Buying and trading stocks has gained popularity during the years. With many companies claiming you should buy stocks from them, it’s important to do your research prior to buying stocks. Today, we’re going to have a look at the best South African companies you can buy stock from, however firstly, let’s discuss the ideal way to buy stocks. 

How To Buy Stocks in South Africa 

If you live in South Africa and are wondering how to buy shares South Africa online, you’ll be happy to know that the entire transaction may be finished in a few moments from beginning to end. You will first need to select a reputable online stock broker, then make a cash deposit using a debit or credit card issued in your home country or a bank account, and last decide which stocks you wish to purchase.

In this article we will be going over a few of the current best companies to buy stocks from, elaborating on each company and going over the many features and processes that they offer. Let’s get to know some of these companies: 

1. Capital.com 

Capital.com, named "Most Innovative Tech 2021" by TradingView, is a multi-award-winning international investment trading platform that is governed and authorised by the Australian Securities and Investments Commission, the Cyprus Securities and Exchange Commission, and the UK's Financial Conduct Authority. Capital.com is a rapidly established leader in the European leveraged trading sector, known for its excellent 24/7 customer assistance, seamless trading experience, and affordable costs.

Capital.com, a 0 percent commission platform that provides minimal overnight costs and tight spreads, takes pride in being an open and honest broker. With access to more than 6,100 markets, our clients may trade CFDs on the most popular indices, commodities, shares, and currency pairs in the world or invest directly in international stocks and ETFs. We also give customers access to well-known cryptocurrencies in markets where doing so is legal. With a straightforward and user-friendly interface designed to help you trade more intelligently, you may trade on the web and your smartphone in a variety of markets, including Apple, Facebook, the FTSE 100, the EUR/USD, and many more.

Capital.com claimed a surge in new customers of 27 percent in just the first quarter of 2022. Additionally, it noted an increase in trading activity on a global scale, with total client trading volumes across all markets increased by more than 36% compared to the previous quarter. The group's expanding reputation as a preferred platform among retail traders around the world is reflected in these figures. Capital.com is one of the trading platforms for investments that has experienced the quickest growth, with more than five million users have created accounts with us.

Pros of Capital.comCons of Capital.comOffers tight spreads and zero commissionThe cost of stock index CFDs is somewhat above average.Educational mobile appUser-friendly mobile trading app

1. Libertex

Libertex is an online broker that is a member of the Libertex Group that provides tradable CFDs with underlying assets such as commodities, forex, ETFs, cryptocurrencies, and others. In addition, Libertex provides commission-free stock investments (market spreads apply).

Libertex has won more than 40 important awards and accolades from throughout the world over the years, including "Best CFD Broker Europe" and "Most Trusted Broker in Europe" (Global Brands Magazine, 2022). (Ultimate Fintech Awards, 2021).

The Libertex Set, which was created in 1997, has expanded into a varied group of businesses that now provides services to millions of customers in numerous nations around the globe.

Indication Investments Ltd., a Cyprus investment firm governed and overseen by the Cyprus Securities and Exchange Commission (CySEC) with CIF Licence number 164/12, using the Libertex trading platform.

Pros of LibertexCons of LibertexZero spreads and low commissionsOnly offers CFD leveraged instrumentsUser-friendly mobile appAccess to 250+ tradable CFD assets

1. AvaTrade

Check out AvaTrade if you're looking for a more comprehensive trading platform for South African stock trading. This broker interfaces with MetaTrader 4 and MetaTrader 5, two of the most potent technical analysis tools currently available. You may create unique strategies, backtest them against past price data, and do a lot more with this software.

Additionally, AvaTrade provides its own trading interface for desktop and mobile platforms. If you're new to stock trading and want to get into analysis, it's an excellent option because it's a little simpler to use than MetaTrader. We particularly appreciate that it has a built-in news feed and research tools to assist you in determining which stocks are worthwhile purchasing.

Since AvaTrade is a broker of CFDs, you cannot purchase shares altogether. However, you can trade shares with a leverage of up to 5:1 and have access to more than 600 stock CFDs through the broker. Additionally, AvaTrade doesn't levy commissions and offers some of South Africa's lowest spreads.

The FSCA in South Africa, as well as regulatory bodies in Australia, Japan, and Ireland, all oversee this broker. Negative balance protection is offered to all clients, which is a big benefit if you want to trade using leverage. Additionally, you may start an account with just $100 and help is offered 24/7.

Pros of AvaTradeCons of AvaTradeSupports MetaTrader 4 and 5 platformsMetaTrader can be complex for beginnersTrade over 600 global share CFDsAnalysis tools and news feed

1. Plus500

A specialised CFD broker, Plus500, offers over 2,800 instruments. As a result, since the underlying asset is a CFD, you won't be buying or selling shares in the conventional sense. Without actually owning the underlying item, Contracts for Differences ("CFDs") products let consumers take advantage of all the advantages of holding a position in stocks, indices, exchange-traded funds (ETFs), foreign exchange, options, or commodities. The phrase "Contract for Difference '' or CFD refers to a financial transaction in which a customer joins into a CFD at a stated price and is paid the difference between that price and the CFDs closing price in cash.

You can take advantage of Plus500's low spreads and commission-free orders while trading stock CFDs. Additionally, you have the choice of shorting your preferred business. For instance, a sell order will enable you to benefit if you believe that the price of Apple stocks is excessive. It's also vital to remember that Plus500 allows leveraged trading for stock CFDs.

The broker has a limit of 1:5, thus with a 3,000 rand account balance, you could only trade up to 15,000 rands. Plus500 demands a minimum deposit of £100, or slightly over 1,500 rands, if stock CFD trading interests you. A South African bank account, debit/credit card, or e-wallet can be used to deposit and withdraw funds into and out of the broker. If you make more withdrawals than the allowed number per month, Plus500 may charge you.

Pros of Plus500Cons of Plus500Thousands of financial instruments across heaps of marketsOnly suitable for experienced tradersDemo account can be opened in 5 minutesAble to trade stocks with leverage of 1:5