Quick Facts

• You can start investing from R5 with some platforms
• All brokers must be registered with the FSCA
• Shares grow tax-free in a TFSA account
• You cannot buy directly from the JSE – you need a broker
• Never pay upfront fees to anyone offering investments

1. What Are Shares?

A share is a small piece of a company. When you buy shares, you become a part-owner. If the company makes money, your shares can grow in value.

Think of it like this. Imagine your friend owns a taxi. The taxi costs R100,000. You buy 10% for R10,000. Now you own part of the taxi business. If the taxi makes good money, your 10% becomes more valuable.

That is how shares work. But instead of taxis, you buy pieces of big companies like Shoprite, MTN, or Capitec Bank.

2. What Is the JSE?

The JSE stands for Johannesburg Stock Exchange. It is Africa’s biggest stock market. This is where companies sell their shares to people like you.

The JSE is open Monday to Friday from 9:00 AM to 5:00 PM. It is closed on weekends and public holidays. More than 300 companies are listed on the JSE.

Important: You cannot buy shares directly from the JSE. You must use a registered broker or platform. The broker buys shares for you.

Popular JSE Companies You Know

• Shoprite (food shops)
• Capitec Bank (bank)
• MTN (cellphone network)
• Vodacom (cellphone network)
• Naspers (owns internet companies)
• Sasol (fuel and chemicals)
• Standard Bank (bank)
• Woolworths (clothing and food)

✅ 3. Why Buy Shares?

Your Money Can Grow

A savings account at the bank gives you about 6% interest per year. Over ten years, the JSE has given investors about 10% per year on average. Your money grows faster with shares.

You Get Paid Dividends

Some companies share their profits with shareholders. This is called a dividend. You get money just for owning shares. For example, Capitec paid shareholders R12 per share in 2025.

You Beat Inflation

Inflation makes your money worth less each year. If you keep R1,000 under your mattress, it will buy less food next year. Shares help your money grow faster than inflation.

4. What You Need to Start

Documents Required

• South African ID or passport
• Proof of address (must be less than 3 months old)
• Bank account in your name
• Your tax number from SARS
• Cellphone number and email address

How Much Money Do You Need?

This depends on the platform you choose:

• EasyEquities: Start with just R5
• Clarity by Investec: Start with R25
• FNB Share Builder: Start with R10
• Traditional brokers: Usually need R5,000 or more

For most people, starting with R500 to R1,000 per month makes sense. This lets you buy a few different shares and spread your risk.

5. Choosing Your Platform in 2025

You must choose a registered platform to buy shares. Here are the main options for South Africans:

Platform	Best For	Minimum
EasyEquities	Complete beginners	R5
Clarity (Investec)	Zero fees	R25
FNB Share Builder	FNB bank customers	R10
Satrix	ETF investing	R500
Bank platforms	If you trust your bank	Varies

Most Popular: EasyEquities

Over 1 million South Africans use EasyEquities. It is easy to use. You can start with R5. The app works well. It is registered with the FSCA (number 22588).

Best for Zero Fees: Clarity

Clarity launched in February 2025. It charges no platform fees. But it uses CFDs (contracts), not real shares. This is fine for most people, but check if you want voting rights.

6. What It Costs to Buy Shares

There are different fees when you buy shares. Here is what you will pay:

Platform Fees (Monthly)

Platform	Monthly Fee	Notes
EasyEquities	R25	Can avoid if you trade monthly
Clarity	R0	No platform fees
FNB	R0-R50	Depends on account type

Trading Fees (Each Time You Buy or Sell)

Platform	Fee Per Trade
EasyEquities	0.25% (R25 on R10,000)
Clarity	Up to 0.2% spread
Traditional Brokers	R100-R200 flat fee

Real Cost Example

✅ 7. Step-by-Step: How to Buy Your First Shares

Step 1: Choose Your Platform

Pick a platform from the list above. For beginners, we recommend EasyEquities or Clarity. Both are easy to use and cheap.

Step 2: Download the App or Visit Website

Get the app from the Google Play Store or Apple App Store. Or visit the website on your computer. Make sure it is the real website, not a scam.

Step 3: Register Your Account

You will need to provide:

• Your ID number
• Photo of your ID
• Proof of address (utility bill or bank statement)
• Bank account details
• Tax number

Step 4: Verify Your Account

The platform will check your documents. This takes 1 to 3 days. You will get an email or SMS when approved.

Step 5: Add Money

Transfer money from your bank account using EFT (electronic transfer). Most platforms take a few hours to show your money. Some take one business day.

Step 6: Choose Shares to Buy

Search for a company by name. For example, type “Shoprite” or “Capitec”. You will see the current share price.

Step 7: Place Your Order

Enter how much money you want to spend. The platform shows how many shares you will get. Click “Buy” to complete.

Step 8: Wait for Settlement

Your shares take 3 business days to appear in your account. This is normal. Do not worry. The JSE has rules about settlement times.

⚠️ 8. Understanding Tax on Shares

When you own shares, you must pay tax on the money you make. Here is what you need to know:

Dividends Tax (20%)

When a company pays you dividends, SARS takes 20% immediately. You do not need to do anything. The company pays the tax for you.

Capital Gains Tax (Up to 18%)

When you sell shares for profit, you pay capital gains tax. SARS gives you R40,000 free per year. You only pay tax on profits above R40,000.

If your profit is over R40,000, you pay tax on 40% of the extra amount. The maximum tax rate is 18% for individuals.

How to Avoid Tax Legally

Use a Tax-Free Savings Account (TFSA). All your profits grow with zero tax. See section 9 below for details.

✅ 9. Tax-Free Savings Accounts (TFSA)

A TFSA is the smartest way to buy shares in South Africa. All your profits are completely tax-free. No dividends tax. No capital gains tax. Nothing.

TFSA Rules for 2025

Limit	Amount
Per year	R36,000 (R3,000 per month)
In your lifetime	R500,000 total
Penalty if you go over	40% tax on extra amount

How a TFSA Works

Important TFSA Rules

• If you do not use your R36,000 this year, you lose it. It does not roll over.
• If you withdraw money, you cannot put it back. It still counts towards your R500,000 limit.
• You can have a TFSA at multiple places, but total contributions must stay under the limits.
• Only South African tax residents can open a TFSA.
• You cannot buy individual shares in a TFSA. You must buy ETFs (groups of shares).

Where to Open a TFSA

All major platforms offer TFSAs. EasyEquities, Satrix, Allan Gray, and your bank all have TFSA options. Pick the one with lowest fees.

🚨 10. SCAMS TO AVOID – READ THIS CAREFULLY

Investment scams are exploding in South Africa in 2025. Fraudsters stole over R3 billion from investors this year. Do not become a victim.

Common Share Investment Scams

1. Fake Investment Apps

Scammers create fake apps that look like real trading platforms. One investor lost R6 million to a fake JSE trading app in 2025.

2. Telegram and WhatsApp Groups

Fraudsters create groups pretending to be from real companies like Avior Capital, Prescient, or Capitec. They promise high returns. Then they steal your money.

3. Deepfake Videos

Scammers use AI to make fake videos of Patrice Motsepe, Elon Musk, or other famous people promoting investments. These are not real.

4. Guaranteed High Returns

Anyone promising 20%, 50%, or 100% returns is lying. The JSE averages about 10% per year. High guarantees mean scam.

5. Ponzi Schemes

In December 2025, Banxso was fined R2 billion for running a Ponzi scheme. They used new investors’ money to pay old investors. Over 3,000 people lost everything.

Red Flags – Warning Signs

How to Protect Yourself

ALWAYS check the FSCA register before investing any money:

• Visit www.fsca.co.za
• Click “Search for Regulated Entities”
• Type the company name or FSP number
• Call FSCA at 0800 110 443 to verify

Real Companies Never Do This

If You Are Scammed

Report it immediately:

• FSCA: 0800 110 443 or www.fsca.co.za
• SABRIC (Banking Fraud): 0860 103 407
• South African Police: 10111
• Your bank’s fraud department immediately

✅ Smart Tips for New Investors

1. Start Small and Learn

Begin with R500 or R1,000. Learn how the platform works. Watch how share prices move. Then invest more when you feel confident.

2. Do Not Put All Money in One Company

Spread your money across different companies. If one company fails, you do not lose everything. Buy shares in 3 to 5 different companies.

3. Think Long-Term (5+ Years)

Share prices go up and down daily. Do not panic and sell when prices drop. Good companies recover. Think of shares as a 5 to 10 year investment.

4. Consider ETFs for Beginners

An ETF (Exchange Traded Fund) is a group of many shares. Instead of picking one company, you buy a piece of 40 companies at once. This is safer for beginners.

5. Set Up Monthly Contributions

Most platforms let you set up a debit order. Invest R500 or R1,000 automatically every month. This builds discipline and grows your wealth steadily.

6. Do Not Try to Time the Market

You cannot predict when share prices will be lowest. Just invest regularly. Even experts cannot time the market perfectly.

7. Keep Learning

Read company reports. Watch business news. Follow the JSE website. The more you learn, the better investor you become.

Need Help or Have a Complaint?

Financial Sector Conduct Authority (FSCA)

Phone: 0800 110 443 (toll-free)

Website: www.fsca.co.za

Use: Check if platforms are registered, report scams, file complaints

JSE (Johannesburg Stock Exchange)

Website: www.jse.co.za

Education: Free courses for beginners

Use: Learn about investing, check share prices, view listed companies

SABRIC (Banking Fraud)

Phone: 0860 103 407

Use: Report investment fraud and scams

Your Platform’s Support

EasyEquities, Clarity, and other platforms have customer support. Use their help chat, email, or phone line if you have questions about your account.

Buying shares can help you build real wealth over time. But start smart and stay safe.

For complete beginners: Open a TFSA account on EasyEquities. Start with R500 per month. Buy a simple ETF like Satrix 40. Let it grow for at least 5 years.

Always verify: Check every platform’s FSCA registration before sending money. Call 0800 110 443 if unsure.

Avoid scams: If someone contacts you first on WhatsApp or Telegram about investing, it is a scam. Block them immediately.

Be patient: Real wealth takes time to build. Expect 8% to 12% growth per year on average. Anyone promising more is lying.