Investing with EasyEquities: An honest review

So you’re ready to start your investment journey. You want to start investing in ETFs, shares, crypto, and even dip your toes into the world of EasyProperties. Let’s dive into this beginner’s guide to investing with EasyEquities and unlock the potential of your hard-earned rands!

What is EasyEquities and how does it work?

You’ve done your research and know that EasyEquities has some of the cheapest fees in the industry. But how does it work? And who exactly is EasyEquities? EasyEquities is part of the Purple Group, which is listed on the JSE ($PPE). The company has democratised investing by offering fractional shares (using CFDs under the hood). This means you don’t need to spend $ 184,92 on one Apple share, but can buy a fraction of that. And it will still pay out dividends according to the fraction that you own.

The EasyEquities platform works like a broker. You can buy shares, ETFs, unit trusts, retirement products, and property via EasyProperties and cryptocurrencies (and bundles, EC10).

How does EasyEquities make its money?

Every company needs to make money. Traditionally the model has been taking a percentage of assets under management (AUM). EasyEquities, however, doesn’t charge a platform fee or a percentage of AUM. They charge a fee when you buy and sell. I suspect that they also make a few cents with the spread (ie. the price between the ask and bid price). However, this is charged on some of their products such as their pension funds (Emperor asset management) and EC10 (a cryptocurrency bundle).

It has some of the cheapest rates in the industry for buying and selling on the stock market.

EasyEquities’ product offering

The purple group tries to sell most of its products on the EasyEquities platform. It makes sense as they already have a large following and an existing client base. Here is a breakdown of their main products:

  • EasyEquities – you can buy shares, ETFs, and unit trusts on the JSE. As part of this, they also offer pension and asset management services through Emperor Asset Management.
  • Foreign markets – you can invest in other markets such as the US, UK and Australia. Money can be converted to local currency using EasyFX.
  • EasyProperties – invest in sectional title properties, and earn rent. Rent is paid out in dividends, meaning you don’t have to pay tax at your PAYE tax rate on the profits. A fee of 0.6% pa of the total value invested is payable, calculated and charged monthly.
  • EasyCrypto – invest in cryptocurrencies and crypto bundles that are under their custody. A fee of 2% per annum + VAT is charged for AUM.

How To Register an Account with EasyEquities

Investing with EasyEquities is fairly easy. The only thing that makes it a bit more complicated is the documentation required by the FSCA. However, once the information is submitted, you’re able to get buying quickly. Here are some pointers:

  • Register an account with EasyEquities (affiliate link to registration here). Make sure you choose the correct profile type, and fill in all the information correctly.
  • Upload your Fica documentation needed. Depending on the profile type, it may include your ID document and SARS tax information

How To Deposit Money Into Your EasyEquities Account

EasyEquities has a separate reference number (and ‘account’) for each one of your account types (TFSA, ZAR, USD, etc.). To avoid confusion, select the correct account from the colourful top banner.

If you use your own bank, the EFTs should reflect within minutes to hours. As soon as the money reflects, you are able to start buying shares, ETFs, unit trusts etc.

Once the account is selected, you can click on the top right hamburger menu (see screenshot for reference) and select the deposits tab. You will see an option to either deposit by EFT or by credit card. For EFT, you will need to use the correct reference or face the wrath of technology, missing funds, paperwork and proof of deposits.

How to buy your first ETF or share

To buy your first ETF or share, you need to select the “Invest now” button in the same menu as above. You will see a screen, as the one below where you’re able to filter and search for your ideal investment.

As you search, it will show the items below the filters. Clicking on the item will give you more information and the opportunity to choose how much you would want to buy.

Note that some assets have limited liquidity, and therefore might need a couple of separate transactions. This is indicated in the “Up to Rx per transaction”.

From here you can decide if you want a recurring or once off transaction. Once selected, you can review the shares and fees – and voila! You bought some assets!

Conclusion

Buying stocks, bonds, ETFs, unit trusts and other listed securities has never been easier. If you’re buying fractional shares, it is technically CFDs. However, you own the full shares of the shares you own (if that makes sense).

I recommend doing your research well – don’t just buy random stuff because it’s cool.

So, go now – happy investing!

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