All about the Cape Town stock exchange

More than a stock exchange!

The Cape Town stock exchange is ‘more than a stock exchange’. It is transparent, accessible, and liquid.

The Cape Town Stock Exchange is focused on small to medium sized businesses and offers an array of financial services. This could be to list a decade old family business that is looking to expand or a start-up looking for investors.

Quote: ‘We’re aimed at growth companies looking to build up both the South African and broader African economies’.  

Figure 1 Cape Town Stock Exchange

The different functions of the Cape Town Stock Exchange

There are three main functions for the Cape Town Stock Exchange.

The first is to offer an easy-to-use platform where traders can invest in a safe and regulated environment. This is achieved through liquidity, ensuring that trading products can be bought and sold easily.

The second is to provide capital to small and medium size businesses. This is achieved through listing on the Cape Town Stock Exchange debt or equity market.  

The third is governance and oversight. The internal team and board members from the CTSE apply reporting and monitoring procedures to ensure that compliance and risk assessments are appropriate.

How to invest through the Cape Town Stock Exchange

This is achieved through three easy steps. Firstly, you open and account through one of the appointed brokers. Secondly, you can place your orders and execute your trades on the Cape Town Stock Exchange. Lastly, you will be able to view all your transactions and your portfolio of investments through real-time monitoring or reports. This depends on how capable the broker is along with the tools they are using.

Trading in South Africa

Online trading in South Africa has grown in popularity, especially with the onset of Covid-19 and the ‘stay-at-home’ policies. This trend does not seem to be faltering in any way.

Brokers such as Pepperstone offer accounts to ZA residences. This enables investing and trading across multiple asset groups from stocks and shares to foreign exchange and commodities. Beyond self-traded accounts, Pepperstone offers highly competitive trading conditions, advanced tools, multiple platforms, automation services and much more. This ensures a promising trading journey for all experience levels.