Economy
How to Invest in US Stocks in South Africa: A Comprehensive Guide From TU Experts
Reputable brokers in South Africa offer profitable and straightforward services for investing in stocks, including U.S. stocks. Traders Union experts provide the answers on how to buy shares in South Africa and highlight the best brokers for successful investing in the country.
Investment in US stocks from South Africa
TU analysts point out that South African citizens have two options for investing in U.S. stocks: using either a local stock broker or an international stock broker. International brokers provide expanded access to global markets and a diverse selection of assets, but may not be locally regulated and may have higher transaction costs. On the other hand, local brokers offer specialized services for the local market, but have limited access to international markets and investment options. Investors should consider the pros and cons of each type of broker based on their individual needs and preferences. So how to invest in US stocks in South Africa?
What is the best investment amount for me?
Starting with just 965.53 South African Rand (approximately $50), investors can buy 1-2 cheap shares in South Africa. Statistics from Finder.com reveal that 20% of South Africans invest less than R8,500, while 5% invest between R8,500 and R35,001, 2% between R35,001 and R70,000, and 6% invest over R70,000. Some experts suggest a minimum of R5000 ZAR for a successful investment, but the actual minimum varies depending on the chosen broker.
Purchasing more shares is cost-effective, with brokers recommending lots of 50 or 100 shares for ease of accumulation and tracking. Alternatively, analysts at Traders Union say that investors can consider broad market index ETFs as a low-cost option to invest in the South African stock market.
South Africa’s best brokers for buying US stocks
TU analysts emphasize that to succeed in investing in U.S. stocks in South Africa, choosing the right stockbroker is crucial.
- RoboForex: Offers a wide range of products and services, including copy trading through CopyFX, with a minimum deposit of $100. They provide access to over 12,000 stocks, indices, and ETFs across six platforms.
- IC Markets: Ideal for active traders in South Africa, offering access to over 10,000 securities, including large-cap stock CFDs with fast execution on major stock exchanges. They provide high leverage, low spreads, and multiple trading platforms.
- Exness: Known for copy trading stocks, Exness is a large and trustworthy international Forex broker, offering low spreads and a range of trading accounts with variable spreads.
Selecting the right broker can significantly impact your investment journey and potential returns.
What is the best way to start trading stocks in South Africa?
Investing in U.S. stocks in South Africa can be both simple and daunting. To get started, you need to open an account with either a local or international broker, depending on the stocks you want to purchase. Here are some quick tips from Experts at Traders Union:
- Understand the stock market’s definition and workings.
- Learn how to trade shares and choose a trustworthy broker.
- Request access to price information for the stocks you want to trade.
- Build a diversified trading plan and analyze the market.
- Select a share or top ETF to trade, considering risks, charges, and available stocks.
- Complete the registration process for your chosen broker to open a share trading account.
- Look for stock trading opportunities and manage your positions carefully.
- When choosing an international broker, check fees, available currency pairs, and assets.
- Remember that buying stock abroad requires selling it there, with different commissions and fees for international trades involving U.S. stocks.
Conclusion
Investing in U.S. stocks in South Africa is made accessible by reputable brokers offering straightforward services. TU experts provided valuable information on buying shares in South Africa and highlighted the best brokers for successful investing.
By Aduragbemi Omiyale
More petroleum marketers are looking to take advantage being offered by the Dangote Refinery in Lagos through its bulk-purchase incentives, allowing petrol stations to sell premium motor spirit (PMS), otherwise known as petrol, cheaper to motorists.
Recall that recently, Dangote Refinery entered into a deal with MRS Oil Nigeria, Ardova Plc, Heyden for the purchase of petrol at least two million litres at N909 per litre.
With this agreement, MRS Oil has been able to dispense to customers at a pump price of N935 per litre across its stations in Nigeria.
For those not under this arrangement, they have been battling with price instability, especially after depot owners recently increased their price to N950 per litre from N909 per litre because of the rise in crude oil prices in the international market.
Worried by this and attracted by the bulk-purchase agreement incentives of Dangote Petroleum Refinery, the Independent Petroleum Marketers Association (IPMAN) is already having talks to buy directly from the Lagos-based oil facility.
The national president of the group, Mr Abubakar Maigandi Garima, said members are eager to sign on with Dangote Refinery for the bulk-purchase agreement.
He argued that members could not continue to depend on depot owners for products when they can buy directly from the refinery bearing in mind that the minimum quantity to buy from Dangote Refinery is two million litres at N909 per litre.
The desire to be part of the bulk-purchase agreement, it was also gathered, was also apparently being fuelled by the testimonies from motorists who have been praising the impressive burn rate of fuel sourced from Dangote Refinery and sold in MRS filing stations which they said lasts longer compared to other products imported into the country and sold by others.
The management of the Dangote Refinery, citing economic relief provided by President Bola Ahmed Tinubu’s crude-for-naira swap initiative, had announced a bulk-purchase offer incentives to the three leading downstream sector operators, so that Nigerians could heave a sigh of relief on the reduced pump price.
By Adedapo Adesanya
The World Bank has projected a 3.6 per cent economic growth for Nigerian in 2025 and 2026 on the back of ongoing reforms by the federal government.
The Bretton Wood institution in its report titled Global Economic Prospects, January 2025 published on Thursday, said recent reforms, including subsidy removal, Naira liberalisation and the introduction of tax reform bills would help to boost business confidence.
“In Nigeria, Gross Domestic Product (GDP) growth increased to an estimated 3.3 per cent in 2024, mainly driven by services sector activity, particularly in financial and telecommunication services.
“Macroeconomic and fiscal reforms helped improve business confidence. In response to rising inflation and a weak naira, the central bank tightened monetary policy.
“Meanwhile, the fiscal deficit narrowed due to a surge in revenues driven by the elimination of the implicit foreign exchange subsidy, following the unification of the exchange rate and improved revenue administration,” a part of the report stated.
The World Bank noted that the wider Sub-Saharan Africa, to which Nigeria belongs would see a 4.1 per cent growth in the current year, before seeing a 4.3 per cent rise in 2026.
“Growth in Sub-Saharan Africa, SSA is expected to firm to 4.1 per cent in 2025 and 4.3 per cent in 2026, as financial conditions ease alongside further declines in inflation. Following weaker-than-expected regional growth last year, growth projections for 2025 have been revised upward by 0.2 percentage points, and for 2026 by 0.3 percentage points, with improvements seen across various subgroups. At the country level, projected growth has been upgraded for nearly half of SSA economies in both 2025 and 2026.
“Growth in Nigeria is forecast to strengthen to an average of 3.6 per cent a year in 2025-26. Following monetary policy tightening in 2024, inflation is projected to gradually decline, boosting consumption and supporting growth in the services sector, which continues to be the main driver of growth,” it added.
The global lender disclosed that oil production is expected to increase over the forecast period but remain below the 1.5 million barrels per day quota of the Organisation of the Petroleum Exporting Countries (OPEC).
By Adedapo Adesanya
Four price gainers helped the NASD Over-the-Counter (OTC) Securities Exchange close higher by 0.35 per cent on Thursday, January 16.
The value of the trading platform jumped by N3.69 billion during the session to N1.072 trillion from the N1.068 trillion it closed in the preceding session, and the NASD Unlisted Security Index (NSI) made an addition of 10.67 points to wrap the session at 3,103.83 points compared with 3,093.16 points recorded at the previous session.
Industrial and General Insurance (IGI) Plc added 3 Kobo to its price yesterday to trade at 33 Kobo per unit compared with Wednesday’s closing price of 30 Kobo per unit, Newrest Asl Plc appreciated by N2.85 to N31.18 per share from N28.53 per share, 11 Plc gained N2.90 to close at N256.00 per unit versus the N253.10 per unit it finished a day earlier, and FrieslandCampina Wamco Nigeria Plc grew by 21 Kobo to N39.16 per share, in contrast to midweek’s N38.95 per share.
On Thursday. there was an 85.3 per cent increase in the volume of securities traded by investors to 1.2 million units from the 666,494 units recorded in the preceding session, the value of shares traded surged by 8.9 per cent to N18.0 million from N16.5 million, and the number of deals leapt by 65 per cent to 33 deals from 20 deals.
FrieslandCampina Wamco Nigeria Plc remained the most active stock by value (year-to-date) with 3.4 million units worth N134.9 million, trailed by Geo-Fluids Plc with 8.9 million units sold for N43.0 million, and Afriland Properties Plc valued at 690,825 sold for N11.1 million.
IGI Plc closed the day as the most active stock by volume (year-to-date) with 23.5 million units sold for N5.3 million, followed by Geo-Fluids Plc with 8.9 million units valued at N43.0 million, and FrieslandCampina Wamco Nigeria Plc followed with 3.4 million units worth N134.9 million.
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