Posted on January 9, 2021 by Staff Writer
Easy Equities is a South African investment platform that facilitates trades in tax-free savings investments, equity investments, ETFs, and other types of investments.
It is South Africa’s most affordable investment platform with investments starting from R0.01. The minimum amount to investment depends on a number of factors, however, each trade has its own minimum investment amount which can push the required minimum investment above R0.01.
EasyEquities offer three types of accounts namely the EasyEquities ZAR account, Easy Equities USD account and Tax-Free Savings account. With a USD account, you can start investing with $10.00, alternatively, you can use the ZAR account or Tax-free Savings account and start investing from as little as R5.00.
Easy Equities offer a cheap platform for investment purposes with low transactional charges, in the process democratising trading in South Africa. For every R100.00 invested on the Easy Equities account the company only charges R0.64.
About Easy Equities
Easy Equities is a subsidiary of JSE listed Purple Group Limited and is headquartered in Braamfontein, Johannesburg. The company was founded in 2014 as an effort to create an affordable and easy to use investment platform that is available to all South Africans.
Easy Equities has 200 employees as of 2020. Employees work in different departments within the company in consulting, web engineering, programming, marketing and advertising, and many more branches of expertise.
Easy Equities operates legally in South Africa and is registered with FSCA (Financial Sector Conduct Authority) and has a trading license number 22588. FSCA registration is held by First World Trader (Pty) Ltd which allows EasyEquities to trade as a financial services provider.
Besides Purple Group Limited, another majority shareholder is Sanlam which acquired a 30% stake in EasyEquities for R100 million in 2017. Sanlam would further bankroll EasyEquities for R25 Million in 2019 to sustain its operating expenses.
The institution has not yet posted any profits since its founding. It is projected that the company will break even in the 2021 financial year and start making profits from then onwards.
Easy Equities’ fast growth with no profits to show for its growth is all because of its will to dominate the whole South African online investment market and rip rewards at a later stage.
It boosts over 560 000 clients as of 2020 averaging 100 000 new clients per year since its founding.
Easy Equities Products and Services
Before beginning your investment journey with Easy Equities, you need to choose an account that you want to invest with, be a USD, ZAR or Tax-Free savings account. You can also use 2 or more accounts to invest with.
For those that cannot trade, Easy Equities provides free demo accounts for practising purposes. Should you wish to sharpen your trading skills, you can use either a USD or ZAR demo account or both to get exposure to trading online.
As much as there are accounts that you need to choose from, there are also a number of investment options you will have to choose from. These investment options are very crucial for investment, so in this section, we will tackle each investment opportunity offered by Easy Equities.
The investment opportunities offered include ETFs, ETNs, Equities and bundles, which are available to institutional and retail investors.
Equity investments through Easy Equities
By using the Easy Equities ZAR or USD accounts you can start trading in stocks. The Easy Equities ZAR account will allow you to trade stocks from the JSE listed companies. Companies from the JSE are limited to 429 companies.
For international investments in shares, there is only one way to go about it if you are to use Easy Equities, that is choosing the Easy Equities USD account. The USD account will allow you to trade 452 companies from around the world excluding South Africa.
Surely investments in equities will depend on which company share(s) you want to buy either local or international. Note that you cannot use a Tax-Free Savings Account to invest inequities.
ETNs Investments through Easy Equities
Exchange-Traded Notes are available to trade on Easy Equities, with 32 ETNs to trade from the Easy Equities ZAR account. Its’ USD account only has one ETNs which is the iPath S&P 500 that allows investors to get exposure to equity market volatility.
With Easy Equities, you can trade local and international ETFs with any of the accounts offered by the platform. Investments in Vanguard, Black Rock, Global X and FirstRand ETFs are all possible with an investment starting from R0.01.
Baskets and Bundles Investment
Perfectly suitable for long-term investment, baskets and bundles provide a huge opportunity to gain solid investment returns in the long run. Baskets are ideally suitable for Tax-Free Investments due to their longevity, therefore, blending well with a long term investment like a Tax-Free Savings will create an investment opportunity that will yield favourable results.
Competitive Advantages of Easy Equities
- Charges low on commission for every trade of just 0.63%.
- Has over 900 companies that one can buy stocks from.
- The platform has diverse products and doesn’t focus on just one product.
- Investment in Easy Equities can be used to plan for retirement since there are low-risk investment opportunities on the platform.
- Easy Equities platform allows retail and institutional investors to open accounts.
- Of all its’s clients, 60% of them came through referrals meaning there is a high customer satisfaction rate.
- The platform is easy to use.
- Can open multiple accounts to invest locally and internationally.
- The platform has local ETFs and ETNs making it the first publicly available investment platform to do so.
- Easy Equities platform is nearly 100% up with 0.01% downtime.
Competitive disadvantages of Easy Equities
- The website can take time to load when not used frequently.
- Doesn’t have many educational tools.
- The platform has limited research on available products.
This trading platform is here to stay mainly because of the financial backing it gets from Purple Group and Sanlam. As much as the company is yet to make profits, it still made a mark in converting and bringing in over half a million clients since its existence.
It is without a doubt that Easy Equities will soon become a Fintech powerhouse due to its expansion policy and cutting edge business idea. It has received favourable reviews on Mybroadband, GooglePlay, and HelloPeter solidifying itself as a customer-centric company.