TRADING SHARES WITH EASY EQUITIES


Investing & Money
piece written on the 3rd October 2015 by  

I’ve blogged countless times on here about investing and trading. This morning I want to tell you about a relatively new trading platform that I’ve overlooked and I think it’s worth blogging about. I’ve been trading with PSG Online for a number of years and although the fees are high, their educational resources make it worthwhile. With that being said, one thing that has always been a problem is that the fees make it difficult to experiment – if you’re not familiar to trading I should mention that most brokers charge a minimum fee for making a trade. In other words, even if you only want to purchase 1 or 2 shares of a stock you’re going to pay around R99 for that purchase and this fee essentially makes it pointless to buy shares in such small quantities. What does that mean? Quite simply, it means you have to spend quite a large amount on each trade and based on my experience anything under R5,000 would make the trade incredibly expensive.

Screen Shot 2015-10-03 at 5.00.46 AM

Enter Easy Equities. The first time I heard about Easy Equities if I recall correctly was whilst I was watching Hot Stoxx on CNBC. Easy Equities is part of a larger group called GT247 which actually belongs to an even larger group, The Purple Group Limited. When you look at the combination of CNBC, GT247 and The Purple Group Limited you realise that this isn’t a micky mouse set up nor is it uncredible and that’s really important when it comes to trading your hard earned money. You want to know that a platform is trustworthy and that’s ultimately a big reason I used PSG Online.

Why am I telling you about Easy Equities though? The platform allows you to buy shares fractionally. You ask, what on earth does that mean? It means that you don’t have to buy shares in integers or whole numbers. A single Naspers share trades around R1,700 these days and not everyone has R1,700 to buy a single share, especially if you’re a beginner trader. Easy Equities allows you to buy shares based on what you have to spend, which means if you had R500 to spend on shares and you want Naspers, that’s not a problem, you’ll hold a fractional portion of a share with your R500 rather than not being able to! But it doesn’t end there, their fees are incredibly good:

  • No monthly cost – You don’t pay a monthly fee to use the platform.
  • No minimum brokerage – Each time you purchase shares, regardless of the amount, there isn’t a minimum charge.
  • 0.25% brokerage fee (ex VAT) – The fees are a bit higher than this and it’s important to read their cost profile.

Again, for those of you who don’t trade, let me just tell you that these are incredible features. All the other platforms I’ve looked at charge around R100 a month to use their platforms, they have minimum brokerage fees of R100 per trade and fees go all the way up to 1% per trade! Easy Equities makes it incredibly easy to trade on a small scale without breaking the bank and this allows for, not only experimentation, but an easy learning curve.

Another incredible feature is that with Easy Equities it’s a piece of cake to get registered and FICA’d – It took me about 5 minutes to be up and trading, which is mind-blowingly fast compared to any other financial service I’ve ever used. This was a massive draw card for me!

Before we look at what it’s all about, when you open an account you get three things:

  • A demo account – Allows you to trade with fake money to learn how the system works.
  • A live account – Allows you to trade with your own money.
  • A TFSA account – A Tax Free Savings Account that gives you access to TFSA investment vehicles.

Let’s look at the trading side of things.

SHARES

Easy Equities gives you access to all the popular shares on the JSE and they do so in an easy to consume format. Logging into your account will present you with a tiled layout containing the logos and names of all the listed companies. You’re about to filter and search which assists in getting through the masses of companies. Here’s what I’m talking about:

easy-equities-trading

Upon clicking on a share of interest you’re giving more information, which further links you up to Google Finance if you want to do some deeper research on the select company. If the image below you can see the share price as well as decide how much you want to to purchase of the share:

easy-equities-buy

One of the features that I find incredibly handy is that each time you want to buy a share or sell a share, the website tells you what fees are going to be charged and this keeps you continually posted on what costs are involved. Further to this, the account overview panel presents you with what’s going on in your account so at any time you’re able to see if you’re making or losing money. I’ve used a temporary account to show you:

easy-equities-overview

As I’ve been trading for quite some time I find myself missing the advanced graphing and reporting that some of the other brokers offer and I think a lot of people will miss these features once they become more involved in trading, but for beginners this is the perfect platform to get going.

Easy Equities is free to sign up and you can do so by clicking here.

I was not commissioned to write this post, I am not a financial advisor which means I’m not able to give advice. All comments and thoughts in this post are my own opinion.

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