Before You Start
Opening a TFSA takes about 15-30 minutes online. Here's what you'll need:
Documents Required
- South African ID or passport
- Proof of address (utility bill, bank statement, or lease agreement dated within 3 months)
- South African bank account
- Tax number (recommended but not always required)
Decisions to Make
- Which provider to use
- How much to invest initially
- What to invest in (ETFs, unit trusts, etc.)
- Monthly contribution amount (if any)
Step 1: Choose Your TFSA Provider
You can open a TFSA at banks, stockbrokers, or investment platforms. Here are popular options:
Low-Cost Online Platforms
- EasyEquities: R0 account fee, 0.25% brokerage
- Satrix: R0 account fee, direct from fund manager
- 10X Investments: Low-cost index funds
Traditional Providers
- Allan Gray: Established, higher minimums
- Coronation: Unit trust focused
- Banks (FNB, Nedbank, etc.): Convenient but often higher fees
What to Compare
| Factor | Why It Matters | |--------|---------------| | Account fees | Monthly/annual costs eat into returns | | Brokerage fees | Cost per trade when buying/selling | | Minimum investment | Some require R500+, others R1 | | ETF selection | More options = better diversification | | User experience | You'll use this for decades |Our recommendation: Start with EasyEquities or Satrix for the lowest fees and easiest experience.
Step 2: Open Your Account Online
EasyEquities Example
- Go to www.easyequities.co.za
- Click "Sign Up"
- Enter your email and create a password
- Select "TFSA" as your account type
- Complete personal details (name, ID number, address)
- Upload your ID and proof of address
- Answer the investor questionnaire
- Accept terms and conditions
- Submit application
Verification Time
- Most applications are approved within 24 hours
- Some may require additional verification
- You'll receive an email when approved
Step 3: Fund Your Account
Once approved, you need to deposit money.
Deposit Methods
- EFT: Transfer from your bank (1-2 business days)
- Instant EFT: Immediate via Ozow, Peach, etc.
- Debit order: Set up monthly automatic deposits
First Deposit Suggestions
| Budget | Suggestion | |--------|-----------| | Starting small | R500 - R1,000 to learn the platform | | Moderate | R3,000 (one month's contribution) | | Lump sum | R36,000 (full annual limit) |Important: Only contribute what you can afford to invest for 5+ years.
Step 4: Choose Your Investments
This is where many beginners freeze. Here's a simple approach:
For Complete Beginners
Start with ONE of these all-in-one options:- Satrix Balanced Plus: SA and global exposure, automatic rebalancing
- 10X High Equity: Low-cost, globally diversified
For Slightly More Involved
Build a simple 2-ETF portfolio:- 60% Satrix 40 (STX40): SA's top 40 companies
- 40% Satrix MSCI World (STXWDM): Global developed markets
For Income Seekers
- Satrix Dividend Plus (STXDIV): SA dividend-paying companies
- Satrix Property (STXPRO): SA listed property
Step 5: Make Your First Purchase
On EasyEquities
- Log in to your TFSA account
- Click "Trade"
- Search for your chosen ETF (e.g., "STX40")
- Enter the amount you want to invest
- Review the order (check brokerage fee)
- Click "Buy"
- Confirm the purchase
Order Types
- Market order: Buy immediately at current price (recommended for beginners)
- Limit order: Buy only if price drops to your target
What Happens Next
- Your purchase appears in your portfolio
- You'll receive a contract note via email
- Dividends (if any) are paid into your account automatically
Step 6: Set Up Regular Contributions
The easiest way to build wealth is automatic monthly investing.
Debit Order Setup
- Go to account settings
- Find "Recurring investments" or "Debit orders"
- Enter amount (e.g., R3,000)
- Choose debit date (after payday)
- Select which ETF(s) to buy
- Confirm banking details
Why Monthly Investing Works
- Rand cost averaging: Buy more units when prices are low
- Removes emotion: No trying to time the market
- Builds discipline: Investing becomes automatic
- Stays within limits: R3,000/month = R36,000/year (exactly the limit)
Step 7: Monitor and Stay the Course
What to Check
- Quarterly: Your portfolio value and contributions
- Annually: Your total return and contribution limits
What NOT to Do
- Don't check daily (you'll panic at normal volatility)
- Don't try to time the market
- Don't switch investments frequently (incurs fees)
- Don't withdraw unless absolutely necessary
Rebalancing
If your portfolio drifts significantly from your target allocation, rebalance once a year by directing new contributions to the underweight asset.Common Beginner Mistakes
1. Waiting for the "Right Time"
There's no perfect time to start. Time in the market beats timing the market.2. Investing Money You Need Soon
TFSAs are for long-term investing (5+ years). Keep emergency funds separate.3. Not Investing the Money
Some people deposit to a TFSA but leave it as cash. You must actually buy investments.4. Choosing High-Fee Products
Compare TERs. A 1% difference costs hundreds of thousands over decades.5. Contributing to Multiple TFSAs
This makes tracking limits difficult and increases over-contribution risk.Your First Year Checklist
- [ ] Open TFSA account
- [ ] Complete FICA verification
- [ ] Make first deposit
- [ ] Buy your first ETF(s)
- [ ] Set up monthly debit order
- [ ] Record contributions in a tracker
- [ ] Review portfolio after 6 months
- [ ] Check you're within R36,000 annual limit
Frequently Asked Questions
How long does it take to open a TFSA? 15-30 minutes online, approval within 24-48 hours.
What's the minimum to start? Some platforms allow R1, others require R500+.
Can I have a TFSA and RA? Yes, they're separate accounts with separate limits.
What if I lose money? Markets fluctuate. Stay invested long-term and you'll likely recover.
Next Steps
- Use our Growth Calculator to see how your contributions could grow
- Browse our ETF Database to research investment options
- Take the ETF Finder Quiz for personalized recommendations
- Track your contributions to stay within limits