Share trading via your bank

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Share trading used to be the playground of the rich, inaccessible to the ordinary man but today you can invest in shares through your bank in a simple transaction. We looked at what the four big banks offer you by way of share trading.

First National Bank seems to be ahead of the pack in terms of offering you a variety of products to suit investor appetite and wallets. The only bank that does not seem to be offering clients any type of support in the form of education around share investing is Absa. Absa also seems to be the most expensive with the highest minimum brokerage fee of R120 per trade. Note that you do not have to bank with a particular bank in order to open a share trading account with them. However, you will have to satisfy FICA requirements as with any other financial transaction.

FIRST NATIONAL BANK (FNB)

FNB offers you three different share trading options: Share Saver, Share Builder and Share Investor. You can choose the option that suits you best. FNB conducts bi-annual consumer education seminars together with the JSE for FNB clients that want to learn more about investing and what to look for in a stock or share.

Share Saver

This option make regular monthly investments in the top 100 JSE listed shares. This is an easy no-fuss way to invest in shares without having to make difficult choices about which share you want to invest in.

Minimum investment: R300 a month.

Fees:

The fee is calculated on an annual basis but charged monthly. It is based on the market value of your portfolio as follows:

  • Up to R250 000 – 0.4% a year plus VAT.
  • R250 000 – R1 million – 0.35% a year plus VAT.
  • More than R1 million – 0.3% a year plus VAT.

You will also have to pay the following charges (all excluding VAT)per trade:

  • A brokerage fee of 0.06% or a minimum of R40 for trades at 3pm.
  • A brokerage fee of 0.1% for trades delayed until the first trading day of the month.
  • An investor protection levy of 0.0002% of your capital investment. This levy is not applicable for trades delayed to the first trading day of the month.
  • A STRATE fee of 0.05623% at a minimum of R10.95 and a maximum of RR54.59. This fee also only applies to trades on the same day.

Share Builder:

If you do feel up to making choices, you can opt for Share Builder which allows you to choose from a basket of 24 pre-selected blue-chip shares as well as KrugerRands.

Investment size: Usually R2 500 per trade.

Fees:

A monthly fee of R19 and an all inclusive brokerage or trading fee of 2% per trade, calculated on the capital investment amount with a minimum of R50 a trade.

Share Investor

For the more experienced investor, FNB offers the Share Investor option, which allows you to build an investment portfolio.

Investment size: Usually R5 000 per trade.

Fees:

A monthly fee of R49 with the following charges per trade:

  • Brokerage fee of 0.6% or a minimum of R80.
  • Investor protection levy of 0.0002% of capital investment.
  • STRATE fee of 0.05459% with a minimum of R10.95 amd a maximum of R54.59.
  • Securities transfer tax (STT) of 0.25% on the capital investment – for buy transactions only.

Tablet functionality: You can trade via the FNB banking app.

STANDARD BANK

This bank has been offering clients online share trading for at least 15 years now and has extensive experience in the field. You can trade online or via the telephone. However, you have the entire stock market at your disposal, which might be a bit intimidating for the first-time investor. To address this, the bank offers national educational roadshows for clients as well as webinars, YouTube videos and interactive online tutorials.

Fees:

The Standard Bank fee structure seems to be quite favourable. Your first calendar month is free and if you do three or more trades in a calendar month, the account maintenance fee of R60 including VAT falls away.

The brokerage fee is 0.5% of your capital investment with a minimum of R60 and if you want to trade via telephone, there is an additional fee of R35.

The securities transfer tax is 0.25%, which is only payable on purchases.

The investor protection levy is 0.0002%.

The STRATE fee is 0.005459% with a minimum of R10.92 for trades up to R200 000 and a maximum of R54.59 for trades worth more than R1 million.

Tablet functionality: You can trade via the Standard Bank online share trading app. If you bank with Standard Bank, you have to download both the Standard Bank banking app as well as the bank’s online share trading app. If you bank with a different bank then you only need to download the online share trading app.

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NEDBANK

Nedbank offers you online share trading via the Nedgroup Private Wealth Stockbrokers. However, the minimum investment is R10 000.

Fees:

If you open your trading account through a portfolio manager, you will be charged a once-off account opening fee of R250.

If you have owned shares for a very long time (ie you have a share certificate) and you want to open a trading account to sell the shares, you will be charged a once-off account opening fee of R1 000.

There is a quarterly administration fee of R150 and a once-off fee of R250 if you close the trading account.

The brokerage fee is based on a tiered scale as follows:

  • Up to R250 000: 0.7%
  • R250 000 to R750 000: 0.5%
  • R750 000 to R1 million: 0.35%

The minimum brokerage fee per deal is R70.

Securities trading tax on purchases: 0.25%

STRATE fee: A minimum of R10.92 and a maximum of R54.59.

Investor protection levy: 0.0002%

VAT is payable on all the above fees and brokerage rates.

Tablet functionality: available via the Nedbank banking app.

ABSA

Absa offers you share trading via their online banking as well as via a stockbroker. To use the stockbroking service you will have to go to www.absastockbrokers.co.za or you can call 0860 050403 for stockbroking assistance. This bank unfortunately does not offer any educational training or seminars on share trading although they told City Press they are “looking into it”.

Fees:

Annual administration fee: R800. This fee is waived if you trade at least five times during the calendar year.

Brokerage fee: 0.4% of the value of the securities traded with a minimum brokerage fee of R120 per trade.

Securities trading tax on purchases: 0.25%

STRATE fee: A minimum of R10.92 and a maximum of R54.59.

Investor protection levy: 0.0002%

VAT is payable on all the above fees and brokerage rates.

Tablet functionality: not available yet.

  •  This article was first published in City Press. 

  5 comments for “Share trading via your bank

  1. August 21, 2016 at 18:54

    I would like to Start investing what do i*

    • sakkie
      January 11, 2017 at 13:18

      I would like to start investing what do I do?

      • Neesa Moodley
        February 16, 2017 at 23:10

        Your first step is to determine how much money you have to invest each month after you have drawn up a budget. The choice of investment vehicle you use will be determined by your savings goal and timeline. Speak to an independent financial planner for individual advice.

  2. Anele
    April 25, 2017 at 13:15

    What is the minimum investment for Standard bank share trading?

    • Neesa Moodley
      July 4, 2019 at 14:07

      The minimum for Standard Bank share trading is a R500 debit order.

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