Reviews

Easy Equities Review 2022

Published by
Lethabo Ntsoane

Easy Equities is a South African financial platform that facilitates trades in tax-free savings accounts, equities accounts, exchange-traded funds (ETFs), and other investments. It is the most affordable investment platform in South Africa, with investments starting at R0.01. The needed minimum investment amount is determined by a variety of criteria; however, each trade has its own minimum investment amount, which might push the required minimum investment amount above R0.01.

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The EasyEquities ZAR account, EasyEquities USD account, and Tax-Free Savings account are the three types of accounts offered by EasyEquities. You can start investing with $10.00 in a USD account; alternatively, you can start investing with R5.00 in a ZAR account or Tax-Free Savings account. Easy Equities provides a low-cost investment platform with low transaction fees, thus democratizing trading in South Africa. The company only costs R0.64 for every R100.00 invested in the Easy Equities account.

About Easy Equities

Easy Equities is a subsidiary of the Johannesburg Stock Exchange-listed Purple Group Limited and is headquartered in Braamfontein, Johannesburg. The company was formed in 2014 in an effort to create a low-cost, user-friendly investment platform for all South Africans. As of 2020, Easy Equities employs 200 people. Employees work in a variety of disciplines inside the organization, including consulting, web engineering, programming, marketing and advertising, and a variety of other areas of competence.

Easy Equities is a legally recognized company in South Africa, with the FSCA (Financial Sector Conduct Authority) and a trading license number 22588. First World Trader (Pty) Ltd holds FSCA registration, allowing EasyEquities to operate as a financial services provider. Aside from Purple Group Limited, another primary shareholder is Sanlam, who paid R100 million for a 30% interest in EasyEquities in 2017. Sanlam plans to invest another R25 million in EasyEquities in 2019 to cover operating expenditures.

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Since its inception, the institution has yet to turn a profit. The corporation is expected to break even in the 2021 fiscal year and begin producing profits from then on. Easy Equities’ rapid growth with no earnings to show for it is all due to its desire to dominate the entire South African internet investment sector and reap dividends later on. It has approximately 560 000 clients as of 2020, with an average of 100 000 new clients every year since its inception.

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.

ETFs Investment

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

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  • 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.

Conclusion

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.

Easy Equities Review 2022
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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at lethabo@rateweb.co.za

Published by
Lethabo Ntsoane
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