YOUR GUIDE TO ONLINE SHARE-TRADING: PART 3
In this third and final instalment of our series on online share-trading platforms, finweek looks at FNB’s platform, GT247 and Saxo Bank.
online share-trading platforms allow private investors to handle their own trades – a handy tool for those who like to keep an eye on the market and get closer to real-time trading. Although the information investors receive on most of these platforms isn’t updated minute-by-minute, they certainly bring investors closer to the action by removing the need for instructing brokers to execute trades on their behalf.
This is the final instalment in our series that looks at and compares the costs involved for the different platforms, the investment options they offer, and the requirements for opening an account.
If you have missed the first two parts of the series, you can buy the digital versions of our 29 October and 5 November issue on mysubs. co.za by simply searching for finweek and browsing the back issues.
FNB offers five types of share-trading accounts: Share Saver, Share Builder, Share Investor, Local Trader and Global Trader.
Share Saver: Your monthly fee is based on the market value of your portfolio. The higher your portfolio value, the lower your fee.
• R0 to R250 000:
0.5% plus VAT
• R250 001 to R1 000 000: 0.45% plus VAT
• R1 000 001+: 0.35% plus VAT A brokerage fee of 0.1% plus VAT is also charged on Share Saver accounts.
Share Builder: R19/month, with a brokerage fee of 2% (minimum R50) plus VAT.
Share Investor: R49/month with a brokerage fee of 0.6% (minimum R80) plus VAT for immediate trades, and 2% (minimum R50) plus VAT for delayed trades.
Local Trader: Exposure to locally-listed shares on the JSE and other JSE-authorised products, access to new listings, a variety of tools, charts and information as well as live pricing. • R70/month excl. VAT – waived if you trade more than five times a month.
Global Trader: Trade and invest in shares and exchangetraded funds (ETFs) on more than 20 exchanges globally, online and in real-time. • Global Trader account fees are only available on request.
2. RANGE OF PRODUCTS TO INVEST IN
FNB chooses shares for you.
Share Builder: Offers a basket of pre-selected shares as well as ETFs and Krugerrands.
Share Investor: Allows you to invest in the full range of JSE-listed shares, ETFs, exchange-traded notes (ETNs) as well as Krugerrands.
FNB offers both local and offshore trading platforms:
Local Trader: Get exposure to locally-listed shares on the JSE and other JSE- authorised products, access to new listings, a variety of tools, charts and information as well as live pricing.
Global Trader: Trade and invest in shares and ETFs on more than 20 exchanges globally, online and in real-time.
FNB’s tax-free shares product allows customers to invest up to R30 000 per tax year in the Top 100 companies on the JSE and pay no tax on the dividends, returns and capital gains. Portfolio management solutions are also on offer.
3. CAN USERS INVEST DIRECTLY OFFSHORE?
Only Global Traders can.
4. DO YOU OFFER LIMIT ORDERS THAT ALLOW BUYING AT A SPECIFIC PRICE, AND/OR MARKET ORDERS THAT ALLOW BUYING AT THE BEST PRICE AVAILABLE?
Market orders are available on the Share Builder accounts. Both options are available on Share Investor accounts, Local Trader accounts, and Global Trader accounts.
5. WHAT INFORMATION IS AVAILABLE TO USERS?
The following services and information are available free of charge to all account holders: historical financial data and online education. Mobile access is available to all, apart from Global Trader account holders. Analyst reports and technical analysis is only available to Local Trader and Global Trader account holders.
6. TIME DELAYS ON SHARE PRICES
There is a 15-minute delay on prices.
7. DO YOU OFFER A LIVE FEED AT AN ADDITIONAL COST?
Local Traders can access live prices at a fee of 15c to 20c per request. Global Trader accounts also offer live pricing, but the fee is dependent on specific exchanges.
8. IS IT POSSIBLE TO USE YOUR PLATFORM FOR A TRIAL RUN BEFORE SIGNING UP?
Only for Global Trader accounts.
9. TO SIGN UP AS A CLIENT, YOU NEED TO SUBMIT:
ID and proof of residence. Global Trading account holders also need to provide proof of their bank account, while Share Saver account holders need to have an FNB qualifying account.
10. NUMBER OF USERS ON THE PLATFORM