How to Trade CFD Shares in South Africa

Introduction

Share trading has become an increasingly popular way for South Africans to grow their wealth and diversify their investment portfolios. Unlike traditional investing, where you buy and hold shares for the long term, modern online share trading, especially through Contracts for Difference (CFDs), allows traders to speculate on price movements without owning the underlying asset.

With the right tools and support, even beginner traders can explore global equities, take advantage of market trends, and build their trading skills from home or on the go. As more South Africans look to take control of their financial futures, share trading stands out as a flexible and potentially rewarding option when done responsibly and with the right guidance. In this article, we look at how to trade CFD Shares in South Africa.

What is CFD Share Trading? 

CFD share trading allows traders to speculate on the price movements of company stocks without owning the underlying shares. A CFD, or Contract for Difference, is a financial derivative that creates an agreement between a trader and a broker to exchange the difference in the value of a stock from the time the trade is opened to when it is closed.

If the price of the share increases and the trader has taken a “buy” position, the trader profits. If the price falls, the trader incurs a loss – and the same applies in reverse for “sell” positions.

Overall, CFD share trading offers a flexible and dynamic way to engage with the global stock market, but it requires a clear understanding of the mechanics and a disciplined approach to manage risk responsibly. 

Why Trade Shares with IFX Brokers? 

Trading shares with IFX Brokers enables you to access top global and South African stocks with ease. Whether you want to trade shares from the Johannesburg Stock Exchange or popular international stocks, IFX Brokers offers a seamless and intuitive platform to support your trading journey. 

Key Features:

• Access to a wide selection of JSE-listed and global shares.
• Competitive trading conditions with tight spreads and fast execution.
• Trade on a secure and regulated platform tailored to South African traders.
• Multiple funding options for your convenience.

You can explore high-performance companies such as Apple, Amazon, and Tesla, or diversify your portfolio with established South African brands like Naspers, FirstRand, and Sasol. 

Benefits of Trading CFD Shares with IFX Brokers 

Trading CFD shares with IFX Brokers opens the door to a world of opportunity for South African traders seeking to diversify their portfolio and tap into both local and international markets. Here are the key advantages of choosing IFX Brokers as your trading partner: 

Wide Range of Choices 

IFX Brokers gives you access to an extensive selection of shares from across the globe. You can trade top-performing local JSE-listed companies such as FirstRand, Sasol, Naspers, and Shoprite, alongside globally renowned companies like Amazon, Apple, Meta, and Tesla.

This wide selection allows you to build a diverse portfolio that aligns with your investment goals and risk appetite. 

Leveraged Trading 

With IFX Brokers, you can trade CFD shares using leverage. This means you only need to put down a fraction of the trade’s total value to open a position, amplifying your market exposure. Leverage can significantly increase your potential returns, but it’s essential to understand that it also magnifies losses.

That’s why IFX Brokers equips traders with risk management tools like stop-loss and take-profit orders, helping you maintain control in volatile market conditions. 

Flexibility and Accessibility 

One of the standout benefits of trading with IFX Brokers is the seamless accessibility across all devices. The trading platform is available on desktop, tablet, and mobile, allowing you to monitor and manage your trades anytime, anywhere. 

How to Start Trading CFD Shares in South Africa 

Getting started with CFD share trading in South Africa is straightforward, especially when you trade with a regulated and user-friendly broker like IFX Brokers. 

1. Open an Account

To begin trading, you’ll need to register for a live trading account with IFX Brokers. The sign-up process is fully digital and can be completed in just a few minutes:

• Step 1: Visit the IFX Brokers website and click on the “Open an Account” button.
• Step 2: Complete the online registration form with your personal details, including your name, contact information, and South African ID or passport number.
• Step 3: Submit the required FICA documents – usually a copy of your ID and proof of residence, such as a utility bill or a recent bank statement.
• Step 4: Wait for account verification. Once approved, you’ll receive login details to access your trading dashboard.

IFX Brokers is a fully licensed financial services provider in South Africa, which means your account is protected under local regulatory frameworks. 

2. Fund Your Account 

After your account is verified, the next step is to deposit funds. IFX Brokers offers a range of secure and convenient deposit methods, including:

• Instant EFTs via Nedbank and other major banks
• Debit/credit card payments
• Bank wire transfers
• Popular e-wallet services (check platform for availability)

To fund your account, log into the IFX client portal, select your preferred funding method, and follow the prompts. Most deposits are processed instantly or within a few hours. It’s a good idea to start with an amount you’re comfortable trading with, especially as you learn the platform and trading strategies. 

3. Choose Shares to Trade

Once your account is funded, it’s time to start trading. But before you dive in, consider the following when choosing which shares to trade:

• Market Sector: Are you interested in technology, finance, retail, or energy? Choose sectors you understand or are willing to research.
• Volatility: More volatile shares (like Tesla or Naspers) offer bigger opportunities for profit – and loss. Less volatile shares may be more stable for beginners.
• Geographic Focus: IFX Brokers offers shares from both the Johannesburg Stock Exchange (JSE) and major international exchanges. Local shares may be easier to follow for South African traders, while international shares offer exposure to global trends.
• Company Fundamentals and News: Stay updated on the latest financial news and earnings reports. Understanding what drives a company’s share price can help you make informed decisions.

You can then use the trading platform’s built-in tools, such as price charts, technical indicators, and economic calendars, to time your trades and manage your positions effectively.