Investing through mobile apps has become a practical and accessible way for many South Africans to grow their money. With more financial services now available online, people can easily buy shares, ETFs, or even cryptocurrencies using their smartphones. These apps offer low fees, simple account setups, and user-friendly platforms that suit both beginners and experienced investors. Whether you’re starting with R100 or looking for access beyond the JSE, there are several good options.
Key Takeaways
- Investment Apps Are Widely Accessible And Cost-Effective: South Africans can start investing with as little as R5, using platforms that charge low or no monthly fees and offer commission-free trades.
- Each App Serves A Different Investor Type: From beginner-friendly options like Stash and EasyEquities to advanced platforms like Interactive Brokers, the best app depends on your goals, knowledge, and desired market access.
- Users Must Weigh Risks, Fees, And Features Carefully: While investment apps offer convenience and low costs, they may also lead to risky behaviour, especially for inexperienced users, and small accounts can suffer from flat monthly fees.
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What Is An Investment App?
An investment app is a digital platform that allows individuals to buy, sell, and manage various financial assets. It acts as a secure link between a user’s bank account and their investment account, allowing funds to be transferred directly for investing purposes. This type of financial technology product provides access to a wide range of instruments, such as shares, bonds, exchange-traded funds, futures, and even cryptocurrencies. The app typically presents the current pricing and past performance of each investment, giving users the information they need to make informed decisions before executing a transaction.
To support better decision-making, many investment apps include live market updates, financial market summaries, and accessible learning materials. These features allow users to track how their investments are performing, carry out basic market analysis within their chosen sectors, and adjust their portfolio based on any changes in the market.
Pros and Cons of Investment Apps
Before downloading an investment app, consider the advantages and drawbacks of using them as a category.
Pros of Investment Apps
- Highly Accessible: These apps feature straightforward interfaces and are easy to access, making investing open to South Africans from all backgrounds. You can set up regular deposits, daily, weekly or monthly, or invest spare change easily, helping you build savings with minimal effort.
- Affordable: Many apps require only small initial investments and charge modest fees. For instance, Stash allows users to invest from R5 per day and does not require a minimum deposit. Basic subscriptions often cost less than R50 per month, while trading in individual stocks is often commission-free.
Cons of Investment Apps
- Risky for New Investors: The low threshold to start investing can tempt beginners into high‑risk behaviours, such as frequent trading or margin usage, without sufficient knowledge. Some platforms enable access to complex instruments without proper safeguards.
- Encourages Over‑Depositing: The ease of depositing money at any moment can lead users to invest more than they intended. It is wise to set clear limits on how much you realistically want to invest to avoid exposing yourself to more risk than you can manage.
- Fees Can Erode Gains in Small Accounts: A fixed monthly fee, say R50, may seem small, but for those investing only pocket money it can quickly usurp any returns. It is essential to compare ongoing fees with the size of your investment to ensure charges do not negate your gains.
The Top Investment Apps in South Africa
EasyEquities
EasyEquities is a locally developed investment platform that allows South Africans to buy fractional shares, unit trusts, ETFs, cryptocurrencies, and property bundles. It is aimed at making investing more accessible to beginners and low-capital investors.
This app is known for having no monthly platform fees and charges only a small transaction-based brokerage fee. It supports fractional investing in both local and global markets. Users can sign up and start investing entirely online, making the onboarding process relatively straightforward.
Despite the low fees, EasyEquities applies a brokerage fee per trade of roughly 0.37 %, which can accumulate if you trade frequently. The platform lacks more advanced tools such as real-time charting and comprehensive analytics, making it less suitable for experienced investors. Some users have also noted that the customer support response time can be slow.
SatrixNOW
SatrixNOW is the investing platform from Satrix, a well-known provider of ETFs in South Africa. It allows direct investment in various Satrix-managed index funds and ETFs.
Investors using SatrixNOW gain access to a curated selection of low-cost, passive portfolios managed by professionals. The platform is ideal for those who prefer a hands-off investment approach with broad diversification.
There is a platform fee of 0.5 % per annum on the first R500 000 invested, with a reduced rate on amounts beyond that. A separate brokerage fee also applies to each transaction. Some users have raised concerns about poor customer service and difficulties in account closures.
Interactive Brokers (IBKR GlobalTrader)
Interactive Brokers is a global platform available to South African residents, offering access to a wide range of international markets including equities, ETFs, options, and more.
The app is praised for its low fees, especially on foreign trades. It provides a sophisticated range of tools for experienced investors, along with access to international exchanges across multiple asset classes. It is frequently highlighted for its strong micro-investing capabilities.
Due to its comprehensive functionality, the app may be overwhelming for beginners. It requires a certain level of financial knowledge, particularly in understanding global markets and currency conversion.
BROKSTOCK
BROKSTOCK is a South African trading app that enables users to invest in both local and US-listed shares, as well as commodities like gold and platinum.
It offers a unique opportunity to invest in commodities directly alongside equities. The account setup is quick and users can earn interest on uninvested cash. The app is regulated by the FSCA and claims to follow strict security protocols.
As a newer entrant to the market, BROKSTOCK does not yet have the same level of user feedback or reputation as some of the more established platforms. Its full range of features and performance is still being evaluated by the market.
Stash (by Liberty)
Stash is a micro-investing app designed by Liberty, aimed at encouraging consistent savings by investing as little as R5 per day. It offers a Top40 index fund and a cash option, including access to a tax-free savings account.
The app is ideal for new investors or savers who want to start small. It provides flexibility in terms of how much to invest and how often. The setup process is simple, and funds can be withdrawn at any time. It is particularly suited for those looking to make use of tax-free savings options.
Investment choices are limited to just a few portfolios, which may not be ideal for those wanting broader diversification or access to global assets. It is best suited for disciplined savers rather than active traders.
Other Options (XTB, Webull, MEXEM)
Platforms such as XTB, Webull, and MEXEM provide South African investors with access to shares, ETFs, forex, and contracts for difference (CFDs). These platforms cater more to active traders and those interested in international markets.
They offer wide market access and support a variety of instruments including equities, forex, and indices. Fees tend to be low, and accounts can usually be opened quickly.
CFD trading is inherently risky and may not be suitable for long-term or cautious investors. Not all platforms are regulated by South African authorities, so regulatory compliance must be carefully verified.
How To Choose The Best Investing App
Selecting the right investing app depends largely on your individual financial goals and preferences. You should look for an app that is straightforward to use, charges minimal fees, and supports the types of investments that interest you.
A suitable investing app should accommodate your preferred investing style, support relevant asset classes, and come with low associated costs.
Low Fees
Your goal is to grow your capital, not lose a portion of it to unnecessary charges. The most cost-effective investing apps typically offer no monthly fees, low trading costs, and minimal expense ratios.
Investment Options
Each investor has different interests when it comes to asset types. If you are uncertain about your preferences, it is advisable to choose an app that provides a wide variety of investment options or offers pre-designed model portfolios tailored to varying goals.
User Interface
Even if an app has low fees and comprehensive features, it serves little purpose if it is too complicated to use. A clean and functional user interface is vital for ensuring a smooth investing experience.
Research Tools
Relying on guesswork is rarely an effective investment strategy. Successful investors often depend on in-depth research features, including financial data, charts, and analysis tools, to support their decisions. A quality investing app should provide a strong set of analytical features.
Educational Tools
Even experienced investors can benefit from a strong educational resource built into the platform. A well-structured learning centre can help users understand how different financial products operate. While investing has the potential to build long-term wealth, it can also result in significant losses, particularly if using borrowed funds. New investors should have access to informative tools that help assess their risk tolerance.
Red Flags To Watch Out For
| Red Flag | Description |
|---|---|
| Unregulated Apps | Always check whether the app is authorised by the Financial Sector Conduct Authority (FSCA). Unregulated platforms may falsely claim to be compliant or use fake registration numbers, which is a major risk for investors. |
| Hidden Fees | Some platforms do not clearly state all the costs involved. Look out for unclear brokerage charges, inactivity fees, or currency conversion costs that can significantly reduce your returns over time. |
| Poor Customer Support | Reliable support is critical, especially when dealing with financial transactions. If an app has repeated complaints about slow responses or unresolved issues, it may not be the right choice. |
| Aggressive Promotion of High-Risk Instruments | Be cautious of apps that strongly promote products like CFDs or forex with promises of guaranteed returns. These instruments carry high risk, and aggressive marketing often targets inexperienced users. |
| Short Checklist | Unregulated claims should be verified through the FSCA register. Vague or undisclosed charges require a close review of the fee structure. Poor support can be identified through user reviews and by testing the help channels. High-pressure advertising of risky products is a red flag that the platform may not prioritise your financial safety. |
Conclusion
Investment apps have made it significantly easier for South Africans to access local and international financial markets, offering flexible, low-cost options for building wealth. Whether you’re a complete beginner looking to invest spare change or an experienced trader seeking global diversification, there’s likely an app that suits your needs. However, it’s essential to choose carefully by evaluating fees, platform usability, available investment options, and regulatory compliance. While the convenience is clear, users should remain cautious about overtrading, overlooking risks, or underestimating how fees can affect returns in smaller accounts.
Frequently Asked Questions
What is the best investment app for beginners in South Africa?
EasyEquities and Stash are well-suited for beginners as they offer low minimum investment requirements, straightforward interfaces, and simplified access to a range of local and international assets. These platforms also allow users to get started with minimal financial knowledge or capital.
Can I invest in international shares using South African apps?
Yes, several South African investment apps, including EasyEquities, Interactive Brokers, and BROKSTOCK, provide access to international markets such as the NYSE and NASDAQ. This allows local investors to diversify their portfolios beyond the Johannesburg Stock Exchange.
Are investment apps safe to use?
Most established investment apps in South Africa are regulated by the Financial Sector Conduct Authority (FSCA) and use secure encryption protocols to protect user information and transactions. It’s still advisable to check the platform’s regulatory credentials before investing.
Do I need a large amount of money to start investing?
No, you do not. Many investment apps are designed for low entry points, with some allowing users to begin with as little as R5. This makes investing accessible to those who want to start small and gradually build their portfolio over time.
Can I lose money using an investment app?
Yes, there is always the potential for financial loss when investing, as market values fluctuate. While apps make the process more accessible, users must still understand the risks involved and avoid investing more than they can afford to lose.
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