Buy Shares for R100 – A Beginner’s Guide

  Buy Shares for R100 in South Africa – Beginner’s. GuideYes, you can start investing in the Johannesburg Stock Exchange (JSE) with as little as R100. Many brokers and investment platforms now allow fractional share purchases, giving beginners access to top South African shares and ETFs without needing thousands of rand  

Rank	Broker	Broker Review	Regulators	Minimum Deposit	Visit Broker
🥇		Read Review	ASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSA	$100
🥈		Read Review	FSCA, FCA, DFSA, FSA, CMA	$0
🥉		Read Review	CySEC, MWALI, FSCA	$25
4		Read Review	ASIC, CySEC, FSA, SCB	$200
5		Read Review	FSA, FSCA	$250
6		Read Review	FSA, FSC, FSCA, ASIC, CMA	$20
7		Read Review	FSC, FSCA	$50
8		Read Review	ASIC, CySEC, FSCA, FSA, FSC, CMA	$100
9		Read Review	ASIC, CySEC, IFSC, DFSA, FCA	$5
10		Read Review	FSA, CySEC, FSCA, FSC	$10

Can You Really Buy Shares for R100 in South Africa?

Yes, you can start investing in the Johannesburg Stock Exchange (JSE) with as little as R100. Thanks to fractional shares and low minimum deposits, brokers now make it possible for beginners to own a piece of top companies without large capital.

A quick overview of the best shares to buy for R100

1. ☑️Why Start Investing with Just R100?
2. ☑️Best Options to Buy Shares with R100
3. ☑️Popular South African Shares Under R100
4. ☑️How to buy shares of R100 in South Africa
5. ☑️Factors Influencing Share Prices
6. ☑️What are the different types of Shares?
7. ☑️How are shares priced?
8. ☑️Conclusion
9. ☑️Frequently Asked Questions

Why Start Investing with Just R100?

Investing small amounts is a safe and accessible way to enter the stock market.

It allows you to:

✅ Learn how the market works without risking too much.

✅ Build discipline by investing regularly.

✅ Access fractional shares of top companies and ETFs.

Best Options to Buy Shares with R100

1. Fractional Shares

Fractional shares let you buy a portion of expensive stocks. For example, instead of paying thousands for one Napers or Shoprite share, you can invest R100 and still own a fraction of it.

2. Exchange-Traded Funds (ETFs)

ETFs bundle multiple shares into one investment. They are affordable, diversified, and ideal for beginners starting with R100.

3. Low-Cost Shares Under R100

Several JSE-listed companies trade for less than R100 per share, giving investors direct ownership at an affordable price.

Popular South African Shares Under R100

How to buy shares of R100 in South Africa

Step 1 – Finding the right shares

• Share investment is not something that can be done at random. It requires thorough research to determine the best shares offered on the JSE, along with determining the timing into the market.
• You cannot buy shares independently, and you must do it through a registered stockbroker who will purchase these shares on your behalf. The easiest way to buy shares is to follow the guide provided by the JSE on finding the right broker, registering for the option to buy shares through your bank, or applying for an account with SA Shares.
• The next step is to make sure that you have the necessary information and training to understand the stock market and the process involved with buying shares.
• Once you are ready, you can start evaluating the shares of companies listed on the JSE to see which shares you would like to buy for R100 or less.

Step 2 – Finding the right broker

There are hundreds of brokers that allow you to buy shares, and finding the right one may seem like a tedious task. When you buy shares through your bank, you are automatically assigned a trusted, regulated stockbroker, and you need not have any contact with them; everything is done through your bank.   If you want to choose your own broker, however, there are some things you must consider:

• Only use a broker that has the necessary regulation with the FSCA.
• Know your own needs and objectives, and look for a broker that is aligned with that.
• Consider the costs involved and measure them against what you can afford.
• Ensure that you thoroughly evaluate the broker with regard to trading platforms, costs, fees, deposit, and withdrawal methods, and so on.

Step 3 – Set up your account

• Once you have decided on your broker, you can register an account with them and start trading your shares.
• At this point, you will understand the costs and fees involved and how much capital you need to start trading.
• Make sure that you evaluate your trading plan with what your broker offers to ensure that you can achieve your objectives.

Factors Influencing Share Prices

Share prices are affected by company earnings, economic conditions, market sentiment, commodity prices, and regulatory changes. Understanding these drivers helps investors make informed decisions, even when starting small with R100.

What are the different types of Shares?

  There are several types of shares, with each explained and discussed in the sections below:

• Equity or ordinary shares
• Preference shares – with preference shares being subdivided into:
  • Cumulative preference shares
  • Non-cumulative preference shares
  • Convertible preference shares
  • Deferred shares

Equity or Ordinary Shares

• Ordinary shares are also typically referred to as equity shares, and those who hold these types of shares are the real owners of a company.
• The ordinary shareholders of a company have voting rights when there are meetings held, and they are also provided with dividends, as declared by the board of directors.
• Investors who buy ordinary shares must note that equity share capital cannot be redeemed during the lifetime of the company.

Advantages of Ordinary Shares or Equity Shares

The advantages of holding ordinary or equity shares include:

• Venture capital as ordinary shares is the most important and popular type of shares; therefore, it is referred to as the venture capital of the company.
• These shares are no burden on the resources of a company, as the dividends that are paid out come from the profits made, and therefore, they do not place a burden on company resources.
• They provide long-term finance to the company.
• There is no charge on the assets as a result of the ordinary shares. The company can also raise additional funds through mortgages of property or other assets.
• Equity shareholders are paid profits after all other claims have been met by the company.
• The rate of dividend on ordinary shares will depend on the profits of the company.

Preference Shares

As the name suggests, preference shares are associated with certain preferences, especially when compared to other share types.   The main preferences that these shareholders have over others are as follows:

• The first relates to the payment of dividends when the company distributes profits. Dividends are first paid to those who hold preference shares before other shareholders receive dividends.
• Where the winding up of the company is concerned, preference shareholders have a prior right with regard to the repayment of capital.

Cumulative Preference Shares

These share types have the right to claim dividends for years where there were no profits generated by the company. When the company declares profits, cumulative preference shares are repaid dividends for the previous years in which dividends could not be declared.  

Non-Cumulative Preference Shares

These types of shareholders do not have a claim for arrears where dividends are concerned, and they are paid the dividend according to profits made by the company.  

Convertible Preference Shares

These shares are those where shareholders can convert their preference shares into equity shares within a specified period. The right conversion must be authorised by the Articles of Association of the company.  

Deferred Shares

These are also known as founders' shares, and they used to be issued to the company promoter. The dividend on deferred shares was paid once claims of all other shareholders were met, including equity shareholders. Deferred shareholders only had one vote, and these shares enabled promoters to control the working of the company with a slight investment.  

How are shares priced?

The prices of shares are set by the sellers and buyers in the stock market, depending on supply and demand. For this reason, share prices can fluctuate significantly daily and even hourly. When there are more sellers than there are buyers, shares decline in value. Vice versa, if the number of buyers exceeds that of sellers, the prices will increase. Many factors will affect the decision of investors to either buy or sell shares, including the news, earnings report of a company, and several others; even just a series of ‘tweets’ or social media posts by a high-profile personality can influence the way investors feel about a certain investment.  

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Frequently Asked Questions

What are shares?

They are a unit of ownership in a company.  

Can you make money in buying/selling shares?

Yes, you can make profits by buying shares when the price is low and selling them when the price is high. You can also make long-term profits by holding shares, allowing them to appreciate and increase in value over time.  

Where do you buy shares in South Africa?

You can invest in companies that are listed on the Johannesburg Stock Exchange (JSE).  

Which are the best shares to buy for R100 in South Africa?

Some of the best shares to buy include Woolworths, Pepkor, Sibanye-Stillwater Limited, Glencore, and several others.  

Can I get rich trading shares?

This will depend on your unique investment strategy, the size of your investment, and the company in which you buy shares. Share investment is not a get-rich-quick scheme.  

Can I start trading shares as a beginner investor?

Yes, you can start trading shares as a beginner by making small investments.  

Can I use a broker to buy shares?

Yes, you can use a broker that is regulated by the FSCA to invest in companies listed on the JSE.  

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