Choosing the cheapest share trading platform in South Africa is very important for profitable stock trading. If you want to start online trading in SA you should consider safe & cheap platform first and foremost!
Stock broker will be responsible for conducting investment deals and keeping your trading account. However, finding a good online trading platform can be quite complicated because there is a large number of stock brokers operating in South Africa today, each of them will claim to offer you the “best trading conditions” and the “lowest fees” which is of course a nonsense.
The Cheapest Online Trading Platforms South Africa
- XTB Africa ⇒ The Cheapest Share Trading Platform South Africa
- CM Trading ⇒ Best CFDs Share Trading Platform in SA
- AvaTrade – Zero Commisions Real Stocks & ETF funds
- HotForex ⇒ Excellent Forex Trading Platform
- IQ Option ⇒ Best for CFD stocks, Binary Options and Forex
#1. XTB ⇒ The Best Online Trading Platform for South Africans in 2021
There are currently over 300 thousand active traders on XTB (and growing..). Novice investors usually join XTB trading platform to trade Stocks, Cryptocurrencies and Forex. XTB online platform xStation 5 is easy to use, with minimum deposit $5 and offering wide range of stocks, cryptocurrencies, stock indices and of course more than competitive trading fees.
“XTB Africa is an online trading platform recommended for daytraders who need leverage and also for long-term investors who buy and hold”
- Real Stocks trading
- Crypto currencies trading
- Forex trading
- FSCA License in South Africa
- Many local ZAR depositing options available!
- There are over 1600+ Real stocks and ETF indexes available
- Real stocks with cheap commisions from 9.99 USD
- CFDs on Stocks
- No Metatrader MT4 platforms
|Real Stocks||Free 0% Commision|
|CFD Stock Trading||Spread + Swap fees apply|
|Withdrawing money||5 USD|
|Inactivity fee||10 USD per month after 1 year of inactivity|
|Demo account||Free of charge|
|Account setup||Free of charge|
|Account currency||USD, EURO|
#2. CM TRADING ⇒ Best CFDs Share Trading Platform in SA + BONUSES
CM TRADING is highly reputable and of course FSCA regulated trading platform. It is one of the most popular CFD share trading platforms used by South African traders. You can use CMTRADING platform for CFD daytrading with good leverage and cheap fees, local customer support team located in Johannesburg is a benefit.
CM TRADING has offices in JOHANNESBURG and is recommended for daytraders who need leverage to buy stocks on a margin!
- $100 BONUS for new traders
- ZAR Account Broker
- Low minimum investment of just $250
- local SA trading platform , with local support
- CFD on stocks with leverage up to 1:200
- only CFD on stocks
#3. HotForex ⇒ Trading Platform with Ultra Low Fees
The world famous binary options brand has successfuly transformed into “All In One” online trading platform for CFD trading.
Beginner friendly, huge leverage of 1:1000 that allows you to speculate with insane low minimum deposit of $10!
You can trade all world markets, chat with other traders, follow them online and have fun!
- world renowned forex platform
- High leverage up to 1:1000
- Forex, Oil, Bitcoin, Crypto
- mostly focused on forex
- only Stock CFDs
HotForex is recommended for daytraders, thanks to leverage up to 1:1000.
Online trading platforms in South Africa
Online stock trading has moved from stock market parquets to the living rooms of entire population of the general population. But successful investment requires time and hard work.
Especially beginners must carefully consider all aspects that could affect their chances of successful investing into shares.
However, also experienced investors should not let themselves be fatigued by their success and still seek ways to move forward.
How to choose online trading platform for traders in South Africa
1. Compare Stock Trading Fees (Costs)
You will probably agree that closely monitoring of trading costs is at the forefront of factors that decide whether you will make profit or loss as a stock investor. Anyone entering a market should be interested in fees!
- cost per volume for example you will be charged $5 per one purchase
- minimum cost e.g. 0.12% from contract volume, meaning if you buy stocks in amount of $10.000 you will be charged
Non – trading fees:
“Beware, as some stock trading platforms in South Africa will charge you inactivity fees!”
Therefore, it is important to thoroughly compare the costs of each broker!
Unfortunately, this is not a simple discipline, as price lists are often complicated with many star exceptions. One can only speculate whether confusion has any legitimate reasons, or whether their sole purpose is to conceal high fees properly. And unfortunately, low client awareness is recording this behavior.
For example, eToro, on the other hand, relies on a simple fee structure with the opening and running of a free trading account, with no entry fee and just $200 minimum deposit. According to our information, the company does not charge a fee or deposit the shares at unlimited value, which is not standard on the market. At no extra cost, a top trading platform is available to the investor, as well as an Account Manager support. Of course there is a free demo account, where the South African investor can try stock trading without risk. And if there are any problems, technical support is available 24 hours a day.
In most cases, Investor pays a commission fee of 0.12% OR a minimum of $4.99 for trading of European shares. The WallStreet trading fee is reduced to $ 4.99. On a less liquid stock markets, a fee can be little bit higher.
In eToro’s offer:
- investor will find more than 1,800 real shares, including the big stars of the investor world like TESLA, Apple, Facebook, Google, and Amazon
- Besides real shares, you can also daytrade shares, which allows you to use leverage 1:5 and short stocks
When selecting an online stock broker, it is also important to consider the amount you intend to invest in the shares and what shares you plan to buy. Whether it will be shares of US companies, EU companies or world shares and so on.
In addition to brokerage fees for underlying deals, most companies still charge some hidden fees.
This includes in particular:
- asset transfer fees
- annual account maintenance fees
- account closure fees
- charges for inactive accounts
2. Trading platform
Online trading can be cumbersome for you, especially if the software provided by the online broker is not called “user friendly”, ie it is not easy to use and the layout of the individual commands on the screen is not intuitive.
3. Minimum deposit
If you are resident of South Africa, for sure you want to know what is the minimum investment on a platform. On most platforms that are listed in this article, minimum investment is around $100 which is enough to start investing into stocks.
US stock brokers like Interactive Brokers require minimum $2,000 starting capital.
Danish SAXO Bank requires first investment of $10,000 for example.
So it depends what are your investment goals, and how wealthy you are.
4. Demo Practice Account
If you are just starting out, it is good to test the waters with a practice account. You should learn how