SA has a New Generation of Tech-Savvy Traders

The latest revelations reveal that share trading platforms South Africa are attracting a large number of younger, tech-savvy investors. According to Credit Suisse, retail trading has nearly risen to over 30% of worldwide market activity since the start of 2020.

According to Carel Nolte, chief marketing officer of Purple Group, which owns EasyEquities, the low-cost trading platform has experienced a continuous surge of 1,000 to 2,000 new customers every day in South Africa.

r/JSE Bets is South Africa’s local counterpart of the now-famous r/WallStreetBets discussion forum. It’s an online group that brings together many South African retail investors, including those involved in the GameStop movement.

These are some of the most popular trading platforms among the participants.

eToro 

eToro is an international asset brokerage firm that allows users to invest globally in cryptocurrencies, stocks, ETFs, currencies, indices, and commodities.

The platform is easy to use, with the “$100,000” sample account available to beginners to learn the basics of international trading.

eToro is perhaps the world’s greatest social trading network, with over 17 million transcribers, and its educational support tools make it simple for new users to learn how to invest and trade properly. eToro encourages novices to utilize the practice account extensively before trading real stock in order to become acquainted with the world of international markets and how to utilize the platform.

According to the r/JSE Bets posts, eToro seems to be the preferred platform for South Africans involved in the Gamestop movement.

The registration process on eToro may be lengthy, and approval might take up to 24 hours, but it is all worth it, given the nature of online trading and the cyber dangers. Your ID, proof of address, a bank statement, and an official letter from your company confirming your employment and address must all be submitted.

EasyEquities (EE)

For visitors to South Africa, the EE app is a common starting place. Users can invest in the stock markets of South Africa, the United States, and Australia after completing a quick registration process. Its teaching and comparison tools, which are a subsidiary of JSE-listed Purple Group Ltd, make trading on worldwide markets simple.

Investors benefit from the excellent support systems, which include no annual or monthly brokerage costs and a simplified interface.

Redditors have lauded the platform’s interactive feedback platform where new users obtain help from both the company support and other users.

Speaking about the rare feature, Nolte said “We actively listen to our users’ investment needs, and add new features and enhancements almost weekly, based on the feedback we receive.”

IG

The IG platforms, (based in the United Kingdom), provide customers with a complete set of trading and research tools, as well as financial education and a wide range of tradeable items.

Young South African investors may use IG to trade on the local market as well as a variety of foreign financial marketplaces with ease. It was one of the topics discussed by the upcoming entrepreneurs not only on Reddit but across many other social media platforms.

GT247 

The GT247 platform, which is also owned by Purple Group, has been around for a long time, making it one of the trusted brands in the industry.

Its Google Play Store app has a 4,5-star rating and allows users to learn the ropes of foreign direct investment and trading using demo accounts.

There are no monthly platform fees or minimum first deposit amounts.

SwissQuote

SwissQuote is designed for the more seasoned and daring trader, but that should not scare beginners.

In comparison to eToro or EE, SQ offers both brokerage and banking services, and though there is no minimum deposit amount, their minimum transaction fees may pile up quickly. There are additional monthly fees that vary depending on your investment amount. 

It is not accessible to many countries, but South Africans are eligible to create SwissQuote trading accounts using a copy of national identification cards and passports. A proof of residency is also a requirement. 

Vetting a Reputable Trading Platform

At least one top-tier authority regulates stockbrokers in South Africa. Some of them are also listed on a stock market, while others have worked in the banking industry.

Brokerage firms, on the other hand, can fail. It’s crucial to know what happens to your stocks and cash in these situations. These are normally kept in segregated accounts, so your money is protected even if the broker goes bankrupt.

If the worst happens, and the broker, for example, takes your funds, you have one final option: the compensation fund of the country where the broker is licensed.

Consider a friendly mobile platform for trading, overall fees paid for trading, training, account opening requirements, minimum deposit and withdrawal options, insurance, and overall account protection from your stockbroker before engaging. In most cases, demo accounts can answer most of these concerns.