How To Buy, Sell Shares Online At Nairobi Securities Exchange: Step-by-Step Guide

• Investing in the Nairobi Securities Exchange (NSE) allows individuals to grow wealth through share purchases, which may also yield dividends
• The first step in buying shares on the NSE is opening a Central Depository and Settlement (CDS) account through a licensed stockbroker
• After selecting a broker and funding the CDS account, you gain access to an online trading platform where you can trade live market shares

Elijah Ntongai, a journalist at TUKO.co.ke, has more than three years of financial, business, and technology research expertise, providing insights into Kenyan and global trends.

Buying shares on the Nairobi Securities Exchange (NSE) has become one of the best ways to grow wealth.

This is because apart from saving by investing in shares, one will also get dividends depending on the shares and profitability of the companies.

This guide explains the essential steps for buying and selling shares on the NSE using an online trading platform.

1. Open a CDS account

To trade shares on the Nairobi Securities Exchange (NSE), the first step is to open a Central Depository and Settlement (CDS) account, which is facilitated by the Central Depository and Settlement Corporation (CDSC).

This account allows you to hold and transfer shares electronically, making it a crucial requirement for trading on the stock exchange.

To open a CDS account, you will need to choose a stockbroker from the registered brokers on NSE.

A broker acts as an intermediary, assisting with buying and selling shares on your behalf.

2. Access the online trading platform

After choosing a stockbroker, the investor will get access to an online trading platform. Through the platform, investors will have access to live market data and can trade if their accounts are funded.

To fund your CDS account, you need to deposit at least KSh 3000 into your account for the first time; however, the subsequent deposits do not have a minimum amount.

Once your account is funded with your trading capital (not a fee), your trading platform will transition from guest status to fully activated, allowing you to start trading.

3. Access NSE online trading platform

Once logged in to the online trading platform, you will have access to all the stocks currently listed on the NSE.

The stocks are identified by short symbols, but clicking on each will reveal the company's full name and details.

4: Create your NSE watchlist

Browse through the available stocks and select the ones you are interested in and then add your preferred stocks to your watchlist for easy monitoring.

This list will allow you to track the performance of your chosen stocks and make informed decisions when buying or selling.

5. Research NSE stocks

After adding stocks to your watchlist, you can click on any of them to access their market-depth information.

This section provides a breakdown of demand (Bid Quantity and price) and supply (Ask Quantity and price) for each stock.

These figures show you the quantity of shares buyers are willing to purchase, and the price sellers are willing to accept, helping you make decisions based on market trends.

6. Buy NSE shares

When ready to purchase shares, click on the 'Buy' button next to the stock you wish to acquire.

If you're buying over 100 stocks, select 'NORMAL' as the instrument type; for fewer than 100, choose 'ODD.'

When trading, one can set their price by clicking "LIMIT" or allow the system to determine the best available price by selecting 'MARKET'.

If you plan to sell the stocks within the same day, opt for the 'INTRADAY' trading mode, but if you intend to hold the stocks longer, select 'DELIVERY.'

6. Sell NSE shares

To sell your shares, return to your WATCHLIST and select the stock you wish to sell.

Click on the "Sell" button and follow the same process used when purchasing, ensuring that the quantity and price settings reflect your desired selling conditions.

Biggest banks in Kenya

Earlier, TUKO.co.ke reported that as of July 26, 2024, 12 banks were listed on the NSE, but only 11 were actively traded except the National Bank of Kenya.

Market capitalisation (market cap) determines a company's value by multiplying the number of outstanding shares by the price per share.

Equity Group had the biggest market cap followed by KCB bank and Absa bank.

Proofreading by Otukho Jackson, a multimedia journalist and copy editor at TUKO.co.ke

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How to buy and sell shares at the Nairobi Securities Exchange (NSE).

How To Buy Shares at The Nairobi Securities Exchange - Kenyan Wall

How to Buy, Sell Shares Online at Nairobi Securities Exchange: Step-by