The Johannesburg Stock Exchange (JSE) is a publicly listed company on the Johannesburg Stock Exchange (JSE). The JSE is the 16th largest stock exchange in the world and the largest of 22 stock exchanges in Africa.
In this in-depth guide youโll learn:
- Definition & History of JSE
- How does Share Repurchase apply when it comes to JSE?
- How to buy JSE Shares
- Steps to buy JSE shares
- Pros and Cons of Trading Shares via an Online Trading Broker
- How to get JSE Exchange-Traded CFDs
- Traditional Stock Broker vs. Online Stock Trading Broker
- Definition of CFD shares
- Best JSE Trading Apps to Use
- Can I buy shares on JSE online?
- JSE Shares with the highest dividend-paying shares
- What are the cheapest shares on JSE in 2024?
And lots moreโฆ
Letโs dive right inโฆ
How to buy JSE Shares
To buy JSE shares, retail traders and investors are required to go through a JSE-approved broker. Thereโs no method to purchase shares directly from the JSE without using a broker unless the company offers a direct stock purchase plan, which is rare in South Africa. Fortunately, online brokerage fees are inexpensive; ranging from only 0.25% to 0.5% per trade.
JSE at a Glance
๐๐๐ฝ๐ฒ๐ฐ๐ | ๐๐ป๐ณ๐ผ๐ฟ๐บ๐ฎ๐๐ถ๐ผ๐ป |
๐ Location | Johannesburg, South Africa |
๐ Founded | 8 November 1887 |
๐Type | Stock Exchange |
๐ Market Cap (approx.) | Varies based on market conditions |
๐ Main Indices | - FTSE/JSE All Share Index (ALSI) - FTSE/JSE Top 40 Index - FTSE/JSE Mid Cap Index - FTSE/JSE Small Cap Index - FTSE/JSE Financial 15 Index - FTSE/JSE Resources 10 Index |
๐ป Trading Hours | Monday to Friday Pre-market: 8:00 AM - 9:00 AM Main market: 9:00 AM - 5:00 PM |
๐ Currency | South African Rand (ZAR) |
๐ Listed Companies | Over 300 |
๐ Market Segments | Equities, Derivatives, Debt Instruments, Exchange-Traded Funds (ETFs) |
๐ป Regulation | Regulated by the Financial Sector Conduct Authority (FSCA) and the South African Reserve Bank (SARB) |
๐ Significance | Largest stock exchange in Africa in terms of market capitalization and trading volume |
๐ Key Sectors Represented | Mining, Finance, Retail, Technology, Energy, and more |
๐ Market Participants | Institutional Investors, Retail Investors, Traders, Brokers, Corporations |
๐ Open an Account | ๐Click Here |
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4 Easy steps to buy JSE shares
๐ฆ๐๐ฒ๐ฝ๐ | ๐๐๐ ๐๐ฆ๐ ๐๐ต๐ฎ๐ฟ๐ฒ๐ |
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๐ฆ๐๐ฒ๐ฝ ๐ญ: | ๐๐ฆ๐ค๐ช๐ฅ๐ฆ ๐ช๐ง ๐บ๐ฐ๐ถโ๐ณ๐ฆ ๐ข ๐ต๐ณ๐ข๐ฅ๐ฆ๐ณ ๐ฐ๐ณ ๐ข๐ฏ ๐ช๐ฏ๐ท๐ฆ๐ด๐ต๐ฐ๐ณ |
If you're new to buying company shares on a stock exchange, you must first decide whether you're a trader or an investor. These are two distinct ways of profiting from financial markets. Traders employ short-term strategies for maximizing returns within days, months, or quarters. They capitalize on market fluctuations and timely entry/exit points. Traders aim for frequent but smaller profits. Investors use long-term strategies for greater returns over an extended period. They buy and hold shares, focusing on long-term goals like retirement or capital profits. |
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๐ฆ๐๐ฒ๐ฝ ๐ฎ: | ๐๐ฆ๐ค๐ช๐ฅ๐ฆ ๐ธ๐ฉ๐ฐ ๐บ๐ฐ๐ถ ๐ธ๐ช๐ญ๐ญ ๐ถ๐ด๐ฆ ๐ต๐ฐ ๐ฃ๐ถ๐บ ๐ฐ๐ณ ๐ต๐ณ๐ข๐ฅ๐ฆ JSE ๐ด๐ฉ๐ข๐ณ๐ฆ๐ด |
Retail traders and investors can't directly purchase JSE shares from the JSE. For beginners, the route to buy these shares is either through an authorized JSE broker or share CFDs via an online broker or bank using a trading platform. Alternatively, investing through an asset management company is an option, but it's advisable for professionals. | |
๐ฆ๐๐ฒ๐ฝ ๐ฏ: | ๐๐ช๐ฏ๐ฅ ๐ข ๐๐๐-๐ข๐ฑ๐ฑ๐ณ๐ฐ๐ท๐ฆ๐ฅ ๐ฃ๐ณ๐ฐ๐ฌ๐ฆ๐ณ |
Novice traders can conveniently trade major global company shares via retail broker platforms or mainstream South African banks. While not all international online brokers include the JSE Top40 Index, most South African traders use their banks to buy local JSE shares. Nearly all major banks in South Africa provide online trading for retail traders and investors seeking to purchase shares. For beginners, utilizing your local bank is the recommended approach to acquire Pick n Pay shares on the JSE. |
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๐ฆ๐๐ฒ๐ฝ ๐ฐ: | ๐๐ฏ๐ญ๐ช๐ฏ๐ฆ ๐ณ๐ฆ๐จ๐ช๐ด๐ต๐ณ๐ข๐ต๐ช๐ฐ๐ฏ ๐ข๐ฏ๐ฅ ๐ง๐ถ๐ฏ๐ฅ๐ช๐ฏ๐จ |
1. Sign up with your email address - ๐Click Here | |
2. Enter your personal details and banking details for fund transfers | |
3. Add accounts and sign mandates | |
4. Read the terms and conditions | |
5. Send in your identification documents required by FICA legislation | |
6. Fund your account in the currency accepted by the broker | |
7. Set up your trading platform and start trading |
FICA: Documents required for individual traders
- A valid South African identity document
- Proof of residential address, for example, water and electricity bill (not older than three months), your bank statement (not older than three) or current lease agreement. The documents must be in the name of the account holder. If not, written confirmation from the account holder that the applicant lives at the residential address and a certified copy of the account holder’s identity document is required.
- A canceled cheque or bank statement not older than 3 months (electronic statements are not accepted). The name of the bank account must correspond with the applicantโs details.
- Proof of income tax number; for example, a copy of an official document issued by the South African Revenue Services. (An IRP5 will not be accepted).
Please note
๐ย Due to the SA governmentโs anti-money laundering legislation, JSE-approved brokers require original or certified initial copies of the above documents.
JSE Shares with the Best Dividend Paying Shares
- ๐ The Spar Group Ltd (JSE: SPP) – 5.25% Dividend Yield
- ๐ HomeChoice International Plc (JSE: HIL) – 2.73% Dividend Yield
- ๐ Foschini Group Limited (JSE: TFG) – 4.06% Dividend Yield
- ๐ Oceana Group Ltd (JSE: OCE) – 6.03% Dividend Yield
- ๐ Truworths International Ltd (JSE: TRU) – 8.13% Dividend Yield
Pros and Cons of Trading Shares via an Online Trading Broker
โ Pros | โCons |
---|---|
You can trade share CFDs on leverage | Minimum trading requirement is reduced and shares are typically traded as CFDs. |
The only cost associated with share CFDs is the bid/ask spread | |
You can short-sell share CFDs without needing to borrow the shares | |
You can develop your own trading strategy to trade independently |
How to get JSE Exchange-Traded Contracts for Difference (CFDs)
ย To access this product, contact one of the JSEโs Equity Derivatives members.
9 JSE-approved brokers to buy JSE shares in South Africa
Share broker | Broker fee per trade | Admin fee per trade | Register |
Absa Bank | 0.40% | R75 | Absa stock broking |
BP Bernstein | 1.00% | R30 | BP Bernstein stock broking |
Easy Equities | 0.25% | R80 – R100 | Easy Equities stock broking |
FFO Securities | 1.25% | R30 | FFO Securities stock broking |
FNB | 0.50% | R87 | FNB stock broking |
Momentum Securities | 0.50% | R45 | Momentum Securities stock broking |
PSG Wealth | 0.90% | R55 | PSG Wealth stock broking |
Sanlam iTrade | 0.50% | R50 | Sanlam iTrade stock broking |
Standard Bank | 0.40% | R99 | Standard Bank stock broking |
** Broker fees and admin fees are subject to change: estimate for comparison only
Best JSE Trading Apps to Use
- โ๏ธSA Shares
- โ๏ธEasy Equities
- โ๏ธSharenet
- โ๏ธPSG
- โ๏ธSharedata
- โ๏ธStandard Bank Online Share Trading
- โ๏ธNedbank Online Share Trading
- โ๏ธFNB Share Investing
- โ๏ธAbsa Online Share Trading
- โ๏ธIG South Africa
- โ๏ธSatrixNOW
Traditional Stock Broker vs. Online Stock Trading Broker
๐๐ฒ๐ฎ๐๐๐ฟ๐ฒ | ๐ง๐ฟ๐ฎ๐ฑ๐ถ๐๐ถ๐ผ๐ป๐ฎ๐น ๐ฆ๐๐ผ๐ฐ๐ธ ๐๐ฟ๐ผ๐ธ๐ฒ๐ฟ ๐๐ผ๐บ๐ฝ๐ฎ๐ป๐ | ๐ข๐ป๐น๐ถ๐ป๐ฒ ๐ฆ๐๐ผ๐ฐ๐ธ ๐ง๐ฟ๐ฎ๐ฑ๐ถ๐ป๐ด ๐๐ฟ๐ผ๐ธ๐ฒ๐ฟ |
---|---|---|
Service Accessibility | Physical offices or branches | Online platform accessible anytime |
Commission/Fees | Often higher commissions and fees | Typically lower commissions/fees |
Personal Assistance | Offers in-person or phone support | Limited to online support |
Trading Tools | Comprehensive research and tools | Online tools and research available |
Account Management | Personalized account management | Self-managed online accounts |
Trading Flexibility | May offer more complex trading options | Focuses on user-friendly interface |
Accessibility | Limited to business hours and locations | 24/7 access from anywhere |
Education/Resources | May provide in-person seminars | Offers online tutorials and resources |
Account Minimums | Often higher account minimums | Lower or no account minimums |
Speed of Execution | May have slightly slower execution | Generally fast execution times |
๐Open an Account | ๐Click Here | ๐Click Here |
Definition & History of JSEย (Johannesburg Stock Exchange)
๐The Johannesburg Stock Exchange (JSE) is the largest stock exchange in Africa and is the dominant exchange in South Africa.
๐The JSE was founded in 1887 by Benjamin Minors Woollan during the first gold rush when many mining and financial companies started operations on the Witwatersrand and the need for a stock exchange arose.
๐Following the first legislation covering financial markets in 1947, the JSE joined the World Federation of Exchanges in 1963 and upgraded to an electronic trading system in the early 1990s.
๐The bourse was demutualized and listed on its own exchange in 2005. Today, the JSE offers five financial markets, namely Equities, Bonds, Financial, Commodity, and Interest Rate derivatives.
๐As of August 2020, the market capitalization of the JSE was at US$1,005 billion.
๐The JSE is a member of the World Federation of Exchanges (WFE) and holds the chairmanship of the Association of Futures Markets (AFM).
๐ย The CEO of the JSE is Dr Leila Fourie (2019- ) and its headquarters are in Johannesburg, South Africa.
Definition of CFD shares
ย CFDs are Contracts for Differences. You get them for shares, commodities, forex, precious metals and energy, and global stocks. Share CFDs are the most commonly traded CFDs in the marketplace.
ย The CFD prices come from the price of the underlying stock that is the subject of the CFD. Trading share CFDs feels exactly the same as buying and holding shares as an investor but the difference is you donโt own the underlying asset. Instead, youโre speculating on the price movement of the stock.
ย Share CFDs can be bought and sold easily on a brokerโs trading platform. You take advantage of price movements in both rising and falling markets. Traders hope to make money by buying low and selling higher, or selling high and buying lower.
Forex Trading Africa Disclaimer
Trading share CFDs is highly speculative, involves significant risk of loss, and is not suitable for all investors.
Share CFDs are only suitable for traders who understand and are willing to assume the economic, legal and other risks involved; are experienced and knowledgeable about trading in derivatives and underlying asset types; and are financially able to assume losses significantly in excess of margin or deposits if trading on leverage and margin.
Forex Trading Africa aims to educate its readers on products and services available to access the global financial markets. Readers assume the risks of trading CFDs and trade independently of any information provided on the Forex Trading Africa website.
Conclusion
In conclusion, the procedure for purchasing JSE shares may at first appear difficult, but with the help of this step-by-step manual, it is obvious that anyone can competently negotiate the world of investing. You will be able to make well-informed decisions when you start your path to purchase JSE shares if you have a solid understanding of how to conduct research, pick a broker, create a plan, and manage risks.
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Frequently Asked Questions
Can I buy JSE shares directly from the JSE?
No, retail traders and investors cannot buy JSE shares directly from the JSE. A JSE-approved broker needs to purchase JSE shares on your behalf. Contact any mainstream bank in South Africa that offers a stock broking service or find a JSE-approved broker on the list provided below.
How does Share Repurchase apply when it comes to JSE?
A share repurchase, also known as a stock buyback, is a financial strategy in which a company buys back its own outstanding shares from the market. This process involves a company using its available funds to purchase shares of its stock, effectively reducing the number of shares available for public trading. Share repurchases can be carried out on the Johannesburg Stock Exchange (JSE) and are a common practice among publicly traded companies globally.
Can I buy shares on JSE online?
Yes, you can buy shares on the Johannesburg Stock Exchange (JSE) online through various trading platforms and brokerage accounts.
What are the cheapest shares on JSE in 2024?
The current cheapest shares on JSE is DRDGOLD Ltd (DRD, Pepkor Holdings Ltd (PPH), Sibanye Stillwater Limited (SSW), Sappi Ltd (SAP), Netcare Limited (NTC), Growthpoint Properties Limited REIT (GRT), Grindrod Ltd (GND).