Stockbrokers are key providers of tax-free savings accounts (TFSAs). Many have put in much effort to create 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 — and have done so even though profit margins for brokers on such accounts are extremely thin at best. Investors can save up to R33,000 a year with a lifetime limit of R500,000 with all gains free of tax. TFSA regulations do not allow direct investments in listed equities but do allow for access to the equities market through exchange traded funds (ETFs). Such funds invest in a portfolio of shares and represent a cheap way to get exposure to diverse equity investment. Equities tend to be more risky than alternatives such as bank accounts, but the evidence is clear that they outperform over five to 10 years. Stockbroker accounts are also the most tax efficient, allowing investors to avoid capital gains t...

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