execute. Many also conduct research on the stock market and help advise their customers on which shares to buy or sell.
Hi Ryan
Thanks for all your efforts
I am also new in this thing.Is it possible that after investing in the JSE for about 6 months with a broker,is there a guaranteed amount you will get from the investment you made through your broker for selling the shares they bought for you,and stil have some left to keep your account activated ?
Thank you again.
Hi Oupa,
Unfortunately, there are no guarantees when it comes to investing in shares. It is possible (but highly unlikely) to lose the entire amount that you have invested if the company whose shares you bought fails and goes out of business.
But the good news is that not all brokers charge a monthly fee. One of my favorites, Easy Equities http://www.easyequities.co.za, is one of them.
Hope this helps and thanks for the question!
Hi Ryan
So great to see someone answering questions in a way that even I can understand! I have an advisor, but I’m not completely sure that I am receiving impartial advice. Anyway, I appreciate any time you spend reading and answering this:
My wife and I were born in SA, but we currently work and live in London. Things have worked out fine and we can now afford to invest/save a few thousand £ every month for the next 6 years or so until we retire in South Africa. I was thinking of opening a retirement annuity fund in SA with Alan Grey or Coronation and then buy a living annuity with all the proceeds and capital. Is there any other better way to invest our money? It is such a huge decision and responsibility that I feel quite stressed out about it! I an not worried about me, but definitely do not want to cause my wife any hardship.
Thank you again
Best wishes
Pierre
Hi Ryan
I want to know roughly how much can i make out of R20000 per month when trading.
Estimate
Thanks in advance
is it possible to buy shares using online trading and be able to hold them for years and not be actively trading now and then?
Indeed it is, Ndovela. And doing so, in my opinion, yields the most profitable results.
Ryan
Thank for the simplified approach on investing on the JSE. I am currently looking at the S&P500. What are your thoughts.
Thanks, Victor. The S&P500 is a nice index for broad exposure to US stocks. I don’t have a view on it near-term but is a fine place to park some cash over next 5-10 years.
simple, straight forward and very informative
thanks a lot!!
Thanks for the feedback, Selahla!
Hi
I would like to continue to receive information on how to invest in the jse
Sounds good, Collen. Do you have a specific question that you’d like some help with? Let me know, and I’ll do my best to help.
I am in process of opening trade account with PSG and there are two options
1. Trader account with real-time data with monthly fees of R99
2. Investor account with 15 minutes delayed data.
I intend to be swing trader, however I would like to explore some opportunity of market fluctuation and make some income as day trader.
Please can you advise witch options fits well to my strategy taking in consideration that I want to avoid huge fees.
Thanks
G
Hi G,
I generally advise against day trading because of the high fees and little correlation with the fundamentals of the underlying business. You’d likely have a better chance of making money at the casino. However, if this is the strategy you’d like to pursue, you will need the Trader account with real-time data. Otherwise, you will be 15 minutes behind the curve.
Thanks a lot Ryan. one more question regarding to share price at JSE, I have seen the share displayed kind of price number :
First
MTN Group Limited
JSE: MTN – Feb 9, 3:07 PM GMT+2
11,628.00 ZAC Price increase53.00 (0.46%)
Second
ZAR 116.01
Change:
Arrow 0.26 (0,22%)
On the first the prices is in thousands and second in cents.
Please can you assist what is the real price of this share? Sorry I am bit confused.
Hello ryan
I’m from Mozambique. I want to know if it’s possible to invest in the jse, even if I’m not a south African?
Hi Ryan
Since you are an investment analyst and you have experience in both StockExchange and StockBrokers
What happens to the money in my stockbroker’s Acc, let’s assume I have R10 000, does it remain the same or are there any charges? How do I know when to buy a stock, does my stockbroker alerts me or the JSE listed companies? And what form/method of communication do I have with my StockBrocker and the JSE listed Companies?
Last question, When they say buying or selling a share what exactly is going on there? What are we buying, Let’s use Shoprite as an Example. and how safe is our money when buying a share, are there any other prove or receipt?
Thanks, I would like to hear more from you or anyone who help me.
Hi Floyd,
Great questions.
Most South African stockbrokers charge a monthly fee, but a few don’t. EasyEquities (www.easyequities.co.za) doesn’t charge a monthly fee, and, for this reason, it is a great place for beginners to get some experience investing.
Some stockbrokers provide their customers with suggestions on when to buy or sell certain stocks. But there is no guarantee that their advice will actually result in a profitable investment. I suggest first buying shares of a company that you know and understand well. Then, hold them for the long-term (5-10 years). If the company is a strong one, your odds of making a profit from the investment are pretty good. You may also have interest in my JSE stock-picking newsletter, Share Advisor (https://investinginafrica.net/try-share-advisor/). Each monthly issue contains two of my favorite JSE stock picks.
Some stockbrokers have online platforms which allow you to buy and sell shares of stock without ever interacting with a live human. Some brokers will communicate with you via the phone or on email. Almost all of them have live help desks in the event you have any questions about your account or how to place an order.
Communication with the JSE-listed companies is much less frequent. They will typically send all of their shareholders a half-yearly statement of their financial results. They will also send you an invitation to their annual meeting where you can vote on matters pertaining to the company. Otherwise, you can contact their respective investor relations department if you have questions about the business.
When you buy a share of a company, you are buying a small piece of ownership in that company. If a company has issued a total of 1 million shares and you buy 100 shares, then you now own 0.01% of that company. This entitles you to an equivalent share of the decision-making of that business.
If you buy shares through a licensed broker, your investment is very safe. You will get a trade confirmation, and the transaction will be recorded with the share registrar of the company that you’ve invested in. Note, however, that there is no guarantee that the value of your shares will increase. In fact, you can lose everything that you’ve invested if the listed company goes out of business.
Hope this helps and let me know if you have any other questions!
Thank you for the Brilliant answer/s Ryan, it’s exactly what I wanted to know.
Hello Ryan,
Great info. Thanks.
I have opened a Satrix40 ETF share account with FNB for almost a year now but for some reason it is under performing. I bought 1 share to test it. To be precise, I bought it for R101.38 and its currently worth R47.27. I know there were brokerage fees included but i assumed that the fees will not define the performance or be included in the value of my purchase price. I hope i am explaining myself clearly.
Could the under performance be due to 1 share? If i increase the number of shares, will they likely perform better?
Hi Sello,
Thanks for your question.
Because the Satrix has risen about 3.5% over the past year, I’m guessing your R101.38 purchase price included brokerage commission and fees. This is probably a flat rate of about R50.00 per transaction. There should be a trade confirmation in your account that breaks down all the charges.
When brokerage fees are charged on a flat rate, they can take a big bite out of returns. My rule of thumb is to make sure that brokerage costs don’t exceed 2% of your total purchase price. So, if the commission charge is R50.00, don’t make a trade unless you plan to buy at least R2500.00 worth of shares.
If this sum is more than you’d like to invest at the moment, I suggest that you check out http://www.easyequities.co.za. Their brokerage commission is just 0.25% of the value of the trade (with no minimum charge) and there’s no monthly account fee.
Hope this helps and happy investing!
Hi Ryan,
thank you for a quick response. “So, if the commission charge is R50.00, don’t make a trade unless you plan to buy at least R2500.00 worth of shares.” this now makes sense.
thanks
Hi Ryan. I’m interested in investment with JSE and I have been assessed by a guy from markettrader or JSE hence I qualify as a private investor. Bt now I worried I don’t knw how to ensure that he is a legal stockbroker. Are stockbroker registered with a certain council or something. How do you knw tht this person is from JSE or not. Please help. I also need some training in buying and selling shares as I have not much info. Any suggestions. Lastly does investment improve one financial status crusly.
Hey am really interested in the Jse but i dont understand how it works can you please help me
Hi Phenyo,
You might want to check out Stock School. It’s my free course for beginning investors. You can learn more here:
https://investinginafrica.net/stock-school/
Hi, I would kindly like to check if I will be the one buying and selling, if Yes what could you advise i should do before i start because i have never traded before. Is there no an arrangement that i deposit the money and somebody manages my account.
I really want to do this my secondary income but i am clueless with this kind of investment
Great question, Mpho. There are ways to invest in South African shares without actually making a lot of decisions about whether to buy or sell individual stocks. One of the most cost-effective ways to do it is to open a brokerage account and then invest your money in an exchange-traded fund (ETF). An ETF is a basket of many, many stocks that trades on the exchange as if it were one individual stock. For example, my favorite South African ETF is the Coreshares Divtrax (DIVTRX). It is a collection of 29 of the best dividend-paying stocks on the JSE. So, by investing in it, you are automatically spreading your investment into 29 great companies – and therefore lowering your investment risk. No need to decide which stock looks good and which one looks bad.
The great thing is that if you open a trading account with http://www.easyequities.co.za, you can simply invest as much or as little as you can afford. There are no account minimums or monthly fees. Simply add to your nest egg whenever you have spare cash available.
Hope this helps and let me know if you have questions!
I am a UK resident, with shares that are now listed on the Johannesburg SE, through acquisition of a company which was originally listed on the LSE. How do I go about selling them and transferring the monetary gains back to my bank in the UK.
Hi John,
I would first check to see whether your UK broker can sell them. They may be able to execute a trade on the JSE for you for a fee. If your current broker isn’t able to do this for you, try contacting one of the UK brokers in the article at the link below. Several of them offer trading capability in South Africa.
https://the-international-investor.com/international-stockbroker-list/uk-stock-broker-list