Best ETF Brokers in 2025

What is an ETF or Exchange Traded Fund?

An ETF (Exchange Traded Fund) is a financial product that allows you to invest in a range of assets in a single transaction. It is an index fund listed on the stock exchange, the objective of which is to replicate the performance of a benchmark index, such as the S&P 500 or the MSCI World.

Unlike actively managed traditional funds, an ETF follows passive management: it replicates the composition of the index it tracks, with lower fees compared to active funds. It is continuously tradable on the markets, just like a stock, allowing investors to buy or sell their shares at any time during the trading day.

ETFs are very popular due to their numerous advantages:

• Immediate diversification: By purchasing an ETF, the investor positions themselves on multiple assets in a single transaction.
• Reduced fees: ETF management fees are generally much lower than those of traditional investment funds.
• Accessibility: It is possible to invest in ETFs with a modest amount, and some brokers offer fractional purchases.
• Transparency: The composition of ETFs is generally accessible in real time, allowing investors to know exactly what they are investing in.

Advantages of ETFs

ETFs offer instant diversification: a single transaction allows you to invest in a collection of assets reflecting the composition of the tracked index. For example, an ETF replicating the JSE Top 40 allows access to the 40 largest companies in South Africa, while an ETF based on the FTSE/JSE All Share Index provides exposure to the major listed companies in South Africa.

What is an ETF broker?

An ETF broker is an online platform that allows investors to buy and sell Exchange-Traded Funds (ETFs) on the stock market. In South Africa, there are two main ways to invest in ETFs depending on your goals and risk appetite:

• Traditional brokers that let you directly invest in physical ETFs listed on the JSE (Johannesburg Stock Exchange) or international exchanges, via a share trading account or tax-free savings account (TFSA).
• CFD brokers that allow you to speculate on the price movements of ETFs without actually owning the underlying asset, using contracts for difference (CFDs).

Below is a comparison table between these two approaches:

Your choice depends on your investor profile:

• If you're looking for long-term, passive investing, such as building a retirement portfolio or saving for the future, a broker that allows you to buy real ETFs via a JSE trading account or a Tax-Free Savings Account (TFSA) is your best option. Local platforms like EasyEquities, SatrixNOW, or Absa Stockbrokers are popular for this.
• If you prefer short-term trading with access to leverage and are comfortable with higher risk, CFD brokers like Plus500, IG, or Markets.com offer ETF CFDs — but these are more suitable for advanced traders.

How to choose an ETF broker?

Choosing an ETF broker is an essential step for investing effectively in the stock market. Some brokers allow you to buy ETFs directly, while others offer CFDs on ETFs. Each type of platform caters to different investment strategies. Here are the criteria to consider to make the right choice.

1. Accessibility to ETFs

Not all brokers offer the same access to ETFs. It is important to check:

• ETFs disponibles: Certains courtiers offrent une large sélection d'ETFs physiques, tandis que d'autres proposent uniquement des CFD sur ETF.
• L'accès aux ETFs internationaux: Certains courtiers permettent d'investir sur des ETFs européens et américains, tandis que d'autres restreignent leur offre à certaines zones géographiques.
• L'éligibilité au PEA: Si vous souhaitez optimiser votre fiscalité, privilégiez un courtier proposant des ETFs compatibles avec un Plan d'Épargne en Actions (PEA).

2. Brokerage and Management Fees

Fees directly influence the profitability of your investment. Here are the main costs to compare:

• Transaction fees: commission applied to each purchase or sale of an ETF. Some stock brokers offer free transactions, while CFD brokers often apply a spread (difference between the purchase and sale price).
• Management fees: levied annually by the ETF issuer (generally between 0.05% and 0.50%).
• Inactivity fees: some brokers charge fees if no transactions are made over a given period, particularly CFD trading platforms.
• Conversion fees: for ETFs listed in foreign currencies, there may be exchange fees on transactions.

3. Ergonomics and platform tools

Whether you are a beginner or experienced investor, an intuitive and efficient platform is essential. Check for:

• The quality of research tools and filters to easily find ETFs.
• The existence of a mobile application to manage your investments in real time.
• The availability of advanced charts and technical indicators for active investors, especially for those trading CFDs.

4. The Account Type and Taxation

The type of account you use to invest in ETFs has a direct impact on how your gains are taxed in South Africa.

• Standard share trading account – This allows access to a wide range of ETFs listed locally (on the JSE) and globally. Any capital gains from selling ETFs at a profit are subject to Capital Gains Tax (CGT), and dividends are typically subject to a 20% dividend withholding tax (DWT).
• Tax-Free Savings Account (TFSA) – This government-backed investment vehicle lets South African residents invest up to R36,000 per year (capped at R500,000 lifetime) without paying tax on capital gains, dividends, or interest. Only selected ETFs qualify for TFSA inclusion, typically those that track broad indices or local markets.
• Trading ETF CFDs – Gains made through CFD trading are not subject to CGT, but are instead treated as income and taxed according to your marginal income tax rate (up to 45%). This can be significantly higher than CGT, especially for high earners.

5. Leverage and Risk Management

If you want to use leverage, only brokers offering ETF CFDs will allow you to amplify your positions (generally with leverage of x2 to x5). However, the risk of loss is increased, as leverage can also multiply losses. Make sure your broker offers:

• Protections contre le solde négatif pour éviter de perdre plus que votre capital initial.
• Ordres stop-loss et take-profit pour gérer efficacement vos positions.

6. The quality of customer service

Good customer service is essential, especially for active investors. Before opening an account, find out about:

• The available contact methods (phone, online chat, email).
• The availability of support (opening days and hours).
• The quality of educational resources offered (guides, webinars, tutorials).

7. Security and Regulation

Choosing a regulated and trustworthy ETF broker is essential for protecting your capital. You should always ensure that the platform you use is licensed by a recognised financial authority.

In South Africa, the primary financial regulator is:

• FSCA (Financial Sector Conduct Authority) – Responsible for licensing and overseeing all South African financial services providers, including brokers and asset managers.

When using international brokers, look for regulation by major global authorities such as:

• FCA (Financial Conduct Authority) – United Kingdom
• CySEC (Cyprus Securities and Exchange Commission) – European Economic Area
• ASIC (Australian Securities and Investments Commission) – Australia
• SEC and FINRA – United States (for US-based brokers)

Which ETF Broker is Best for a Beginner?

If you're new to ETF investing in South Africa, it's important to choose a broker that offers a user-friendly platform, low fees, and educational resources to help you understand how ETFs work and how to manage your portfolio.

Here are the key features to look for in a beginner-friendly ETF broker:

• Simple and intuitive interface that’s easy to use on both desktop and mobile
• Low trading fees and account minimums
• Wide access to ETFs, including low-cost index trackers
• Availability of a Tax-Free Savings Account (TFSA) for tax-free investing
• Responsive customer service, ideally with local support
• Access to tutorials, webinars, and demo tools for learning as you go

What are the different types of ETFs accessible in South Africa?

In South Africa, investors have access to a wide range of ETFs allowing them to invest in different assets and strategies. Here is a summary table of the main types of ETFs, with their description and some popular examples among South African traders.

Are ETFs eligible for a Tax-Free Savings Account (TFSA)?

Yes, some ETFs are eligible for a Tax-Free Savings Account (TFSA), but not all. For an ETF to be included in a TFSA, it must meet specific criteria imposed by South African regulations.

What conditions must an ETF meet to be eligible for a TFSA?

An ETF is eligible for a TFSA if it meets these conditions:

• It is domiciled in the South African Republic.
• It invests mainly (at least 75%) in shares of South African companies.

ETFs that invest predominantly outside of South Africa (e.g. S&P 500, Nasdaq-100, MSCI World) are not eligible for a South African securities account, unless they use synthetic replication that complies with South African stock quotas.

Here are a few examples of ETFs eligible for a South African securities account: 

How to invest in ETFs online?

Investing in ETFs online is a simple and accessible method to diversify your stock portfolio. Here are the essential steps to start investing effectively.

1. Choose a suitable broker

The first crucial choice is the broker that will allow you to buy ETFs. To do this, you need to compare several criteria:

• Brokerage fees: Prioritise platforms with reduced fees.
• ETF Offer: Make sure the broker offers a wide selection of ETFs (shares, bonds, sector-specific, thematic, etc.).
• Account Type: Check whether you want to invest via a tax-free savings account or a standard securities account for unlimited access to global ETFs.
• Security and regulation: Opt for a broker regulated by the FSCA (South Africa) or other recognised authorities.

2. Opening an Investment Account

Once you have chosen a broker, you need to open an account by providing a few documents:

• Proof of identity (identity card or passport).
• Proof of address (bill, tax notice).
• Bank statement for deposits and withdrawals.

Account validation can take a few hours to a few days, depending on the broker.

3. Deposit funds into your account

Before buying ETFs, you need to fund your account by making a deposit. Depending on the broker, you can deposit funds via:

💳 Bank transfer (most common method).
💰 Credit card (faster but sometimes with fees).
📱 Electronic wallets (PayPal, Skrill, etc., depending on the platforms).

4. Selecting ETFs to Buy

It is important to choose ETFs that are suitable for your strategy. You can invest in:

• Index ETFs (MSCI World, S&P 500, JSE Top 40) for a passive and diversified approach.
• Sector ETFs (technology, healthcare, renewable energy) to target a trend.
• Bond ETFs for a more defensive allocation.
• Dividend ETFs to generate passive income.

5. Passer un ordre d'achat

Une fois l'ETF choisi, vous devez passer un ordre d'achat. Il existe plusieurs types d'ordres :

• Market Order: Immediate purchase at the current price.
• Limit Order: Purchase only if the ETF reaches a defined price.
• Stop Order: Purchase triggered when the price exceeds a certain threshold.

6. Monitor and adjust your portfolio

Investing in ETFs requires regular monitoring to ensure your portfolio remains aligned with your goals. To do this:

• Analyse performance: Track the progress of your ETFs via your broker or tools like Google Finance.
• Rebalance your portfolio: Adjust your asset allocation if one sector becomes too dominant.
• Invest regularly: Adopt a Dollar Cost Averaging (DCA) strategy by buying ETFs at regular intervals to smooth out the risk.

What fees are involved with an ETF broker?

Investing in ETFs incurs fees that can impact the profitability of your portfolio. These costs vary depending on the type of account, the target market and the investment method. Here are the main fees to anticipate with concrete examples.

1. Brokerage fees

Brokerage fees are applied to each order to buy or sell ETFs. They can be fixed (example: ZAR17 per order) or proportional (example: 0.1% of the amount invested). Some brokers offer commission-free ETFs under certain conditions, such as a scheduled purchase or a limited order per month.

Exemple de frais de courtage ETF

Achat d’un ETF pour 1 000 ZAR avec des frais de 0,5 % → 5 ZAR de frais.

Achat du même ETF avec un courtier offrant un ordre gratuit par mois → 0 ZAR de frais.

2. ETF Management Fees

These fees are directly levied by the ETF issuer and slightly impact the fund's performance. They are expressed as an annual percentage of assets under management.

Example of ETF Management Fees

• A global ETF with 0.40% management fees incurs an annual cost of R4 for every R1,000 invested.
• An S&P 500 ETF at 0.07% costs only R0.70 for every R1,000 invested over a year.

3. Currency conversion fees

If the ETF is listed in US dollars (USD) or British pounds (GBP) and the account is in South African Rand (ZAR), currency exchange fees apply to the purchase and sale. These fees vary between 0.1% and 1% depending on the platforms.

Example of currency conversion fees

Buying a Nasdaq-100 ETF in dollars for ZAR 40,000 (approximate conversion), with a currency exchange fee of 0.5% → ZAR 200 fee.

4. Inactivity fees

Certain brokers charge fees if no orders are placed for several months. These fees are generally levied after 6 to 12 months of inactivity and may be fixed or proportional to the account balance.

Example of inactivity fees

• An inactive account for 1 year with a fee of ZAR 10 per month results in a cost of ZAR 120 over the year.

5. Withdrawal fees

Some platforms charge fees to withdraw funds to a bank account. These fees may be fixed (example: ZAR 5 per withdrawal) or proportional (example: 1% of the amount withdrawn).

Example of withdrawal fees

A withdrawal of 500 with a fixed fee of 5 results in a cost of 1% of the amount withdrawn.

6. Spreads and overnight fees (for ETF CFDs)

If you trade ETF CFDs, you need to take into account:

• Le spread : écart entre le prix d’achat et de vente, qui peut être fixe ou variable.
• Les frais overnight : appliqués lorsque vous conservez une position avec effet de levier d’un jour à l’autre.

Example of ETF CFD Fees

• Buying an S&P 500 ETF CFD with a spread of 0.2% on a ZAR1000 position → ZAR2 in fees.
• Holding the CFD for 5 days, with overnight fees of 0.01% per day → ZAR0.50 in cumulative fees.

What ETF investment strategies are there?

ETFs offer numerous investment strategies tailored to different investor profiles. Depending on your objectives (growth, passive income, protection against volatility, etc.), some approaches will be more suitable than others.

Here is a summary table of the main ETF investment strategies:

What is the taxation for income from ETFs in South Africa?

Income generated from ETFs in South Africa — whether from selling your ETF holdings at a profit or receiving distributions (dividends) — is subject to South African tax regulations. The tax treatment depends on the type of account used (Tax-Free Savings Account or a standard trading account) and the nature of the income (capital gains or dividends).

1. Taxation of ETFs Held in a Standard Trading Account

When you invest in ETFs through a normal brokerage or trading account, your profits are taxed under the usual tax framework for investment income.

Example

You buy ETF units for R20,000 and sell them later for R30,000 → a R10,000 capital gain. 40% of that (R4,000) is added to your income, and if you're taxed at 30%, you'd owe R1,200 in CGT.

If you receive R1,000 in ETF dividends  → R200 is withheld as tax, and you receive R800.

2. Tax-Free Savings Account (TFSA)

Investing in ETFs through a TFSA allows you to completely avoid tax on your investment returns — including capital gains, dividends, and interest — provided you stay within the limits:

• R36,000 annual contribution limit
• R500,000 lifetime contribution limit
• No tax on withdrawals or gains — ever.

⚠️ Only certain ETFs qualify for TFSA use, typically those that track local or broad market indices.

Example

You invest R36,000 in a TFSA ETF that grows to R50,000 over 3 years and pays R2,000 in dividends → you pay zero tax on the growth or the income.

3. Tax on Foreign ETFs and Withholding Tax

If you invest in ETFs domiciled abroad (e.g., US, Ireland), foreign withholding taxes may apply to distributions, especially dividends. These are deducted at source and vary by country:

• United States: 30% withholding tax, reduced to 15% with W-8BEN form (usually handled by your broker).
• Ireland & Luxembourg: Generally low or no withholding tax on accumulating ETFs.

Example

A US-domiciled ETF pays you $100 in dividends:

• Without W-8BEN → $30 is withheld.
• With W-8BEN → only $15 is withheld.

⚠️ South Africa does not currently offer a foreign tax credit for this deduction on dividends, so the withholding is generally final.

4. Taxation of Leveraged ETFs and CFD Trading

Gains from leveraged ETFs or ETF CFDs (Contracts for Difference) are not treated as capital gains, but rather as income. This means they are fully included in your taxable income and taxed at your marginal tax rate, which can be up to 45% for high-income earners.

Example

You make a R10,000 profit from trading ETF CFDs → if you're in the 30% tax bracket, you pay R3,000 in tax.

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.