If you’re looking to invest money in South Africa—there are plenty of options. Whether you want to buy stocks, bonds, or even gold—there are plenty of ways to go about it. In this article, we’ll look at the different investments available and how they work before giving some tips on how you can open an account with a regulated broker such as eToro or Easy Equities.
Choosing a Broker
Brokers are people who stand between you and the markets. They buy and sell stocks on your behalf, charging fees for each transaction. With some brokers, these fees can be meaningful enough to eat away at your potential gains.
When choosing a broker, consider whether South Africa’s Financial Services Board (FSB) regulate them. While this does not guarantee that they are safe or reliable, it means that there is someone else looking over them who may catch any unscrupulous activity—and there is likely also a compensation fund in place if things go wrong with their operations. Unregulated brokers charge lower fees but do not offer this protection from financial loss or fraud.
You should also think about how much experience your chosen broker has under their belt before deciding which one will work best for you; do they have many years of experience working in the industry? If so, then they will provide sound advice when it comes time for you to invest in South Africa.
- A stocks and shares ISA is a tax-efficient investment account that allows you to invest up to £20,000 per year.
- You can hold a range of investments in your stocks and shares ISA, including shares in companies listed on the London Stock Exchange or Alternative Investment Market (AIM).
- The most important thing is that you choose investments which match your risk profile. If you’re not sure where to start, our financial advisers are here to help!
Shares are a way of investing in a company, but they’re also an asset that can be bought and sold. Investing in shares means you have a stake in the company. You receive dividends from your ownership and potential growth of the value of your investment.
You can buy shares on the stock market or from banks and financial institutions like FNB, Nedbank or ABSA (ABN).
After buying shares, you need to decide what to do with them: sell them after their value has increased or held onto them hoping their price will rise even further. If you sell before others realise that there’s something special about the company then it could be very profitable for you—but there’s also risk involved in not knowing when is best to sell your investment!
Bonds, ETFs, and Mutual Funds
Bonds are essentially loans to the government or a company, while ETFs are baskets of stocks that can be traded like a single stock. Mutual funds offer a passive investment—that is, they’re managed by professional fund managers.
Gold and Bitcoin
We often consider gold and bitcoin safe-haven assets. Gold is a physical asset, whereas bitcoin is digital. One can buy gold as coins or bars. Bitcoin is a cryptocurrency that’s not produced by any state or central bank.
Bitcoin is much more volatile than gold—the price of 1 bitcoin changes several times per day (in contrast to a few times per year for gold). However, if you consider yourself an experienced trader with an interest in cryptocurrencies, buying bitcoin could be worth it for you.
There are many asset classes available for investing in South Africa. It’s important to understand the basics before you trade.
If you’re looking to invest money in South Africa—there are plenty of options. Take the time to learn about the different asset classes, and once you’re happy with your level of knowledge—open an account with a regulated broker such as eToro or Easy Equities.
Conclusion
Hopefully, we’ve given you a good idea of what to expect when investing in South Africa. It’s a country with a long history of economic growth and innovation, so it makes sense that the options available here are diverse and plentiful. The most important thing is to choose an asset class that suits your needs – whether that be gold, bonds or something else entirely! Once you’ve done this – it’s time to open an account with an online broker such as eToro or Easy Equities which offers easy access across different markets and investment strategies.
