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.

Finweek English Edition - - FRONT PAGE - Com­piled by Buhle Nd­weni and Lameez Omar­jee

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.

1. COST

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

Share Saver:

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

Con­fi­den­tial.

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