NAIROBI, KENYA: It is now possible for market-savvy investors to buy and sell shares directly from an online trading platform without going through a stockbroker.
This has been made possible by the automation of various platforms at the Nairobi Securities Exchange (NSE), linking the bourse to back office systems at the offices of stockbrokers as well as the Central Depository and Settlement Corporation (CDSC).
“One has to be one of our clients to use the platform. After opening an account with us as well as another at the CDSC, we do the usual know-your-customer procedures, issue a user name and password and then one can sign in and begin to trade,” said Mr Nkoregamba Mwebesa, the CEO at SBG Securities Limited, a member of the Standard Bank Group of South Africa.
The online platform gives clients real time access to transactional statements, portfolio valuation contract notes and order status tracking.
“This system is mainly for those who know what they are doing and have enough exposure to the market. We, however, provide tutorials for those finding it difficult to navigate the platform,” said Mr Mwebesa.
“One can create their own portfolio based on the financial reports we offer as well as media reports from both local and foreign publications.”
He added that the NSE has had a history of complaints over the conduct of stockbrokers, especially after the collapse of Francis Thuo and Nyaga stockbrokers, which went down with investors’ cash.
SECURE TRADING
“This online platform allows one to control and decide on the price of a stock and the quantity in real time. It is also secure and difficult for unauthorised trading to happen. It is also difficult for one to get unauthorised access to cash in the bank.”
Online trading is attracting mostly the younger generation of investors who are able to take advantage of the convenience of the Internet.
Commissions are negotiable depending on the size of one’s portfolio. A 2.17 per cent commission, which also includes levies to the NSE and CDSC as well as an investor compensation fund, is charged for deals worth up to Sh100,000. Amounts above this attract a negotiable commission rate.
The Standard Group Plc is a
multi-media organization with investments in media platforms spanning newspaper
print operations, television, radio broadcasting, digital and online services. The
Standard Group is recognized as a leading multi-media house in Kenya with a key
influence in matters of national and international interest.
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