Building a diversified investment portfolio through on-line share trading

Online Share Trading (OST) is one of the most cost-effective ways in which to invest on the stock market and puts individuals in full control of their investments, offering one of the most convenient and easiest methods for the public to access equities and other financial instruments.

By providing a platform for the everyday investor to trade shares online in an easy, user friendly and affordable manner, online share trading lowers the initial barriers to entry. While online share trading does provide easy access to the Johannesburg Stock Exchange (JSE), the perception remains that trading shares via the JSE, or any other exchange, using internet based platforms requires intimate knowledge of markets and share price movements.

Standard Online Share Trading, a division of SBG Securities, offers simple one stop solutions that enable users to trade financial instruments over the internet. Standard Online Share Trading is ideally suited for the do-it-yourself investor looking to take the next step towards securing their financial freedom and well- being.

“There is more to online share-trading than just playing the markets,” says Mark Humphreys, Senior Business Manager for Standard Online Share Trading. “Investors also need to educate themselves and develop an understanding of the markets. The concept of investing should be a long term approach and a good understanding of what you are investing in is a key component of this.

Standard Online Share Trading allows investors to teach themselves by offering an introductory course on how to use the platform or by attending one of many training seminars (run in major centres) or online through a webinar.

“We offer a number of options for everyday users to access the JSE in order to start the wealth accumulation process. The platforms are developed with the user in mind and allow the user to ensure that they remain in control and are not out their depth,” says Mr Humphreys.

The Auto Share Invest platform is designed for transactions of between R500-R5000 a month. It is based on monthly investments of a stipulated amount into a selected basket of shares. The costs involved are low as the product is aimed at cost sensitive investors not looking for all the frills of a full online trading platform.

In contrast, the full Online Share Trading platform is designed for transactions of over R5000. This platform allows direct market access to investors offering the full range of shares listed on the JSE, as well as a number of derivative products. The costs are higher than that of ASI but the platform allows users access to a wider range of products, tools, education and research. The platform is well developed and user friendly and even provides access to historical data as far back as 1991.

Online share trading is a great tool to help investors to build a diversified investment portfolio. It caters to both short term active traders as well as long term investors.

“The importance of securing your financial future cannot be overstated,” says Mr Humphreys. “There are numerous factors to take into account when considering online share trading. Ideally, investors need to start small but must have clear long term objectives in mind”.

A DIY Path to Trading Online PDF.