How to Use EasyEquities as a Beginner

Plenty of South Africans have heard that EasyEquities is a good place to start investing, downloaded the app, and then frozen - unsure what to actually do once they're in. The account types, the different "wallets", the fractional shares - it can look more complicated than it is. The good news is that getting started is genuinely simple once someone walks you through it.

This guide does exactly that. We'll cover what EasyEquities is, how to open and fund an account, how to buy your first investment, what it costs, and the beginner mistakes to avoid. This isn't an endorsement over other platforms - it's a practical walkthrough of one popular option, and the principles apply broadly.

What EasyEquities is

EasyEquities is an online *investment platform that lets ordinary people buy shares and ETFs on the JSE (and some international markets) through an app or website. Its appeal for beginners comes down to a few things: low costs, no big minimum amount, and the ability to buy fractional shares*.

Fractional shares are the standout feature. Normally, if a share costs R1,000, you'd need R1,000 to buy one. On EasyEquities, you can buy a *fraction* - so R100 buys you a tenth of that share. This means you can start with whatever you have and still own a piece of expensive shares or ETFs. It's a big part of why the platform is beginner-friendly.

Understanding the account types

When you sign up, you'll see different account types, which is where some people get confused. The main ones for a beginner:

• *A ZAR (rand) account* for investing in South African shares and ETFs on the JSE.
• *A USD account* for investing in international shares and ETFs (you fund it in dollars).
• *A TFSA (tax-free savings account)* for tax-free investing, within the annual and lifetime limits.

For most beginners, the two that matter are the *ZAR account and the TFSA. A sensible approach is to do your long-term investing inside the TFSA* (to get tax-free growth) up to the annual limit, and use a regular ZAR account for anything beyond that. You can have more than one account type at the same time.

Step 1: Open your account

Opening an account is a quick online process. You'll need:

• Your *South African ID* (or passport if not a citizen).
• *Proof of address (like a utility bill or bank statement) and your bank details* - standard FICA requirements for any financial account in South Africa.

You sign up on the website or app, upload your documents, and wait for verification, which is usually fast. Once verified, your account is ready to fund.

Step 2: Fund your account

To invest, you first move money into your EasyEquities wallet. This is where another point of confusion lives: the money you deposit sits in a *wallet* first, and you then use it to buy investments. Depositing money is not the same as investing it - it just makes the cash available to invest.

You typically fund the account by *EFT (bank transfer)* from your bank account, using the reference the platform gives you, or by other supported methods. Once the money reflects in your wallet (sometimes instantly, sometimes after a short delay), you're ready to buy. Make sure you're funding the right wallet - money in your ZAR wallet buys JSE investments; your TFSA wallet must be funded separately to buy inside the TFSA.

Step 3: Buy your first investment

This is the part beginners overthink. Here's the simple version.

1. Decide *which account* you're buying in (TFSA for long-term tax-free investing is a good default).
2. Make sure that account's wallet is *funded*.
3. Search for an investment - as a beginner, a *broad, low-cost ETF* that tracks a wide market is a sensible first choice (see our ETF article for why).
4. Enter the *rand amount* you want to invest - thanks to fractional shares, you can invest, say, R200 even if one unit costs more.
5. Confirm the purchase.

That's it - you now own a fraction of an ETF, which itself holds a basket of many companies. You've gone from "thinking about investing" to "invested". Don't agonise over picking the perfect first investment; a simple broad ETF is a perfectly good start, and you can always add more later.

Step 4: Set up regular investing

The most valuable habit isn't the first purchase - it's the ongoing one. The platform supports *recurring investments* (a regular debit order that automatically invests a set amount each month). Setting this up means you invest consistently without having to remember, which is exactly the discipline that builds wealth over time.

Even a small recurring amount - R200 or R500 a month - invested steadily for years adds up far more than occasional lump sums, thanks to compounding and the smoothing effect of investing regularly through market ups and downs.

What it costs

EasyEquities is known for low costs, but there are still small fees. Broadly:

• A small *brokerage/transaction fee* when you buy or sell (a low percentage of the trade).
• Various small statutory and admin costs that apply to share transactions.
• The *ETF's own fee* (its total expense ratio), charged by the fund itself, not the platform - this applies wherever you buy ETFs.

For a beginner investing small amounts regularly, total costs are generally modest, which is a big part of the platform's appeal. Always glance at the fee on any investment you buy, and favour low-cost ETFs, since fees compound against you over the long run.

Beginner mistakes to avoid

A few common slip-ups:

• *Confusing depositing with investing.* Money sitting in your wallet isn't invested - you still have to buy something with it. Check that your cash has actually been put to work.
• *Funding the wrong account.* Money in your ZAR wallet won't buy inside your TFSA. Fund the specific account you want to invest in.
• *Over-contributing to your TFSA.* The annual and lifetime limits apply across all your tax-free accounts everywhere, not just on this platform. Exceeding them triggers a penalty (see our TFSA article).
• *Chasing hot tips and single shares.* Beginners often gamble on a trending share and lose. A broad, diversified ETF is calmer and usually wiser.
• *Checking it constantly and panic-selling.* Investing is long-term. Watching daily moves and selling in a dip just locks in losses.

Key takeaways

• *EasyEquities is a low-cost platform that lets beginners buy JSE shares and ETFs, including fractional shares*, so you can start with small amounts.
• For long-term investing, use the *TFSA account to get tax-free growth (within the limits); a ZAR account* covers anything beyond that.
• *Depositing money isn't investing* - you must then buy an investment with the cash in your wallet, in the correct account.
• A *broad, low-cost ETF is a sensible first purchase; set up a recurring monthly investment* to build the habit.
• Costs are modest but real - favour low-fee ETFs, avoid single-share gambling, and don't panic-sell in dips.

Your next step

Open an EasyEquities account this week, complete the FICA verification, and fund your TFSA wallet with a small amount. Buy one broad, low-cost ETF, then set up a recurring monthly investment for whatever you can afford. Our guides on ETFs and TFSAs explain what to buy and why - but the platform itself is simple once you've made that first purchase.

The content on this site is for informational purposes only and does not constitute financial advice. Always consult a qualified financial professional before making any financial decisions.

This is educational content, not financial advice. Consider your own situation, and speak to a registered adviser before making decisions.