Share trading online in South Africa
Here’s a comparison of online brokerage charges in South Africa, February 2015.
|Company||Monthly fees||Brokerage fees on shares||Brokerage on R20,000 trade
|Sharenet Securities||R200 per quarter, excl VAT (waived if 3 trades in a quarter)||Brokerage = 0.30% (minimum R100) excl VAT||0.57%
LESS for bigger trades
|Standard Bank online share trading||R60 per month (waived if 3 trades in a month); not mentioned if it includes VAT||Brokerage = 0.50% (minimum R60) excl VAT||0.57%|
|Vunani Private Client||R58 per month, excluding VAT (waived for discretionary clients)||Brokerage = 0.50% (minimum R100) excl VAT||0.57%|
|Absa Stockbrokers online share trading||R66.66 per month (including VAT)
Waived for remainder of year once you have traded at least 5 times in the previous calendar year.
|Brokerage = 0.4% (R120 minimum) excl VAT||0.684%
LESS for bigger trades
|FNB Share Investor||R75 per month (excluding VAT)||Brokerage = 0.6% (R80 minimum), excluding VAT||0.684%|
|Afrifocus||(R65 per month)
R195 per quarter (VAT not mentioned)
|Brokerage = 0.50% (minimum R125) excl VAT||0.713%|
|Nedbank online share trading||(R50 per month)
Administration fee: R150 per quarter (VAT not mentioned)
|Online Sliding Scale:
(superior data services)
|R57 per month (incl VAT).
(waived if brokerage comes to more than R300 per month)
|R0 to R500,000 = R75 + 0.50%
R500,001 to R1m = 0.4%
Above R1m = 0.35%
|PSG online trading||R40 per month (VAT not mentioned)||
|Imara||(R20.83 per month) (excluding VAT)
R250 per year (excluding VAT)
|R0 to R250,000 0.7%
R250,000 to R1m 0.55%
R1m to R1.5m 0.40%
R1.5m to R3m 0.25%
Above R3m 0.2%
R85 in addition
|FNB Share Builder||Admin: R19 per month (no mention of VAT)||Brokerage =2% (R50 minimum), excluding VAT||2.28%|
Note that over and above stock brokerage, the following costs are incurred when trading:
- STRATE settlement costs of 0.005459% of the value traded, with a minimum charge of R10.92 per broker’s note on deals up to R200 000, and a maximum charge of R54.59 per broker’s note for deals in excess of R1 million.
- An Investor Protection Levy of 0.0002% of the value of shares traded.
- VAT (Value Added Tax) of 14% is payable on the brokerage, the STRATE charge and Investor Protection Levy
- STT (Securities Transfer Tax) is charged at 0.25% on the value of share traded, but is levied only on share purchases, not sales.
|An example :|
Beware of market orders
Trading using market orders (best price orders) are risky, especially in low liquidity stocks.