Investing in shares is a popular way to build wealth over time. In South Africa, platforms like Easy Equities have made it easier for beginners to get started with low fees and flexible options. Here’s a comprehensive guide on how to buy shares in South Africa, the platforms to use, and answers to frequently asked questions.
Why Invest in Shares?
Shares represent ownership in a company. When you invest in shares, you become a partial owner of that company and may earn returns through:
- Dividends: A portion of the company’s profits paid to shareholders.
- Capital Gains: The increase in the share price over time.
Popular Platforms for Buying Shares in South Africa
1. Easy Equities
Easy Equities is a beginner-friendly platform that simplifies the process of buying and managing shares.
- Key Features:
- FSCA registered (FSP No. 22588).
- Low fees (0.25% commission on investments).
- No minimum investment amount.
- Tax-Free Savings Accounts (TFSAs), USD, GBP, and ZAR accounts.
- Access to ETFs, individual stocks, and even cryptocurrency through Easy Crypto.
- Pros:
- No monthly fees for accounts under 18 or deposits exceeding withdrawals.
- Portfolio tracking tools.
- Cons:
- Thrive fee of R25/month may apply if you don’t meet the criteria.
- Selling shares automatically to cover fees can be a downside.
For more, visit Easy Equities.
2. FNB Share Investing
Another option is FNB Share Investing, which integrates with your FNB account.
- Key Features:
- No minimum balance for shares.
- Offers educational tools for beginners.
- Fees:
- Transaction fees range between 0.5%-0.85%.
- Monthly account fees apply.
Visit FNB Share Investing for details.
How to Buy Shares in South Africa
- Open a Brokerage Account
Choose a registered platform like Easy Equities or FNB Share Investing. Ensure the broker is FSCA-registered for credibility. - Deposit Funds
- Use EFT for no-fee transfers or credit/debit cards for instant deposits (fees apply).
- Always include your reference number to avoid delays.
- Choose Shares to Buy
Research companies using:- Company financials: Available on the JSE or the company’s website.
- ETFs: Great for beginners due to diversification.
- Place Your Order
- Navigate to the stock you wish to buy on your chosen platform.
- Select the amount you want to invest.
- Confirm the transaction.
- Monitor Your Investments
Use portfolio tracking tools provided by platforms like Easy Equities to monitor performance and adjust your strategy if needed.
FAQs About Buying Shares in South Africa
1. How much money do I need to start buying shares?
You can start with as little as R10 on Easy Equities. Other platforms may require higher minimum balances.
2. Are there tax implications for investing in shares?
Yes, taxes may apply, including:
- Capital Gains Tax (CGT): On profits made from selling shares.
- Dividends Tax: 20% on dividends received.
- Exemption: TFSAs allow for tax-free growth up to a certain contribution limit.
3. What is the difference between shares and ETFs?
- Shares: Direct ownership in a single company.
- ETFs: A collection of shares tracking a market index, providing diversification.
4. Is Easy Equities safe to use?
Yes, Easy Equities is FSCA-registered and widely regarded as a secure platform for investments.
5. How do I research shares to buy?
- Analyze financial statements of companies.
- Follow expert commentary.
- Use tools like JSE’s market data (JSE Market Data).
Helpful Resources and Links
- Easy Equities: Easy Equities Official Website
- JSE Educational Resources: Learn How to Invest
- FNB Share Investing: FNB Investing
Conclusion
Buying shares in South Africa is an accessible and rewarding journey, especially with platforms like Easy Equities simplifying the process. Start small, research thoroughly, and focus on long-term growth.
Happy investing!