Trading in shares with 28E STOCKBROKERS. THE STOCK EXCHANGE What is the Stock exchange and what function does it perform? The Stock exchange is an entity that provides a facility for companies to raise capital by listing their shares, bonds or whatever instrument is available to them within a regulatory framework provided by the exchange and these companies would also have to meet certain criteria set out by the exchange before they are able to list. These listed instruments can then be traded by MEMBERS (28E Capital) of the exchange for themselves or on behalf of their clients amongst each other. The Stock exchange also provides these MEMBERS with a platform or facility for trading with each other via electronic trading systems which provide transparent pricing or as was the case in South Africa in the old days a trading floor where members could congregate and trade with each other face to face. (Open outcry) These MEMBERS are regulated and monitored by the JSE and have to adhere to the rules and regulations that have been put in place by the JSE. You as a private investor would now open an account with a member of the exchange and via this member buy or sell whatever instruments are available. This is the part where we come in.. YOUR STOCK BROKER Your stock broker is now your point of entry to trade in all the products listed on the stock exchange and can provide you with the tools to access the exchange either by placing your order to buy or sell via a trading platform or telephonically with a dealer. Depending on what type of account you open you will either make the decisions yourself or allow the Stock Broker to trade on your behalf (managed or full discretionary account). Opening an account Complete a mandate with the Broker (Non-discretionary if you are trading for yourself and a discretionary if you are allowing the Broker to trade on your behalf). Hand in your FICA documentation with your mandate. Once the broker receives this they will open your account and you will be given an account number which is linked to the accounting system that the brokers are required to use (BDA number). Once you have your BDA or futures account number you can deposit your money into the brokers account using your account number as the reference.
The money is then swept out of the brokers account into the JSE trustee s account where it is held and you then start receiving interest on this money. You now have an account open with your broker and you have some money in the account. You will receive a welcome letter that will look like this and a user name and password for your online account:
Your 28E online share trading account: 1) Go to: www.28eonline.co.za
2) Login by clicking LOGIN: 3) Enter your user name and password: - You will get a user name and password emailed to you shortly after opening your account. - You can also have multiple accounts linked to your log in.
4) Once you are logged into your account the menu will change and look like this: - Note that on this page you can set up a watch list of your favourite shares. - Alerts can be set so that you can be notified of levels triggered via SMS or email. - Latest corporate actions are listed and an overview of the happenings on the JSE and SENS announcements.
5) Move your mouse over MY PORTFOLIO to see the various sub menu s:
6) Click on HOLDINGS to view your shares and cash available: - The holdings option shows the current available cash (4,026.22) which makes up 42.98% of this clients portfolio and you will see that the client also owns 150 shares in the STX40 and the current value of those shares is displayed (5341.50) the SATRIX40 shares will make up the rest of the portfolio (57.02%). Total Portfolio value = 9 367.72.
7) Click on HOLDINGS HISTORY: - The holdings history option will give you a snapshot of your holdings on any specific date. 8) Click on TRADES HISTORY: - The trades history tab will give you a history of your past trades within the dates you specify:
9) Click on FINANCIAL HISTORY: - The financial history tab will give you a history of all cash movements on your account:
Tools the website can provide to help make your investment/trading decision. Company Information. 1) Click on COMPANY INFORMATION tab: 2) Type in the share you are interested to find out more about: - You can now click on the tabs for the information you need.
Financials:
Statistics:
Consensus:
Statutory and Dividends:
Market Indicators. 1) Click on MARKET INDICATORS tab. - The market indicators tab will bring up a rundown of the overall market (JSE ALL SHARE), Commodities, and Currencies.
- Also note that you can change period of the charts:
2) Scroll down. - Here you will find a Dividend Yield and P/E Ratio Sorter, where you can sort stocks according to PE or Dividend yield. - Also find a few other market indicators that can be very useful.
Graphs. There is a wide variety of tools you can use under the Graphs tab - After clicking on the graph tab the following screen will open:
- To choose the share for the graph click in the bottom left hand corner tab and type in the share code (here I have typed in AGL): - If you do not know the code for a share click on the bottom tab marked list shares and a library will appear with all the shares available:
- To Choose the type of graph click on the dropdown at the top right of the graph (the one that currently displays Close : - Click on the dropdown and choose the type of graph: - To choose the period click on the drop down box which currently displays Daily and choose your period:
- For the amount of data (1 year, 3 year, 5 year or all) click the appropriate tab. - To choose any other technical indicators simply use the tabs at the top of the graph:
- If you do not want to use the tabs at the top of the graph click here for all the options:
Trading online. 1) Move your mouse over the TRADING tab. 2) Click on STOCK INFO and type in the share code: - Here you will find a run-down of the stock you type in. - Note it gives you the trading history for the day and the current Bids and Asks in the Market together with any SENS announcements that may have been released regarding the stock.
3) Click on the ORDER ENTRY tab: - Here you are able to enter your order. A) Type in the share in the SHARE CODE section on both sides (your account number will automatically appear in the ACCOUNT section.
B) Click on either BUY or SELL: C) Type in your order price in cents (the price that you would want to trade at) and click LIMIT order (this means that your order will go in at the limit that you have set), if you click the MARKET order option the trade will take place immediately, in other words the computer will take the best seller at that point in time. (In the screenshot below this would mean the computer would take the seller at 39300) Now type in the number of shares you want (if you wanted to say buy 10,000 Rand worth of shares you would take your R10,000 and divide by the price you want so in this example 10000 / 391.00 would give you 25 Shares. There is also an option to put in the order for the DAY or GTD which means GOOD TILL DATE (if you click this you will have to put in a date that you would want the order to expire), the last option is GTC which means GOOD TILL CANCELLED (Your order will stay in until you cancel it). Finally we have the CLIENT NOTES section which will allow you to put in special notes that you may have, for example: What triggered your decision to buy the share?
D) Now hit the SUBMIT button. - The confirmation box will now open and ask you to confirm order by putting in your password again. (We are buying one share for the example). - Once you confirm and enter password the screen will look like this: - Note the ORDER SUCCESSFULLY SUBMITTED at the bottom of screen.
E) Move mouse back over the trading tab and click on ORDER BOOK: - Your ORDER BOOK will now open and you can now see your orders. - As you can see in the ORDER BOOK the client has bought 1 SOL share (traded quantity is 1):
F) You can also toggle between ORDER BOOK and TRADES BOOK. - TRADES BOOK will look like this: Your trade is now complete and the following day the shares that you bought will reflect under your PORTFOLIO tab:
RESEARCH and INFORMATION available to 28E Clients. 1) Daily reports: At 28E you can customize the research and information you receive by subscribing to the reports that you need. The Reports available: The Telescope (LEVELS) A report on the ALSI40 index future. The Panamax - A morning grain report. The Crow s nest A diary of events to be released over the day. The Caravel Short term trading report on INDEX FUTURES or CURRENCIES. The Clipper Short term trend following system for shares. The Armada Pair trading ideas for use on the futures market. The Radar (SNAPSHOT) Snapshot of market conditions. Paterson reports Technical analysis on index futures and shares, including TRADE IDEAS with entry levels, targets and stops. Other information: Canon fire News stories and other current market related information. Live market updates Live updates on Currencies, index futures, shares or Commodities. SMS Service: Updates on important market moving news. Closing data. Trade ideas for both Paterson and Armada. Commodity updates.
COSTS/BROKERAGE Online equity account: Monthly fee: There is a monthly administration fee of R 40.00 per month. Brokerage: There is a monthly administration fee of R40 + VAT and the brokerage scales are shown below: 0 50,000 Rands of value = 0.7% or a minimum of R 125 (so if you bought R 40,000 worth of shares you multiply that by 0.7% which would equal R280.00) 50,000 500,000 Rands of value = 0.5 % 500,000 1,000,000 Rands of value = 0.4% 1,000,000 + = 0.35% STRATE Settlement Fees: A minimum of R10.92 and a maximum of R54.59 calculated at 0.005459% of the value of the trade is payable to STRATE. Securities tax: This is charged on all purchase transactions at 0.25%. Investor Protection Levy: Calculated at 0.0002% and payable to the JSE.
How to open an account 1) Complete the NON DISCRETIONARY Mandate attached. 2) Get your FICA documents. (See the FICA checklist attached) - Certified copy of Identity document or Passport. - Certified copies of proof of residence. - Tax number. 3) Drop or send us the documents. - We need the original mandates and FICA. - Either drop it off yourself, post it or we can arrange collection in the Johannesburg area. - POSTNET Counter to counter is a good option: Just go to your local POSTNET branch ask for a counter to counter delivery to HENNOPSPARK POSTNET (Centurion) put our contact details down (28 E- attention Estelle Van Rensburg- 012 663 1115) and they will phone us to pick it up. 4) Receive your BDA account number with your login to the website: www.28eonline.co.za 5) Deposit funds using your account number as a reference (BDA account number). PLEASE DO NOT DEPOSIT FUNDS INTO OUR ACCOUNT UNTIL YOU HAVE YOUR ACCOUNT NUMBER.
Our account details for all deposits are: ABSA Branch code: 632005 Account number: 4078150281 CONTACT DETAILS: Physical address: Suite 2d2, 1st floor Centurion Gate Office Building. Cnr. John Vorster & Akkerboom. Centurion, 0046 Postal address: Postnet Suite # 428 Private Bag X132 Centurion 0046 CONTACT NUMBERS: Trading desk: Dealing - Derivatives Tel: 012 663-8434 Email: info@28e.co.za
Dealing Commodity derivatives Tel: 012 663-8433 Email: info@28e.co.za Dealing - Equities Tel: 012 663-8432 Email: info@28e.co.za Infrastructure/Support I.T. Department Diro Support: 012 005 1000 Email: it@28e.co.za