Best brokers for beginners in South Africa in 2024

Written by
Adam N.
Fact checked by
Updated
2h ago
Dive into our toplist of regulated and trusted brokers that we tested with real money. Every broker is available in South Africa.

Find below the strengths of the best brokers for beginners available in South Africa, updated for 2024:

  1. XTB - the best broker for beginners in South Africa in 2024. Commission-free stocks and ETFs (for trades up to €100k per month). Free and fast deposit and withdrawal. Easy and fast account opening. High interest paid on cash.
  2. Webull - Free stock/ETF trading and high 5% interest on uninvested cash. Fast and easy account opening. Great trading platforms.
  3. Alpaca Trading - Great API trading service. Free stock & ETF trading. Fantastic charting tools.
  4. TradeZero - Commission-free stock and ETF trading above a certain volume. Quick and easy account opening. Excellent education and customer support.
  5. Saxo Bank - Great trading platform. Outstanding research. Broad product portfolio. Interest paid on uninvested cash.
  6. EasyEquities - Low trading fees and non-trading fees. Excellent educational materials. Easy and fully digital account opening.
  7. SogoTrade - Low trading fees. Quick and easy account opening. Great customer service.
  8. Swissquote - Access to many markets and products. No inactivity fee. Rock-solid background.
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Overview of the best brokers for beginners


While many online brokers suitable for beginners offer an excellent service, the ones in our toplist go the extra mile.

Broker
Minimum deposit
Time to open account
XTB
$0
1 day
Webull
$0
1 day
Alpaca Trading
$0
1 day
TradeZero
$250
1 day
Saxo Bank
$0
1 day
EasyEquities
$0
>3 days
SogoTrade
$0
1 day
Swissquote
$0
1 day
Best brokers for beginners data compiled for March 2024

Popularity of the best brokers for beginners in South Africa

Interested in what others think? Here's how many people chose these brokers at BrokerChooser in the last 6 months.

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Fees at the best brokers for beginners

Broker
US stock
XTB
$0.0
Webull
$0.0
Alpaca Trading
$0.0
TradeZero
$0.0
Saxo Bank
$1.6
EasyEquities
$5.0
SogoTrade
$2.9
Swissquote
$20.0
Fees at the best brokers for beginners in 2024
All commissions are for opening a position, holding for a week, and closing.

Non-trading fees at the best brokers for beginners

Non-trading fees are charges that are not directly related to a trade and typically include the account maintenance fee, deposit/withdrawal fees and the inactivity fee.

Broker
Withdrawal fee
Inactivity fee
XTB
$0
Webull
$0
Alpaca Trading
$0
TradeZero
$50
Saxo Bank
$0
EasyEquities
$0
SogoTrade
$0
Swissquote
$10
Non-trading fees at the best brokers for beginners in 2024
XTB Logo

XTB

Recommended for forex and CFD traders looking for low fees and great deposit/withdrawal service

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76-85% of retail CFD accounts lose money

XTB snapshot
Minimum deposit $0
US stock fee $0.0
Demo account Yes
Mobile platform score 4.4 stars
Time to open account 1 day
Inactivity fee Yes
Fractional shares Yes
Read review For a detailed analysis of XTB services, check out our review for 2024.

Recommended for investors and traders looking for zero-commission trading and easy platforms

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Webull snapshot
Minimum deposit $0
US stock fee $0.0
Demo account Yes
Mobile platform score 5.0 stars
Time to open account 1 day
Inactivity fee No
Fractional shares Yes
Read review For a detailed analysis of Webull services, check out our review for 2024.

Recommended for traders interested in algorithmic stock trading

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Alpaca Trading snapshot
Minimum deposit $0
US stock fee $0.0
Demo account Yes
Mobile platform score 4.2 stars
Time to open account 1 day
Inactivity fee No
Fractional shares Yes
Read review For a detailed analysis of Alpaca Trading services, check out our review for 2024.

Recommended for investors and traders interested in commission-free trading and a focus on US stocks and options

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TradeZero snapshot
Minimum deposit $250
US stock fee $0.0
Demo account Yes
Mobile platform score 4.5 stars
Time to open account 1 day
Inactivity fee No
Fractional shares No
Read review For a detailed analysis of TradeZero services, check out our review for 2024.

Recommended for investors and traders looking for a great trading platform and solid research

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Saxo Bank snapshot
Minimum deposit $0
US stock fee $1.6
Demo account Yes
Mobile platform score 5.0 stars
Time to open account 1 day
Inactivity fee No
Fractional shares No
Read review For a detailed analysis of Saxo Bank services, check out our review for 2024.

Recommended for long-term investors focusing on stocks and ETFs

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EasyEquities snapshot
Minimum deposit $0
US stock fee $5.0
Demo account Yes
Mobile platform score 4.3 stars
Time to open account >3 days
Inactivity fee No
Fractional shares Yes
Read review For a detailed analysis of EasyEquities services, check out our review for 2024.

Recommended for stock and options traders with a US focus who value great customer service

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SogoTrade snapshot
Minimum deposit $0
US stock fee $2.9
Demo account No
Mobile platform score 3.5 stars
Time to open account 1 day
Inactivity fee No
Fractional shares No
Read review For a detailed analysis of SogoTrade services, check out our review for 2024.

Recommended for affluent investors who value safety and are OK with higher fees

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Swissquote snapshot
Minimum deposit $0
US stock fee $20.0
Demo account Yes
Mobile platform score 4.7 stars
Time to open account 1 day
Inactivity fee No
Fractional shares No
Read review For a detailed analysis of Swissquote services, check out our review for 2024.

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How did BrokerChooser select the best online brokers for beginners in South Africa?

  • We conducted interviews with newcomers who had little to zero trading experience trading.
  • We opened an account and tested the trading platform with our own money.
  • We looked at how easy and user-friendly it is to open an account for beginners.
  • We checked whether brokers offers educational tools, like a demo account or learning material.
  • We checked how easy it is to understand fees for new users.
  • We also took into consideration if the brokers offer fractional shares and interest for uninvested cash
  • We checked and compared 101 brokers with a special focus on fees, their trading platform and customer service.

Save hours of research!

Our expert team has done all the work for you, and reviewed brokers based on BrokerChooser's unique methodology.

FAQ

Is online trading legitimate in South Africa?

Yes, trading financial instruments from stocks, to forex and commodities is legitimate in South Africa. South Africa is a major financial hub on the African continent. It’s home for about 200,000 forex traders and 400 listed companies on the Johannesburg Stock Exchange with a market capitalization of US$1.6 trillion.

The country’s capital markets are overseen by the FSCA (Financial Service Conduct Authority). South African residents can trade financial instruments either by the FSCA or other reputable international regulators. As the FSCA is a relatively new regulatory body, it may not be as stringent as some of its international counterparts. We recommend that you open an account with a broker that is also regulated by a mainstream international watchdog, such as the FCA in the UK, ASIC in Australia or BaFin in Germany.

Which broker should I use as a beginner?

Low fees and an excellent mobile platform make a broker great for beginners. Beginners can also benefit greatly if a broker has excellent educational materials, and tools, such as a demo account. The best way to start your journey in the world of trading is by learning. We provide a great starting point on our education page, where you can find a lot of useful learning materials. Here we give you some tips on how to start investing. To find the best online broker for your level of expertise and risk tolerance, use our find my broker tool.

Do I need to pay tax on trading income in South Africa?

The South African Revenue Service (SARS) treats any gains made from stock trading as revenue. It’s subject to income tax at your marginal tax rate, which varies between 18% and 40%, depending on the level of your taxable income. Profits earned from forex trading are also subject to income tax. The tax rate depends on your income bracket. If you hold a share as a capital asset (as a long-term dividend-producing investment), any gain from its disposal will be subject to capital gains tax. Capital gains are subject to tax at a lower rate than income gains.

Where should a beginner invest in stocks?

Before you make stock investments, you should draw up a plan, which involves several basic questions you ought to think about, such as what is your objective, how much time do you want to spend investing and what level of risk you want to take. For beginners, one of the best ways to to starting investing in stocks is choosing an index fund or stock mutual funds, which are an easy and low-cost way to tip your toe into the stock market. We put together a guide on how to start investing in stocks, and how to buy shares online. We explicitly guide you through how to invest in stocks. We also give you tips on how much you should invest when you are starting out. You can also browse through our top recommendations for best trading platforms for stocks.

Is trading gambling?

Trading is not gambling, although some poeple might treat it like that, but they will learn quickly that gamblers lose their money. The goal of a trader is to make predictions that will be as accurate as possible to make money, while gamblers can't predict anything, they bet. People who trade for the thrill of it, or because they want to prove something, or can't accept losing on the market from time to time, and don't have a plan or consistency, are trading in a gambling style. New online trading apps have recently come under the spotlight for bringing a gambling aspect into trading. The gamification of trading, with easy-to-use online platforms, little education for retail traders and the social pressure of 'FOMO' also contribute to a gambling attitude on the market. Serious traders should consider their objectives, their attitudes to risk, and carefully devise an investment strategy when entering a market.

Is trading hard to learn?

Trading is not diffficult to learn if you invest enough time and energy into it. But that is a big if. Plenty of people trade, but the more time you spend studying trading, the more you practice, - as with everything else -, the better results you can expect. Knowing yourself, your attitude to risk-taking, and being patient and disciplined are also crucial factors if you want to be successful. Keep a cool head, don't look for easy money, commit to studying trading and always have a trading plan. Our aim is to make personal investing as clear and accessible for you, as possible. Our educational page is a good starting point. You can also learn from our expert traders about the difference between investing and trading, and learn here about how to become a trader. You can also learn about different investment strategies from us.

Want to learn more?

Check out these articles written by our broker and trading experts:

Glossary

Here is a glossary to help you with some terms in our review:

Inactivity fee: a fee that is charged when a customer has not done any buying or selling on their brokerage account for a specific amount of time determined by the brokerage.

Withdrawal fee: an amount you need to pay when you withdraw money from your trading account to your bank account.

Deposit fee: this is charged when you send money to your trading account at an online broker. The fee may differ depending on the method of transfer (i.e. bank card, bank transfer, e-wallets, etc.).

Regulators: these are official bodies established by governments or other organizations to oversee the functioning and fairness of financial markets, including markets, exchanges and firms. They also oversee that investors are not fooled by scams, and in case of wrongdoing, they try to provide some level of financial and legal backing.

Investor protection: this means that up to a certain limit, you get your money back if the broker goes into bankruptcy or commits fraud.

Non-trading fees: charges not directly related to trading, such as deposit/withdrawal fees or inactivity fees.

Trading fees: these are charged when you trade; for instance, in the form of a commission, spreads, financing rates, margin rates or a conversion fee.

Still sounds confusing? You can dive into our broader glossary explaining all the exotic terms of the financial world. We also have a forex trading glossary dedicated to terms specifically related to forex trading.

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Author of this article

Adam Nasli

Financial Wizard | Trading • Safety • Market Analysis

I bring extensive financial expertise as one of BrokerChooser's earliest team members. Personally, I tested nearly all 100+ brokers on our site, opening real-money accounts, executing trades, assessing customer services, and providing firsthand assessment. My professional background includes roles in the banking sector and a degree from Central European University, where I teach finance. My passions lies in in-depth research of the financial industry, building trading algorithms, and managing long-term investments.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology.

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