Quick Facts

• JSE minimum: R300 per month or R1,000 lump sum
• You can invest R1 million offshore per year without SARS approval
• JSE had 435 listed companies as of December 2025
• S&P 500 includes about 500 major US companies
• Both markets can grow your money over time

What Are These Markets?

Stock markets are places where company shares are bought and sold. When you buy a share, you own a small piece of that company.

The JSE is the Johannesburg Stock Exchange. It is Africa’s largest stock exchange. It is located in Sandton, South Africa.

International markets include stock exchanges in other countries. The biggest are in America (NYSE and NASDAQ), London (LSE), and Japan (Tokyo Stock Exchange).

As of December 2025, the JSE has 435 listed companies. Its total market value is R21.73 trillion. The FTSE/JSE All Share Index hit 113,439 points in December 2025.

The JSE Explained

What Companies Are Listed?

The JSE lists many South African companies you know:

• Banks: Capitec, Standard Bank, FNB, ABSA, Nedbank
• Retailers: Shoprite, Pick n Pay, Woolworths, Mr Price
• Mining: Anglo American, Gold Fields, Harmony Gold, Sibanye-Stillwater
• Tech: Naspers (owns Takealot), Prosus
• Telecoms: MTN, Vodacom, Telkom
• Other: Sasol, Bidvest, Sanlam, Old Mutual, Discovery

Trading Hours

The JSE trades from 9:00am to 5:00pm on weekdays. It is closed on weekends and public holidays. In July 2025, the JSE announced it is considering 24-hour trading.

Recent Performance

In 2025, the JSE performed well:

• The All Share Index gained 34.89% in 2025 (by December)
• For the first half of 2025, it gained 16.7% in rands
• Gold and platinum mining shares did very well
• Some shares like MTN and Naspers went up over 30%

International Markets Explained

The Main Markets

NYSE (New York Stock Exchange): The world’s largest stock exchange. It includes companies like Coca-Cola, Johnson & Johnson, and Visa.

NASDAQ: Another big American exchange. It focuses on technology companies like Apple, Microsoft, Google, Amazon, and Facebook (Meta).

S&P 500 Index: This tracks the 500 biggest American companies. It is the most popular way to invest in America. These 500 companies make up about 80% of America’s stock market value.

London Stock Exchange (LSE): Britain’s main exchange. Many big international companies list here.

What Companies Can You Buy?

International markets give you access to global giants:

• Technology: Apple, Microsoft, Google, Amazon, Meta (Facebook), Tesla, NVIDIA
• Finance: JPMorgan Chase, Visa, Mastercard, Berkshire Hathaway
• Consumer: Coca-Cola, McDonald’s, Nike, Walmart, Procter & Gamble
• Healthcare: Johnson & Johnson, Pfizer, UnitedHealth

Recent Performance

The S&P 500 has performed well over the long term. From 2010 to 2025, it averaged 18.7% annual returns in rand terms. That is 13.6% per year in US dollars.

However, in 2025, the JSE actually beat the S&P 500. For the first six months of 2025, the S&P 500 only gained 6.2% in dollars. The JSE gained 24.26% in dollars during the same period.

Performance Comparison: JSE vs S&P 500

This is the big question: which market gives better returns?

The Answer: It Depends on When You Look

Time Period	JSE Return	S&P 500 Return	Winner
Last 15 years (2010-2025)	11.9% per year (rands)	18.7% per year (rands)	🇺🇸 S&P 500
Last 10 years	7.11% per year	13.8% per year	🇺🇸 S&P 500
Last 5 years (to June 2025)	5% per year	13.5% per year	🇺🇸 S&P 500
First half of 2025	24.26% (in dollars)	6.2% (in dollars)	🇿🇦 JSE
16 months (Jan 2024-Apr 2025)	30.5% (with dividends)	17.7% (in rands)	🇿🇦 JSE

What This Means

R100 invested in 2010:

• In the S&P 500 would be worth R1,650 by 2025
• In the JSE would be worth R580 by 2025

But R100 invested in January 2024 would show different results. The JSE beat the S&P 500 in 2024 and early 2025.

✅ How to Invest on the JSE

Step 1: Choose a Stockbroker

You cannot buy shares directly from the JSE. You must use a registered stockbroker. Popular options include:

• EasyEquities: Very popular for beginners. Low fees. Easy to use.
• Standard Bank Online Share Trading: For Standard Bank clients.
• Sharenet: Monthly fee of R84. Good tools and research.
• Investec: For larger investors.
• Your bank: Most major banks offer share trading services.

Step 2: Open an Account

You will need:

• Your South African ID
• Proof of address (bank statement or municipal account)
• Bank account details
• Contact information

Step 3: Deposit Money

Minimum amounts vary:

• Monthly investment plans: From R300 per month
• Lump sum investments: From R1,000
• Some platforms: As low as R1 (fractional shares)

Step 4: Choose What to Buy

For beginners, consider:

• ETFs (Exchange Traded Funds): These are baskets of many shares. Less risky than single shares. Examples: Satrix 40, CoreShares Top 50.
• Blue chip shares: Big, stable companies like Capitec, Naspers, Shoprite.
• Dividend shares: Companies that pay regular dividends, like Sanlam or Standard Bank.

✅ How to Invest in International Markets

South Africans have several ways to invest in international markets:

Option 1: JSE-Listed International ETFs

Easiest and cheapest option for most people.

You buy these through your normal JSE broker. They track international markets. Examples:

• Satrix S&P 500: Tracks the S&P 500
• Satrix MSCI World: Tracks global markets
• CoreShares S&P 500: Another S&P 500 option
• Satrix Global Property: International property shares

Advantages:

• Buy in rands (no need to convert to dollars)
• No SARS tax clearance needed
• Low fees
• Easy to use

Option 2: Direct Offshore Investment

Buy shares directly on the NYSE or NASDAQ. Use platforms like:

• Interactive Brokers: Access to over 150 global markets. Regulated by FSCA.
• EasyEquities USD: Invest in dollars. Access to US shares and ETFs.
• Your South African broker: Many now offer international trading.

Requirements:

• You must convert rands to dollars
• Amounts over R1 million need SARS approval (see Tax section)
• Higher fees for currency conversion

Option 3: Vanguard S&P 500 ETF Direct

This is a popular American ETF. It tracks the S&P 500. Lower fees than JSE-listed options. But you need SARS tax clearance for amounts over R1 million.

⚠️ Costs and Fees Comparison

Understanding fees is crucial. High fees can eat into your returns.

JSE Investment Costs

Fee Type	Typical Cost
Account fee	R0 to R84 per month
Brokerage (buying/selling)	0.5% to 1% of trade value
Securities Transfer Tax	0.25% when you buy (not when you sell)
Strate settlement fee	R10.19 minimum to R73.49 maximum
FSCA Investor Protection Levy	0.0002% on all trades

Example: You buy R10,000 of Capitec shares:

• Brokerage: R50 to R100
• Securities Transfer Tax: R25
• Strate fee: R10.19
• Total cost: Around R85 to R135

International Investment Costs

Via JSE-listed ETFs:

• Same as JSE shares above
• Plus ETF annual management fee: 0.1% to 0.5% per year
• Total: Similar to buying local shares

Direct offshore investment:

• Currency conversion: 0.5% to 1.5%
• Foreign broker fees: Varies widely
• Tax clearance costs (if needed): R2,000 to R5,000
• Total: Usually higher than JSE options

⚠️ SARS Tax Rules for Offshore Investment

This is very important if you want to invest internationally. SARS (South African Revenue Service) controls how much money you can send offshore.

The R1 Million Allowance (SDA)

Single Discretionary Allowance (SDA): Every South African over 18 can send R1 million offshore per calendar year. You do NOT need SARS approval for this.

Requirements:

• You must be 18 or older
• You must have a valid Tax Compliance Status (TCS) PIN from SARS
• You must use an authorised dealer (bank or forex company)

What counts towards your R1 million:

• Overseas holidays and travel
• International online shopping
• Netflix, Spotify, and other foreign subscriptions
• International credit card spending
• Offshore investments

The R10 Million Allowance (FIA)

Foreign Investment Allowance (FIA): You can invest an additional R10 million offshore per year. But you need SARS approval.

Requirements:

• You must get an AIT (Approval for International Transfer) from SARS
• You must be tax compliant
• You must provide proof of funds
• The AIT is valid for 12 months
• Processing time: About 21 working days

Total annual offshore allowance: R1 million (SDA) + R10 million (FIA) = R11 million per year

Tax on Investment Returns

If you are a South African tax resident, you must pay tax on:

• Dividends: From both local and foreign shares (20% withholding tax on SA dividends)
• Capital gains: When you sell shares at a profit (included in your tax return)
• Interest: From foreign savings accounts

You must declare all foreign investment income and capital gains on your annual tax return.

Good News for Small Investors

If you invest through JSE-listed international ETFs:

• No tax clearance needed (regardless of amount)
• No R1 million limit on these investments
• You still pay normal tax on returns
• Much simpler than direct offshore investment

🚨 Investment Scams to Avoid

South Africa has a serious problem with investment scams. Billions of rands have been stolen. Here are the scams to watch out for in 2025:

Ponzi Schemes

These scams use money from new investors to pay old investors. They always collapse eventually. Recent examples:

• Mirror Trading International (MTI): Stole over R30 billion from South Africans
• BHI Trust: Defrauded investors of R2.3 billion
• MMM Global: Promised 30% per month. Collapsed in 2016
• My Wealth Dias: Promised 400% returns. Scam exposed in 2024

Warning signs:

• Promises of very high returns (20%+ per month)
• “Guaranteed” profits with no risk
• Pressure to recruit new members
• Payments for recruiting others

Fake Forex and Crypto Trading

Scammers set up fake trading platforms. They claim to trade forex or cryptocurrency. Your money disappears. Examples:

• Exential Group: Promised 120% returns per year. Was a Ponzi scheme
• UFX Markets, FXC Markets, AFX Capital: All flagged as scams
• Forex Ghost Trader: Active in 2025. Promises 10-15% per month on Telegram

Warning signs:

• Not registered with the FSCA
• Aggressive marketing on social media
• Cannot withdraw your money
• Requests to use Telegram or WhatsApp for transactions
• Asks you to open crypto accounts

Telegram and WhatsApp Scams

Scammers create fake investment groups. They pretend to be legitimate companies. In 2025, the FSCA warned about deepfake videos. Scammers use AI to create fake videos of the FSCA Commissioner.

Example from 2025: A deepfake video showed the FSCA promoting “NBSG Securities” with 20-30% returns. This was a complete scam. Neither the FSCA nor Nedbank had anything to do with it.

Warning signs:

• Contacted via Telegram or WhatsApp
• Uses names and logos of real banks or the FSCA
• Fake celebrity endorsements
• Pressure to invest quickly
• Requests payment in Bitcoin or cryptocurrency

How to Protect Yourself

DO	DON’T
Check if registered with FSCA: www.fsca.co.za	Invest based on social media ads
Use only JSE-registered brokers	Share your banking details on WhatsApp or Telegram
Ask for proof of registration	Believe promises of guaranteed returns
Start small and test withdrawals	Invest money you cannot afford to lose
Report scams to FSCA: 0800 110 443	Rush into investments due to pressure

Where to Report Scams

• FSCA (Financial Sector Conduct Authority): 0800 110 443 or www.fsca.co.za
• SABRIC (South African Banking Risk Information Centre): www.sabric.co.za
• South African Police Service: Your local police station
• National Consumer Commission: 0860 003 600

Pros and Cons: JSE vs International Markets

JSE Advantages

• Simple: No currency conversion needed
• No SARS paperwork: Invest any amount without tax clearance
• Know the companies: Invest in businesses you see every day
• Dividends in rands: Easy to use and understand
• Time zone: Markets open during your working hours
• Recent performance: JSE beat S&P 500 in 2024-2025

JSE Disadvantages

• Limited choice: Only 435 companies (vs 500+ in S&P 500)
• Concentration risk: 10 companies = 70% of the market
• Rand risk: Your money is tied to South Africa’s economy
• Slower long-term growth: Over 15 years, trailed S&P 500 significantly
• Political risk: SA government policies affect the market
• Load shedding impact: Power cuts hurt businesses and share prices

International Markets Advantages

• Diversification: Access to thousands of companies worldwide
• Currency protection: Hedge against rand weakness
• Better long-term returns: S&P 500 averaged 18.7% per year (2010-2025)
• Global giants: Invest in Apple, Microsoft, Google, Amazon
• Sectorsavailable: Technology, healthcare, consumer goods not available locally
• Economic diversity: Not tied to South Africa’s economy

International Markets Disadvantages

• Currency conversion: Must convert rands to dollars
• SARS limits: R1 million per year without approval
• Tax paperwork: Need TCS PIN, possibly AIT
• Higher fees: For direct offshore investment
• Foreign exchange risk: If rand strengthens, you lose money
• Time zones: US markets trade during SA nights

✅ Which Should You Choose?

The answer depends on your situation:

For Total Beginners (Under R5,000 to invest)

Recommendation: Start with JSE-listed international ETFs

Why? Simple. No tax paperwork. Low fees. Gives you both local and international exposure.

Example portfolio:

• 50% in Satrix Top 40 (JSE companies)
• 50% in Satrix S&P 500 (American companies)

For Investors With R10,000 – R100,000

Recommendation: Mix of JSE shares and international ETFs

Example portfolio:

• 40% JSE shares (Capitec, Naspers, Shoprite, etc.)
• 40% International ETFs (S&P 500, MSCI World)
• 20% JSE ETFs (Top 40, Dividend ETFs)

For Investors With R100,000+

Recommendation: Comprehensive global portfolio

At this level, consider both JSE and direct offshore investment.

Example portfolio:

• 30% JSE shares (blue chips and dividend payers)
• 30% International ETFs via JSE
• 30% Direct offshore (Vanguard S&P 500, individual US shares)
• 10% JSE property or bonds

Important Principles for All Investors

Principle	Why It Matters
Diversify	Do not put all your money in one market or one company
Think long-term	Stock markets go up and down. Invest for at least 5 years
Start small	Begin with amounts you can afford. R300 per month is fine
Invest regularly	Monthly investments average out market ups and downs
Avoid scams	Use only FSCA-registered providers. No guaranteed returns exist

Action Steps to Start Today

1. Get your SARS TCS PIN: Log into eFiling and request it
2. Choose a platform: EasyEquities is good for beginners
3. Open an account: Takes about 10 minutes online
4. Deposit money: Start with whatever you can afford
5. Buy your first investment: Consider Satrix Top 40 or Satrix S&P 500
6. Set up monthly contributions: Automate your investments

For most South Africans, the best strategy is a balanced approach:

• Invest in BOTH JSE and international markets
• Use JSE-listed international ETFs for simplicity
• Start with R300 per month if that is all you can afford
• Only use FSCA-registered providers
• Never invest in anything promising guaranteed high returns
• Think long-term (5+ years minimum)
• Do not try to time the market
• Reinvest your dividends

Remember: The JSE and international markets each have their place in a smart investment strategy. Neither is “better” than the other. They work best together.

The most important thing is to start investing regularly and stay invested for the long term. That is how wealth is built.