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Investec has introduced a new trading platform called Clarity, offering commission-free services to its clients, with an expansion to the broader South African market anticipated early next year. Clarity distinguishes itself from competitors by providing an alternative with no routine fees and exemption criteria that benefit consistent tax-free savings contributors.
The platform enables real-time trading and global investing, supporting transactions in both ZAR and USD. It caters to over 600 shares and ETFs through CFDs, with an optional margin use feature. Designed for autonomous South African investors, Clarity offers quick currency exchanges and the ability to earn interest on savings through its in-app service model, which includes live chat support.
One of the key features of Clarity is the facilitation of fractional ownership in shares via synthetic CFDs that reflect actual stock performance, including dividends, but without equity possession. This is particularly appealing to long-only investors as it eliminates overnight funding costs. The platform adjusts spreads by up to 0.20%, similar to some CFD brokerages’ implicit commission structures.
Clarity’s investment options cover approximately 150 South African and over 250 American equities, alongside selected mainstream ETFs. It also provides margin accounts for leveraged trades tied to repo rate variations, with borrowing limits depending on account specifics.
Clarity Co-Head René Grobler highlighted the platform’s affordability and transparent pricing structure, while Investec CEO Richard Wainwright credited the development of Clarity to the increase in self-directed investing since the pandemic. Initially available exclusively to Investec Private Banking clients, enrollments for Clarity are now open through its website or mobile applications from the Apple (NASDAQ:) or Google (NASDAQ:) Play stores.
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