The Cheapest Share Trading Platform in South Africa

Online trading has, for a long time, been one of the most intensive, as well as lucrative, forms of financial exchange. It sees multiple trillion US dollars come and go every single day, which is a ridiculous fact to comprehend.

Unlike the old-school trading, which required people to physically attend the trading process at the brokers’ headquarters – or, in the best-case scenario, be on the phone for the whole time, – online trading allows people to remain in their comfy environment, whether it’s their cozy bedroom or a wild seascape on the Maldives, and still trade stocks, currencies, and just about any other securities.

For these and many other conveniences, online shares trading has become a very popular activity in many countries. South Africa is by far one of the biggest online trading hubs in the entire industry.

Whether its stocks, commodities, or Forex trading platforms in South Africa, the brokers in the country have garnered quite a lot of fame and acclaim, primarily because of their attractive trading terms and conditions and sound regulatory measures.

In the following article, we will try to find some of the best, and cheapest at that, platforms in South Africa that you can trade stocks with.

HotForex

HotForex is one of the most popular trading brokerages you can find on the market right now. It has established itself for its impressive trading offerings, not to mention its licenses from multiple regulators. First, check out these regulators and then find out, how cheap it actually is to trade with HotForex.

As of writing this guide, HotForex owns five separate licenses from five jurisdictions:

• St. Vincent and the Grenadines Financial Services Authority (SVGFSA)
• Financial Conduct Authority (FCA) of the UK
• Dubai Financial Services Authority (DFSA)
• Financial Sector Conduct Authority (FSCA)
• Financial Services Authority (FSA) of Seychelles

It goes without saying that five licenses for a single broker can definitely ensure the highest financial standards. And as for the cheapest trading platform in South Africa, HotForex definitely manages to live up to that title:

• The minimum deposit requirement for its Micro account goes as low as 5 USD, meaning just about anyone from South Africa (as well as many other nations) can trade with HotForex
• Spreads are variable and depend on the account that you choose; the absolute minimum is 0 pips for the Zero Spread account, whereas for all other accounts, it starts from 1 pip;
• There are no other trade-related commissions (except for the two elite accounts – Zero Spread and PAMM);
• There are also no deposit and withdrawal fees – HotForex even goes as far as to refund payment fees imposed by the clients’ banks;

For these, and far more advantages, HotForex is definitely one of the cheapest platforms to trade shares in South Africa!

FXCM

The next cheap trading platform on our list is FXCM. It is also listed among the most elite trading brokerage not just in South Africa, but in the whole world as well. One of the biggest advantages of FXCM is that it is a part of Leucadia, currently known as Jefferies Financial Group, one of the larges American financial companies.

On top of that, the broker has licenses from four individual regulatory institutions:

• Financial Conduct Authority (FCA) of the UK
• Australian Securities and Investments Commission (ASIC)
• The Autorité de contrôle prudentiel et de résolution (ACPR)/The Autorité des marchés financiers (AMF) of France
• Financial Sector Conduct Authority (FSCA) of South Africa

FXCM is also a pretty cheap share trading platform for traders in South Africa. Here are some of the main details about its platform:

• There is no strict minimum deposit requirement here; you can start trading with FXCM with as much money as you want;
• The primary commission charge is through spreads, which revolve around 1-2 pips and go as low as 0 pips;
• Like HotForex, FXCM also doesn’t charge other trading fees, except for overnight fees – swaps;
• For deposits and withdrawals, there are also no commissions, yet depending on which commercial bank you use, there might be some withdrawal fees to cover.

In short, an average, as well as more veteran, South African stock trader can definitely make good use of FXCM’s trading platform.

Plus500

Plus500 is yet another trading brokerage that sets itself apart by its lucrative trading terms and conditions. It is definitely one of the best trading platforms in South Africa, not just for its commission levels, but also for extensive regulatory measures.

Plus500 is regulated by:

• Financial Conduct Authority (FCA) of the UK
• Australian Securities and Investments Commission (ASIC)
• Cyprus Securities and Exchange Commission (CySEC)
• Financial Sector Conduct Authority (FSCA) of South Africa
• Financial Markets Authority (FMA) of New Zealand
• Monetary Authority of Singapore (MAS)

When it comes to platform commissions and fees, Plus500 is definitely one of the cheapest brokers to trade with. Here are its main conditions:

• The minimum deposit requirement is 100 USD – a pretty standard condition for a brokerage;
• Spreads are still primary income sources for the broker; they revolve around 0.7-1.4 pips, while for shares, they come in around 5-6 pips, which is a pretty beneficial condition;
• No other trade-related commissions, except for swaps;
• Generally, there are also no fees for deposits and withdrawals, yet for international credit card transfers, payments with unsupported currencies, etc. will still be commissioned.

As you can see, Plus500 isn’t the cheapest online trading platform South Africa has on offer, but it definitely is among the most affordable ones in the country.

IG

IG of South Africa is a trademark name of IG Group, a truly international brokerage that takes online trading to a completely new level. The broker adheres by some of the strictest financial guidelines of the industry, which is why the IG Group is a rare brokerage to see operate in the United States.

IG South Africa is regulated by the two elite institutions:

• Financial Conduct Authority (FCA) of the UK
• Financial Sector Conduct Authority (FSCA) of South Africa

Besides the top-tier licensing materials, IG offers some of the most beneficial trading conditions to its South African traders. For these conditions, its clients can engage in the cheapest online share trading South Africa can offer:

• There is no minimum deposit requirement for the registration;
• The primary charges are for spreads, which are pretty moderate at 0.10% for shares;
• There are specific commissions for trading shares as well with a maximum charge of 15 USD;
• Deposits and withdrawals are still free from commission charges.

As you can see, the commission levels are increasing a little bit, yet they’re still pretty low and manageable for trading shares in South Africa.

AvaTrade

The next brokerage in our list of cheap South African trading platforms is AvaTrade. AvaTrade offers hundreds of different instruments to trade, including currencies, indices, and shares. Besides, the broker has quite extensive regulatory measures controlling its financial activities. These licenses come from:

• The Central Bank of Ireland; Markets in Financial Instruments Directive (MiFID)
• Polish Financial Supervisory Authority (KNF)
• Australian Securities and Investments Commission (ASIC)
• British Virgin Islands Financial Services Commission (B.V.I. FSC)

Besides these licenses, it is also important to point out that AvaTrade is the main financial sponsor of one of the top-tier football clubs, Manchester City. Such a prestigious feat isn’t something that just about any trading brokerage can achieve.

And when it comes to our list of cheap trading platforms in South Africa, AvaTrade also offers quite beneficial commission levels on its platform:

• The minimum deposit requirement is 100 USD, which, once again, is a decent entry threshold for a retail broker;
• Spreads are the main source of income for AvaTrade, yet they are very affordable for all instruments. For shares, they revolve around 0.13%;
• There are no account-maintenance or instrument-based fees on the platform; rollover positions are regularly charged;
• Your deposits and withdrawals have 0 commissions – you get as much as you have originally paid for.

In a list of cheap online trading platforms in South Africa, AvaTrade definitely manages to get an honorable stature for itself.

Cyber FX

Now, as its name suggests, Cyber FX is primarily focused on offering Forex pairs to its clients. However, this certainly doesn’t mean that the broker doesn’t provide service for other instrument traders. In fact, there are six different asset classes to be found on Cyber FX’s trading platform.

When it comes to the broker’s regulation, Cyber FX is probably the least licensed broker in our list. However, being registered in South Africa, Cyber FX has applied for the FSCA license and as it points it out on the website, the process is finally drawing to an end.

But is Cyber FX the cheapest share trading platform in South Africa?  It’s not entirely obvious to us. The broker charges 100 USD as the minimum deposit requirement, which is, as always, pretty regular and not something to be particularly disappointed about.

However, we couldn’t really find out what the spread levels or other commissions were. We were mostly drawn by the fact that the broker offers both JSE and Offshore stocks to its clients.

However, when compared to the above-mentioned trading brokers, it’s a bit difficult to recommend Cyber FX to our readers. You’d probably be better off if you went for HotForex, Plus500, or other South African brokers.

What to keep in mind when looking for the cheapest trading platform South Africa offers?

In this in-depth guide, we have looked through some of the top trading platforms in South Africa and checked their trading conditions, as well as the licensing materials that restrict their financial activities. But what is the general rule of thumb that you have to stick to, in order to increase your chances of a successful shares trading experience?

Well, the most important thing you should look for is the broker’s safety. In this era of online trading and online resources, it is pretty easy to set up a brokerage and make it seem like a trustworthy trading platform. Such brokers often claim to have zero or very low commissions across the board, be it spreads, account fees, or transaction commissions.

When you come across such a broker, you have to remind yourself that, just like any business, a broker needs to have a stable source of income. And when fraudsters tell you that they charge no commissions whatsoever, they’re definitely lying because they definitely aren’t working for free.

Instead of looking for such brokers, search for stock trading platforms in South Africa that are transparent about all of their fees. It’s better to pay some extra cash for a proper trading experience, rather than be scammed by a fraudulent broker.