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Is the Easy Equities platform best?

And what other platforms encourage investors to invest in a cheaper way?

Is buying shares through Easy Equities safe? Besides Easy Equities, what other platforms are available to encourage investors to invest in a cheaper way?

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Easy Equities is an easy to use platform where you can buy equities, exchange-traded funds (ETFs) and exchange-traded notes (ETNs), as well as other baskets and bundles.

If the term ‘safe’ in your question means that it’s a legitimate and licensed platform, and the person running Easy Equities is not going take your money and buy themselves a Ferrari and post it on Instagram, then yes, Easy Equities is ‘safe’.

Easy Equities offers a plethora of equities, ETFs, baskets and bundles. It can be quite daunting to scroll through the various options available, and therein lies the additional risk of asset class allocation.

In terms of risk rankings from highest to lowest, first, it’s equities, then property (property fund returns might tell a different story), then bonds, with cash being the least risky. It can get even more technical with the equities you buy, whether they are large-cap, mid-cap or small-cap stocks, where the larger companies are generally less risky compared to smaller companies. With bonds, there are different investment grades that generate higher yields the riskier the asset.

Investing can become quite tricky and we then read an article like this and freeze and do nothing and leave the money in the bank (cash), and we are then subject to inflationary risk, where your returns less taxes and costs are lower than inflation, so you lose the future buying power of your capital.

The book A Random Walk Down Wall Street suggests monkeys throwing darts at a dartboard would do better than an investment fund manager. The approach suggested in the book would be to buy a low-cost index that generates a return at what the index generates. The problem with that now is that there are so many indices, or low-cost ETFs, that as a layperson it becomes hard to choose – and as the markets get more complex with Covid-19, politics, digitisation and other external factors, getting professional advice might help you navigate the increasingly complex environment.

So you have two options, in my opinion.

Firstly, read up on fundamental analysis, read the annual reports of the companies you want to invest in, and do an analysis on the funds you own, and see where their holdings are allocated. According to Modern Portfolio Theory, you want to achieve uncorrelated returns, and this would be through investing in different asset classes, geographic locations, and different industries to build a diversified investment portfolio.

Alternatively, you can find a professional who can assist you – my rule in my home is if it takes me more than 15 minutes to fix a gate motor, or pool pump, or anything I do not know much of, I call a professional, pay the fee, and get it fixed, as I know the value of my time.

A 5% loss based on throwing darts at a dartboard on your R1 000 portfolio is the cost of a Big Mac, but 5% on your R10 million portfolio is R500 000.

Other ‘safe’, low-cost funds, advisors and platforms include:

  • Gray Capital
  • 1nvest
  • Satrix
  • Sygnia
  • 10X
  • CoreShares
  • Nedcore, and
  • OUTvest.

Your local bank will also have an investment platform.

Do you have any questions you would like answered by registered financial planners?

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Since your aska question option does not seem to work here’s my question
Can EE provide a platform over which I can buy/sell shares on the LSE without having to go through an intermediary and if possible how is the exchange control aspect handled

@grahamcr EE is an intermediary/broker that has digitized the front end- they currently offer ZAR and USD options, and nothing with the London Stock Exchange(LSE). So the only option on their platform would be maybe FTSE100 etf. Other platforms like Swiss quote and Interactive Brokers may be the solution you are looking for- exchange control <1 Million ZAR annual discretionary allowance- then up to R10 Million with SARS clearance per annum- tax also a factor consider… hitting my 15 minutes here, may have to charge for more info;)

They also have an Australian option. The best part of EE is they do not have a monthly fee and if a share cost R 700 and you can only afford R 500 you are allowed to buy a part of the share.

Is Easy Equities safe?

Good question!

Right this very minute, I’m trying to sell shares on this platform that are in a slide downwards.

But – at this critical point (for me)…

The site is DOWN due to “technical maintenance”

Hmmm… why is this “maintenance” not done OUTSIDE of trading hours??

The last time I checked, a potential investor has no control over the price per share, when buying or selling through EE. You can easily end off more than 5% worse than the current market price of a share, for every transaction you undertake.

With their marketing they are trying to offset this high built-in cost/commission for every transaction with the advantage of having no monthly admin fees. If you do the math you will realize that the break-even point is very low and only valid for tiny investments.

For all normal and large investments, EE is by far the most expensive broker out there.

It used to be like that yes, but now you can create orders for the price you would like to trade at (buy/sell). So don’t think this is a relevant issue anymore. In my opinion, makes them the undisputed cheapest at any price point.

I have given-up with them!

Do yourself a favour and read what is been said of them on Hellopeter.com.

https://www.hellopeter.com/satrix-investments

This should make up your mind.

Well what do you expect to read on HelloPeter about a company? People literally only go there to complain so OF COURSE it won’t sound good – not about ANY company.

I respect your opinion and if you receive good service from EE – SatrixNow, then feel free to add value to the original question: “Is-buying-shares-through-easy-equities-safe”?

My experience over a period of time with them was awful.

I am no expert on the sustainability and longevity of Companies, but I have lived long enough to know that any Business with that magnitude of ineptness and arrogance on how to treat their Customers, will eventually feel the pain.

No,I am not getting my Financial advice from HelloPeter, I rather frequent sites like Moneyweb to assist me in doing so, but out of pure disappointment with EE – SatrixNow, I searched the Web to find out if they actually exist.
I am not a subscribed member to HelloPeter and my expectation was similar to yours, but to my surprise, it is not only disgruntled Customers posting negative comments, but also complement good service: See for yourself:

https://www.hellopeter.com/coronation-fund-managers

Maybe they have paid staff members to up their ratings on Web-sites, I don’t know?

The question remains:”Is-buying-shares-through-easy-equities-safe”?

I have had an account with them and have since moved it to my Momentum account. I would suggest avoiding EE as they are amateurish, cheap yes, but cheap can be very expensive. Their platform is poor.
Their communications are written by teenyboppers who seem to be stoned, if going by the gibberish.
Investing in ETF’s is for the amateur, and in my view, the seasoned investor as well,(not trader) is the way to go. Satrix, Coreshares and Sygnia offer international investment without exchange contol or overseas brokers, and as cheap if not cheaper than easy equities .
I personally would recommend the Coreshares S&p 500 as a starter.
Read more on their websites.

I think you will find that the companies who you recommend for investing are the buyer/sellers of scrip and though they may be registered in your name they are not yours – if you sell they will pay you out in Rand not a foreign currency like Euro’s; Pounds, US$ – so they are doing all the transaction in their name. I’m looking for a entity where I can buy/sell over the LSE and hold the transaction in London and furthermore I can buy/sell over a platform similar to my SA platform. There is exchange control aspects that you have to be aware of and also declarations in SARS returns

I think the only way you could do that is to take your money out of the country and appoint a broker there.
Otherwise you would still have to use somebody like PSG to appoint an overseas broker and channel your money through PSG who will handle EXC and charge you accordingly.

@grahamcr & @Joe elze

Good points by both of you. The risk in SA, with an economy in a slow long-term decline, with ever lower volumes traded, there may likely be consolidation in the South African financial sector like stock-brokers, asset managers going bust (or merging with larger ones).

The business risk is lower when dealing (directly) with more reputable & well regulated international stockbrokers, especially those that are active in SA.
For example the US discount-broker INTERACTIVE BROKERS, or your foreign investment banks like SAXO BANK (Denmark), SWISSQUOTE, TradeStation…..

The problem is, for the ordinary man in the street the minimum bar of entry is set quite high when you invest with the likes of HSBC for example.

The following comparative website may be useful:

https://brokerchooser.com/best-brokers/best-international-online-brokers-for-citizens-in-south-africa

In my opinion EE is safe and efficient. I have been investing on the JSE for the past 40 years (mainly buy and hold) and with zero monthly charges this eventually adds up to a large saving. Their site is easy to use and comes with lots of functionality. I have just recently started investing via their EasyEquities$ account – what a pleasure with immediate execution on orders. EE has specially developed their site for buying/selling of shares and is not an after thought and another add on that banks are offering. Previously I have been with FNB & Sharenet but have closed my accounts with them.

End of comments.

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