STOCKBROKERS are a key provider of tax-free savings accounts (TFSAs), which were launched last year. Brokers have created a compelling offer for first-time investors to get involved in the stock market and we support them with this special mention of those we think have created the best offerings.Investors can save up to R30,000 a year with a lifetime limit of R500,000 with all gains free of tax. TFSA rules do not allow direct investments in listed equities but allow for access to the equities market through exchange-traded funds. These invest in a portfolio of shares and are a cheap way to get exposure to a diverse equity investment. Equities tend to be riskier than alternatives like bank accounts, but the evidence is clear that in the long run of five to 10 years they outperform. Stockbroker accounts are also the most tax efficient, allowing investors to avoid capital gains tax and dividend tax.Because of the restrictions, most brokers offer the same range of ETFs and our assessme...
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