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 Adedapo Adesanya
The National Pension Commission (PenCom) has defended its decision to allow Pension Fund Administrators (PFAs) to invest in the parent companies of their custodians, insisting that adequate safeguards are in place to protect contributors’ funds.
The director-general of the pension regulator, Ms Omolola Oloworaran, speaking on Tuesday during the Meet the Press Briefing at the Presidential Villa, Abuja, said the commission’s decision to relax the investment restriction followed a comprehensive risk assessment that found minimal conflict of interest.
She explained that under PenCom’s investment regulations, PFAs are only permitted to invest pension assets in carefully selected instruments that meet stringent criteria, including profitability, strong credit ratings and proven track records.
According to her, the commission regularly reviews its investment regulations, conducts routine examinations and spot checks on PFAs to ensure strict compliance with established risk management guidelines.
“PFAs cannot just go into the stock market and buy any kind of stock. There are strict guidelines. Companies must demonstrate profitability, have a proven track record and satisfy other criteria before pension funds can invest,” she said.
Ms Oloworaran noted that each PFA also operates under the oversight of a board, an investment committee and a risk management committee, providing additional layers of governance to safeguard contributors’ funds.
She said PenCom recently issued a circular allowing PFAs to invest in the parent companies of their custodians after determining that the potential conflict of interest was negligible.
The PenCom boss explained that the parent companies involved are largely Tier-1 banks, including First Bank, United Bank for Africa (UBA) and Zenith Bank, which she described as A-rated institutions with strong financial foundations.
She said the policy was intended to widen investment opportunities for pension funds without compromising safety.
Using Stanbic IBTC as an example, Ms Oloworaran explained that if its custodian is Zenith Bank, the previous restriction prevented the pension administrator from investing in Zenith Bank shares despite the bank’s strong performance.
“We reviewed the risks and any potential conflict of interest and found the risks to be very low. That is why we opened that investment window,” she said.
By Aduragbemi Omiyale
Analysts at Meristem Research have predicted that the inflation rate for June 2026 in Nigeria should marginally rise to 15.95 per cent on a year-on-year basis from the 15.93 per cent reported in May 2026.
The National Bureau of Statistics (NBS) is expected to release inflation numbers for last month later today, Wednesday, July 15, 2026.
In its report sighted by Business Post, Meristem Research said it expects inflationary pressures to re-emerge across key economies in the near term, as the re-escalation of the US-Iran conflict has reignited upward pressure on global oil prices.
It disclosed that this marks a sharp reversal from most of June, when the ceasefire between the two countries helped drive oil prices lower, raising expectations of some relief on the inflation front.
With conflicts now flaring up again, oil prices are likely to increase again, and the anticipated easing in energy-driven inflation may not materialise as broadly as earlier envisaged.
“Nonetheless, some relief is likely from the food segment, where robust supply conditions across major producing regions and softening demand should continue to ease food price pressures,” it stated.
The team also explained that it projected a 15.95 per cent inflation rate because of the lingering effects of persistent food price pressures.
“However, we expect core inflation to moderate as the sharp reversal in energy prices begins to filter through to transportation, distribution, and other energy-related costs, easing underlying price pressures.
“On a month-on-month basis, the combined effect of lower petrol prices, a relatively stable Naira, and the gradual pass-through of reduced energy costs across the supply chain should exert further downward pressure on inflation.
“Based on our assessment, food inflation is expected to remain the key swing factor, as seasonal pre-harvest supply constraints are likely to offset some of the gains from lower logistics costs,” it said.
By Adedapo Adesanya
The duo of Central Securities Clearing System (CSCS) Plc and Afriland Properties Plc weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.61 per cent on Tuesday, July 14.
CSCS Plc saw its stock value drop N9.08 to close at N82.40 per share compared with the preceding session’s N91.48 per share, and Afriland Properties Plc slid by 17 Kobo to sell at N15.00 per unit versus N15.70 per unit.
The losses recorded by the two securities pulled back the market capitalisation by N41.64 billion to N2.546 trillion from N2.587 trillion, and cracked the NASD Security Index (NSI) by 69.36 points to 4,242.31 points from 4,311.67 points.
It was observed that the exchange witnessed two price advancers during the session, led by FrieslandCampina Wamco Nigeria Plc, which gained N1.37 to end at N151.37 per share compared with the previous day’s N150.00 per share, and Food Concepts Plc chalked up 5 Kobo to settle at N2.50 per unit versus N2.45 per unit.
The volume of securities traded by market participants surged by 50.7 per cent to 13.7 million units from the previous 9.1 million units, while the value of securities went down by 79.7 per cent to N65.2 million from N320.4 million, and the number of deals crashed by 3.6 per cent to 27 deals from the previous session’s 28 deals.
At the close of transactions, Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with the sale of 3.4 billion units for N8.4 billion, trailed by Infrastructure Credit Guarantee (Infracredit) Plc, which exchanged 2.3 billion units valued at N6.5 billion, and CSCS Plc with 73.9 million units transacted for N5.2 billion.
GNI Plc also closed the trading day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
