The first stockbroker I ever approached — this must have been around 1990 — unceremoniously turned me away.
The princely sum I had so determinedly squirrelled away as a junior reporter on Business Day was deemed too small for an investment on the JSE.
“You might be better off buying some unit trusts” was the dismissive declaration. I defiantly pressed on, until the good folks at the old Simpson McKie helped me out.
That said, I would — without doubt — have been considerably better off if I did buy into a general equity unit trust and never started this costly habit of dabbling in stocks. But that’s a story for another time, and maybe one I can relate when I retire in 2040.
But things have changed … for the better. I can’t see any amount of money being turned away these days — not when it’s clear there are stockbroking outfits tailored especially for the small (and enthusiastic) investor.
With robust engagement on social media and easy access to share information, the retail investor is arguably better equipped to ride out the sometimes vicious cycles in some of the JSE’s sectors. The retail investor looks here to stay, through thick and thin.
It’s clear from Krutham’s authoritative securities broker survey that stockbroking — despite some testing trading periods in recent years — is vibrant and competitive, with growing client numbers. Hopefully as the government of national unity cements a foundation for compelling economic growth, stockbrokers will drive revenues markedly. A sustained bull market and a flutter of new listings activity might do absolute wonders for volumes.
That said, it is incredibly heartening to see so many smaller and newer stockbroking firms standing out on the top rungs of various categories in this year’s survey. Some stories are quite remarkable, and I have an inkling of what it entailed to keep these ventures on track when the curveballs kept coming.
A huge thanks to the Krutham team for another insightful slab of research that will certainly have some longevity in the hands of the readers.
Lastly, readers might notice in this edition a slight change in format with a greater number of company-specific articles. Please let me know if you like … or don’t like. Feedback will be hugely appreciated.
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