How can I buy shares for R5000 per month?

2015-01-19 15:31

“I want to start buying shares on the JSE and I have R5000 a month to invest. Where do I start?” – Gugulami Ngcobo

Gerhard Lampen, head of online trading at Sanlam iTrade:  

It is the right decision to invest in shares or equities as they are also called. Equities are by far the best asset class to invest in, outperforming cash, bonds and property for most of the previous decades.

I would recommend you start with a monthly investment in one of the Satrix ETFs. The reason is that the costs involved in maintaining a JSE account and the transaction costs are high for such small amounts.

We recommend that you trade with not less than R10 000 per trade. Having said that, we do have a number of clients who are happy to trade with such amounts.

Transaction costs are R75 plus 0.5% of the value per trade. Then there is also a monthly fee of R57 to cover admin costs of the account, live prices and all the information available on our website like market commentaries, research, extensive data on every listed shares, charting with technical analysis tools and much more.

What is an ETF? It is a basket of shares, in the case of Satrix usually 30 or 40 shares. Therefore you get a whole basket of shares with one purchase. Satrix also has a debit order option from as little as R300 per month.

Because they pool their transactions, their costs are very low. When your capital has grown to say R30 000 and you have educated yourself, you are very welcome to open a direct trading account with us.

While investing in Satrix ETFs I recommend that you register as an iView client on It costs only R200 per year and gives you access to most of the information mentioned in the first paragraph. This will enable you to prepare for real trading. There is also a Learning Centre with modules on how to analyse shares and the economy.

For City Press readers we will waive the R200 for this year, so you can get it free now. When you register, just select City Press as your main source of referral (Where did you hear about Sanlam iTrade?).

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