If you found your last Facebook post, Amazon purchase or Uber ride an easy, enjoyable and rewarding user experience then you’re going to love everything about EasyEquities.
When you invest in a fraction of a share via our EasyEquities platform, EasyEquities issues you, the investor, with a CFD contract. A CFD is a derivative contract entered into with us, EasyEquities as principal that mirrors the economic benefits associated with share ownership (price movements, dividends and other corporate actions) without you having to own the underlying share directly. In short, fractional share rights (FSRs) gives you all of the economic benefits of share ownership but does not mean that you own the underlying share.
Fractional share rights (FSRs), unlike whole shares, do not carry any voting rights. As you make further investments in FSRs and ultimately end up with a whole share, the CFD contract is closed out and the whole share is delivered to you.
As you may know, trading on a securities exchange can only happen in whole shares, which is why many investment platforms only allow you to trade whole shares.
But this is not really an efficient way to do things. For example, imagine that you have a portfolio with 12 Exchange Traded Funds (“ETFs”), and one share of each ETF costs R100. Now you only have enough money to make a R90 deposit (or your ETFs pay a total of R90 of dividends). With a platform that only offers whole shares, you cannot use your R90 to add to your investments because it’s not enough to buy a single share of anything. So that R90 will just remain un-invested, waiting for you to add additional cash, before you can even buy a single share.
As deposits and dividends flow through this account over time, it will always have some amount of pesky cash remainder sitting there. This is sub-optimal investing and a wasted opportunity over the years.
As efficiency junkies, we can’t stand the thought of even a cent sitting on the side-lines not earning returns. Inefficiency is our enemy. That’s why we launched EasyEquities and we put a lot of work into supporting investment in fractional share rights (FSRs).
The investment of every Rand according to your desired share selection means that your money is getting absolutely the most value possible out of investing. This is part of our thoughtful application of technology.
You can’t buy or sell fractional share rights (FSRs) on a securities exchange. However, as an EasyEquities customer your trades and resulting positions can be fractional—down to 1/1,000th of a share—putting every Rand and Cent to work, while having a diversified portfolio. This is part of EasyEquities’ unique sophistication.
In practice, it also means that our service gives equal opportunity to all investors. It means an investor with a portfolio of R2 500 receives the same diversification benefits as one with a R250 000 portfolio (and we don’t require a minimum deposit or investment). Every investor has the benefit of automatic, perfectly allocated dividend reinvestment where dividends paid out to you are used to invest in more FSRs, with no odd amounts in cash being wasted.
You are more likely to reach your goals faster because all the money you have available for investment is always working for you.
You choose exactly how much to invest; we do all of the maths for you. You never have to think about the cost of an individual asset when you make deposits or withdrawals from your portfolio.
The investor assumes risk against EasyEquities (which we call counterparty risk) in respect to fractional share rights (FSRs) only. The investor acquires FSRs through the issue of a contract for difference entered into directly with EasyEquities as principal. However the counterparty risk is reduced by EasyEquities’ risk and hedging policy which ensures that we are always 100% hedged in respect of market exposure from investors trading through the EasyEquities platform. Further to this, the terms and conditions set out in detail the insolvency protections which ensure client monies and profit are protected.
Whole Shares belong to the investor and are kept separate from EasyEquities’ estate and assets in the same way as they would be through any other JSE stockbroker, and so are also protected on insolvency.
You won’t find a cheaper or friendlier place to invest in the shares you love. No minimum trade commissions, no monthly account fees and no unnecessary data costs… so more of your money gets invested in the shares you love.
|COMPARE||EASYEQUITIES||BFG Online||SOMEONE iTRADE||Landed Bank|
|MONTHLY ACCOUNT COST||FREE||R40||R50||R60|
|MINIMUM BROKERAGE||NO MINIMUMS||R98||R75||R60|
|BROKERAGE COMMISION EX VAT||0.25%||0.90%||0.50%||0.50%|
To make sure your profits are maximized, we’ve kept our fees as low as possible – we’re the most affordable option on the market.
When you can’t afford to buy a whole share, you can still invest in a fractional share right. This way you can invest in your favourite brands with an amount that you can afford.
All you need to do is: select how much money you’d like to invest; set up an account; and click to invest. See, easy!
Once you’ve completed the easy online registration process, you can upload the required FICA documents from within your account or e-mail them to firstname.lastname@example.org.
Pay safely by (EFT) Electronic Funds Transfer, (SID) Instant electronic funds transfer or credit card as EasyEquities makes sure all your data is protected.