Keep this in mind before deciding

CHOOSING an investment platform is an important and personal decision. It all depends on where you are in your investment journey.

We recommend that investors trade through a JSE-registered stockbroking platform. These offer standard features, products and services, which include the ability to invest in local and international listed stocks, ETFs and unit trusts. Some also offer options of investing in ETFs.

A platform should enable you to externalise (out of South Africa) or repatriate (into South Africa) your funds to or from the offshore platform, taking into account the South African Revenue Services (Sars) and the South African Reserve Bank approval necessary if you wish to externalise more than R1 000 000.

For experienced investors, the ability to borrow money, use their equity portfolio as collateral, and invest this cash in the market is another attractive offering from a platform.

Investors should also consider what type of returns they can earn on cash that they might have on the platform.

Other considerations to bear in mind are the research content provided, the functionality of the platform, whether it has a mobile application in addition to web access, and whether tax certificates are provided.

If you are an investor with a share portfolio, and you have decided to switch to another platform, ensure you understand the costs and features of the new platform. It is also important to consider the associated costs.

You do not need to sell your shares on the old platform to facilitate the transfer, as the platform you are transferring from will be able to transfer your holdings to the new platform. Derivatives cannot be transferred between platforms, and you will need to close out your open derivative contracts should you wish to move to another platform.

Once the above is understood, the type of account opened depends on their sophistication. If you are relatively new to investing, you may want to have a non-discretionary or self-managed account.

It is recommended that you choose a platform where you can access a financial adviser.

Your adviser can assist you with ensuring your overall portfolio is diversified and balanced across asset classes, sectors and geographies. They will also review all your assets, ensuring you consolidate across a single platform, thereby leveraging family pricing opportunities.

Your financial adviser is also there to guide you with elective corporate action events and the tax implications of your choices.