Natasha Lloyd, Lusaka,31st March 2024 –The Lusaka Securities Exchange (LuSE) serves as a platform for trading financial instruments, including shares, sovereign bonds, and corporate bonds in Zambia.
There are a few steps to follow for one to participate on the LuSE. This article breaks these steps down.
Selecting a Broker:
To start investing in LuSE, one must first choose a certified broker from the list provided on the exchange’s official website. A broker acts as an intermediary, connecting buyers with sellers in the market. The selection process involves careful consideration of various brokers, taking into account factors such as reputation, service offerings, and fees. The LuSE website guides on the percentage fees charged by the brokers.
Opening a Trading Account:
Once you select a broker, the next step involves opening a trading account with the chosen intermediary. To initiate this process, individuals or companies are required to provide mandatory documentation for ‘Know Your Customer’ (KYC) purposes, including proof of residence, identification, a completed brokerage form, and the specified investment amount. Brokers typically charge a commission, usually a percentage of the transaction value. Upon completion of this step, investors gain access to the broker’s investment platforms.
Selecting Investment Assets:
With a trading account in place, investors must carefully decide on the type of financial instruments they wish to invest in. LuSE offers a diverse range of options, including shares, sovereign bonds, and corporate bonds. This decision should align with the investor’s financial goals, risk tolerance, and market outlook. Make sure to do your primary market research on all the financial instruments to determine which one suits you best.
Submitting a ‘Buy Order’ through the Broker:
Once the investment assets are chosen, investors can proceed to submit a buy order through their selected broker. This involves specifying the desired quantity of the chosen asset and setting either a limit price or a market price. The completion of a transaction occurs when the bidding price matches the ask price for the selected asset, leading to the execution of the trade.
Transaction Completion and Ownership Transfer:
Upon successful execution of the trade, the broker facilitates the transaction payment at LuSE in the investor’s name. The broker then ensures the seamless delivery of the transaction amount to the respective seller. At this point, the investor officially becomes the legal owner of the acquired assets.
LuSE offers individuals and companies a gateway to the world of financial markets in Zambia. We encourage you to invest and secure your financial future.
And this is it!