This step-by-step guide will show you precisely how to buy Kenyan stocks such as Safaricom, KCB, Equity, Co-op, and Kakuzi.
Whether you’re a seasoned investor or a complete beginner, this guide will help you navigate the process of stock trading on the Nairobi Securities Exchange (NSE).
Understanding the Basics: Opening a CDS Account
To buy or sell stocks in the Kenyan stock market, you first need to open a Central Depository System (CDS) account. Your CDS account is where your stocks are held and managed by your stockbroker.
Creating Your CDS Account
- Sign Up: Start by visiting the official NSE online trading platform at onlinetrading.nse.co.ke/TradeWeb101/ and click on the ‘Sign Up’ button.
- Fill in Your Data: Complete the signup form. This step is easier when done on a large screen, as you’ll need to input a lot of details.
- Receive Verification Details: After signing up, an email will be sent to you with your client code and CDSC number once the broker verifies your details.
- Log In: Enter your username and password to log in to your account.
- Dashboard Overview: Once logged in, you’ll see a summary of your investment value versus the current value of your stocks, including any profits or losses.
Navigating the Trading Platform
Adding Stocks to Your Watchlist
- Access Your WATCHLIST: Scroll to the bottom of the homepage and click on the WATCHLIST feature. This will show you a comprehensive list of all stocks listed on the NSE, identified by their short forms.
- You can search for specific stocks like KCB, EABL, KEGN, SCOM, SCBK, and BAMB. Click on the stock you wish to buy.
Understanding Market Depth
- View Market Depth: Click on a stock to access its Market Depth. This section displays crucial demand and supply details:
- Bid Qty & Price: Represents the demand quantities and prices.
- Ask Qty & Price: Indicates the supply quantities and prices.
For instance, if you see that 100,000 KCB shares are available at Sh33.50, this indicates market conditions for that stock.
Buying Stocks: Step-by-Step Process
- Making a Purchase:
- Decide on the amount you wish to buy, then click on the ‘Buy’ button.
- For the instrument type, select ‘NORMAL’ if purchasing more than 100 stocks. Choose ‘ODD’ if buying fewer than 100.
- If you want the system to automatically determine the best price for your purchase, select ‘MARKET’; otherwise, use ‘LIMIT’ for specific pricing.
- In trading mode, choose ‘INTRADAY’ if you plan to sell the stocks the same day before the market closes at 3 p.m., or ‘DELIVERY’ if you intend to hold the stocks for more than one day.
- Select ‘DAY’ for validity, meaning your order will either execute within one day or be automatically canceled if it remains pending.
Verify your order details and confirm your purchase.
Selling Your Stocks Made Simple
- Selling Stocks:
- To sell your stocks, return to your WATCHLIST.
- Select the stock you wish to sell; instead of clicking ‘Buy,’ click ‘Sell’ and follow the same steps as when purchasing.
Important Notes:
Correction: For individuals who already have a CDS account, use the above Sign Up button. If you don’t have a CDS account, look for the “Open New Trading Account” button on the platform.
Remember, investing requires ongoing education and market awareness. As you familiarize yourself with the buying and selling processes, you’ll be better equipped to manage your investments effectively and potentially achieve your financial goals. Solana Token Creator
