ZSE Direct
The Zimbabwe Stock Exchange Limited (“ZSE”) announced the launch of a new platform, specifically designed for the retail investor, dubbed ZSE Direct in September 2020.
ZSE Direct, an in house development, aims to provide retail investors with a smart way to manage their ZSE investments and view their CSD holdings remotely. ZSE Direct will complement the platforms already available in the market with the aim to provide more choice for investors.[1]
Background
The plans to launch ZSE direct were prompted by a survey commissioned in the first quarter of 2020, which indicated that participation by individual Zimbabweans on the local capital market was still marginal. Some of the barriers cited included lack of appreciation of the investment process and the perception that investment is for the sophisticated. ZSE Direct is meant to make accessing the market very simple for first time investors but yet allow them to experience the full investment process of having their own stockbroking account and their own CSD account. Only Zimbabweans with valid IDs and Zimbabwean bank accounts were able to register on the platform in the initial phase. The minimum initial investment to be made through ZSE Direct was ZWL$500.
How it works
ZSE Direct is accessible through the web portal (www.zsedirect.co.zw) and in due course a mobile application will also be launched. The platform is connected to one of the commercial banks and allows investors to fund their wallets through Zipit or RTGS transfer. The platform is also connected to Ecocash and allows investors to fund their trading wallets directly from their Ecocash wallet.
Features
As highlighted, ZSE direct is meant to make investment easy for retail investors. Some features to achieve that include:
User Interface They have made the platform easy to use, and the key features such as buying, selling and checking your balances are easy to find and navigate.
Your Portfolio A view of your portfolio indicating securities in your CSD account as well as the valuation of that portfolio.
Market Statistics Latest market statistics that include the market watch, top movers and the Indices to help you track the performance of the market.
Market Depth The market depth feature shows up to 10 best orders on both the buy and sell side. This will enable the investor to quickly assess the status of other orders in the market and hence be able to make an informed decision on their buy or sell order.
Price Range on Buy and Sell Tabs Given that the market operates on circuit breakers, the platform will indicate to the investor the acceptable price range for each security.
Tutorials To assist investors on how to use the platform, content has been created on how to register, buy and sell on ZSE Direct through the ZSE Youtube channel. The platform also has links to the ZSE Training Institute which will provide further education to potential investors.
Going forward the ZSE will continue to explore initiatives that promote financial literacy and deepen the Zimbabwean capital markets.
