How to start investing in South Africa

The Johannesburg Stock Exchange (JSE) is widely regarded as Africa’s premier stock exchange, with outstanding returns for both investors and traders. Knowing how to acquire JSE shares, on the other hand, can be a difficult concept for those wishing to enter the exciting world of stock trading and investing. If you’re one of these folks, check out this beginner’s guide to investing in the JSE.

Step #1. Choosing the best stock to buy

Acquiring stock isn’t a random procedure. To select which JSE shares to buy at the particular time you want to enter the stock market, you’ll need to perform some comprehensive research. It’s important to note that you can’t buy shares on your own; you’ll need to find a certified stockbroker to do it for you. But before you get to that point, you need to understand how the stock market works and how to acquire shares on the JSE. It is advisable that you go through the JSE website’s complete collection of free training materials, which covers all of the language related with JSE stock market shares and how to acquire JSE shares.

Step #2. Finding a broker or buying online

There are several member firms to choose from in the JSE website. Alternatively, you can look for the best investment apps South Africa, but you’ll need a lot of learning to do. When looking for a broker, think about the fees, the manner you want to trade, and the kind of investments you want to make.

Different companies often specialize in different areas, so make sure you pick one that has a lot of expertise in the industry you want to invest in. You’ll also want to consider if you want your stockbroker to provide a complete range of services, including advising and portfolio management, or whether you merely want a ‘execution-only’ broker who never makes recommendations and only executes on your orders. Although the first choice is obviously more expensive, advising brokers can provide valuable information into the finest JSE stocks to buy and how long to hold them before selling. You’ll be able to buy shares online immediately with the first stockbroker accessible through your selected member firm if you choose the second option.

Step #3. Creating a personal account 

It’s time to trade! Your stockbroker will call you to formally open your account when you’ve provided all of the required paperwork. This usually requires a considerable amount of money to be invested, which will be held in a JSE Trust Account. This account guarantees that your funds are safe if something goes wrong with your broker. You may be given the option of choosing between discretionary and non-discretionary accounts by some brokers.

Discretionary accounts allow brokers to conduct transactions without the account holder’s permission, depending on his opinion of the best approach to obtain investment returns within the risk parameters you choose. This is a fantastic alternative for first-time investors who have money to spend but don’t have much motivation to do their own research. Non-discretionary accounts offer lower trading costs, and extensive research can help you find some of the top JSE stocks to invest in.

Bottom Line

The JSE is an appropriate prospect to invest. Don’t be deceived into believing it’ll be simple, though. It’s essential to understand the stock market and the economy as a whole, as well as the health of the specific markets you’re considering investing in.


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