By Albert Nangara
The VFEX has achieved significant milestones in line with the thrust of ensuring capital markets play their role in capital raising and economic revival. It recently launched an online trading platform, VFEX Direct, as it seeks to simplify the trading processes to increase retail investor participation.
Located in the resort city of Victoria Falls, the VFEX was established in October 2020 as a subsidiary of the Harare-based Zimbabwe Stock Exchange (ZSE).
The VFEX is aimed at providing a global platform for the trading of stocks in foreign currency in a way that promotes foreign investment into the country and the southern African region.
“The Victoria Falls Stock Exchange Limited (“VFEX”) is pleased to announce the launch of VFEX Direct, an online trading platform specifically designed for retail investors. VFEX Direct provides investors with an easy and convenient way to buy and sell securities listed on The Victoria Falls Stock Exchange,” read the press statement dated August 31, 2022.
From the feedback received, institutional investors have mainly been dominant in trading on the VFEX since its launch in 2020. However, retail investors would also like to participate in the VFEX. In the press release, VFEX CEO Justin Bgoni said VFEX Direct was mainly developed with retail investors in mind.
Many retail investors expressed their joy and interest in the new product and said it removed some barriers to participation. Mongezi Ndlovu, a young and tech-savvy retail investor and sophomore at Lupane State University, said they can now invest on the VFEX because the ZSE is mostly in the red these days.
“Investing on VFEX has been made easier and simpler. It’s time for us to diversify our portfolios. My ZSE portfolio has been going red and I am hoping to turn my fortunes around,” he said.
VFEX Direct can be accessible through the web portal and mobile applications (Google Play Store and Apple App Store).
Investors wishing to participate through VFEX Direct will be required to hold an FCA (Nostro) account with any Zimbabwean bank. VFEX Direct is meant to make investing in VFEX easier and simpler, and some of the key features on the platform include:
- User Friendly Interface-The platform has been made easy to use, even for a first-time investor. The key features, such as buying, selling, and topping up your wallet, are easy to navigate.
- Portfolio: A view of your portfolio that shows the holdings in your securities account as well as the portfolio’s value.
- Market Statistics: The most recent market statistics, including a market snapshot and price sheet, to assist you in tracking the market’s performance.
- Market Depth: The market depth feature shows up to 10 best orders on both the buy and sell side. This feature enables the investor to assess the status of other orders in the market and hence be able to make an informed decision on their buy or sell order.
- Price Range on Buy and Sell Tabs- The platform indicates to the investor the acceptable price range for each security.