For a long time, many people have associated investing in stocks, EFTs and other securities as a preserve of people of elevated status in society. The wealthy were the ones considered to be eligible to engage in stock trading. While things have changed in recent times with many now understanding that stock trading can be done even by low-income earners, many people from this group still shy away from trading in stocks or any other related activity.
Among the various factors which push some people away from stock trading is the technicality of the market. One has to have a certain degree of financial knowledge to navigate the markets and properly buy the right shares. Recognizing this problem, one financial institution by the name of Sharenet emerged. Sharenet operates as a stockbroker meaning it’s an intermediary between the investor and the markets. As an intermediary, Sharenet thus removes much of the burden on the investor as it performs all the technical stuff on behalf of the investor. They also post daily data similar to Moneyweb Daily Indicators.
Those who don’t have much knowledge about stock trading and how the markets work can leverage the wealth of experience Sharenet has to start buying and selling shares. This review will expose how Sharenet works and how anyone can join Sharenet and use it as a stockbroker.
A Quick Glance at Sharenet
| Countries Sharenet Operates In | South Africa |
| Base Currencies | South African Rand (ZAR) |
| Brokerage Fee | Starts from 0.3% |
| Time to Open an Account | 3 Days or less |
| Minimum Deposit | R100 |
| Inactivity Fee | Not Charged |
| Withdrawal Fee | Not Specified |
| Bank Card Deposits | Accepted |
| Demo Account | Provided |
| Products Offered | Stock, EFT, Bundles |
An Overview of Sharenet
Sharenet was launched in 1988. Sharenet states that it was founded to “fill a gap in the South African financial marketplace, to provide real-time JSE share prices to the public”. The company in the years to follow would however diversify its operations to become a stockbroker helping the ordinary folks to engage in investing in stocks.
Commenting on its current status, Sharenet in its own words said, “Today, we are a household name for data provisions and trusted by over 150,000 clients. As an award-winning financial services provider for investors and traders who are serious about investing, our clients enjoy regulated and reliable access to over 70,000 financial instruments on our industry-leading platform. We are proud of our South African heritage and we are committed to the relentless pursuit of improvement and excellence.”
How to Join Sharenet
To leverage the wealth of experience that Sharenet has acquired in the past years in South Africa’s financial services sector, you need to register an account. There are three ways in which you can register an account and these are as follows:
- Get a Demo Account: It’s recommended for all new traders to get a demo account first. To get the demo account, launch the official website at https://www.sharenet.co.za/securities/. Navigate to the menu bar and click the ‘Sign Up’ button. Opt for the demo mode and complete the registration form provided. Once done, you will get a demo account which will be open for the first 14 days. The demo account allows you to get the hand of Sharenet’s experience for free.
- Get a Live Account: Alternatively, instead of opting for the demo account, you can choose the live account. The live account requires you to fund the account wallet hence start investing in stocks and other securities using real cash. The returns you get when using this account come in cold hard cash. Note that when opening a live account, you choose between two packages which are as follows:
- Online Trader: This package’s minimum deposit is pegged at R100. The brokerage fee is 0.3% and the monthly fee is R96. The minimum account size is R50,000. Perks that come with this package include:
- Full mobile app access
- Online charting
- Consensus Forecasts
- Upcoming Results
- Dividend Declarations
- Multiple Virtual portfolios
- SENS & company news
- Classic Trader: This package’s minimum deposit is pegged at R100. The brokerage fee is 0.5% and the monthly fee is R96. The minimum account size is R200,000. Perks that come with this package include:
- Phone-In Execution
- Access to Dealing Desk
- Trade Ideas
- Stock Screener
- Regular market updates
- Corporate Action Management
- Transfer Account: Instead of undertaking the standard sign-up process, those who have a preexisting Johannesburg Stock Exchange JSE-based share portfolio can seamlessly transfer it to Sharenet Securities.
Making Money as an Investor
We know that by now all you want to hear is how you can make some money using Sharenet. The thing is, there are two ways in which you can do so. Both these ways aren’t tied to Sharenet per se but rather they are dependent on the company you invest in (buy shares for).
The first route that you can make some cash is via stock/share returns. By this, we simply mean the profits you make from buying and selling shares. Suppose you buy 1 share for R100 and you hold (keep your shares) for a time period in which the share price increases to R150, it simply means you will have made a profit of R50.
The second way is via dividends. Almost all companies pay dividends at the end of their financial year. Dividends refer to the share of the company’s profits that shareholders receive. As dividends come from recorded profits, it means they are only paid when a company records a profit. Often, dividends are paid as cold hard cash. However, it’s also possible for the dividends to be paid in shares meaning the shares you hold will increase quantitatively.
Sharenet Login Process
The registration steps outlined earlier in this review are only undertaken once. Once you have an account with Sharenet, you will need to log in every time you want to access your brokerage account to buy shares, sell or just perform any other functions you deem necessary. To log in, you need to follow the steps outlined below:
- Visit the official site at https://www.sharenet.co.za/
- Navigate to the menu bar and click the Login button
- On the login page, enter your security credentials that is, your username and password
- Click the Login button to access your account portal.
*Note that there is a ‘Remember Me’ tab on the login page. If you tap this button, your security credentials will be automatically saved by the device you are using. This therefore means in future; you won’t have to manually enter your security credentials. Rather, you will be taken straight to your account portal. It is recommended to only use this option if you are the sole user of the device you use for trading purposes. Otherwise, you risk losing all your funds as anyone can access your account portal without you knowing.
Round Up
Sharenet since its inception in 1988 has made it easy for ordinary South Africans to be involved in stocks and other securities trading. In the comfort of one’s own home, Sharenet allows ordinary folks to purchase shares of any company listed on the Johannesburg Stock Exchange. More impressive is the fact that Sharenet offers tutorials to beginners hence allowing them to quickly grasp the technical aspects of stock trading.