Online Trading South Africa is created for South Africans who are interested in starting online trading in South Africa. By reading this guide, you will be able to compare the cheapest online share trading platform South Africa. We’ve partnered with the best online share trading platforms South Africa where you can create an trading account online and start buying shares online. If you are looking to trade online in South Africa, you will find this website very useful. After going through this online share trading guide, you will be able to create an online trading account and start trading online South Africa.

Online Trading Platforms South Africa

Online Trading SA Brokers
Minimum Deposit
Financial Regulators
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Plus 500 Online Trading
Rating-online-trading
Min.Deposit
R1500
FSCA Regulated.
In South Africa

Plus500 Regulation Number #47546 in SA
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Hycm Markets South Africa
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Min.Deposit
$100
FCA, DFSA, CySec Regulated.
In South Africa
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CM Trading South Africa
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Min.Deposit
R3000
FSCA Regulated.
In South Africa
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Markets SA
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Min.Deposit
R 1500
FSCA Regulated.
In South Africa
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Table of Content

  • Online Trading – The Basics
  • Online Trader – Different Profiles
  • What is an Online Trading Platform in SA?
  • Which Online Trading Platforms Work Best in South Africa?
  • What can you Trade and Invest in Online?
  • The Pros and Cons of Trading Online in South Africa
  • Different Ways to Learn Online Trading in South Africa
  • How to start online trading in South Africa
  • An Introduction to Online Share Trading
  • How Do Shares Benefit You
  • The Problems of Share Trading in South Africa
  • How can you become a Share Trader in South Africa
  • Cheapest Share Trading Platforms in South Africa
  • How to Analyse the Perfect Share Trading Platform for yourself
  • Online Share Trading through Standard Bank
  • Online Share Trading through Nedbank
  • Online Share Trading through FNB
  • Online Share Trading through ABSA
  • Online Share Trading through JSE
  • Steps to Start Online Share Trading in South Africa
  • Which Apps and Platforms work best for Online Share Trading in South Africa
  • Online Stock Trading – An Introduction
  • The Pros and Cons of Online Stock Trading in South Africa
  • What is Day Trading, and How Can You Excel in it
  • Top Day Trading Platforms in South Africa
  • FAQs
  • Watch How To Start Online Trading In South Africa Video

Online Trading Trading – The Basics

Trading online is truly a phenomenal feat accomplished in the modern era. It has brought about a paradigm shift in how the world handles its finances. There’s not even a flicker of doubt in the fact that we all have advanced exponentially in the past 50 years. Online trading simply adds to it. As you progress on in this article, you’ll find everything there is to know about trading online in South Africa through online trading platforms.

Let us start this journey by addressing the elephant in the room; what is online trading? Simply put, it is exactly what it sounds like – trading online. It is how a trader carries out transactions of financial assets over the internet through online trading platforms. Such platforms come to life via a broker or a bank that overlooks these transactions. Buyers and sellers carry out their required tasks, and after the necessary trading decisions occur, they are sent to the broker online. Online trading has been on the rise ever since the ‘90s. And we have high-speed internet connections and computers to show thanks.

Like everywhere else, South African-based online trading platforms allow traders to transact bonds, EFTs, currencies, shares, stocks, and mutual funds. Along with the various assets provided by brokers that include shares, indices, foreign exchange, and commodities. With this form of trading, people living in South Africa can quickly amass a fortune while sitting in their homes in front of their desks. Here at Online Trading, we can help you achieve such a phenomenal goal and help you understand the vital concepts behind trading online in South Africa.

To get started, we’ll go through every inch of detail and help you become the perfect online trader South Africa has ever seen. And along with that, we’ll cover the essential tips and tricks to help you succeed on various online trading platforms in SA.

Online Trading SA (South Africa)

Online Trading SA (South Africa)

Online Trader – Different Profiles

As simple as it may sound, a lot goes on when one says “Online Trader.” The term Online Trader is pretty self-explanatory. It refers to that particular individual that undertakes the buying and selling of financial assets in a trading market, i.e., an online trading platform in this case.

An online trader in South Africa (as well as elsewhere) usually suffices to the following categories:

  1. Analysts – Analysis is the ability that allows traders to study stocks and market trends, execute a trading transaction, and analyze current market situations to help make informed decisions. They form invaluable analogies to assist themselves/clients in formulating trade-relating strategies. Through fundamental and technical analysis, they can accomplish such feats.
  2. Risk Managers – These online traders must also be able to study and predict market trends to help calculate the quantity of risk involved in specific trading strategies. With these intuitions, traders act as risk managers that ensure continuous profits and progress.
  3. Traders – Perhaps the most common action of every trader is to buy and sell financial assets to obtain profits or losses.

These three profiles mark the basis of successful online traders as being ones to ensure prosperity among others in online trading platforms. Therefore, to become a triumphant trader in South Africa, one must effectively analyze ongoing market trends and consider potential risks to make timely decisions that assure continuous prosperity.

What is an Online Trading Platform in South Africa?

Online Trading Platforms South Africa are trading solutions comprising computer software that act as portals for users to buy, sell, and place product orders over the internet. And this is done with a financial intermediary that allows such transactions to occur successfully. In other words, an online trading platform is software that allows different users to form transactions over the internet through a broker.

The functioning behind such a platform in South Africa is quite simple.

  • A trader places his deal in the financial market with the help of a broker.
  • The broker finalizes the transaction by finding the relevant asset he wants to purchase or sell.
  • He then works to process and execute the order he receives.
  • In that, he finds a counterparty that matches the trader’s requirements.
  • The broker then allows the transaction to occur.

To put that into perspective, let’s assume a trader wants to buy 100 shares of a particular company. He sets a price and sends it to the broker. The broker then matches a counterparty willing to sell 100 shares of the same company for the said amount. Once the two matches, the broker finalizes the deal by allowing the transaction to occur and takes a small commission. In the past, this process was time-consuming. However, with online trading platforms in South Africa, this now occurs within seconds, proving far more effective and time-friendly.

Which Online Trading Platforms Work Best in South Africa?

South Africa has numerous online trading platforms allotted to its name. And it can get tricky when one tries to find the perfect solution that matches their requirements. To save you the hassle, Online Trading SA has compiled the top 3 best and cheapest online trading platforms in South Africa. Take a look!

  1. Capital.com

Capital is perhaps the best online trading platform when you’re looking to trade over a wide range of assets. It is also the cheapest platform that houses the possibility of buying and selling more than 3000 stocks of different countries. It even allows traders to transact several EFTs, indices, cryptocurrencies, and other commodities.

In terms of its advantages over other platforms, Capital.com allows the user to reap the benefits of commission-free CFD trading, i.e., more return on transactions. Its AI-based interface supports traders in making the proper decisions. And it also teaches them to trade effectively.

As for its disadvantages, Capital.com only allows traders the ability to trade CFDs, and it is not compatible with forex trading.

  1. AvaTrade.com

If you’re one of those traders that want to settle down with a reliable trading platform, AvaTrade is just what you need. And the key feature that enables such a platform to be trusted is its compatibility with MT4 and MT5 (MetaTrader Series). And with its platform, AvaTrade gives its users several features to assist them in profitably trading.

For its pros, Avatrade.com offers Islamic trading and enables its users to utilize several trading instruments, including visualization tools, indicators, trading signals, etc. And the fact that it is FSCA and ASIC approved shows that AvaTrade is authentic and gives you the option to trade in the comforts of your home.

As for its cons, AvaTrade only offers CFDs, Forex, and crypto. All while charging a high inactivity fee with a low forex fee.

  1. FXVC

This next online trading platform applies to those who want the best stock broker South Africa can offer. That means FXVC charges lower fees with a wider range of assets to trade. Through its platform, FXVC enables traders to trade through various trading tools to help them create effective strategies and greater profits.

To summarize its pros, FXVC offers some of the fastest execution speeds rivaled by no one. And its versatility of shares makes it one of the most widely used online trading platforms. It has a low spread and offers to assist beginners and expert traders thanks to its five-accounts scheme.

The only limitations of FXVC are its high trading fees and the fact that they do not accept PayPal.

Best Online Trading South Africa Platforms

Best Online Trading South Africa Platforms

What can you Trade and Invest Online?

When it comes to trading online, these traders leave no stone unturned to innovate new ideas and techniques that will help them sell their various assets. So, what are these? Well, take a look:

Assets

  • Stocks – Stocks define the ownership of individuals of a corporation or company. Investors buy stocks to achieve a greater return on investment from the company’s profit.
  • Cryptocurrencies – Many online trade platforms allow the transaction of cryptocurrencies like Ethereum and Bitcoin.
  • Currencies – Traders can trade different currencies like Forex.
  • Metals – Many traders also invest in different metals like gold and silver.
  • EFTs – Like stocks, EFTs are investment funds traded on the stock exchange.
  • Indices – Indices are grouped assets representing a market or a portion of it.
  • Agriculture and Fossil Fuels – Traders can also invest and trade in agricultural commodities and oil & gas shares.

Investments

  • CFDs – A Contract for Difference is a legal document stating that in the contract between the two parties (the buyer and the seller), the buyer will pay the difference between an asset’s current value and its value at the time the contract took place.
  • Binary Options – This form of investment depends upon probability. It is an options contract where the payout depends upon the value of an asset appreciating or depreciating.
  • Futures Contract – A futures contract is a legally binding agreement that states that an asset will be purchased in the future for a pre-determined price.

The Pros and Cons of Trading Online in South Africa

With all the popularity surrounding online trades, it’s no surprise that many people may assume it to be a gold mine. However, like everything, online trading in South Africa has its advantages and disadvantages. To shed light on these factors, we’ve listed to most common and necessary pros and cons everyone needs to know about before starting their online trading journey.

Pros

  • Online Trading South Africa allows you to trade whenever and wherever you want, given that you have an appropriate internet connection.
  • It shows versatility in the number and types of assets and investments you can transact, increasing your overall earnings.
  • Starting such a trade online in South Africa requires very little money. You can even start trading with as little as $100.
  • With the number of online trading platforms in South Africa, it’s no surprise that the trading process becomes easy and convenient for anybody (newbie or expert).
  • Trading online nowadays is done in a matter of seconds. And you don’t need to go through the hassle of contacting a broker and waiting for their reply.
  • Trading online in South Africa is not bound to time – Trade anytime you like 24/7.

Cons

  • There is a risk of losing money when trading online in South Africa. Making a profit is not always the case.
  • Although trading online may be considered easy, it is not. In fact, it is quite difficult for many people to get the hang of it. Therefore, technical knowledge is preferred for all types of trading beginners.
  • The losses that occur through online trading can be huge compared to traditional investing methods.
  • Internet is a must. And without a stable network connection, trading becomes impossible, leading to inevitable losses.

Different Ways to Learn Online Trading in South Africa

Learning to trade online in South Africa is not that arduous. In fact, after knowing the essential tips and tricks, trading online becomes easy. But where can you receive such knowledge? The truth is that you must enroll in particular courses that teach online trading down to its very core. Examine multiple online courses and see if you can answer the following questions:

  • Is the lesson extensive?
  • Does it cover everything I need?
  • Is the price worth the syllabus?
  • How are the reviews?

Whenever you search for an online course, see it is not a scam. However, once you find the perfect one, you’re one step closer to starting your online trading business.

You can even learn to trade online in South Africa by yourself. But it’s better to receive professional guidance from someone who knows the critical tricks to make profits.

Best Online Trading Platforms South Africa Market

Best Online Trading Platforms South Africa Market

How to start online trading in South Africa

Trading online is not that hard. Anyone with the proper knowledge and a stable internet connection can start trading online in South Africa. To simplify the process, take a look at the following steps.

  1. Find a suitable Broker that suffices your needs.

There are many different types of brokers online. And not all of them are suited for everyone. To trade online, you need a brokerage account. Take your time to search for different brokers that either deal with clients directly or act as mediators between traders and superior brokers. Read their reviews and match that with your requirements.

  1. Set up an Online Trading Account.

Open an online trading account with brokers registered by FSCA. Try your luck first with demo accounts and see how trading occurs. Then fund your account with US dollars.

  1. Carry out adequate research.

Research different stocks and shares and see which company can give you the most profit. Investment without proper research is bound to result in failure.

  1. Develop a trading strategy.

Come up with multiple trading strategies and formulate them when you are to use the demo account. Know when to make market moves to yield the most profit

  1. Take note of the risks involved in your trades.

Trading online in SA is risky. Make sure you calculate the risks involved in purchasing stocks, as you can lose more than you invest.

An Introduction to Online Share Trading

Online share trading is exactly what it sounds like. It is the action of carrying out the transaction of shares between buyers and sellers. To understand what share trading is, we must first build a solid foundation on the concept of shares.

Shares are simply units of equity ownership or the percentage of a person over a company. To buy shares means you purchase percentage ownership of the company that is proportional to the number of shares you possess. Investors who buy shares are called shareholders. Online Share Trading is simply the buying and selling of these shares between parties over the internet in an attempt to make a profit.

In South Africa, Online Share Trading is a transaction carried out through JSE (Johannesburg Stock Exchange) listed Companies. Such a form of trading is popular in the investment world and occurs on online share trading platforms that act as brokers facilitating your purchases and sales. These brokers charge a set fee per trade as their commission. And they further submit your order to JSE companies and other similar markets.

Online Share Trading in South Africa is a booming business and can help you amass a fortune (if done correctly).

How Do Shares Benefit You

Shares are a great way to earn money. And one of the many ways one can beat the inflation prices in South Africa. Although the risks involved in Online Share Trading are considerable, the benefits one can reap are just as much, if not more. So, what are these said benefits? Read on to find out!

  1. Shares offer continuous transactions.

Owning shares means owning a portion of the company. And with that, one can earn a part of the company’s income relative to the number of shares they possess. Therefore, shares are great long-term solutions for many people.

  1. Dividend profits.

Many companies tend to give additional profits to their shareholders. Regardless of your suffering losses from a share, the company grants you dividends.

  1. Good stocks increase their value over time.

If a trader buys shares from a stable and profitable company, its value can increase over time. Therefore, online share trading can allow you to earn more money.

  1. An easy and convenient source of income.

Share trading can happen in a matter of minutes. And buying stocks through a broker, financial planner, or another online mode is simple too. All it takes is your phone and a stable internet connection.

What is Online Trading And How Does it Work in South Africa

The Problems of Share Trading in South Africa

Like another form of trading in SA, online share trading also comes with a great deal of risk. Take a look:

  1. Capital Loss

If you have a share of a company in SA suffering from poor performance, the value of that share may decrease in a short amount of time. Even below that which you paid for it. Therefore, the risk of the capital loss is always present.

  1. Great Fluctuation

Stocks and shares are those assets that show a great deal of fluctuation in their prices over time. Their value can decrease significantly and very quickly. So, you always have to keep note of share prices.

  1. Market Devaluation

Often, even entire markets may fail in the online share trading business. Usually affected by external policies and events, these markets may cause an overall decrease in the price of your shares.

  1. Exchange Rate Risk

Fluctuations in exchange rates can also cause a loss if the currency you were trading in appears to depreciate compared to your local one.

How can you become a Share Trader in South Africa

After knowing all the benefits and risk factors involved in online share trading in South Africa, let us tell you how you can start share trading online today! Below are the steps you must follow to become a successful share trader in South Africa.

  1. Educate yourself

Knowledge never goes to waste. To become a successful trader, you need an expert’s guidance on how to become one. Invest in multiple courses and find out how you can excel in online share trading.

  1. Formulate an effective strategy

Next, you’d need to devise a suitable strategy that correlates to the shares you buy. That way, you’ll know when to buy and sell shares and when you can make the most profit.

  1. Set up an online brokerage account

First, create a demo account and practice that. You’ll understand how that share trading platform works. Once you get a good idea of how things function, go and create a real account and fund it.

  1. Buy shares and trade away.

After you have a firm understanding of what to do, it’s time for you to buy shares and start trading. Always keep an eye on market fluctuations. You never know what might happen.

What is Online Trading And How Does Online Trading Work in South Africa

Cheapest Share Trading Platforms in South Africa

When it comes to Online Share Trading Platforms, South Africa is filled to the brim with it. Scrutinizing each and every one of them is tedious and time-consuming. To save you the hassle, we have compiled the following list of the Best Online Share Trading Platforms in South Africa. Take a look!

  1. IQ Option – Great for Binary Options.
  2. IG – Offers more than 17,000 financial markets.
  3. Plus500 – Known for being one of the best stock CFDs.
  4. Pepperstone – Great for copy traders and algorithmic traders.
  5. eToro – Gives long and short-term investment solutions.
  6. CM Trading – Best FSCA-approved broker.
  7. Easy Equities – Makes Share Trading easy for anyone around the world.
  8. ABSA Stockbrokers and Portfolio Management – Helps you financially plan and raise capital.
  9. Nedgroup Private Wealth Stockbrokers – Offers secure online trading options.
  10. PSG Securities – Offers multiple trades and management solutions.
  11. Sanlam iTrade Pro – Offers to trade on your behalf. And it houses extremely advanced investment tools.
  12. Sanlam iTrade Standard – Advanced designs and user compatibility.
  13. Standard Bank Online Share Trading Platform – Allows investments in global financial markets.

How to Analyse the Perfect Share Trading Platform for yourself

With so many share trading platforms in SA, it’s no surprise that one might find themselves in a dilemma as to which platform one should choose. To help you eradicate such problems, try to find the following features on any platform and see if they’d be worth your time.

  • They must feature a client and quick customer service that is available 24/7.
  • The platform must be able to provide you with pictograms and charts that help you make trading strategies.
  • You must be able to access many advanced trading and research tools that help you find the best stocks and notifies you about the market condition.
  • The platform should warn you about potential risks.
  • Technical and educational support must be available for every trader (especially beginners) that helps them in their trek to a successful trading life.
  • The platform must be thoroughly secure to assure you of the insurance of your money. And to prevent hackers from hacking your account.

Online Share Trading through Standard Bank

Standard bank is a South African Bank and is said to be South Africa’s biggest lender. And with such familiarity, it is no surprise that this bank also provides investment solutions through online share trading platforms. There are two of these; Standard Online Share Trading (OST) Platform & Automated Share Investment (ASI) Platform. Both of them account for different investment mechanisms. OST Platform is more complicated than ASI. And it is a division of SBG Securities Proprietary Limited. Housing diverse trading options, this platform is for those investors that are a bit of an expert in said online share trading field.

The ASI platform tends to be for beginner-level online African share traders. And it is cheaper for them to get into the financial market. And for this reason, the ASI Platform has many of its operations automated for ease of use.

Online Share Trading through Nedbank

Online share trading through Nedbank occurs through their site. The solution offers investors an advanced platform to transact. With Nedbank, any investor can access data relating to global markets, JSE-listed companies, and economic analysis. The platform Nedbank offers have advanced research and educational tools that help investors make strategic decisions and formulate effective trading strategies.

At Nedbank Share Trading Platform, an investor can get a hold of multiple databases relating to all the JSE-listed companies and data regarding SAFEX and the South African Bond Markets. One can also receive exchange rates, commodity prices, and the ability to perform quick, real-time transactions. Thus, saving one from an extreme downfall of commodity prices. Since everything is online, Nedbank investors can make use of the ability to check and examine the progress of their orders online without any intervention from a third party.

How Online Trading Works in South Africa

Online Share Trading through FNB

The First National Bank, also known as FNB, is one of South Africa’s biggest banks that ranks in the top 5’s. Initially, a division of FirstRand, this huge services conglomerate performs trades and transactions with companies listed on JSE under the symbol of FSR.

Unlike Standard Bank, the First National Bank offers African investors three products; Share Saver, Share Builder, and Share Investor. Each of them provides different benefits to its investors in its own unique way.

Share Saver is one of FNBs products that instructs its investors to pay a monthly fee. With a monthly investment of R300, you can invest in any of the top 100 companies listed in JSE under the condition that the bank chooses the shares for you.

Share Builder is the second product the First National Bank offers. Unlike Share Saver, Share Builder allows you to freely buy whichever share you want from the top 100 companies listed in JSE. The catch here is that the number of shares you buy is limited. To do this, you need a minimum account balance of R100 and a monthly fee of R45.

Share Investor is FNBs final product. Its key feature is alerting a trader about different prices of shares, watch lists, and Share Swarm. And it even gives access to the latest shares in the market. That too even before they join it. Such occurs through Initial Public Offerings (IPOs). Share Investor also allows traders to freely buy and purchase trades through companies listed on JSE. The trading assets include shares, ETFs (Exchange Traded Funds), ETNs (Exchange Traded Notes), and Krugerrands. This handy product requires a minimum account deposit of R200 with a monthly fee of R49.

Online Share Trading through ABSA

ABSA Group Limited, previously known as Barclays Africa Group Limited, provides investors with two options to carry out their trades. The first one allows traders to trade EFTs and shares through ABSAs online share trading platform. It gives you an account from where you can monitor its activity anywhere at any time.

The second option ABSA provides is trading through a telephone service where investors place and purchase orders through a phone call. Not only this, but ABSA also provides these investors the ability to monitor their accounts online. The brokerage rate ABSA charges are 0.4% of the total value of the asset traded. They charge this without any additional monthly account fee. And according to their site, you need to have a minimum of R120 to be eligible to share trade online in South Africa.

Online Share Trading through JSE

Johannesburg Stock Exchange (JSE) is also known as the best stock exchange market there is in South Africa. Investing in JSE takes place in three different ways. The first one is to buy and sell shares directly from companies listed in JSE through a stock broker. The stock broker will take a commission from the overall trade.

The second option is to invest in different index-tracking funds like Satrix. These funds work by finding the largest companies on JSE and then attempting to buy their shares. Thus, giving you a higher chance of making a profit from those stocks.

Lastly, the third way to invest in companies on JSE is by buying shares through fund managers – a person or a corporation that deals with taking your money and investing it in assets for you. Popular fund managers in South Africa include Allan Gray, Old Mutual, etc. These fund managers decide for you and, therefore, invest on your behalf. Of the total profit earned from those shares, they charge a commission fee.

Steps to Start Online Share Trading in South Africa

As a beginner, it is common to be a bit scared about leaping into such a massive world. Online trading has brought about changes around the world. And with that, it is no wonder South Africa has also gotten its fair share of it. To start online trading in South Africa, you must follow the following steps. After that, we will tell you the many apps that help you trade online in SA (as an alternative to online trading platforms).

  1. Get hold of a suitable Stockbroker.

A stockbroker is a person or a company that works on financial advisory and often provides investment management services to its traders.

  1. Create your trading account.

Account creation is easy. The trick here is that you must make a demo account to practice. That way, you will understand how the system works.

  1. Fund it.

Now it is time for you to invest in your real account. Different platforms have different policies for minimal amounts in your account as a prerequisite for trading.

  1. Investigate different shares.

Research different shares available on the platform and extensively examine the various companies to see if they have a good performance with promising results.

  1. Purchase them.

Finally, go ahead and buy those shares. After doing so, you must formulate a trading strategy to ensure success.

Which Apps and Platforms work best for Online Share Trading in South Africa

Now, as simple as it may seem, starting your online trading journey is a bit time-consuming if you do not know what to do. And online share trading platforms in South Africa can be a bit of a hassle if you do not know what to do or if the user interface does not seem all that friendly to you. So, if such online platforms do not seem like your forte, you can always try mobile applications. Like the ones below!

  • eToro – offers multiple assets with free insurance up to 1 million euros, GBP, AUD, etc.
  • Fidelity – Amazing customer service with commission-free assets.
  • SigFig – Has portfolio trackers with financial advisors.
  • Schwab Mobile – Offers real-time market data with research opportunities and interactive charts.
  • Trading 212 – It is regulated as the top tier by FCA and thus is highly reliable.
  • Webull – Gives access to 11 cryptocurrencies with alerts, charts, customization, and screeners.
  • TD Ameritrade Mobile Trader – Allows real-time monitoring of your account with ensured top-notch account security and financial insurance.
  • Robinhood – It provides 100% commission-free stocks with $0 stock trading costs.

Online Stock Trading – An Introduction

Stock trading, like share trading, is a form of online trading whereby a trader proceeds to buy and sell stocks in the stock market. Investing in the stock market is perhaps the most common and popular way for one to get into the stock market in South Africa and receive experience.

But stock trading is not your average buying and selling of stocks. No! In fact, a lot goes on when one says stock trading. It involves extensive research and critical analysis of the stock market to make informed decisions that will affect the prices of shares and, thus, make you a profit.

Online stock trading in South Africa usually occurs through online platforms where investors can fund their brokerage accounts and purchase stocks. Over time as these stocks increase their value, these investors can sell them to make a profit. Other ways would be dividing a portion of the company’s profit among the multiple stockholders according to the number of stocks they possess.

Stock trading is a very profitable business in South Africa if done correctly.

Online Stock Trading for Beginners

The Pros and Cons of Online Stock Trading in South Africa

South Africa has numerous online trading platforms for stocks, as you can tell by now. But its sheer number does not mean it is full of benefits. Everything has its pros and cons. And the same goes for online stock trading. Here is a list of some pros and cons regarding online stock trading in South Africa:

Pros

  • Ability to get rid of broker-bias decisions

When you trade through a broker, you can often receive financial advice from the broker that benefits him more than you. Many brokers do this. Thus, making it difficult to find a trustworthy broker. With online stock trading, you’re free from such decisions as you can invest without any advice from a broker

  • Lower costs

Trading online saves you more money than trading with brokerage firms as you reduce the cost of their high commission fee and replace it with lower ones in online stock trading platforms.

  • More efficient

Trading online in South Africa is faster and more efficient than traditional brick-and-mortar trading. Thanks to high-speed internet connections, doing this becomes possible.

  • More investment tools

Online trading platforms offer you state-of-the-art research and investment tools that help you to make better-informed decisions regarding your stocks.

Cons

  • Dependency on the internet

Without a stable network connection, trading stocks online becomes impossible. And with that, you can suffer losses if you leave your account unattended for some time.

  • Trading too much

Many people have the problem of investing too much in stocks. They take online trading as a game and put all their money into it. If things go wrong, they can suffer huge, irreversible financial losses.

  • Additional investment

Often, platform or application mishaps can make a trade appear to have not occurred. Traders can misjudge this mishap and transact again, causing them a loss of money.

  • Financial losses

Perhaps the biggest problem with online trading is the risk factor involved with your capital. You can even lose more money than what you initially invested. Online Stock Trading in South Africa should always be done with a cautious mind.

What is Day Trading and How Can You Excel in it

Day trading is a form of share trading whereby the investor tends to trade their assets over a short period of time – typically a day. And in this time frame, they aim to create a profit from the small price fluctuations. Think of it as your average 9-5 gig, except that you are your own boss. Day trading is one of those ways one can turn a few days’ worth of wins into a fortune. Although, it is very risky at that. The profits made can then compound over time to give you an even bigger treasure.

To excel in day trading is truly a talent. Not many people can do so. But if you are still confident enough to day trade, we are here to help. Below are some tips you can use to help yourself excel in this field.

  1. You need to analyze yourself extensively to find which method of approach can help you make the biggest profit in day trading.
  2. Research the different markets and companies available for successful day traders in South Africa.
  3. Formulate a trading strategy that works well with your schedule
  4. Keep on practicing, and never fear investing in promising shares.

Top Day Trading Platforms in South Africa

  1. XTB

XTB is an online share trading platform that houses any successful day traders. It performs reliable CFD trading in South Africa and, as a result, has a rating of 4.7 out of 5. People usually go for XTB due to its low forex fee.

  1. XM

XM is a trustworthy online broker in South Africa popular among traders due to its low CFD fee. It has a user-friendly interface with demo accounts and educational materials for those starting to trade.

  1. Interactive Brokers

Perhaps the best online trading solution and broker in South Africa due to its low charges and how it provides access to over 135 global markets. It is compatible with both beginners and professional day traders in South Africa.

  1. OANDA

Although it comparatively has lesser investment options than other solutions, OANDA is still a great choice for successful day traders in South Africa due to the quick processing of data and amazing forex trading options and tools.

FAQs

What is Online Trading?

Online trading is the buying and selling of financial assets over the internet.

Is Online Trading Easy?

The ease with which to trade online depends on the trader and if they have prior knowledge about trading online.

How to start trading online in South Africa?

You’ll need to open a trading account and fund it. After that, research different assets and begin trading.

What are the pre-requisites for trading online?

Extensive research behind different shares & stocks. And the tips & tricks that go alongside them in making a successful trade.

Can I trade South African Shares without being in South Africa?

Yes, we here at Online Tradings have performed size-able research in this matter. You would need to search for online brokerages that operate in your country as well as in South Africa.

What should I invest my money in?

Stocks and shares in intraday trading. IF done properly, these assets will yield the highest profit than any other forms of investment in online share trading platforms in SA.

Should I buy stocks directly from a company?

It is possible if the company in SA allows it. They may charge a fee at that.

How much money should I have to begin online trading in South Africa?

It varies from platform to platform. Each platform has their own policy. And apart from that, you’ll need to consider the fees associated with brokers, government duties, and the price of the asset itself.

What type of trading gives the most benefit?

Position, day, scalping, and swing trading yields the most profit when done properly.

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