Online trading

The South African economy is growing and e-commerce is booming

After the outbreak of the Covid-19 pandemic, the already popular foreign exchange (currency) trading in South Africa exploded as a financially valuable activity that could be done from anywhere. A number of overseas brokers have reported a significant increase in start-up activity in 2020.

Investing is simple and easy when done through brokers who provide all the markets and resources a trader would want. We have searched the market for the various most prominent trading platforms in South Africa to provide these options to investors. Times couldn’t have been better for trade in south africa financial instruments.

In order to create a shortlist of trading systems in South Africa that can be considered as a single destination, we have looked at the functions, costs, rules and other aspects of each broker. Let’s just dive into their reviews and cover a few more things buyers should consider when selecting the best trading system for beginners.

Popular stock traders are plentiful in South Africa, where 37% of the population owns shares. Some of the brokers that allow buyers to buy stocks directly or trade the contract terms attached to them are reviewed below. Below we rank several well-known stock traders in South Africa based on law, friendliness, stock selection and freebies.

What products are traded by African investors?

In terms of increased trading activity, stocks, resources and cryptocurrencies have benefited the most from the outbreak in Africa. According to studies, leading FSCA-regulated CFD traders expect a 100% increase in revenue, active members and overall CFD share price in Africa in 2020. The majority of the increase in trading is in indices such as NASDAQ, stocks and cryptocurrencies, as well as commodities like gold.

For local individual investors wishing to trade on the stock exchange, the local financial markets of South Africa and Nigeria remain the main investment alternatives. However, the epidemic has significantly increased the demand for international stocks.

Many multinational IT companies have taken advantage of the remote work trend. Since the start of the epidemic, the shares of several multinational IT companies have risen by more than 100%. The S&P 500 and NASDAQ climbed 81% and 95% respectively, after dropping in March 2020. This expansion is strongly linked to the increase in the number of retailers around the world.

The best stock traders for 2022 in South Africa

Many well-known stock traders in South Africa are experts in “FX” (forex: foreign exchange). Currency pair trading is involved in this. Only a few brokers directly benefit from trading, while the majority still offer enhanced CFD buying and selling.

  • HFM: HFM is an award-winning forex and commodities broker, providing trading services and facilities to retail and institutional clients. With its policy of providing the best possible trading conditions to its clients and allowing scalpers and traders using Expert Advisors unrestricted access to its liquidity, HFM has positioned itself as the forex broker of choice for traders across the world. whole world.
  • XTB: XTB offers FX and CFD trading worldwide and has offices in over 13 countries. The company provides supplementary insurance through renowned insurance brokers Lloyd’s of London and has handled over 495,000 customers throughout its existence. Jose Mourinho, an equally well-known football manager, is the face of XTB.

Forex, markets, commodities, stocks, ETFs and cryptocurrency CFDs are all available at XTB. This company was awarded “Best Customer Support” in 2021 by ForexBrokers.com.

  • OANDA: With 38,000 currency pairs available for trading, Oando specializes in forex and CFDs. Oando, like the majority of well-known stock traders in South Africa, offers a free mobile app in addition to a free demo account that allows novice traders to practice trading without risking real money. Compatibility for the MT5 system is also offered. Payment systems, Visa, PayPal, NE Teller and Skrillex are just a few accepted payment options.
  • XM: XM is a trading and CFD expert, offering 1,000 trading products and 6 asset classes. Since its creation in 2009, the firm has received more than 5 million clients and offers more than 30 languages. XM has received various accolades, especially for its help in currency trading.

The more than 1,260 stocks on XM are conveniently organized by country. An advantage for experienced traders is that the company offers MT4, MT5 and Web Trader trading systems.

  • Plus500: Among many stock traders in South Africa, Plus500 only provides CFD trading. This broker claims 2,800 trading items, including over 500 stocks and 22 million registered members in 50 different countries.

Plus500 is listed on the UK Stock Exchange under the symbol PLUS and has a Trustpilot rating of 4.2/5. With Plus500, discipline is the key. It is directly regulated by the FSCA in South Africa, just like AvaTrade.

How do I start trading with a licensed South African stockbroker?

The majority of stock traders for South African traders that we have analyzed above have comparable onboarding procedures. Generally, an investor seeking to register with one of the securities dealers in South Africa and buy, for example, Amazon shares should:

  • Sign up on a broker’s website by going to:
  • Visit a broker’s website by going online.
  • Put your name and address.
  • Establish a username and password.
  • Check the acknowledgment boxes after reading the relevant legal documents.
  • To comply with KYC laws, confirm their identity:

Often, candidates must present two types of identification:

  • Identity card or passport for personal use.
  • Address ID: Other official documents, such as utility bills and rental letters, are frequently accepted.

Candidates will need to upload scans of this ID or engage in an automated computer or smartphone-based process that involves taking live photos. Often a selfie shot is also required.

Applicants can deposit money into their accounts after being confirmed.

  • Sign up for the account.
  • Locate the deposit option or location.
  • Deposit money by direct deposit, credit or debit card or e-wallet.

It is crucial to confirm if any filing fees are involved. Several brokers offer direct credit card purchases for stock purchases. Traders from European countries can buy stocks using PayPal.

  • Locate the specific stock (AMZN) they are looking for:

Every Investment Advisor has a search function, often located near the front of the screen. Enter the stock symbol or stock description you want, then click “submit”. This will direct the investor to a trading screen or the homepage of the stock.

  • Place an online trade order to buy the stock:

The majority of well-known stock traders in South Africa provide a basic trading monitor. In this case, the investor chooses to buy or sell shares quickly. Typically, the user only needs to enter the desired budget and complete the transaction. Frequently, more complex alternatives open up, such as spot markets and take profit loss guidelines.

Investors on a tight budget will be happy to know that traders these days offer what is known as “split trading”. In other words, it is possible to buy less than one unit of a company.

To summarize!

South Africa is now one of the most developed and promising markets in the world. A highly entrepreneurial environment and a dynamic investment environment are the result of the rare blend of a large developing market economy and a well-established first-world financial structure.

The shareholder decides which of South Africa’s well-known traders should take a deep look. By providing a general overview of what is available to people wishing to invest in stocks, we aim to give them a boost.