Low Brokerage Fees & All Inclusive Trading on ZSE
Computer or Smart phone needed to trade. Brokers to earn less as a result. New mobile App targets non participants on ZSE… THE new mobile and online trading platform, C-Trade, will reduce profits for stockbrokers as trading fees for shares listed on the main bourse made through it will be negotiable. The platform, which […]
Computer or Smart phone needed to trade. Brokers to earn less as a result. New mobile App targets non participants on ZSE…
THE new mobile and online trading platform, C-Trade, will reduce profits for stockbrokers as trading fees for shares listed on the main bourse made through it will be negotiable.
The platform, which will be launched soon, is aimed at increasing financial inclusion by allowing those with phones or computers to directly trade in shares listed on the Zimbabwe Stock Exchange (ZSE).
While people will still need brokers to directly trade shares on the ZSE on C-Trade as regulations will still apply, brokers will lose a portion of their income.
Stockbrokers’ Association of Zimbabwe vice-chairperson Arnold Dhlamini admitted that incomes would be affected but that since C-Trade is targeted at the unbanked who controlled a small percentage to the revenue earned by brokers.
He added that income would only be affected if institutional investors started using C-Trade which was an area that stockbrokers were seeking assurances from the Escrow Group that it would not happen.
“I think it (C-Trade) is good a development and that one needed to look at it as how we can enhance performance or market benefit for all players. I think that access has not been there (for the targeted market) and for me it gives more access to markets we could not reach in the past,” Dhlamini said.
“Yes, it will affect the income definitely, but I think for that cluster we were not accessing much of it that is what I am saying. It will only hurt the brokers if it then goes into your pension funds which make 80% of the income and other institutions like insurance companies if they then start using that mobile platform.”
He said the way it was designed, C-Trade was targeted at the retail market for those who were not participating in the stock market…
Read complete article: News Day
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