Online Trading South Africa and Best Online Trading Platforms South Africa 2021
Best Online Trading South Africa Sites and Best Online Trading Platforms for 2021
In South Africa
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In South Africa
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What is online trading?
Online trading is basically buying and selling financial assets through an online trading platform. These online trading platforms are created by brokers for trading purposes. With the rise of technology, online trading has increased in the mid-90s because of high speed computers and internet connections.
Bonds, EFTs, currencies, shares, stocks and mutual funds can all be traded by traders online. Brokers provide a variety of assets such as shares, indices, foreign exchange and commodities. Internet trading has gained so much support due to its services over the years.
Online Trading is one of the quickest ways of making money in South Africa in front of your desk through your computer. Online Tradings offers the best trading guide in South Africa, whether you’re in Gauteng, North West, Limpopo or any other province you still trade online South Africa and invest your money in big companies like Apple, Google, Microsoft and many other big companies.
How does online trading work in South Africa?
Online trading allows SA traders to make deals on the financial market using a trading platform online. A trader place trades through a broker. South African Brokers provide traders with a trading terminal, the trading software that traders use in order to trade. Online trading in South Africa works like this:
- An online trader concludes that he wants to make a deal (for example, to buy 100 shares of Google)
- He uses his trading platform online to find this asset (Google’s shares) and chooses the quantity (1 lot or 100 pieces) and places an order to purchase.
- The broker will get a request from the trader and starts to execute the order. The trader needs to find a counterparty – another trader who is prepared to purchase the same asset for the same price.
- The broker searches for a counterparty on the stock exchange. When they have completed the search, the deal is made.
Today, the trading platform finds a counterparty and complete a deal within seconds or less. It performs all the work alone. The online trading process is automatic, that is why it does not take longer to make a deal. However, in the past, the trading process took longer through this chain “trader > broker > stock exchange> broker> trader”. In the past, trading was held in the exchange building in person or the trader would call his broker and to open the deal. The broker would in person search for a counterparty on the stock exchange.
Types of assets you can trade online
There are different types of asses that a trader can use in online trading SA. Besides online trading of Gold, some of these tradable assets are categorised as ‘classic’ while others emerged with the rise of internet trading. You can trade the below assets:
- Stocks – these securities that represent an ownership share in a company.
- Currencies – you can trade currencies such as Forex
- Cryptocurrencies – trade cryptocurrencies such as Bitcoin
- Indices – these are assets which are grouped together, either representing a specific sector of a market or a whole market.
- Metals – you can also invest in metals
- Oil and Gas – buy oil and gas shares through JSE or online brokerages
- ETFs – exchange-traded fund is an investment fund traded on stock exchanges, much like stocks.
- Agriculture – you can also invest in agricultural commodities
Types of investments
Besides the above mentioned assets for online trading, we also have different types of investments. Below are the most common types of investments:
- Binary options – is a type of option with a fixed payout in which you predict the outcome from two possible results.
- Futures contract – a contract for assets bought at agreed prices but delivered and paid for later.
- CFD (Contract For Difference) – you can also start CFD Trading
Pros and cons of online trading
Online Trading in South Africa is very interesting, below are the pros and cons of internet trading
Cons of online trading:
- Financial risks – you can lose money on an investment. Share trading does not guarantee profit. Some days you make money, while some days you make money trading online.
Pros of online trading:
- You can start online trading with little capital – you can start online trading in South Africa with as little as $100
- You can trade anywhere using your mobile device – install a trading app and start trading on the GO
- Potentially unlimited income – online trading is profitable and you can make enough gains
- You can still have your 9-5 job – use your online trading money to supplement your monthly needs
- You trade at your own time and hours – you can trade 24 hours, 5 days a week
Why would you trade online South Africa?
Online trading South Africa is becoming more and more accessible. It is one of the world’s largest markets, with 24-hour operations (24 hour 5 days a week trading). This means you manage and control when and how you trade online. SA traders and investors buy and sell financial instruments such as CFDs for profit via web based cheapest online trading platform South Africa offered by a bank or a broker. Trading online decisions are made on the trading platform online and then immediately sent to the stock broker. People trade online South Africa for the following reasons:
- Online trading beginners in South Africa can trade online, thanks to cheap and simple trading software
- Trading online South Africa is cheap, you can open an account for as little as $5 and make profit
- You can do simple analysis which give you accurate results
- You receive a free demo account so you can practice before trading with real money
- You can use automatic trading on your trades
- You can implement copy trading strategy
How to perform a trade online?
Thanks to the internet and technology, anyone with a computer can start online share trading and invest in the stock market. Here is the step-by-step guide on how to start trading stocks online and building your investment portfolio.
1. Find a broker
To perform a trade online, you need a brokerage account. It can be challenging to choose the perfect broker. You need to read reviews and check online forums to learn about the broker as not all stock / share brokers are right for all traders. There are two types of brokers you need to look at.
- Brokers who deal with clients directly
- Brokers who act as mediators between a larger broker and a trader.
2. Open online trading account
You need to register with FSCA regulated brokers to open an online trading account. Fund your trading account with US Dollars, which is the most traded currency in the foreign exchange market. If you are not ready to trade with a live account, you can practice using a demo account. This account gives online traders in South Africa a free trial account funded by virtual money.
3. Research before investing in your money
You need to do your research before investing your money in stocks / shares. You need to find out how the company makes money, its strengths and weaknesses. Also check online trading platforms for broker consent recommendations.
4. Develop a trading strategy
You need to come up with a trading strategy that works best for you. Use a demo account to actively watch your positions and understand whether and when to react to market moves.
5. Understand the risks
You need to understand the risks associated with online trading in SA. You can lose more than what you have invested in. Share prices always go down. This is why it is recommended that you get an education before you trade anything. Make sure you learn everything you can about the markets and investing (online investing in South Africa). Mistakes can be costly and you will never get your money back.
Learn how to trade online
Do you know how to start online trading in South Africa? It can be a daunting task to learn how to trade online and particularly learning to trade by yourself. Most online trading beginners feel lost and unsure of where to start. Truth is we were not born knowing everything. We had to learn. You too can learn how you can trade online by yourself. There are many valuable online trading tips you need to be aware of without going through an online trading course.
How to Learn to Trade By Yourself
It is hard to learn to trade by yourself but it’s not impossible. It requires perseverance, patience and motivation to learn by failing and willing to start all over again. As a beginner, you will probably do most things the wrong way and that’s okay. But as time goes on, you will learn how to trade properly and make profit from trading online South Africa. As a beginner, you may even consider giving up when you fail, but those mistakes are preparing you to become a successful online trader in South Africa as you gradually gain more and more knowledge.
Tips for Learning to Trade by Yourself
- Be patient
- Be humble
- Do not follow the crowd
- Do not use real money in the beginning
- Find good information
- Create a Strategy
- Make Risk Management Your First Priority
- Be Realistic
- Choose the Best Trading Conditions
- Use Stop-Losses
Online Share Trading
Thanks to online share trading South Africa, anyone can invest in the stock market using a computer or a mobile device. Below are some of the key-points you need to read on how to start share trading and building your investment career. You will learn how online share trading platforms work in South Africa.
Online Share Trading South Africa
Online Share Trading in South Africa is becoming increasingly popular among South African citizens. Anyone with a computer and fast internet connection can create an online share trading account and start buying and selling shares online. Online share trading is conducted through online share trading platforms which offer a wide range of market data package. They also provide share traders with stock-market news so that they can react with just a click of a button. Online share trading South Africa doesn’t have to be hard to understand, we will show you how online share trading works and how to create an online share trading account in South Africa. You too can begin the journey of online trading of shares in South Africa.
What is Share Trading?
Share trading, sometimes referred to as Equity trading, is the buying and selling of company stock or derivative products based on company stock with an aim of making a profit. The online trading of shares is one of the most popular forms of investing alongside commodities and forex trading.
What is Online Share Trading?
Online share trading is buying and selling shares in JSE Limited (Johannesburg Stock Exchange) listed companies through the internet. It has given South Africans who have internet connection and a computer the ability to invest in the share market.
When you buy and sell shares, you need an online share trading platform which acts as your online share broker. It will facilitate your purchase and sale of shares. A broker is a licensed person or a company that acts as an intermediary between an investor and a securities exchange. A broker usually makes money through a commission that they charge you for the trades. They buy and sell shares on your behalf through the exchange. A broker follows your instructions as to what you want to trade in, the number of shares and the price. Then will then submit your orders to the Johannesburg Stock Exchange and other markets.
How does share trading work?
Stocks or shares refer to a small portion ownership of a company and shares are sold in order to boost funds for that specific organisation. Someone who holds shares is called a shareholder. Shareholders buy and sell shares via stock markets such as the JSE. Share prices change a couple of times throughout the day as SA traders buy and sell shares. Most shareholders buy shares when the rand is weak and sell them when the share price increases in order to gain profit.
How Does Online Share Trading Work in South Africa?
In simple terms, a share is basically your share of a company. A definition of a share is a unit of ownership in a company. Buying shares in a firm offers a shareholder with equity in that firm. A shareholder is a person who owns a share in a company. How does online share trading work? Online share trading South Africa is affordable and easy for anyone interested in investing in shares in South Africa through stock markets such as the JSE.
A share price in a company changes numerous times during the day as investors buy and sell the shares. The main aim of shareholders is to buy shares when the price falls and sell them at a higher price when the share price increases to make profit.
Online trading of share is done via the JSE for South African-listed companies. There’s almost 400 companies listed on the JSE. Shares from other countries are traded on different exchanges such as the London Stock Exchange (LSE), the NASDAQ, the New York Stock Exchange (NYSE) and the Australian Securities Exchange (ASX).
How do I buy shares in a company in South Africa?
Investors can buy and sell shares online through online trading platforms and brokers listed on our website. Just visit our table and choose the best online share trading broker in South Africa.
South Africans can make money from online share trading through two main ways which are (1) Capital Growth and (2) Dividends. Capital Growth is when a shareholder sells his/her shares for a higher price than what they paid. Dividends refer to a company paying regular dividends to their shareholders. This is based on the amount of profit the company makes. You don’t need to sell your shares if you receive money regularly.
How Online Shares Work
It’s now possible for ordinary South Africans to buy shares, for example, a company would announce that they are breaking the company into 10 000 shares, each share worth R10. The company value stays at R100 000, which is R10 share price x R10 000 shares. As an investor, you can purchase one share for R10 in a company. You can also buy up to ten shares at R100 if you want.
How Are Shares Bought and Sold?
South Africans buy and sell shares exchanges such as the Johannesburg Stock Exchange. The majoring of public shares bought and sold through online share trading platforms. Buy and sell orders the tools that are used by investors to move their shares.
- A buy order – is an order to buy shares in a company.
- A sell order – this is essentially an expression showing that the investor who placed the order is interested in selling a particular number of shares in a particular company.
Once an order has been filled, the buyer searches for a seller or the seller finds the buyer. Then people who are involved are given a few days to perform the transaction and then move their shares around. However, these days, people use the best online share trading platforms and do everything on your behalf. This is how you trade shares in South Africa.
Tips for online share trading
- Research about different online share trading companies before you invest your hard earned cash
- Read news about economic factors and other events that might affect the share price
- Spread your money across different investment companies. This will help lower your risk knowing that your money is safe somewhere in case one company collapses
How to Buy Shares?
There are so many ways to buy shares online. You can also buy shares on the JSE (Johannesburg Stock Exchange). JSE is renowned as the best stock market in Africa, bringing good returns for traders and investors in South Africa. However, some people don’t prefer Online Trading on JSE, they find other brokers where they can buy shares. Follow these steps to buy shares in South Africa.
- Find a good online broker to buy shares
- Open an investment account online
- Deposit money into your online trading account
- Find the right share you want to buy
- Click on “Buy This Share Now” button
- Build your investment portfolio by buying shares consistently
What Are the Benefits of Shares?
Depending on your investment goals, the benefits of buying shares will differ and it’s up to you whether you want to invest or trade.
Want to Invest?
Investing in shares for a shorter or a longer period is seen as one of the main strength of shares and the larger stock market. The main aim of investing is to make significant profits. Some people invest for more than twenty-years in a company and the market usually tends to go up. The money that you invested in January 2000 would be worth a great deal more today.
Want to Trade?
Trading shares means that your goal is to make profit through short-term investments. You don’t necessary hold shares for a very long time. You buy shares at a lower price and sell them at a higher price within a short space of time. That’s how online share traders make money from share trading. While this kind of trading is risky than investing, it can result in quick significant returns for investors who take risks. This is also an easy way to lose money if the share price drops significantly.
Online Share Trading Standard Bank
Online Share Trading Standard Bank offers South Africans an opportunity to buy and sell shares frequently. Standard Bank has two different products and are tailored to different mechanisms of investing. Standard Online Share trading (OST) Platform, which is a division of SBG Securities Proprietary Limited, has diverse online trading options for South African investors. The Automated Share Investment (ASI) Platform is a cost effective way for Standard Bank customers get into the market. This platform is recommended for online share trading beginners.
Online Share Trading Nedbank
Nedbank online share trading is done through their official website at onlinesharetrading.nedbank.co.za. Nedbank offers investors with advanced online share trading platform to buy and sell shares online. With Nedbank Share Trading, investors can access research and advice on the JSE listed companies, global and economic analysis. You can also access a complete database of all JSE listed companies, data from SAFEX and the SA Bond Markets and real time access to JSE market information. Nedbank Share Trading also provides investors with, exchange rates, commodity prices and international market. With Online Share Trading Nedbank platform, share traders in South Africa can execute trading on a real time electronic basis. This also allows Nedbank clients to check their order online in the order book with no intervention required by any of Nedbank’s investment advisors.
Online Share Trading FNB
First National Bank (FNB), which is one of South Africa’s “big five” banks, offers three online share trading FNB products. FNB Share Investing has the Share Saver, Share Builder and Share Investor.
- Share Saver – Share Saver is an FNB Online Trading Product where you pay a monthly fee. You can invest in the top 100 companies on the JSE with a minimum monthly investment of R300. This product does not allow you to choose your own shares, FNB choose for you.
- Share Builder – The number of shares you can buy with Share Builder is limited, however, you can choose which shares you want to buy and you can Krugerrands. All you need is a minimum account balance of R100 and pay a monthly fee of R45.
- Share Investor – The Share Investor gives you access to price alerts, watch lists and the Share Swarm. It also offers investors a front row view of the latest shares before they are even listed on the market through the process of IPO’s (Initial public offerings). The Share Investor also allows investors to invest in the full range of JSE listed shares, Exchange Traded Funds, Exchange Traded Notes and Krugerrands. This has a monthly fee of R49, with a minimum account balance of R200.
Online Share Trading ABSA
Absa Group Limited, formerly Barclays Africa Group Limited, has two options. Absa online share trading platform allows investors to trade shares and EFT’s (Exchange Traded Fund). With online share trading Absa, you can also check your trading account anytime and anywhere. The second option is a telephone service where investors place trades through a phone call. Investors also have an option to monitor their shares online. Absa charges a brokerage rate of 0.4% of the value of securities traded and does not have a monthly account fee. However, according to Absa’s website, a minimum brokerage charge of R120 per trade is charged by the bank.
Online Share Trading JSE
The Johannesburg Stock Exchange (JSE) is best known as the best stock market in Africa. Investors can now buy shares on the JSE. There are three ways to invest in the JSE listed companies.
- You can invest directly in the JSE Online Share Trading by buying shares in the companies listed on the stock exchange through a stock broker.
- The second option is to invest on the JSE through the index tracking fund such as Satrix, which invests in the largest companies on the JSE.
- Alternatively, you can buy shares on the JSE through a fund manager such as Old Mutual, Allan Gray, Coronation, Stanlib and Investec just to name a few. The fund managers make the investment decisions for investors and purchase the shares that they believe will perform well.
Online Share Trading for Beginners
Online share trading has transformed the world of investing. Now anyone with internet access and a computer can access a wide range of assets and investing tools. As a beginner, this can be a daunting task if you have never read online share trading for beginners guide or taken courses. Online share trading for beginners is a great way to learn about investing in shares in South Africa. You can start with a small amount of capital. Below are the steps you need to take if you want to learn how to invest in shares.
- Get Education – learn about online share trading for beginners South Africa. There are plenty of share trading books, video tutorials and online courses.
- Develop A Strategy – Successful online share traders in South Africa develop a strategy and stick to it. You can’t jump into different assets whenever you feel like is the right thing to do. Make sure that your strategy is clear and minimize the risk of losing money.
- Open A Brokerage Account – Before you invest with real money, start off by registering for a share trading demo account. This is also called a “practice account” and will help you understand how online share trading works in South Africa and around the world. Practice as much as you can. With demo account, you will learn how to place share orders, buy and sell shares.
- Buy Shares – As a share trading beginner, this is your final step. Once you’ve found the shares you want to buy, you can click on “buy this share” button and follow the prompt.
How to Open Online Share Trading Account in South Africa
Steps to create an online share trading account.
- Step 1: Find a Stockbroker
- Step 2: Create a share trading account
- Step 3: Fund the account
- Step 4: Research about the shares
- Step 5: Start buying shares
Online Share Trading Apps
Share trading has become much easier to perform from a smartphone today. Both beginners and seasoned share investors have necessary tools to use online share trading apps as their main trading platform. These mobile apps have the edge for educational resources and trading tools. They also offer a more comprehensive research experience for South African investors. Below are some of the best online shares trading apps South Africa.
- TD Ameritrade Mobile Trader – Best Online Share Trading App
- Robinhood – Best Mobile Share Trading App
- eToro – Best Mobile Trading App
- Fidelity – Best Stock Trading App
- SigFig – Best Share Trading App
- Schwab Mobile – Top Online Share Trading App
- Trading 212 – Best Online Share Trading South Africa App
- Webull – Best Online Share Trading App South Africa
Best Online Share Trading Platform South Africa
What is best online share trading platform in South Africa? This is one of the questions you should ask yourself. Below are some of the best share trading platforms available for South African investors.
- IQ Option
- CM Trading
- Easy Equities
- ABSA Stockbrokers and Portfolio Management
- Nedgroup Private Wealth Stockbrokers
- PSG Securities
- Sanlam iTrade Pro
- Sanlam iTrade Standard
- Standard Bank Online Share Trading Platform
Online Share Trading Platform Features
Online share trading platforms come with great features that help investors make good investment decisions. Some of the features of best online share trading platforms include the following:
- The best online share trading platform South Africa features a client and support service which is available 24/7.
- It comes with margin loans.
- It should also come with research tools, alerts and other technical trading information which will help investors know what’s happening on the financial market.
- A good platform must also offer basic and advanced charting information which is of vital importance for online share investors in South Africa.
- Education and technical help should be available on the online share trading platform to help investors especially beginner investors to get started with online share trading.
- An investor wants assurance that their money is safe; one of the features that people are looking for in a platform is security. A platform must provide online security to block hackers from hacking your online share trading account.
Advantages and Disadvantages of Online Share Trading
Online Trading of Share comes with advantages and disadvantages. As we’ve mentioned above, share trading is a very risky business and you can lose about 80% of your capital. So let’s look at the pros and cons of online share trading in South Africa.
Advantages of Online Share Trading
- Lower fees
- Access to online tools
- Ability to avoid brokerage bias
Disadvantages of Online Share Trading
- You can lose money
- Buying errors due to computer malfunctioning
How do you start stock trading?
Investing in the stock market is the most common way for online stock trading beginners in South Africa to gain investment experience. However, online stock trading investing also comes with the risk for losses. Before you start stock trading in South Africa, you need to answer this question, what kind of an investor are you? When opening online trading shares account, some brokers will ask about your investment goals and how much risk you are willing to take on. The best online trading companies in South Africa allow online traders in South Africa to invest in stocks, index funds, mutual funds, bonds, and exchange traded funds (ETFs). 5 Steps to Start Trading Stocks Online:
- Develop the right strategy – before you consider trading stocks South Africa, make sure you develop the right trading strategy that works for.
- Get an education – online stock trading education is key to successful stock trading.
- Select an online broker – choose the best stock broker in South Africa by comparing their needs and minimum deposit amount.
- Start researching stocks – make sure you research about the company before you buy stock. Check their financial history background and their weaknesses and strength.
- Make a plan and stick to it – use the right type of trade order to help you stay on a plan and stick to it. You can use stop-loss orders to minimize risk and losses.
Online Trading South Africa
There’s no doubt that online trading South Africa or online trading in South Africa is one of the best opportunities that South Africans have started exploring in the country. There reason for the rise of trading online in South Africa is because it opens doors for people who understand the market and also willing to invest their resources in online trading. You can now trade stocks South Africa from the comfort of your home anytime. However, while starting your online share trading career, you need to understand how online trading works and the rules and regulations that govern online trading SA.
When trading in South Africa, as an investor, you need to know your trading options with the South African trading brokers. There are some brokers in South Africa that are suitable for trading in the CFDs, Forex, EFTs and Indices, commodity markets or cryptocurrencies.
Online brokers in South Africa generally offer several trading accounts for SA traders, including:
- CFD Trading
- Forex Trading
- Islamic Accounts
- Demo Accounts
How to Make Money Trading Online South Africa
Trading online in South Africa can be a great way to have your money make money, especially in today’s economic climate where long-term bank notes and savings accounts do not offer significant returns. Stock trading or online trading of stocks involves risks and some losses are unavoidable. However, with extensive research and investments in the right companies, online stock trading South Africa can potentially be profitable. Follow these steps to learn how to make money trading online South Africa:
- Research current trends
- Select a trading website
- Create an account with one or more trading websites
- Practice trading before you put real money in
- Choose reliable stocks
- Buy your first stocks
- Invest mostly in mid-cap and large-cap companies
- Monitor the markets daily
- Consider investing in mutual funds
If you want to make more money trading online, you also need to understand the basics of trading and develop your stock portfolio. Other important aspects you need to be aware of include, developing a strategy, Money Management: how much risk is too much risk? Practice with demo accounts before investing real money, enhancing gains with margin – leverage, calculate costs – commissions and taxes.
Trading online is not always easy and there are no guarantees of profits. However, one of the best ways to make money trading online is to develop a trading strategy that works best for you. You also need to organise trading activities beforehand. This will minimize losses and additional trading costs while maximizing potential gains.
Is online trading legal in South Africa?
Online trading in South Africa is legal as the South African Government doesn’t have any laws governing the legality. The South African Reserve Bank (SARS) control international monetary exchange overseeing outgoing cash-flow from the country. Trading online is legal as long as you abide by financial laws that prevent money laundering and you declare your income tax. While using a regulated broker is not a legal requirement, there are online brokers operating in South Africa that are regulated by the FSCA (The Financial Sector Conduct Authority) and other brokers that are regulated by other recognized organizations around the world.
Online trading regulators list in other countries
- South Africa: Financial Sector Conduct Authority, (FSCA)(formerly the FSB)
- Australia: Australian Securities and Investments Commission (ASIC)
- Cyprus: Cyprus Securities and Exchange Commission (CySEC)
- Switzerland: Swiss Federal Banking Commission (SFBC)
- Germany: Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin)
- EU: European Securities and Markets Authority (ESMA)
- UK: Financial Services Authority (FSA)
- Russia: Federal Financial Markets Service (FFMS)
- France: Autorité des Marchés Financiers (AMF)
- Spain: Comisión Nacional de Mercado de Valores (CNMV)
- Japan: The Financial Services Agency (FSA)
- Hong Kong: The Securities and Futures Commission (SFC)
- United States: Securities and Exchange Commission (SEC) and the National Futures Association (NFA)
Which bank is best for online trading?
FNB is the best bank for anything foreign exchange in South Africa. Nedbank, Standard Bank, Bidvest Bank and ABSA Bank are some of the best banks for online trading in South Africa. You can trade forex and invest in stocks using these best banks.
Best Online Trading Companies
To find the best online trading companies in South Africa, we have created a list of the best online brokers in South Africa. Here’s the list of best online trading sites in South Africa.
- IG – Best Online Trading Company in South Africa
- ForexTime (FXTM) – Best Online Trading Site in SA
- Plus500AU is also authorised as a Financial Services Provider in South Africa
- Saxo Bank – Best South African Online Trading Broker
- AvaTrade – Popular South African Online Trading Company
- CM Trading – Best Online Trading Company for Beginners
- eToro – One of the Best FX Trading Brokers in the world
- FXCM – One of the Best Online Trading South Africa Sites
- com – Best Popular Forex Broker in South Africa
- Swissquote – Best Banking Services
- City Index – One of the best Trading Online Brokers in South Africa
- Markets – Best Online Trading Site for Beginners
- XM Group – Top Online Trading South Africa Site
- IronFX – Top Online Trading Company in South Africa
Online Trading Platforms South Africa
Whether you are into online trading South Africa or simply focusing on stock trading South Africa, as long as you are into online trading in South Africa, you need the right online trading platforms South Africa to carry out your transactions. The best trading platform South Africa provide investors with trading tools such as charting, analyst research, market data, customized backtesting and account management among others. Some of these cheapest online trading platforms in South Africa have been designed to perform automatic trades on behalf of online traders in South Africa.
What Are Online Trading Platforms?
Online Trading Platforms are software used for trading. Online trading platforms are often provided by brokers either for free or paid. The best online trading platforms in South Africa offer a mix of robust features and low fees. Trading platforms can also be specially tailored to specific markets such as currencies, future markets, stocks or options.
Which one is the best trading app in South Africa? This is one of the questions every online trader must ask themselves. Although there are many best online trading platforms, we’ve compiled a list of some of the best South African trading platforms to help you perform stock trading without worrying. Here are some of the cheapest online trading platform South Africa:
Cheapest Online Trading Platforms South Africa
Now that you know what an online trading platform is and would like to compare trading platforms, let’s take a look at some of the cheapest online trading platforms in South Africa for 2021 in the market. These best online trading platforms in South Africa are ideal for traders who want to start trading with small accounts. List of the Cheapest Share Trading Platform in South Africa.
- IG – Best Online Trading Platform in South Africa
- FXCM – Top Online Trading Platforms South Africa
- Plus500 – Top CFD Trading Platform Online
- HotForex – Best Leading Online Share Trading Platform
- Cyber-FX – Best Online Trading Software
- AvaTrade – Best South African Online Trading Platform
- ForexTime (FXTM) – Best Stock Trading Platform
- Standard Online Share Trading/Stockbroking – Best Share Trading Platform
- E-Trade – Best Stock Trading South Africa Platform
- TD Ameritrade – Best Online Stock Trading Platform South Africa
- eToro – Top Stock Trading Platform
- easyMarkets – Offers Best South African Online Trading Platforms
- JustForex – Best Trading Platforms in South Africa
- XM – Cheapest Share Trading Platform in South Africa
If you want to see better results, use one of the above listed cheapest online share trading platform South Africa.
Choosing the best cheapest online trading platforms South Africa can be a challenging and a daunting task. Before you choose the best trading platform, you must first compare various online trading platforms. There are more than 100+ online trading platforms in South Africa to choose from.
All online trading platforms South Africa must be regulated by the FSCA (Financial Services Conduct Authority in South Africa) which is a regulatory body that oversees trading activity and promotes its healthy development in SA.
How can I choose the best share trading platform for me?
More and more South Africans turn to the stock market for higher profits and returns. Although online trading is risky, more people are introduced to how to online trading through the internet. Some have even started courses for online trading in South Africa. If you decide to buy and sell shares online for stable earnings, you need to know how to do it right. You need to choose the best share trading platform that will help you carry your transactions.
5 steps to choose the right share trading platform
Choosing the cheapest online trading platforms in South Africa is one of the most important steps you must take as a stock trader. Here you’ll learn how to choose the one online trading platform and which will meet your requirements the most. You will also learn what criteria you must consider when choosing for an online trading platform.
- User-friendly interface – choose a trading platform that you are comfortable working with. A best share trading platform must be easy to use.
- Don’t imitate others – don’t choose a trading platform because is recommended by your friends or others. Test various platforms and see which one works best for you.
- Stability of performance – Make sure that a good trading platform corresponds to your software. A performance of a share trading platform must be stable and smooth. This is one of the most important aspects you need to look for.
- Basic functionalities and additional features – the best share trading platform must correspond to your SA trading situation at the moment. Most online trading platforms for beginners come with this feature.
- Support – your broker must know the trading platform you are going to choose to trade with. The team must also be equipped so that they help you whenever you need help.
How does trading work for stock assets?
While previously it was necessary to go to a specialized broker or use a banking investment product, today it is possible to invest in the stock market directly online through a practice called “trading.” Indeed, thanks to the important technological advances related to the Internet in recent decades, some brokers have developed trading platforms that allow individual investors to speculate on the price of the majority of shares on European and international stock markets without the need to use an intermediary and without having to buy the securities directly.
To start investing in the online stock market, all you have to do is create an account with one of these brokers and deposit an investment capital that will be used for the different positions. Then everything is carried out live from the trading platform made available to users.
Online trading works with pro difference contracts, also called CFDs, which allow you to invest any amount of money in one or more securities, regardless of the real price of the shares. Of course, CFDs allow the taking of positions for buying, but also for selling, which corresponds to a short selling method. Depending on whether you anticipate a rise or fall in the price of the shares or the index that interests you, you can trade in the direction of the trend that suits you best.
Losses or gains are calculated with the difference between the prices of your asset at the time of your position and its price at the close of it.
Of course, stock trading platforms are not content just to allow you to access the market, they also provide practical functionalities and tools that help you carry out your analysis and establish your strategies. All this is what we will detail below.
An online investment that requires a good knowledge of the stock market
Of course, although the trading platforms are aimed at all individuals who want to invest in the stock in an autonomous way, beginners or people who do not know anything about the operation of the stock market are discouraged. Indeed, in order to take sensible positions with regard to the different assets that interest you, it is necessary to be able to anticipate as well as possible the price variations of these assets and to know how to manage the possible risks of losses.
If you are just starting to get interested in the stock market, we advise you to take the time to educate yourself about speculation before you start investing your capital online. For this you can, in particular, navigate through our website, where you will find many informative and explanatory articles about the stock market, its operation, the different important stock indices and the actions of the latter, as well as explanations regarding the various strategies and methods. analysis.
As for any other activity, online trading requires good training and should not be taken lightly by simply speculating at random.
It should also be noted the absolute need to adequately know the stocks and other assets with which you plan to trade before taking your positions. To help you, we suggest you discover on our website many facts about the most important stocks in the world. More specifically, for each action we will provide you with explanations about the relevant company, its activities, its competition and even its partners, as well as some tips to help you carry out higher quality fundamental and technical analysis.
Advantages and disadvantages of investing in the stock market
As we have just indicated, investing in the stock market is today more accessible than before, and anyone who wants to can speculate on the large stock markets around the world. However, this type of investment has both advantages and disadvantages, which we suggest you discover here in more detail so that you are aware of the possibilities and risks related to it.
- To begin with, it is clear that investing in the stock market presents undeniable advantages for individuals who have capital that they want to evolve.
- The fact of investing in stocks on the stock market allows, when the established strategies are consistent and effective, to obtain a better return than most of the savings products offered by banks.
- It can also be remembered that, compared to other types of assets, stock assets can be analyzed using financial and economic information on large listed companies and can also follow market events that may have influence on their share price.
- You will also have the possibility to trade like a true professional using the analysis aid functionalities that the stock market charts make available to you and which allow you to visualize the main trend or volatility indicators with a few simple clicks, which greatly facilitates your historical or real-time technical analysis.
But of course, before choosing to invest in the stock market, you also have to know the disadvantages of this type of trading.
- First, you need to choose your assets properly, as some stocks on the stock market are less volatile than others, which makes spotting trends more complex and taking positions less profitable.
- On the other hand, you have to know that when you invest in the stock market there is nothing to protect your capital. The risks of loss are therefore perfectly real and you must take them into account by adopting proper money management to minimize their impact and not lose all of your capital.
In conclusion, and although trading on the stock market has many advantages, it is a practice indicated mainly for investors who know the market and who are able to devote enough time to the relevant analysis.
Tips and analysis for investing in the stock market
Investing in the stock market is not obvious to all investors. In fact, it requires a series of knowledge about the market and the most effective analysis methods. So it’s always a good idea to seek a little outside help when we start out in this field. In this article we will give you some tips for investing in the stock market and we will explain what are the main methods of analysis that you can use.
Main methods of analysis to invest in the stock market
To speculate on the stock market in the most efficient way possible, the first thing you need is to know how to do some proper analysis of the price of the shares you want to invest in. Generally, the two types of analysis available to you are technical analysis and fundamental analysis. Here are some explanations about it.
First of all, technical analysis is an analysis of the quotes that is based on the study of stock charts. By studying the historical movements of the price of an asset, future movements can be deduced according to the market configuration. Obviously, these methods require that the main trend or volatility indicators be known., as well as a good control of the tools found in these charts. Fortunately, most of the brokers on the market offer fully customizable stock charts with which you can directly view the indicators or choose the time periods you want to study. In this way, you will only have to interpret these indicators. Also, it should be noted that external provider channels can also produce and provide signals.
For its part, fundamental analysis is based on external events and publications that will affect a security. For example, it may be news from the company issuing the shares or news about its direct competitors or its sector of activity in general. They can also be publications of results or mergers, acquisitions, associations or assignments.
The best way to forecast the evolution of a share price is therefore to use fundamental and technical analysis together. In this way you will obtain better quality signals and can take strategic positions for your assets
Some tips for stock investments
Now we will give you some tips that will help you make good investments in the stock market thanks to these two types of analysis and some tricks that you can apply systematically.
- To begin with, the choice of assets in which you are going to invest is paramount as you should give preference to stocks with significant movements and with which you are comfortable. The more information you have about a company, the easier it will be to analyze it and predict its evolution.
- We also recommend spending a little time practicing strategy setting first before you start real trading. This will give you a better chance of succeeding in applying your strategy live. For this you can, for example, use a demo account or an online trading simulator .
- On the other hand, take the time to organize good money management , that is, pay attention to the way you manage your investment capital. When investing in the stock market, it can be dangerous to bet everything on a single trade or to use high leverage. Losing your capital is a real risk that you should be aware of.
- Finally, you must diversify your investments as much as possible so as not to take too many risks. To do this, you can implement a hedging strategy that will allow you to cover your losses in the event of a wrong forecast.
Online Trading South Africa FAQs
Get the answers to the most frequently asked questions about Online Trading in South Africa.
Question: What is Online Trading?
Answer: Online trading is the act of using the internet to buy or sell stocks.
Question: How can I start trading online South Africa?
Answer: You’ll need to open a SA trading account with an online broker that is regulated in South Africa. Then you can be able to use their on line trading client program to buy and sell shares or invest in stock trading.
Question: Is online trading legal in South Africa?
Answer: Yes, trading online is legal and legit in South Africa.
Question: How do you trade online South Africa for beginners?
Answer: You need to first choose an online broker, create an account and a use demo account to practice. Once you feel like you are ready to trade online with real money, then fund the account, choose the currency pair or stocks and start trading in SA.
Question: Does South African online trading really work?
Answer: Online trading works and is not a get rich quick scam. It takes practice and patience to master the art of trading.
Question: Can you make money trading online?
Answer: Yes, it is possible to make money in stock trading. Some online traders in South Africa such as Ref Wayne and Sandile Shezi have actually made millions trading in markets.
Question: What is the best form of trading?
Answer: Position Trading, Swing Trading, Day Trading and scalping are four popular active trading methodologies.
Question: Can I trade in South African shares even when I am not living in South Africa?
Answer: Yes, you can. Our team at Online Tradings (Online Trading South Africa) has done a research. You need to look for online brokerages in your country with operations in South Africa.
Question: How can I become a shareholder?
Answer: You become a shareholder by buying shares in a company.
Question: What is the cheapest share trading platform in South Africa?
Answer: The cheapest share trading platform South Africa is Plus500.