In order to trade successfully, it is very important to choose the right broker. in South Africa, a large number of companies provide access to trading and you will have to choose the one for you among them. It is important to work only with reliable brokers providing all the required instruments for trading based on your trading strategy. TU analysts have selected the best stock brokers for fractional shares in South Africa 2024. You can compare their features and trading conditions.
1
eToro - Best for fractional shares in South Africa
The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA.
👍 Advantages of trading with eToro for traders from South Africa:
•High level of reliability ensured by the licenses of respected regulatory authorities and participation in the compensation funds.
•Wide selection of assets quoted at stock exchanges in the UK, U.S., Australia and Asia.
•An opportunity to combine active trading with social trading and passive investing.
•Zero-fee trading of a number of stocks.
•Access to ready-made diversified asset portfolios with various risk levels.
•Provision of leverage, educational materials on various markets and user-friendly trading platforms that can run on any device.
•Zero fees for portfolio management, depositing funds and account maintenance.
👎 Disadvantages of eToro for traders from South Africa:
•High minimum deposit for users of a number of countries.
•No live chat on the website for quick connection to customer support.
2
Revolut - Best for fractional shares in South Africa
Revolut is a British fintech company that has been providing investors with accounts for trading precious metals, cryptocurrencies, and stocks listed on U.S. exchanges since 2015. The broker offers its clients access to investing in stocks and ETFs on European stock exchanges. For organizations and private clients, the company offers a multi-currency account with the possibility of exchanging currencies at the current inter-bank exchange rate. Revolut is supervised by the Financial Services Authority (FSA).
👍 Advantages of trading with Revolut for traders from South Africa:
•In addition to stock trades, customers can trade cryptocurrencies and precious metals.
•The broker offers commission-free trading plans.
•The minimum number of shares to buy is 0.00000001.
•There are no minimum deposit requirements.
•Social trading is available, which allows newcomers to the stock market to copy trades of successful traders.
•Communication with the support service via chat is available in the mobile application 24 hours a day.
•There is no fee for opening and maintaining a trading account.
👎 Disadvantages of Revolut for traders from South Africa:
•Stock trading is currently only available to UK residents.
•Operations in precious metals and cryptocurrencies are not regulated by supervisory authorities.
•The company does not offer fiduciary management of its investment portfolio.
3
Robinhood - Best for fractional shares in South Africa
Robinhood is an investment company that has provided services on the stock market for over ten years. Its owners engaged in software development for hedge funds ab initio and then teamed up to create a company that makes investing available to all. The broker is licensed to provide its services and is a member of the Financial Industry Regulatory Authority (FINRA, CRD#: 165998/SEC#: 8-69188) in the United States. There is no information about the broker receiving awards for their activities.
👍 Advantages of trading with Robinhood for traders from South Africa:
•trading stock market instruments without paying commissions;
•the ability to trade from mobile devices;
•hassle-free registration procedure.
👎 Disadvantages of Robinhood for traders from South Africa:
•the broker does not offer Forex instruments for trading;
•there are no offers for receiving passive income;
•training materials on the website are limited;
•the company works with clients exclusively from the US;
•lack of online support.
4
Zacks Trade - Best for fractional shares in South Africa
Zacks Trade is a stock broker headquartered in Chicago. The company has been providing investment services and quality analytical research since 1978. It is a division of LBMZ Securities, for which Interactive Brokers provides clearing and execution services. Zacks Trade is regulated by FINRA (CRD#: 7874/SEC#: 8-23266) and SEC, and is a member of SIPC. The broker offers its clients access to trading securities of the USA, Europe and Asia using proprietary platforms with powerful analysis instruments.
👍 Advantages of trading with Zacks Trade for traders from South Africa:
•The list of countries, the residents of which can open an account, includes 218 states.
•Wide selection of shares of international markets and quoted at the US stock exchanges.
•Reliable regulation by highly respected regulation authorities FINRA and SEC.
•No account service, inactivity or deposit fees.
•Fully digitalized account opening procedure.
•Over 20 base currencies.
•Access to subscription to professional instruments of research from third party providers and specialists of the broker’s own analytical department Zacks Investment Research.
👎 Disadvantages of Zacks Trade for traders from South Africa:
•At the moment, the broker’s clients cannot trade cryptocurrencies, futures, commodities and Forex instruments. Only shares are available from the securities of foreign exchanges.
•IRA accounts are available only for US tax residents.
•Funds cannot be deposited to the account using debit/credit cards. Also withdrawals to debit/credit cards are not available.
5
Collective2 - Best for fractional shares in South Africa
The Collective2 brokerage company started its operations in 2001. It was founded by the American businessman Matthew Klein. It is a member of the NFA 0401602 (National Futures Association) and is regulated by the CFTC (Commodity Futures Trading Commission). The company is headquartered in New York. Today, Collective2 is a global platform that unites successful traders and investors who prefer to make money from sharing trading strategies. The broker provides services for over 100,000 active and passive clients in the stock market.
👍 Advantages of trading with Collective2 for traders from South Africa:
•The broker is registered with the Commodity Futures Trading Commission that regularly monitors its business transactions concerning its clients.
•The commission paid to the managing traders for their trading strategies is 50%.
•If necessary, you can make trades by phone.
•Collective2 technology is compatible with 16 brokers.
•By popular demand, the broker integrated multiple trading platforms.
•Weekly webinars feature highly topical Forex issues.
👎 Disadvantages of Collective2 for traders from South Africa:
•There are no cent accounts.
•You can’t withdraw funds using e-payment systems.
•Sometimes you have to wait for a long time for a response from the support team.
Commissions & Fees
Brokerage fees are the amount of money that you pay for using the services that a brokerage offers in order to perform trading and manage investments. The brokerage fee structure and regulations vary from broker to broker, and there are two primary fee types which are:
Trading Fees: This type of fee is only charged when you perform a trade. It can be a conversion fee, margin rate, financing rate, spread, or commission.
Non-Trading Fees: This type of fee isn't directly related to your trading activity, and it can include inactivity fee, withdrawal fee, deposit fee, etcetera.
eToro Commissions and Fees
Registration on the eToro platform is free. The broker does not charge a fee for opening and closing long positions on stocks quoted at the US stock exchanges. The stocks of other markets are available as derivatives, with eToro charging a trading fee on them in the form of the spread. Also, the fees are applied to short positions and leveraged orders. The company accepts and allows withdrawals of only US dollars. If a client deposits or withdraws another currency, it is converted into USD at a fee of 0-50 pips. Members of eToro club get a 50-100% fee reduction on conversion. If a client shows no activity for a period of 12 month, the broker charges the inactivity fee of $10. There is no deposit fee. eToro charges $5 on each withdrawal.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Standard |
$5 |
Yes |
|
Pro |
from $1.1 |
$5 eToro’s fee + the fees of payment systems |
Revolut Commissions and Fees
During our analysis of trading conditions, it was found that Revolut limits the number of trades without commissions. Depending on the account type, 1-5 transactions per month are free. There is a monthly subscription fee of £2.99-£12.99 on different accounts, which can be reduced by 20% if you pay in advance for a year. The broker charges a fee of 1 USD for additional orders. Since stocks listed on American exchanges are offered for investment, the fees are calculated in USD and then the funds are converted to the account currency at the current exchange rate. For transactions in cryptocurrency, the commission is 1.5-2%, and for transactions in precious metals, it’s 0.5-1.5% of the transaction volume. The amount of interest depends on the selected trading account. No additional hidden commissions were revealed.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Standard |
From £2.99 |
No |
|
Plus |
From £2.99 |
No |
|
Premium |
From £2.99 |
No |
|
Metals |
From £2.99 |
No |
Robinhood Commissions and Fees
Analysts of the Traders Union have reviewed the trading conditions of Robinhood Markets for implicit and explicit commissions and fees. Hidden commissions were not revealed. The broker does not charge a trading fee for the replenishment of the deposit or the withdrawal of funds. No commission is charged for order execution. Please note: there is no commission for assets from the US market only. A trading fee is charged to traders for trading European stocks.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Robinhood Instant |
From $1.5 |
No |
|
Robinhood Gold |
From $1.5 |
No |
|
Robinhood Cash |
From $1.5 |
No |
Zacks Trade Commissions and Fees
Zacks Trade charges trading commissions and also a non-trading withdrawal fee, starting from the second withdrawal (no fee is charged on the first withdrawal of the month). The amount of trading commissions depends on the type of asset and the selected market. For trading US stocks and ETFs worth over $1, the broker charges USD 0.01 per share (but no less than $1), worth less than $1 – 1% of the trade (but no less than $1). Commissions on foreign stocks are calculated in the account currency. As is with the US stocks, there is a minimum commission. For the trades on Canadian stocks, Zacks Trade charges CAD 0.02 per share. For trading stocks of other countries, a percentage of the trade value is charged: 0.3% for Mexico and Australia, 0.1-1% - Europe, 0.05-0.3% - Asia. Commissions on options are as follows: $1 for the first contract, $0.75 for the following contracts, no fees are charged on execution and assignment. For the trade on mutual funds (over $1 per share), the investors pay $27.50, corporate bonds – 0.1% of the nominal value +$3 per bond. For currency conversation for the securities traded at the international exchanges, a $2-2.5 commission is charged.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Cash Account |
from $1 |
Charged on the second and following withdrawals within one month |
|
Margin Account |
from $1 |
Charged on the second and following withdrawals within one month |
|
Portfolio Margin Account |
from $1 |
Charged on the second and following withdrawals within one month |
Collective2 Commissions and Fees
The experts at Traders Union examined Collective2 for explicit and hidden commissions and found the following. The broker provides a two-week trial period. After it expires, you should purchase one of the packaged services. It cost from $19 to $99. Moreover, the company charges a trade opening fee of 2%. There is no commission for opening an account, replenishing a deposit, or withdrawing funds from Collective2.
| Account type | Spread (minimum value) | Withdrawal commision |
|---|---|---|
|
Starter |
From $2 |
No |
|
Basic |
From $2 |
No |
|
Premium |
From $2 |
No |
Summary
Many brokers are available for traders from South Africa, but not all of them offer good conditions. In this review, TU experts chose the Best stock brokers for fractional shares in South Africa 2024. These are the most trusted companies that offer the best conditions for traders. You will also be able to review the general assessment of each broker.
Overall score of the best Stock Brokers For Fractional Shares in South Africa
| eToro | Revolut | Robinhood | Zacks Trade | Collective2 | |
|---|---|---|---|---|---|
|
Overall score |
7.75 |
7.69 |
6.91 |
5.26 |
6.01 |
|
Execution of orders |
9.1 |
9.2 |
7.9 |
6.24 |
6.99 |
|
Investment instruments |
9.7 |
9.8 |
8.5 |
6.66 |
7.41 |
|
Withdrawal speed |
9.5 |
9.6 |
8.3 |
6.3 |
7.05 |
|
Customer Support work |
9.3 |
9.4 |
8.1 |
6.6 |
7.35 |
|
Variety of instruments |
9 |
9.1 |
7.8 |
6.08 |
6.83 |
|
Trading platform |
9.8 |
9.9 |
8.6 |
6.82 |
7.57 |
|
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FAQ
What are the risks of trading in the financial markets?
Any trading in the financial markets carries risks of losing your money due to asset volatility. Therefore, it is important to develop the rules of risk management in your strategy and strictly follow them.
What commissions and fees should I take into consideration when I am choosing a broker?
The commissions and fees in the financial markets are divided into trading and non-tradings ones. Trading fees are the fees that are charged directly during trading (spread, commission per lot, etc.), while non-trading fees are the ones charged outside the trading process (for example, account fee, inactivity fee, deposit and withdrawal fee).
Can you earn passive income in the financial markets?
Yes, the best brokers in South Africa offer passive income options. These could include copy trading, PAMM accounts, managed portfolios, etc.
What factors are important when you are choosing a broker?
When you are choosing a broker, it is important to make sure it is a reliable company, consider its fees, the list of trading instruments, deposit and withdrawal methods and other factors. It is important to study a broker in detail, before opening an account with it.
Best Stock Brokers For Fractional Shares by Countries
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.