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Definition

To buy and sell shares on the Johannesburg Securities Exchange, you will need to open an account with a stockbroking firm. Stockbroking firms employ stockbrokers who have passed the necessary JSE exams. All transactions on the JSE must be done through a registered stockbroking firm. To open an account with a stockbroking firm you will need to complete and sign their "mandate". Stockbrokers offer two types of account - discretionary and non-discretionary. The discretionary account allows the broker to manage your money on the stock exchange for you. In other words he can then buy and sell shares on your account without consulting you. On a non-discretionary account, only you can put through the trades. We obviously recommend that you select a non-discretionary account. You will also need to produce a proof of residence to open a broking account. Once the account is open, the firm will charge you a monthly fee for administration. You should also arrange with the broking firm to allow you to make your trades and view your account online.

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