A new virtual platform expected to be launched later this year will enable users to trade in the Nairobi Securities Exchange (NSE), East Africa’s leading securities exchange, from the comfort of their homes.
The platform, which will allow users to set up accounts and trade on the various exchanges offered at the bourse, will ensure that more people are educated on how to trade on the exchange without being exposed to many risks faced by real investors.
The experience will come complete with advice from stockbrokers and invaluable information through a blog.
The platform will have information in terms of fliers and investors will have a helpline to enable them make most of their experience in the exchange.
The initiative will be in collaboration with the Kenya Association of Stockbrokers and Investment Banks (KASIB).
“We are going to train and then open virtual accounts for those involved to enable them have a first-hand feel of what happens at the bourse,” Willie Njoroge, CEO of KASIB, said. “The investor will be able to make decisions such as which counters to buy or sell while also consulting with a stockbroker.”
KASIB hopes that after six months of training, users will have the opportunity to translate their virtual accounts into real ones. “One will have grown their portfolio and will then be motivated to switch from the virtual account into real cash,” the company said.
The targets of this initiative will include university students and professionals, women groups, public transport operation, informal sector workers and youth organisations.
Previous initiatives to interest the public on the advantages of investing at the stock exchange include the NSE Investor Challenge organised by the NSE in association with Smart Youth Investment Limited. The challenge brings together groups of young people from universities to compete virtually to increase their portfolio value at the securities.