How to buy stocks on the JSE, step by step

Buying shares on the Johannesburg Stock Exchange begins with choosing a firm, not a share. Only a stockbroker that is a member of the exchange may route your orders, so confirm membership before anything else. The all-share index is a useful starting point for context, but the practical steps below are about process, not picks.

Step one: select a stockbroker

Compare member firms on account costs, platform usability and the range of order types offered. Fees differ between firms, so read the schedule before you commit. The exchange itself does not open accounts for individual investors; the member firm does.

Step two: open an investor account

You will need identity documents, proof of residence and, in most cases, a tax number. The firm performs its own checks before activation. Expect the paperwork to take some time, and complete every field carefully to avoid delays.

Step three: the central depository account

Your shares are held electronically in a central depository account, usually opened alongside the investor account. You do not receive paper certificates. Confirm with the firm that the depository account is linked to your investor account so that holdings and orders stay in sync.

Step four: fund the account

Transfer cash from your bank account to the firm's designated account, using the reference the firm provides. Funds must clear before you can trade. Keep the deposit confirmation; it is part of your record.

Step five: choose a share

Use the exchange's own listings and a code lookup to identify the share code for the company you want. Read the company's published announcements and financial reports. Decide on the quantity you want, keeping in mind that fees apply on every trade.

Step six: understand order types

A market order executes at whatever price is available when it reaches the market; you accept the price you get. A limit order names the most you will pay, and it only fills at that price or better. A limit order protects your price but may never execute if the market does not reach it.

Step seven: settlement

Ownership transfers electronically after the settlement period set by the exchange, which runs for several business days. Your cash and shares move on that timetable, not at the moment you click buy.

Step eight: selling

Selling follows the same path in reverse: place the order through your firm, choose market or limit, and wait for settlement. Proceeds arrive after the settlement cycle completes.

Step nine: fees and records

Brokerage, exchange fees and taxes apply; amounts vary by firm and trade size, so check the schedule. Retain contract notes and statements for every transaction, and reconcile them against your depository account periodically.

Risk reminder

Share prices move both ways, and you can lose money, including the full amount invested. Past performance says nothing about future outcomes. Treat this page as process guidance only.