Investec officially launches EasyEquities competitor

Clarity by Investec has officially opened to the public, offering self-managed, tech-driven investing to South Africans.

The private bank announced this opening on Wednesday, 12 February, saying it is set to unlock a new era of self-managed, tech-driven investing for local investors eager to take control of their financial futures. 

The platform launched to private banking clients last year and has already attracted clients of diverse ages, from 20-somethings to clients in their 70s.

Clarity business head Tinus Rautenbach said they have since implemented enhancements – prioritising quality and service excellence – and are excited to open the platform to the South African investing community.

Clarity provides registered account holders access to over 750 instruments listed on local and offshore markets, where users can trade on a leveraged or non-leveraged basis. 

Trading takes place via contract for difference (CFD) instruments. The platform promises “transparent, competitive pricing with zero admin, platform fees or broker commissions”.

Therefore, every time you trade, Clarity’s fee is automatically priced into the spread (up to 0.2%). Spread is the difference between the sell and buy price, where the transaction is executed. 

If you trade on margin, Clarity also has margin rates. The platform charges up to 50 basis points on the forex spot rate when converting currencies between ZAR and USD.

“Following the boom in online trading during the pandemic, we have seen an evolution in the trading landscape driven by changing preferences for investing and creating wealth,” Rautenbach explained. 

“With a more technologically-driven and diversified environment, the trading and investment landscape is becoming increasingly dynamic and inclusive.”

A significant adoption driver has been the ability to convert rands to foreign currency like US dollars instantly. 

“The average time for clients to execute a forex trade is just 25 seconds, providing clients with the opportunity to express a view on the currency and access low-risk savings products in that currency,” he said.

There are no minimum investment requirements, and while average account sizes align with industry standards, some portfolios exceed R1 million.

Clarity said there is a growing desire among retail investors and high-net-worth individuals to manage a discretionary portion of their portfolios themselves. 

Clarity is designed to meet the demand for do-it-yourself investing, featuring a simple signup process on an easy-to-use website and dedicated app. 

Both platforms offer intuitive interfaces for users.

“Our market research identified digital optimisation as a key customer need, and clients want to feel in control, which Clarity provides,” Rautenbach said.

The platform includes a digitally led in-app service model with live chat functionality and self-service capabilities. 

The depth of data available to investors and the platform’s speed resonate as important value propositions among traders.

Rautenbach said he is confident that Clarity will appeal to a broad spectrum of individuals beyond seasoned traders, bolstered by the support of the trusted Investec brand. 

“Offering a digitally led platform for DIY investing with no brokerage fees appeals to a larger customer base, serving as a potential gateway into the Investec ecosystem,” he said.

Since its launch, Clarity has continued to evolve based on consumers’ needs, with new products and instruments added based on client feedback. 

Recent additions include stocks in high-growth sectors like tech and pharmaceuticals, as well as exposure to cryptocurrencies through the iShares Bitcoin Trust.

 “We also introduced 24/5 forex trading last year, enabling clients to exchange rands for dollars after office hours, which was previously unavailable,” Rautenbach said.