The Cheapest Share Trading Platform in South Africa

Choosing the cheapest share trading platform in South Africa is very important for successful stock trading.

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 which will claim to offer you the “best trading conditions” and the “lowest fees” which is of course a nonsense.

Online stock investing 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 the right share trading platform for traders in South Africa ?


1. 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!

Trading fees:

  • cost per volume
  • minimum cost

Non – trading fees:

Here is the catch, 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 or 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, the investor will find more than 1,800 shares, including the big stars of the investor world like Apple, Facebook, Google, and Amazon.

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.