ZSE launches Direct trading platform with goal to get more ordinary people investing

A fortnight ago we took an exclusive look at Zimbabwe Stock Exchange’s Direct trading platform. The platform that allows ordinary folks like you and me to buy shares from our laptop and smartphone has finally been launched.

Introduction to ZSE Direct

The problem

At the launch event, ZSE noted that the creation of the platform was prompted by a survey conducted earlier this year. The survey concluded that participation by Zimbabwean individuals in capital markets was marginal. ZSE noted that the biggest barriers highlighted by participants were i) a lack of appreciation of the investment process and ii) a perception that investment is for the sophisticated.

A solution?

ZSE Direct’s mandate is therefore pretty simple. The platform is attempting to make accessing the market very simple for first-time investors whilst providing them with the “full investment process”. ZSE says this includes having your own stockbroking and CSD account.

ZSE believes the following features will make it easier for first timers and retail investors to start participating in the capital markets;

• User Interface – We 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. 

In my brief time with ZSE Direct during its beta, I did feel that the registration process and user interface where much simpler than current alternatives on the market.