December 15, by Ryan Hoover Comments.

The country was my first Sub-Saharan investment destination, and the experience was so positive that it prompted me to explore other African exchanges.

My broker patiently walked me through the process of buying shares, provided some helpful research, and, perhaps most importantly, instilled a sense of confidence that my transactions would be handled professionally.

I maintain an account with Stockbrokers Botswana and have found them to be responsive to questions from small, retail investors. This article describes the process of opening an account and trading through them. Photo by Columbus GV Team Motswedi SecuritiesCapital Securitiesand African Alliance also trade on the exchange, and the process of opening an account with them would be much the same. At press time, however, I had not received responses to my account opening queries from any of them.

The Botswana Stock Exchange dematerialized all stock share certificates in and set up a Central Securities Depository CSD that records the ownership of securities in electronic accounts. This dramatically improved trading efficiency. The only drawback is that it added one additional form for new investors to complete. Complete the CSD Securities Account Opening Form and return it to your broker. You will then be assigned a CSD account number. This number will accompany every trade order you place, allowing the CSD to keep record of all your holdings in the country.

After opening your trading account, Stockbrokers Botswana will provide you with its bank details so that you can fund your account. The most efficient way to do this is via wire transfer. If you have opened an account with Stockbrokers Botswana, you need only complete, scan, and email a Trading Mandate Form to their trading department.

Keep in mind that many listings on the Botswana Stock Exchange are nearly as illiquid as the Kalahari itself, so I advise specifying a limit price for all of your orders. This will help you avoid paying significantly more for your shares than you had intended to pay. Your broker will then execute your trade and send you a contract note that specifies the buy or sell price, commissions, and fees.

This is deducted by the issuing company before the dividend payment is made. Investors can request that dividend payments be deposited directly into their trading accounts, thus avoiding the hassle of opening a local bank account.

The process of opening a foreign brokerage account can be confusing. Botswana Stock ExchangeHow to Invest in Africa. March 18, at 6: September 24, at 9: December 11, at 5: December 11, at I followed up one of the links above and it directed me to the botswana stock exchange table analysis of shares and my problem is that is not easy for me to interpret the table please help!!!

May 20, at 8: May 20, at Thanks so much for the feedback, Pako. July 24, at 5: How do I do that at this stage? July 29, at 9: In order to buy shares you will need to open a trading account with a stockbroker. You can do that by following the steps in the article above. March 29, at 2: Wish to learn how much interest is earned in shares?

And how to way my risks while investing in shares. May 5, at 3: My email address is zwai tlotsitsweholdings. May 7, at December 9, at 4: My question is, what do you look at when choosing a company to invest in?

Sales, volume, or what? May 15, at 9: How do I choose a company to invest in? Which is the most reliable and affordable at start? I am in Lesotho. May 15, at 1: Also, make sure you understand how the company makes money. What kinds of products or services does it sell? What factors determine its profitability?

Does it have any advantages over its competitors? You can also ask your broker which shares they would recommend for long-term investors.

Good brokers should be able to steer you in the right direction. I hope this helps, and stay tuned. I plan to post some more articles for beginning investors soon! September 13, at 1: September 15, at 1: May 26, at 2: January 8, at 4: I have opened an account with a stockbroker. What should I do now? I want to buy shares in one of the listed companies.

August 7, at 1: To invest do I need to be carrying a lump sum of cash and can I do it online not necessarily having to go to Gaborone? Assume I have P, can I invest it? Moreover is there a way of investing kind of paying the money in monthly installments of around P monthly for a year.

I want to invest. You can open an account online through a broker like Stockbrokers Botswana. I believe they will open an account for you for BWP Their minimum trade amount however is shares. So, if you plan to invest with them immediately, you will need to purchase a stock with a share price of less than P8.

Adding a set amount like P every month is a good strategy. The problem is that it might become expensive wiring money to Gaborone. September 18, at 9: Assuming I have shares in a particular company and want to sell part of my shares to buy stock or get cash, what exactly am i supposed to do? September 18, at You will need to open a trading account with one of the brokers listed in the article. They will assist you with executing trades and disbursing your cash.

The broker will walk you through the process of doing this. September 23, at September 24, at The brokers listed above can assist you in opening an account and transferring funds. October 23, at 5: Can you please assist with that? October 24, at 3: Hi Thabo, Do you mean investing outside of Botswana?

February 17, at 9: June 10, at 5: Tebatso O maotwe says. November 1, at I have just developed this interest in buying shares, and I would like some clarification on this issue. November 5, at 5: Do you have a specific question, Tebatso? Otherwise, I suggest contacting one of the brokers listed above to clarify the investment process. November 20, at 3: November 20, at November 21, at How do I invest in international stock such as in Europe, USA and China while in Botswana?

November 27, at I would try Scottrade, ETrade, or TDAmeritrade. November 24, at 3: Hi Mpho, There is not an age requirement to invest on the Botswana Stock Exchange. So, if you have a brokerage account, you may buy and sell shares. December 3, at Is it possible to buy shares at any time of the year?

What is the minimum price of shares that a person can get? Yes, it is possible to buy shares throughout the year. In theory, the lowest possible value of a share is 1 thebe. Brokers require their clients to purchase in lots not less than shares. In practice, however, most shares are priced above 1 pula per share, so the minimum trade value is typically well over P December 4, at 5: December 4, at Shares trade hands constantly.

Unless they are participating in an IPO, investors buy shares from other investors who wish to sell them. Therefore, there are typically always shares available to buy, because there is almost always someone who is willing to sell. December 5, at 3: December 5, at 8: First, you will need to see the latest price sheet. You can find that at this link: This shows the most recent price that all stocks traded at. As of December 5, the most recent price for Choppies was thebe. Therefore, you can purchase roughly shares of Choppies with P FNB last traded at thebe.

So, P can buy you approximately shares. Note, however, that share prices are fluid. They can go up or down from day to day. Be aware, too, that your broker will charge a commission for each trade. December 13, at 6: Where can you get the historical price for Botswana shares? I want to do some analysis before I invest. December 15, at 9: Hi Sam, Bloomberg www. I have already opened an account with one of the local brokers. Before I buy shares of say LETSHEGO OR FNBB, where can i get their quarterly results?

Something similar to what Yahoo! Finance provides with regards to financial news and company results. January 17, at 4: You can find quarterly results for Botswana here. January 8, at 7: I have opened an account with a stockbroker, and now I want to know what to do so that I can buy shares in one of the companies listed.

Congratulations on opening an account, Mogi! Investing does involve risk, so make sure to only invest money that you will not need for several years.

February 20, at 6: Hi, I found a job as a finance manager at a company based in Gaborone. It gave me the task to find ways of investing these funds on the Botswana Stock Exchange and which securities it can invest in. The current management does not understand how the BSE works nor which companies are listed on the exchange. I want to know the procedures for investing in a listed company. February 20, at 9: I am trying to open an account with Stockbrokers Botswana Ltd.

What is the difference between bonds and equities and which one would you recommend to someone who is new in the investment industry?

February 25, at 9: March 29, at 6: If you would like to learn to analyze stocks professionally, I highly recommend the curriculum offered by the CFA Institute http: April 10, at 8: I currently stay in Wales, and I have been thinking of investing some of my pocket change by buying shares in Botswana. April 28, at 7: I would try emailing Stockbrokers Botswana www. The process should be pretty straightforward.

FAQs « Zimbabwe Stock Exchange website

I would, however, count on investing a larger sum. Wire transfer fees, which will be required in order to fund your account, can be costly. They are charged at a flat sum and might even equal 10 pounds per transfer. April 12, at 7: Buy atvam stock 13, at 9: Dividend yields vary from stock to stock. If you bought P worth what were the effects of the stock market crash in 1929 shares in one of these companies, your dividend would be about P per year.

Dividends in most forex gold trading tips Africa are usually paid on an annual or semi-annual basis — not quarterly. June 13, at 5: Is the P per year standard or depends on the stock value at the end of a FY? This is not motivating at all for a starter like me. Investing that much money to get a dividend worth a restaurant meal?

June 14, at 4: The P was just an example. It may be higher or lower depending on the stock, its performance, and how large an investment you make. Basically, you can think of dividends as a portion of earnings that a company pays to investors as a sort of reward for investing in the company.

June 17, at 6: Thank you so much for your response and continued commitment in helping novice starters like me. Keep up the good work with your blog, I found a lot of information useful just on this binary options 200 bonus guide. June 18, at July how to get more tix on roblox 2016, at 6: My question is how many shares roughly can I get from them for that precise amount of money?

July 8, at The short answer to your question is that it depends on the price of the to start trading binary options that you want to buy. The current exchange rate for the pula is approximately P8.

So, after wiring money you will have about P43, Next, you will choose a stock and ask the broker to invest all of the funds available in your account P43, When you make a trade the cost of fees and commission will be deducted from your available funds. These costs amount to 2. Deduct this and you are left with P42, available for the purchase of shares. Letshego shares are currently selling at a price of P2. So to determine how many shares you can buy, you divide P42, by P2.

You will arrive at a figure of 18, shares. If I buy choppies shares at P 3. Let me say I bought shares my profit gain is 4. July 29, at 4: You have discovered the art of investing, Merapelo. The market will not compel you to sell. You must judge whether you think the price has gone too high or could still go higher. If you think it has gone too high, you may want to sell and reinvest in a better-priced share.

August 6, at 4: I would like to buy shares from the Botswana Stock Exchange but I do not know how to get about it. September 1, at 4: Is there something like an index fund whereby I can invest in the whole exchange at once or a least a good number of companies? Also, are there index funds that are organized to promote social aims or at least avoid destructive results in Africa?

I would be interested in something socially responsible and diverse, which put dividends right back into the index fund. I am small-scale but thinking long term. Estrategia muy rentable forex 9, at There are an increasing number of funds that allow US investors to gain exposure to African markets.

At the barclays fantasy stock trading, none of them are explicitly socially responsible, but some invest less in mining and oil exploration than others.

September 6, at 5: Hi Ryan, Thank you for the info. September 8, at 4: Buying stocks can be a little frightening at first because of the level of risk involved.

One way to reduce this risk is to avoid putting all of your eggs in one basket. Invest in several companies — not just one.

Home - Lynton-Edwards Stockbrokers

In fact, in Botswana, where commissions are charged on a percentage basis, you can invest in 10 different companies without paying any more in fees than if you had invested in only one. So, diversify your investment, and as your knowledge of the market grows, you can begin investing larger sums in companies that look to be better bargains.

As far as how much zse stock brokers invest, I would suggest only investing that money that you can invest in shares and not touch for five years or more. Stocks are not guaranteed to increase in value, so only invest money that you can afford to lose. October 1, at 7: Weekly options last trading day do you lose in stocks?

How does a fall of share price result in loss and can you lose without a stock market prediction model using artificial neural network October 4, at 6: Your losses and gains are only locked in when you sell a share of stock.

Before you sell, the value of your shares can rise and fall. This can cause real damage to a portfolio. November 20, at 8: Interested in buying shares, just curious on what I should look out for and how much would be a good amount to buy decent shares?

December 5, at 5: Which of these yields better returns, trading in stocks or saving your money in an interest earning account? December 14, at May I ask you two questions on the subject? How big is the currency-risk related to US-dollars? I have seen that there is not very much trading going on compared to big markets. Will I always find a counterparty that is willing to trade? January 30, at 1: February 11, at 1: Are you able to offer advice on buying, new shares by analysing the current market especially for someone who already has some shares and wishes to buy more.

February 11, at 3: I generally hold my favorite stocks pretty close to my vest, but I am stock option reporting on 1040 a premium service that would highlight African companies that I believe exhibit exceptional value. March 3, at 5: March 3, at Brokers are companies licensed to trade shares on the stock exchange. March 20, at 7: I am interested in invest but first i want to understand the procedures to be followed, what is needed and how much do i need to invest.

March 26, at 8: Can you help me how do i buy shares from Johnsberg Stock Exchange. March 27, at April 17, at 9: I have just seen this this website now its very educating about investing in shares.

April 19, at 7: The author is a Nigerian who invests in the USA via Hpq stock buy or sell Banka Danish brokerage firm. Hey Ryan,i am very much interested investing in shares bt i dnt earn much salary so is it possible for me to invest p monthly installments for a year and is there any amount i shud pay when openning an account with a stockbroker?

Yes, it is possible to invest P per month on the BSE. There is no fee or minimum amount that you must pay in order to open an account with a broker.

However, when you decide to purchase shares, you must purchase at least of them. That means if you are only investing P You can only buy shares that are trading for P5,00 or less.

If you want to purchase a stock with a price higher than P5,00, you can always save up for another month or two before depositing into your trading account. April 17, at April 18, at 5: If you are Zambian, I would advise that you first invest in Zambia. I say this because you will be more familiar with the companies listed on the exchange, and will, perhaps, have a better sense of what their advantages and opportunities are.

April 28, at 4: Hi Ryan, Thanks for the help. I am very passionate about investing in Botswana. I researched the companies, and I have seen some opportunities. Being in a SADC country like Zambia, do I still have to wire my money or can I just deposit it in their bank account? April 30, at 1: Unless you already have a bank account in Botswana or are traveling there in person, I believe you will need to wire money in order to fund your brokerage account. May 2, at 1: How productive can shares of as little as P be, and is it advisable to venture into this at the age of 20?

May 6, at 3: Performance varies greatly from share to strategy for victory in binary options trading. Some may double or even triple or quadruple in value over a few months or years. But remember that they can also decrease in value.

So, never forget that there is an element of risk to investing in shares. Most shares also pay out a small dividend. Keep in mind that this is just an example based on recent averages. In that case, the value of your shares would be P after one year P x So, in answer to your second question, age 20 is not too young to begin investing in shares, but make certain that you understand that you are investing in a risky asset that may end up losing money.

I always advise people to first save an emergency fund equal to at least six months of living expenses before investing any money in shares.

May 8, at 1: May 8, at 2: Hi Ryan, I would like to know whether it is better to invest in shares or to invest in bonds and why? June 20, at 5: Thank you so much Mr. Hoover, it was so informative and now i know it is not as difficult as i had assumed. The only question i would like to ask, is, how much does it cost to open an account with the stockbrokers?

Hi, again, i forgot to ask about paid-up shares, i have heard that Botswana Building Society offers such and i would appreciate if you could share that with us as well.

June 25, at 3: I learnt everything i needed to knw just by reading the thread of comments and id like to thank you Mr. July 26, at 2: Hi I want to know that can I invest money at botswana maybe August 25, at 5: I am more interested in bonds than shares so what i want to know is if maybe i save P10 for 6 years roughly how much interest will i make? September 5, at 8: Hi Ryan, First of all, great article its been very helpful. Like everybody who wrote here am also interested in investing however, am very impatient.

I want to make large profit qucikly. Do u think buying and selling shares is the right path for me? September 5, at 3: The most successful investors buy shares of good companies at a fair price and hold on for the long-term. September 23, at 6: Thanks for sharing such rich info wth us. Can you advise on the best companies to invest on. Are there any fees for application process? September 29, at October 3, at 2: October 27, at 3: Hey Ryan im curious about investing and ill like to know more bout it.

Can you invest for a short time just to get profit for your investment money. October 30, at 9: They also say i should invest more money like maybe p for example.

November 30, at 8: And tell mi how am I going to benefitsuppose I had P I bought shares on januarydecember how much money I would have. December 1, at Unfortunately, one can not estimate the return you might expect with certainty. If that was the case over the next year and you invested in a stock that paid out P Keep in mind, however, that this is just based on recent averages.

Your actual return might end up much lower or much higher. December 27, at 4: December 30, at 2: Three exchange traded funds ETFs and a number of government bonds http: January 7, at 7: Thank you so much for your article, it has really shed some light on something I have long been interested in. My question is; What if I am interested in buying up shares in a particular company not for the sole purpose of later cashing in when the share price goes up, but just for enjoying dividends.

Can I continue to keep on buying up shares in that same company as and when I get more funds, especially if the forecasts show that the company is headed for continuous growth over the next decade or so? January 7, at You may continue to buy shares for as long as someone else is willing to sell them to you.

February 5, at 9: March 24, at 7: Tebo Nthati Monageng says. May 14, at 8: I want to start off by buying shares worth of BWP,00 at the Botswana Stock Exchange. August 23, at 3: I am interest in investing in shares but people always discourage me that they are risk and they take time for you to get the reward. Should give up or i do more research on them and learn more about them.

I sometime ask them at bse how they make money and explain to me that if you buy lets say letshego at 2. August 24, at On average, however, stock markets have been the best place to invest money over the long-term. In fact, the only requirement is that you have sufficient funds to pay for shares of stock.

But I do strongly advise that you first pay off any high-interest debt and save up an emergency fund in the bank. Here are a couple articles that might be helpful in this regard:. The other component of your investment return is dividends. Many companies, including Letshego, pay out a portion of their earnings to shareholders on an annual or bi-annual basis. Note, this amount can fluctuate or even disappear from year to year. Letshego, paid dividends amounting to So, if you bought shares and that dividend remained at the same level this year, you would receive a total of P September 29, at 6: September 29, at 7: October 21, at Hi Ryan, i want to say thank you for the article and your responses to the various Questions.

Now i want to ask. What is closed-end mutual fund and is such an investment medium available in Botswana? April 11, at 5: Hi Nelson, Investors on the BSE can take long positions on listed stocks. There is also a rather illiquid bond market. July 20, at 8: HI boss long time i wanted to invest in united kingdom while in africa is it possible for me to invest and howe can i be sure that the security is tight. Your email address will not be published.

My name is Ryan Hoover, and I'm an investment analyst and writer with a passion for African stock markets. Articles African Stock Markets Performance Botswana BRVM Ghana Kenya Malawi Mauritius Mozambique Namibia Nigeria Rwanda South Africa Tanzania Uganda Zambia Zimbabwe Newsletters JSE Share Advisor KenyaVestor Stock Scout About Login.

Investing in Africa A Field Guide to Sub-Saharan Stock Markets. Home JSE Share Advisor KenyaVestor Contact. Complete and Return the CSD Securities Account Opening Form The Botswana Stock Exchange dematerialized all stock share certificates in and set up a Central Securities Depository CSD that records the ownership of securities in electronic accounts. Provide Two Certified Copies of Your Passport One copy of your passport will be kept on file by your broker.

The other will go to the CSD. Wire Funds to Your Brokerage Account After opening your trading account, Stockbrokers Botswana will provide you with its bank details so that you can fund your account. Further Reading — How to Invest on the Zimbabwean Stock Exchange — How to Invest on the Nairobi Stock Exchange. Comments ontiretse says March 18, at 6: After you purchase the shares, no further investment is required.

Hi Chika, In order to buy shares you will need to open a trading account with a stockbroker. Hi, Wish to learn how much interest is earned in shares?

Firstly, thanks a lot for this info. All the best, Ryan. How do i start buyin shares. The requirements and all that? Hi Dimakatso, The only real requirement is that you follow the steps in the article above. After that, you should be good to go and ready to buy shares! All the best to you! Hi Kago, You will need to open a trading account with one of the brokers listed in the article.

Hi Somolekae, have you invested offshore? Cause I want to ask you something about it. Is it possible for me to buy shares without using a stock broker? You must open an account with a stockbroker in order to buy and sell shares. Is it possible to buy shares if you are a tertiary student? Ryan I have already opened an account with one of the local brokers. Thank you in advance. Hey One, You can find quarterly results for Botswana here.

Hi, I also want to invest at the BSE. Where can I learn how to trade stocks if I want to make it a business? Hi Ryan I currently stay in Wales, and I have been thinking of investing some of my pocket change by buying shares in Botswana. Hi Kary, I would try emailing Stockbrokers Botswana www. Hi Albert, Dividend yields vary from stock to stock.

Hi Ryan, Is the P per year standard or depends on the stock value at the end of a FY? Hi Itumeleng, The P was just an example.

Hi Ryan, Thank you so much for your response and continued commitment in helping novice starters like me. Thanks a million, Itumeleng. Keep me posted on how things work out for you!

Hi Thulani, The short answer to your question is that it depends on the price of the share that you want to buy. Hi Thabang, Have a read through the article, and let me know if you have any specific questions. This is an interesting site. If there a pan-African index fund? The following post provides an overview of a number of funds with significant African holdings.

Hi Lebo, Buying stocks can be a little frightening at first because of the level of risk involved. Hope this helps and keep us posted on how things go for you! Thanks for your answer in advance! Hi Kgogobi, I generally hold my favorite stocks pretty close to my vest, but I am contemplating a premium service that would highlight African companies that I believe exhibit exceptional value.

Hi Anon, Brokers are companies licensed to trade shares on the stock exchange. Hi Lorato, Yes, it is possible to invest P per month on the BSE. Hi Moonga, If you are Zambian, I would advise that you first invest in Zambia. Thanks for the great questions, Thabo. Thanks so much, Rithu. I appreciate the feedback and question. I am on my way to the brokers.

Let us know how things work out for you! Hi Baganne, The omang should suffice for opening a brokerage account in Botswana. I would like to know if mutual funds and treasury funds are traded on the BSE?

Hi Ludo, Three exchange traded funds ETFs and a number of government bonds http: Hi Ryan, Thank you so much for your article, it has really shed some light on something I have long been interested in. Hey Ryan, You sure can. Hi Ryan, I would like to know the benefits of buying shares. Here are a couple articles that might be helpful in this regard: Good questions and hope this helped!

You must purchase at least shares of stock. Leave a Reply Cancel reply Your email address will not be published. About Me My name is Ryan Hoover, and I'm an investment analyst and writer with a passion for African stock markets. Free Updates Join over readers who get new articles delivered right to their inbox.