Stock trading in South Africa: How to trade stocks in 2022

How to Trade Stocks in South Africa
The stock market is the largest financial market in the world. It is a market where the shares of publicly traded companies are listed. On this platform, traders can buy and sell stocks of listed companies. Stock trading in South Africa will take place over various stock exchanges which are generally situated in their country of operation.
The traded stock of public companies indicated the ownership of investors in their companies. Top companies offer their stock to get listed on the stock exchange. A stock exchange is a place where traders can buy and sell tradable financial assets.
You don’t need to buy and sell these stocks directly. You can also trade stocks in South Africa as CFD, bonds, derivatives, etc. However, to make a significant profit in the stock market, traders need to understand how Online stock trading in South Africa works & How to generate returns from it. 

  1. What is a stock?
  2. How to trade stocks in South Africa?
  3. Stock trading in South Africa at Investby
  4. Important factors influencing share prices
  5. Is online stock trading allowed in South Africa?
  6. Top 10 of the most popular stocks in South Africa
  7. Conclusion
  8. FAQ: How to trade stocks in South Africa?

What is a stock?

To learn how stock trading will be performed in the financial market, The first thing you need to understand is the difference between stock and share and How they are. A Stock is a common term used to represent a trader's ownership in the quoted company.
Meanwhile, a share is a small portion of the capital stocks of a specific company or firm. In simple words, the stock is a group of small portions known as Shares, typically offered by the companies through the stock exchange. Traders bought and sold stocks to perform stock trading in South Africa.   
Companies provide their stock on exchange in such a manner that investors can easily trade stocks as CFDs, dividends, bonds, etc. By purchasing stock, traders will get both rights and obligations. They can earn significant returns by purchasing potential stocks.
Mainly stocks are divided into two categories: Common stocks and preferred stocks. The difference between the two is preferred shareholders have legal rights to receive certain dividend payments before the other shareowners. On the other hand, common shareholders have voting rights which play an essential role during corporate decision-making.

How to trade stocks in South Africa?

Till here, you understand what stock is and its categories. Now it is necessary to learn how to buy and sell them over the stock exchange or the markets. Traders who do not want to be involved in stock trading in South Africa directly can trade them through Contract for Difference (CFDs).
In place of direct investment in Financial assets, people prefer CFDs to predict stock prices in the market. Investors can trade stocks via the market or through the broker's portal. Here we explain the process of both: trading share CFDs or trading stocks on the stock market. 

Stock trading over the stock exchange

A stock exchange is a significant centre where a huge variety of financial securities are available to get traded. Traders can purchase and sell shares directly from here, but traders may require a trading account over a stock broker's website at transaction time.
A stockbroker is an intermediary body that plays the role of a bridge between traders and the financial market. The role of a broker is to perform buying and selling operations on behalf of investors and institutions in the market.
Traders who are interested in doing stock trading directly in the stock market must have a large volume of capital, and they will get paid to offer their trading services to the other traders. There are several stock brokers present to perform Stock trading in South Africa. 

Stock trading on a broker's portal

Because of modernisation and new technologies, buying and selling stocks has become an easily accessible operation for traders. They can easily enter and exit positions on trades as they want at a lower cost than the stock exchange.
These brokers are quite different from stockbrokers in terms of operation. For example, stockbrokers allow traders to control their operation, and they should take place only with an internet connection.
Whereas, on these broker's portals, traders may not directly trade stocks in South Africa. In place of that, they trade stock as CFDs (Contracts of Difference). These brokers allow stock trading as CFDs in which you can predict the prices of shares over the market to earn potential returns from it. 

Stock trading in South Africa at Investby

Investby is an online trading platform where you can take CFDs on 350+ financial assets like stock forex, cryptocurrency, indices, commodities, and precious metals. Investors can perform online stock trading in South Africa on the InvestBy broker's website.
It is a legit brokerage firm that is authorised and regulated by the National Bank of the Republic of Belarus with license number 40023. The broker offers you three types of accounts: Silver account, Gold account, & Platinum account for both professional and retail clients.
Interested traders who want to trade stocks as CFDs can register on the InvestBy portal. Follow the step-by-step instructions given below to open an account on the broker's website. 
  1. Click on the "Open Account" button available on the broker's website.
  2. Now enter your personal details like first name, last name, country code, phone number, email address, and so on. Click on the submit button.
  3. On the second page, you need to fill in information such as account types and others.
  4. Now you jump to the third page, where you need to answer a few questions related to your past trading experience.
  5. After this, you need to submit documents asked by the broker, such as identifying verification documents on the fourth page.
  6. In the last step, you have to submit a minimum deposit as per your account types, and you are all set to start trading on the InvestBy website. 

Important factors influencing share prices

Till here, you become familiar with stock trading and how it is performed. Now it's time to talk about factors influencing the share price. It is necessary to know about factors before starting trading in the market. Some major factors that put a significant impact on share prices are political & economic situations, Interest fees, the International market, Supply & Demand, and Liquidity. 

Political & economic situations 

Political and economic events have a major impact on stock prices because they are directly connected to companies’ financial growth. If these two factors run efficiently, stability will increase in the market, and the number of jobs will increase. In addition, they build opportunities for companies to earn good revenue. Due to this, the chances of rising stock prices increased.

Interest Fees 

This factor may also affect stock prices majorly. The central bank decided various monetary policies, which helped to maintain stability in the market and economy. One must also note that significant changes in the interest rate may also majorly impact Stock value.
For example, significant changes in interest range make loans costly for firms, profit generation decreases. Due to this, the stock price will automatically start dropping. So while performing stock trading in South Africa must check companies' performance as well as interest rates. 

International market 

The relationship among multiple markets is an essential variable for the costs of stocks and assets. Due to this factor, the market will increase because of the increasing globalisation across the world economy. 

Supply and Demand 

This factor plays a significant role in a stock price change. The instability that occurs between supply and demand highly affects stock value. Suppose the stock demand of a specific company will increase and the supply of those stocks are short. In this situation, prices will increase rapidly, and opposition to this also happens. 


The buying and selling activities of traders bring extreme changes in the portfolio of traders known as Liquidity Flow. The rising flow of liquidity in a specific sector or market will majorly affect the stock prices.
On the other hand, some traders make a profit by taking advantage of enhanced liquidity flow. This factor consists of both positive and negative aspects. Trade stock in South Africa, while keeping all these factors in your mind, trade stock in South Africa will help you make a significant profit.

Is online stock trading allowed in South Africa?

Yes, online stock trading in South Africa is legal. But it is often necessary to make sure you pick a regulated stockbroker. Because a regulated broker provides high-level security to their client's funds thus, one always checks the past records of a broker before opening an account on its website.
The broker who consists of longer past records is the trusted one. But we are not saying that the new ones are not. They are also trusted if financial authorities regulate them. One must check where your broker keeps the client's funds, whether they keep them in a separate account or not.
When selecting a broker to trade stocks as CFDs, you need to consider essential factors: leverage, commission, minimum deposit, etc. Professional traders are always searching for the best trading platform, so you must check which trading platform your broker is providing. 

Top 10 of the most popular stocks in South Africa

  1. Apple : It is an American company that provides electrical equipment and software across the world. This company has the largest market cap of approximately 1.15 trillion U.S. dollars. It is one of the stable companies whose stocks are available for stock trading in South Africa. 
  1. Twitter : It is a social media network where you can follow the world's top celebrities. It is a highly active social network. It was founded in 2006. It has a market cap of 49.56 Billion. It is also one of the stable stocks for longer-term investment. 
  1. Tesla : This is a U.S. based company that was founded in 2003. This company is involved in designing, selling, and making electric cars. The company has a market cap of 1.01 trillion, and currently, its stock price is 1,024.86 USD. 
  1. Facebook : It is one of the most popular social networks across the world. It was founded in 2007, and its approximate users are 2,500 million. It holds a market cap of 926.72 Billion. Its crescent stock price is 328.69 USD. 
  1. Zoom : It is an American based company that was founded in 2011. Its market cap is 8.31 trillion. Currently, its stock price is 279.79 USD. It is the best stock to trade in South Africa. 
  1. Amazon : It is a US-based company that is involved in online trading. This country provides its services in 10 countries across the world. It holds a market cap of U.S. $862 billion. Currently, its stock price is 3,320.37 USD. 
  1. NIO : It is a china based company founded in 2016. They are involved in making premium electrical vehicles. It holds a market cap of 6.76 Trillion. Currently, its stock price is 41.27 USD. This company's stock is the best for performing stock trading in South Africa. 
  1. AMC : This is a United States situated company founded in 1920. They have a market cap of 1.89 Trillion. Its current stock price is 36.83 USD. 
  1. AMD : It is an American multinational semiconductor company that develops computers. It was founded in 1969. It holds a market cap of 14.86 Trillion Cr. Currently, its stock price is 122.36 USD. 
  1. Disney : It is the nickname of the Walt Disney Company, which was founded in 1923. It is the world's largest media and entertainment company. Its market cap is $ 346 million. The current stock price is 172.01 USD. It is also one of the stable companies of which stock is the best for trading in South Africa. 


We have reached the end of the article, where we can conclude that stock trading in South Africa consists of potential advantages for making money in the market. We discuss stock trading and how you can perform it efficiently to earn remarkable profits on this page. Here we also take about two ways through which you can trade stocks as CFDs. Finally, check here the list of top 10 the most popular stocks in South Africa.
The stock market is one of the largest and highly active markets across all financial markets. Stock trading provides you with an opportunity to trade stock for longer and short periods to earn good returns on your investment.
InvestBy is one of the leading brokers of South Africa, which offer CFDs on 350+ tradable assets. 

Authorization By the National Bank of the Republic of Belarus,with license number 40023
Leverage 1:10 for maximum leverage of stock market
Account levels Three account levels: silver, gold and platinum, depending on
the level of knowledge and experience of the trader
Customer service Personalized attention via: online chat, email
or phone call
Education Educational center with informative content on
financial and trading topics. Find books, articles,
tutorials and more on our website
Variety of assets CFDs on more than 350 financial assets. Diversify your investment portfolio in different markets: commodities, cryptocurrencies, Forex, indices and stocks.
Minimum deposit 250 USD

Create an account to enjoy the advantages of trading with InvestBy.

FAQ: How to trade stocks in South Africa?

Is stock trading legal in South Africa?

Yes, Stock trading is legal in South Africa. Traders can perform stock trading in South Africa on the InvestBy website.

What is the best time to trade stocks through CFDs?

However, there are no best hours for trading stock. You can buy them anytime during the market hours. Most professional traders buy a stock when their prices are very low and sell them while their prices are at peak.

What is the difference between stock CFDs and stocks?

The difference between stock CFDs and stocks is that stocks are the financial assets traders buy and sell to profit in the market. Whereas stock CFDs are the financial instruments on which traders speculate on stock prices without owning them.

How does stock trading work?

Stock trading should be performed by buying and selling stock over the stock exchange. Through this process, investors make significant profits.

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