The Zimbabwe Stock Exchange yesterday launched an online trading platform that is named ZSE direct. ZSE direct allows people to trade directly through a web browser system on any internet-enabled device. It brings the advantage of real-time data and ease of operation. This adds another platform to the existing broker channels and Ctrade which were the avenues available for investors.
The Zimbabwe Stock exchange has been very ambitious in 2020 and though derailed in 2020 first by the COVID-19 pandemic and then buy closure of the exchange for a little over a month, they seem to have regained momentum and are pushing towards opening up space and encouraging more business. Earlier in the day, the exchange hosted a virtual meeting to discuss ways to improve liquidity on the Zimbabwe Stock exchange.
The traditional and still the most popular way of dealing on the ZSE is through brokers. Whilst brokers are favoured for the additional information and analyses they provide the process has several obstacles such as minimum transaction thresholds and a time lag when auctioning for a trade. One would have to deposit money into the broker’s account. Great if you are working through platforms like ZIPIT but may be delayed if you are transferring from a bank.
C-Trade shook things up by offering a simplified method that allows you to trade via web browser, Android & iOS mobile apps and even USSD. Ctrade also reduced the minimum transaction threshold to just $100 (US and then Zimbabwean). This seriously opened up the market and provided access to more people than the broker channel. Trades done via Ctrade still go through a broker but this has little impact on your operations. Depositing money is much quicker through them and transacting faster.
ZSE direct is not the next step. It is, so far, a bare-bones version of Ctrade. Without the mobile app or USSD functionality, there is still some distance to cover. What ZSE Direct does offer is real-time data which would facilitate faster trading. With more market participants with real-time data, there is certain to be more activity. On this platform, you still go through a broker who you nominate when you register unlike on CTrade per transaction.
The sign-up process is very simple and you will find instructions via their youtube channel or go the ZSE Direct website and proceed with registration. Just have a copy of your ID in jpeg or png format ready to upload for KYC purposes. The registration takes a few minutes.
While we welcome the move from the ZSE to improve flexibility and access to the market we have not forgotten the other promises made for this year include Options, Exchange Traded Funds and Real Estate Investment Trusts. It’s pleasing to see proactivity from Justin Bgoni and team and a realisation that people need more solutions to access the ZSE.