First you need to open a trading account with a stockbroker. Click here for a complete list of brokers.
If you want the broker to manage your Shares for you, you must open a managed account. But if you want to manage your Shares yourself on the internet, ask for an online share trading account.
You can find out more about what a trading account is here, and about the process of opening a trading account here. To learn more about the different costs that brokers charge, click here for comparative cost and service offering information for online share trading (please note that the information may be slightly outdated).
A broker will be able to guide you in determining what investment option suits you best. It is important to understand the risks involved, so be sure to ask your broker about them.
Please remember that all transactions on our exchange occur through a broker, so you should be sceptical of offers that “cut out the middle man”.
Online share trading
Most of the brokers focused on individual investors offer a simulation account on their website where you can test their trading platform without spending money. It is not necessary to buy software in order to trade on the JSE. Your broker should give you access to trade on their website.
Brokers regularly hold seminars and workshops on the basics of the Stock Market and Shares, so please visit their websites. The JSE also holds regular showcases.
If you’re not sure about Individual Shares, consider investing in Exchange Traded Funds (ETFs). They are ideal for the first-time investor as they offer a low-cost investment with low risk. An ETF allows you to invest in a wide variety of Shares, Bonds or Commodities through a single “share” or “unit”. ETFs can offer you ownership in the Top 40 companies, property, resource companies or physical gold, among many other things. ETFs can be bought and sold just like Ordinary Shares.
Please see the information on ETFs below:
- How to invest in ETFs
- List of ETFs (all the ETF providers’ websites are included in this document – but it excludes Nedbank’s BGreen ETF)
- ETF brochure
- ETFs a piece of cake
- Introduction to ETFs
There are currently four ways to invest in ETFs:
- 1) Contact a stockbroker. (The stockbroker you decide upon is entirely up to you. To help you with your decision, try to find out what services each stockbroker can provide you, whether the services meet your needs and what their respective costs are.)
- a. You’ll have to open an account with the broker you’ve chosen
- b. You’ll be able to invest in Shares and ETFs and the broker will be able to offer you advice
- c. Costs are slightly higher because of this advantage
- 2) ETF provider’s investment plan – contact the ETF providers directly.
- a. You’ll only be able to invest in ETFs
- b. Costs are lower than going through a stockbroker, but you won’t receive any advice on your investment
- c. With an investment plan you’ll be able to invest a minimum of R300 a month or a R1 000 lump sum
- 3) etfSA online platform, which allows you to buy and sell ETFs and offers you additional information such as performance figures of each ETF. Here is their website: www.etfsa.co.za
- a. You’ll only be able to invest in ETFs and not individual Company Shares
- b. Costs are very similar to the ETF providers’ costs
- c. An investment plan/investor scheme is also offered by etfSA where you’ll also be able to invest a minimum of R300 a month or a R1 000 lump sum
- 4) itransact also offers an online platform specifically designed for the financial advisor. So you’re always able to consult with a financial advisor for some additional advice: www.itransact.co.za
- a. Your financial advisor can invest on your behalf
- b. An investment plan is also available through them
- c. You’re able to invest in ETFs, ETNs and ETF wrap funds, through their accredited financial advisors.