Bringing stockbroking service closer to investors

Through most stockbroking firms, which appear to be early birds in the retail stockbroking online service offering, investors can do deal by themselves from their comfort zones.

Leveraging the increasing use of information technology (IT) platforms, investors in Nigeria’s capital market can now place buy or sell mandates online and monitor these deals.

Among other stockbroking firms that have similar products in their offering, Capital Bancorp plc recently introduced its ‘Bancorp e-Trade’ an online platform that provides access to stockbroking services for the busy executives and upwardly mobile young adults.

The online service, which it has operated quietly for the past one year, will today be officially introduced to market participants at the Nigerian Stock Exchange (NSE), in line with the NSE efforts aimed at attracting retail investors into the stock market.

Grapevine sources say Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) as apex and self regulatory organisations in the Nigerian stock market are already considering how to regulate this growing segment of the market activity.

Capital Bancorp believes that its ‘Bancorp e-Trade’ platform encourages financial inclusion for the investing public through a user friendly and simple online interface.

Some of the features include: displays balance in any currency of choice, investors can give mandate online (buy or sell); ability to place an order at any time (including outside the NSE trading hours); ability to specify expiry dates on orders; investors can view the portfolio balance as well as their portfolio analysis; investors can check their statements of account, and they can as well view and download contract note in different formats.

Also, investors using Bancorp e-Trade can view their certificates verification status for their securities; it also streams live the stock market prices; does live portfolio valuation; investors can make amendments or cancel undone transactions; view graphs and charts, and access other online-real time client information.

“It is about the ease of stockbroking transactions from the comfort of homes or offices as you are only a click away via your handheld, portable tablet or the good old computer system. It offers 24 hours and seven days in a week access to portfolio position and cash statement of the customer. To encourage retail participation, it has an affordable start-up feature,” Aigboje Higo, managing director, Capital Bancorp, told INVESTOR.

The audit trail online stockbroking platform reduces cost, is easy to access, convenient, and provides an opportunity for investors to monitor the implementation and follow-up investment dealings at any time, he said.

“With access to internet, clients can trade in shares/bonds through their computers and mobile devices from the comfort of their homes from any part of the world. With a minimum of N1, 000, clients can trade in shares,” Higo said, while taking investment journalists through on the workings of the platform.

According to Olutola Mobolurin, chairman, Capital Bancorp, “the stock market can only be better for the Nigerian populace. Every platform like this that makes it easier for more people to access the market is of great importance. The platform is an audit trail platform which allows every transaction to be recorded. It provides for transparent transaction and deals.”

The company noted that leveraging IT, the secured online stockbroking platform makes trading in shares/bonds more inclusive, adding that it captures more of the retail segment of the market.

Also, it makes trading in shares/bonds closer to everyone because stockbroking office cannot be opened everywhere. It also stimulates savings habit among the youths – undergraduates, youth corps members, etc. It reduces the implicit (travelling and opportunity) cost of trading in shares/bonds. Because investors want transactions done as quickly as possible, time is money, they said.

Iheanyi Nwachukwu