The best and cheapest way to do share trading for beginners is to set up an online account. With your bank details and debit card, you can start trading almost immediately with just an R1000. Should you register with a company you’ve never dealt with before, you won’t be able to start dealing until you received all the details needed like passwords, etc. The dealer might also need a minimum deposit of R1000.
There are dozens of online stockbrokers, and all of them charge different fees. Likemoney found that the best stockbroker is EZ Equities. Once you have your account it’s always best to start with small trades so that you can learn from the experience and as you learn, try out bigger trades. This is advised as it can become pricey when you start dealing with trades above R1000. Watch out for sites that charge higher fees as you trade bigger sums of money.
Select the stock name you want; you’ll be given an indicative price quote. Then choose the amount you would like to spend, click deal and off you go. You’ll get a real-time quote and will have 15 seconds to execute the deal. The money will be cleared from your online account and can only deal with the money you have deposited into your share trading account.
Yes. There is usually a 0.5% stamp duty on all share purchases and profits from that shares. Luckily, once you have enough experience(which comes very quickly as it’s easy to learn), you can start making good money.
Many sites offer a basic-traders account for people who deal regularly, here the costs can go quite low per trade. This would be the ideal trading account as the minimum limit you can trade provides you with enough experience to learn when to trade big.
Should you be contacted by someone out of the blue, inviting you to invest in share, always say no. This is usually a share scam where high-pressure salespeople try to convince you to buy a stock which they say is about to take off and fly. The best way to build you confidence in share trading is to join an investment club where you can learn about the stock market and swap ideas on what does and doesn’t work.
Share trading is an area with almost endless information available on the web. But the best place to start is by making use of EZ equities. They are trusted and has many years of experience in the trading industry.
Now you know the five ways to start trading shares, for more share trading for dummies tips, take a look at other helpful articles.