The Cheapest Share Trading Platform in South Africa

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

Top Online Trading Platforms South Africa

  1. eToro – best for real stocks & copy trading
  2. CMTRADING – regulated South African trading platform
  3. IQ Option – ideal for CFD stocks, binary options and forex
  4. Pepperstone – ECN forex trading
  5. XM – trusted global fx broker

eToro

eToro is without doubt the most popular social trading network around the World.

There are currently over 5 million active traders (and growing). Novice investors usually copy automatically trades of successful and profitable investors. eToro is easy to use, with minimum deposit $200 and offering wide range of stocks, cryptocurrencies, stock indices and of course more than competitive trading fees.

eToro is trading platform recommended for  traders who need leverage and also longterm investors who buy and hold!

Pros:

  • There are thousands of real stocks  and ETF indexes available
  • Real stocks with cheap commisions
  • CFD on stocks
  • Forex, BITCOIN, Oil trading

Cons:

  • USD as base currency (you can deposit RAND, it will be converted automatically)

 

www.etoro.com

 

CM TRADING 

Fully regulated by the FSCA authority, the CM TRADING  is one of the most popular CFD service. You can use CMTRADING plataform for CFD daytrading with good leverage and cheap fees.

CM TRADING is recommended only for daytraders who need leverage to buy stocks on margin

Pros:

  • local broker, with local support
  • CFD on stocks with leverage

Cons:

  • only CFD on stocks, no real stocks without leverage

www.cmtrading.com

IQ Option

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!

Pros:

  • world renowned platform
  • CFD on stocks with leverage
  • Forex, Oil, Bitcoin, Crypto

Cons:

  • more expensive than competition

 

IQ Option is recommended only for daytraders who need huge leverage 1:1000 to trade on margin

www.iqoption.com

 


Online trading South Africa

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 share 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!

Trading 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