Sebobe was invited by consultants working for the London School of Investment to attend a presentation about investing in the JSE.  They are selling their software for between R14 900 and R19 500 and claim that after their training presentation he will be equipped to trade (buy and sell shares) directly on the JSE.  “The training will only be provided once I have paid them the money. Is this not a scam? Please advise as I am tempted to invest,” writes Sebobe.

While you can learn a lot from investment seminars offered by a reputable organisation, all too often people find it difficult to absorb so much information in one sitting. You end up paying a lot for the course and then lose money when you start trading.

They may also tie you in by insisting that you trade through their platform at a monthly fee. This can start costing quite a bit if you are not trading enough to offset those costs.

A better option would be to set up an account with a local online trading platform, where you can receive ongoing assistance. Many online brokers provide education and simulated trading for beginners. Examples of these are PSG Online, iTrade and Globe Trader. Both FNB and Standard Bank also offer online trading for beginners at relatively good costs.