Share Trading - Starting out

[Worskos]

Hi all

I am hoping to get some clarity on Online Share Trading.

• What is the process involved with opening an Share Trading account?
• What is the minimum I need to start with?
• Where can I track the daily performance on my shares and other shares listed?
• What are the charges involved?
• What is the cheapest platform out there? Absa, Old Mutual, Standard Bank?

Thanks

 

[AlmightyBender]

Hi would actually say buy the 3rd Quarter edition of Personal Finance magazine. Costs R30 or so and is still on sale. Their cover feature is on online share trading. Do about 12 pages on it. Reading that will answer all of your questions and point you in the direction that is right for you.

 

[Mbuzi]

Use Standard Bank, they also give you one month free to try it out. You will also get to attend their courses. The forums are good there as well

 

[Alton Turner Blackwood]

Use Standard Bank, they also give you one month free to try it out. You will also get to attend their courses. The forums are good there as well

Best advice. Its the easiest and the most flexible platform IMHO. THey also have free demos.

 

[MKFrost]

Start with what you can afford to lose....

 

[Beachless]

Start a free demo account somewhere like Fin24 then play around with that for a while before just going at it.

 

[Worskos]

Thanks

Does Standard Bank have something similar to FNB's Share Builder?

 

[Mbuzi]

Thanks

Does Standard Bank have something similar to FNB's Share Builder?

Yes, if you have a banking account with them. It's called Auto Share Invest.

Have you looked at Satrix (ETFs)

 

[Ecco]

Yes, if you have a banking account with them. It's called Auto Share Invest.

Have you looked at Satrix (ETFs)

As above. If you just starting out, take a look at Satrix.

 

[Worskos]

Thanks

It seems that in order to use ASI from Std bank - I would need to actually bank with them. I don't want to bank with Std

I'm considering on of FNB's offerings - Any thoughts on their products?

 

[HavocXphere]

>>What is the process involved with opening an Share Trading account?

Your bank will have a platform.

>>What is the minimum I need to start with?

This depends on the fee structure of the platform you're using. The larger the fixed component of the fee is the more cash you'll need to build a diversified portfolio. A minimum fee floor per transaction will have the same effect. So ideally you want a fee that is directly linked percentage wise to the cash being invested.

You'd be looking at 30k-ish assuming an ideal fee structure & going up from there. The fee structures of the big 4 banks kinda blow so you'll likely need 100k-ish.

>>Where can I track the daily performance on my shares and other shares listed?

The platform will provide this.

>>What are the charges involved?

Depends on the platform. As a ballpark...I'm paying 0.75% on a buy and 0.5% on a sell. You will probably be paying more though.

>>What is the cheapest platform out there? Absa, Old Mutual, Standard Bank?

Investec. Out of those listed...it would depend on the number of transactions per month...SB caps the fee after the 4th transaction (or something like that).

Given the type of questions you're asking I'd suggest you first buy one of the Satrix ETFs and spend a couple of months just watching.