Ziidi Trader is a groundbreaking mini-app inside M-PESA, offering users an easy and convenient way to buy and sell shares on the Nairobi Securities Exchange (NSE) directly from their phones. For many Kenyans, access to the stock market was once limited by the need for paperwork and a separate brokerage account. With Ziidi Trader, Safaricom has simplified this process, allowing you to start investing with as little as one share and no need for a Central Depository System (CDS) account. This innovation is poised to open up the world of stock trading to a much larger audience.
If you’re looking to take part in Kenya’s growing stock market, here’s everything you need to know about getting started with Ziidi Trader.
What You Need to Know First
Before jumping in, here are some basics about how Ziidi Trader works:
- Market Hours: The Nairobi Securities Exchange operates Monday through Friday, from 9:30 AM to 3:00 PM. While you can browse and plan trades outside these hours, actual buying and selling can only happen during market hours.
- How Share Trading Works: When you buy shares, you’re purchasing a piece of that company. Your goal is to sell at a higher price to make a profit, or you may receive dividends if the company distributes them. However, if share prices drop, you may lose money if you sell for less than you paid.
- Real Shares: Once you buy shares through Ziidi Trader, they are yours. Your shares are stored in a collective account (an “omnibus account”) held by Safaricom, but your individual holdings are tracked separately. This eliminates the need for a personal CDS account, making trading more accessible.
How to Get Started
Getting started with Ziidi Trader is simple:
- Open the M-PESA app.
- Go to Financial Services.
- Select Ziidi Trader.
- Accept the terms and conditions.
- Complete the verification process.
- Confirm with your M-PESA PIN.
Remember, you must be 18 or older and have an active M-PESA account.
How to Buy Shares
To buy shares through Ziidi Trader:
- Open the app and tap Trade.
- Choose the company whose shares you want to buy.
- Tap Buy and set your price option:
- Best Price: You’ll pay whatever the lowest asking price is at that moment, making it quicker but without control over the exact price.
- Own Price: You set the price you’re willing to pay, and your order will only execute if a seller agrees to that price.
- Enter how many shares you want to buy.
- Review the summary and tap Buy Shares, then proceed to confirm with your M-PESA PIN.
What Happens After You Place an Order
Once you place an order, the money for your purchase is immediately reserved from your M-PESA account. Your order will be valid until the market closes at 3:00 PM that same day. If a seller matches your price, the trade goes through, and you own the shares. If no match is found by 3:00 PM, your funds are refunded to your M-PESA account after the market closes.
You’ll receive two notifications: one confirming your order and another notifying you whether the order was fulfilled (either fully or partially).
How to Sell Shares
Selling shares is just as simple:
- Go to Trade in the Ziidi Trader app.
- Select the shares you want to sell.
- Tap Sell, enter your price and the number of shares to sell.
- Review the summary and tap Sell Shares, then proceed and confirm with your M-PESA PIN.
Selling isn’t guaranteed — you need to find a buyer willing to meet your price. Once the sale is completed, the money goes directly into your M-PESA wallet.
Dividends
If a company pays dividends, they will be sent to your M-PESA account. To qualify for dividends, you must own the shares on the book closure date, which is the day the company checks ownership of its shares. The Ziidi Trader app keeps you updated on corporate actions, so you’ll know when dividends are due.
Fees
There are no transaction fees for moving money in and out of Ziidi Trader. However, standard trading fees and charges apply to buying and selling shares. These fees vary depending on the transaction.
What to Watch Out For
While Ziidi Trader offers a convenient platform for buying and selling shares, there are a few important things to keep in mind:
- No guarantees: Orders may not execute if there is no matching buyer or seller at your price.
- Share price fluctuations: Prices can drop, and you may lose money if you sell for less than your purchase price. The app does not offer investment advice.
- Separate from other accounts: If you already hold shares in a CDS account with another broker, those shares will remain separate from your Ziidi Trader holdings.
Getting Help
If you need assistance with the app or have any issues, you can contact Safaricom Customer Care or visit any Safaricom Shop for support.
Ziidi Trader is making stock trading more accessible to Kenyans, breaking down traditional barriers with its simple and affordable pay-as-you-go model. Whether you’re a seasoned investor or a first-time trader, this mini-app makes it easier than ever to take part in the Nairobi Securities Exchange.
Also Read:Ziidi Trader Revolutionizes NSE Trading with M-Pesa Payments Starting Next Month
