Digital investing in South Africa: how to start safely, avoid scams and grow your money online

More South Africans are turning to digital investing to grow their money, using smartphones to buy shares, ETFs and savings products without stepping into a bank branch.

But while online investing offers convenience and access to global markets, experts warn that scams, risky decisions and lack of knowledge can quickly cost investors money.

What is digital investing?

Digital investing refers to managing and growing your money through online platforms, rather than through physical bank branches or in-person advisers.

This can include anything from simple savings products to buying shares, unit trusts or exchange-traded funds (ETFs) using a smartphone or computer.

As digital banking and mobile access expand, more people are choosing self-directed investing, where they make decisions themselves and monitor investments online.

However, experts stress that safety and trust remain crucial when choosing a platform.

Why digital investing is growing

One of the biggest advantages of digital investing is accessibility.

Investors can:

• manage accounts anytime from their phones
• start with small amounts of money
• access a wider range of investments
• invest in both local and international markets

Online platforms also allow investors to buy into global brands and offshore funds, giving them exposure beyond South Africa.

This broader access is one of the main reasons digital investing is becoming increasingly popular.

The risks investors should watch out for

Despite the convenience, the digital space also makes it easier for scams and misleading offers to spread.

A key warning sign is any investment promising unusually high returns or quick wealth.

If an opportunity ‘sounds too good to be true’, it usually is.

Experts also caution against:

• unsolicited calls promoting investments
• social media ads promising fast profits
• unknown platforms with no credible reputation

Starting small and only investing in products you understand can help reduce risk while you build confidence.

How beginners can start investing safely

Financial experts recommend taking a gradual approach.

The first step is often building an emergency fund in a basic savings account.

Once that’s in place, beginners can consider diversified investments such as ETFs that track broad markets, rather than putting money into a single company.

Examples include:

• South African market index funds
• global index trackers
• diversified offshore ETFs

Diversification helps reduce volatility and lowers the risk of major losses.

Where to learn before investing

Education is key for anyone entering the digital investing space.

Beginners can learn through:

• trusted financial education websites
• reputable investment platforms
• advice from knowledgeable friends or family
• AI tools used for learning about investing concepts

Experts emphasise that investors should use technology to understand risk, diversification and investment basics, not simply to chase tips on which shares to buy.

The bottom line

Digital investing is making it easier than ever for South Africans to grow their wealth and access global markets.

But while the tools are powerful, success still depends on patience, research and caution.

Starting small, sticking to trusted platforms and focusing on long-term goals remain the safest way to build wealth online.

For more detailed information, listen to Tinus Rautenbach, Business Head at Clarity, using the audio player below: