JSE versus NGX Stock Exchange

JSE versus NGX Stock Exchange. The JSE and the NGX are two of Africa’s main stock exchanges, and we’ve looked into them both to provide you with a comprehensive overview of each and a comparison of how they stack up against one another.

This is a complete guide to the JSE versus NGX Stock Exchange.

In this in-depth guide you’ll learn:

• What are the functions of a Stock Exchange?
• The Johannesburg Stock Exchange (JSE)
• The Nigerian Stock Exchange (NGX)
• Side-by-side comparison of the JSE and NGX
• How to choose the Right Share Broker
• The Best Share Brokers

What are the functions of a Stock Exchange?

A stock exchange is only an entity, venue, or facility where stockbrokers and dealers may transact by buying and selling shares. A key role of the stock market is to provide a rapid, persistent, and consistent demand for the acquisition and selling of securities.

It has easy access to a market for purchasing and selling these securities. In addition, it serves as a marketplace for the selling of securities listed on the stock exchange.

Providing a safe and secure environment for doing business and making investments is one of the stock exchange’s highest-priority responsibilities. Another essential role of the stock market is to facilitate the formation of new businesses.

A stock market not only helps people and businesses generate capital for their financial requirements but also serves as a platform for governments to raise capital for their significant growth and expansion initiatives.

Johannesburg Stock Exchange (JSE)

The Johannesburg Stock Exchange (JSE) was established in the wake of the reef’s 1887 gold rush. South Africa’s economy relies heavily on the success of the Johannesburg Stock Exchange.

The JSE is South Africa’s only full-service securities exchange, allowing investors to buy and sell stocks, options, futures, commodity options, currency options, and interest rate options.

Foreign and local investors alike who want to get access to South Africa’s and Africa’s most significant financial centres turn to the JSE.

It serves as the nerve centre of the South African economy and as a gathering place for companies that are looking for capital to establish their businesses and for investors who are looking for opportunities to expand their investments.

Investors are protected by rules that regulate stock brokerage companies and listed enterprises, and the JSE ensures that market-raised money is transferred to users in an efficient and risk-free manner. In addition, JSE provides a trading platform for shares that have already been issued.

Since its founding, the JSE has worked hard to earn a reputation in the financial services sector for being dependable and trustworthy.

Each of the exchange’s various trade groups has its own set of qualifications for new members. Opening an account with a broker in the relevant department is a prerequisite to trading on the market.

While most orders are still placed via approved member company dealers, a growing number of clients are bypassing the intermediary altogether by using software provided by their member businesses to reach the market directly.

Customers may now access the market more easily and conduct transactions promptly. The member firm is responsible for instituting trading limits and remains accountable for any losses that may result from excessive trading.

Brief History

• The desire for a stock market grew rapidly after the 1886 discovery of gold on the Witwatersrand, which led to the development of several mining and banking firms.
• Because of a restriction prohibiting the admittance of African laborers to the gold reefs, the initial share transactions on the Rand took place under a simple canvas tent on Sundays.
• The JSE joined the African Stock Exchanges Association in 1993 and has been an active participant ever since.
• On June 7, 1996, after 108 years, open outcry trading was replaced with an electronic system.
• In September of 2000, the Johannesburg Securities Exchange relocated to its current site at the intersection of Maude Street and Gwen Lane in Sandton, Gauteng.
• The Johannesburg Stock Exchange (JSE) underwent a rebranding on April 14, 2014, to better represent the bourse’s position as a modern African marketplace connecting foreign and domestic investors to growth opportunities.
• In May of 2025, the JSE debuted a new service from supplier XYT called JSE Trade Explorer, which employed peer group rankings to help trading enterprises analyze market share, trade interactions, and performance.

Nigerian Stock Exchange (NGX)

The Nigerian Stock Exchange (NGX or the Exchange) was founded in 1960, and the country is now home to the second-largest financial centre in sub-Saharan Africa.

The Securities and Exchange Commission (SEC) of Nigeria is responsible for registering and monitoring the NGX as required by the Investments and Securities Act (ISA).

To provide its customers with the finest service possible and maintain them at the forefront of their field, the NGX will never stop innovating. In addition to listing and trading securities, the Exchange also offers several technological services.

With 156 listed securities and 159 active brokers, the Exchange provides a fair, orderly, and transparent market that connects the best of Africa’s business community with local and worldwide investors.

The Nigerian Stock Exchange aspires to be “the Gateway to African Markets” and a driving force in boosting Africa’s economy.

Brief History

• The Nigerian Stock Exchange, formerly known as the Lagos Stock Exchange, was legally formed on September 15, 1960. However, operations did not commence until June 1961.
• Only seven people signed up for the Exchange’s Memorandum of Association back in the day. In the beginning, four businesses (Inlaks, John Holt, C.T. Bowring, and ICON) acted as dealers in the market and conducted business out of the Central Bank building.
• Most investors’ funds were invested in government securities, with the volume increasing from about 80,500 pounds in August 1961 to over 250,000 pounds in September of that year.
• It rebranded as The Nigerian Stock Exchange in December 1977 and subsequently expanded into all of Nigeria’s main commercial centers.
• Nigerian stock market transactions have been conducted electronically over a network of computers since April 27, 1999, when the Automated Trading System (ATS) was first established.
• X-Gen, the NSE’s next-generation trading platform, was launched in 2013 to cater to both institutional and retail electronic trading.

Side-by-side comparison of the JSE and NGX

How to choose the Right Share Broker

Traders could not have picked a more favorable time to enter the investment market than the present. Competition among online brokers is high, which means costs are dropping down and features are being boosted.

Those interested in trading global financial instruments could choose from a wide variety of online forex and CFD brokers. However, there are several factors to consider when choosing a broker and we will go through them here.

Commission Charges

Individual stocks, options, mutual funds, exchange-traded funds, and bonds are the main investment types offered by brokers. Some will also provide exposure to the forex market, futures trading, and cryptocurrency exchanges.

Both the suitability of the broker’s offerings to your investment requirements and the fees you must pay is dependent on the investments the broker has available. You should pay close attention to the commissions that are involved with the investments you like.

Overall Reliability

There is a diverse selection of brokers available. Several have been popular for many years, while others have just recently emerged.

That does not imply they cannot be trusted, but if they are managing transactions for clients, they are members of a self-regulatory organization like the Financial Conduct Authority (FCA), the Financial Sector Conduct Authority (FSCA), and other regulators, or subject to additional oversight.

Account Fees

While it could be impossible to eliminate account fees, they may be kept to a minimum. To withdraw funds or investments, or to close your account, most brokers will assess a fee.

If a broker does not charge them, or if you do not use their optional services, you could avoid paying most additional costs.

Pricing and Execution on Trades

Cost is less of a factor today, leading to commission-free transactions becoming the norm at most brokerages.

However, you should consider the brokerage’s position on the controversial practice of paying for order flow and how much it costs before making a final decision.

This is especially true if you are an active trader who wants their deal completed at the best price possible, even if it means a difference of a few cents.

Additional Tools, Educational Materials, and Features

Look for a brokerage that provides free educational tools like live webinars, detailed how-to instructions, video tutorials, glossaries, and more if you are just starting in the investment world.

The Best Share Brokers

In this article, we have listed the best brokers which offer share trading to Nigerian and South African traders. We have further identified the brokers that offer additional services and solutions to traders.

Best MetaTrader 4 / MT4 Share Broker

Overall, Exness is the best MT4 Share broker. Exness is a MetaTrader-only broker with liquidity from ADS Securities, FXCM Pro, and others.

Exness provides 5 retail accounts with EUR/USD spreads from 0.0 pips. Traders can expect a Margin Call of 60% and Stop-Out of 0% when they use Exness.

Best MetaTrader 5 / MT5 Share Broker

Overall, AvaTrade is the best MetaTrader 5 Share broker. AvaTrade is an STP and Market Maker broker offering MetaTrader 5 trading to both Nigerian and South African traders.

AvaTrade’s MT5 has revolutionary features, copy trading, MQL5, and the industry’s best mobile app. In addition, AvaTrade provides customized trading platforms alongside MT5, with seamless account integration across platforms.

Best Share Broker for beginners

Overall, IC Markets is the best Share broker for beginners. IC Markets is a famous True ECN broker that offers beginners the necessary instructional resources.

Traders can start trading the JSE and NGX after they have explored IC Markets’ Web TV, Webinars, and Podcasts.

Best Low Minimum Deposit Share Broker

Overall, Axi is the best Low Minimum Deposit Share Broker. Axi was created by traders and provides competitive trading conditions.

Traders can pick from 3 retail investor accounts and deposit 0 ZAR/NGN. In addition, Axi’s Pro Account commissions are $7 per round trip with zero-pip spreads.

Best ECN Share Broker

Overall, Pepperstone is the best ECN Share broker. Pepperstone is a renowned ECN broker with liquidity from GAIN Capital, Prime Limited, and LMAX Limited.

Traders can anticipate rapid market execution on over 80 instruments and 0.0 pips on important instruments like EUR/USD.

Best Islamic / Swap-Free Share Broker

Overall, FXTM is the best Islamic / Swap-Free Share broker. FXTM has a large market share in both South Africa and Nigeria.

FXTM’s dynamic account types include an Islamic Account option, and the swap-free trading is available to Muslim traders without higher spreads, admin fees, or extra costs.

Best Share Trading App

Overall, Octa is the best Share trading app. Octa provides an Android-only app in addition to MT4 and MT5. Traders can quickly and easily deposit and withdraw dollars, manage accounts, and check history transactions.

Best NGN and ZAR Trading Account Share Broker

Overall, HFM is the best NGN trading account, Share broker. Popular FSCA-regulated broker HFM gives traders access to over 1,000 markets spread across shares, commodities, forex, indices, and several more.

HFM provides NGN and ZAR accounts and bilingual assistance. HFM has a 90%+ market dominance and is one of the top 100 firms according to World Finance.

Best Lowest Spread Share Broker

Overall, Tickmill is the best lowest spread Share, broker. Tickmill gets its liquidity from providers like Barclays, enabling it to execute trades with spreads as low as 0.0 pips on EUR/USD and several other instruments, including shares.

Best Nasdaq 100 Share Broker

Overall, XM is the best Nasdaq 100 Share, broker. XM has clients in 196 countries, including South Africa and Nigeria. In addition, XM retail accounts have negative balance protection and significant leverage.

Both Nigerians and South Africans could start trading Nasdaq 100 with XM from 70 ZAR/ 2,000 NGN, with micro-lot trading and leverage up to 1:888.

Best Volatility 75 / VIX 75 Share Broker

Overall, IG is the best Volatility 75 / VIX 75 Share broker. IG offers unlimited access to several global indices, including the popular Volatility 75.

IG’s competitive circumstances and trading platforms contribute to this. IG includes an economic calendar, podcasts, trading suggestions, and analytical tools.

Best NDD Share Broker

Overall, Capital.com is the best NDD Share broker. Capital.com provides a single live account with several trading products. Capital.com is a commission-free ECN and STP NDD broker with spreads from 0.6 pips.

Best STP Share Broker

Overall, FP Markets is the best STP Share broker. FP Markets provides traders with a broad selection of tradable products. FP Markets provides 7 retail accounts, STP execution, Goldman Sachs, Credit Suisse, and other liquidity.

Best Sign-up Bonus Broker

Overall, FBS is the best sign-up bonus broker. FBS’s 400 NGN / 17 ZAR minimum deposit is a benefit for traders. FBS provides new traders who have validated their trading accounts a no-deposit sign-up bonus and an extra sign-up incentive.

Conclusion

A stock market is a useful tool for separating viable businesses with solid reputations from those with more dubious histories.

You might not ever set foot in a stock market, yet they are essential to your ability to invest even if you never do. It would be far more difficult to obtain a counterparty to your stock transaction outside of these exchanges.

Frequently asked questions

How does the JSE generate revenue?

Companies raise cash by listing their shares on the JSE, either via public offerings or rights issues. Individual investors or traders, professional investors or traders, and companies are afterwards allowed to acquire and sell these publicly traded shares.

How many stock markets are in Nigeria?

There is just one stock exchange in Nigeria. It was established in 1960 and is the leading listing and trading platform in Nigeria and Africa as a whole.

What role does the JSE play in South Africa?

Its principal objective is to facilitate the acquisition of primary capital by channelling financial resources towards productive economic activities. This contributes to economic expansion and the creation of employment and riches.

What is the best investing app for Nigerians?

Bamboo is one of the top smartphone applications for stock trading and investing in Nigeria.

How much money should a novice put in NGX stocks?

Most experts recommend that novices spend anywhere from 4,100 NGN to 41,000 NGN or more.

Who could invest in the JSE?

Anyone can invest in the JSE via a registered and licensed stockbroker who is authorized to facilitate share trading on the market.