My 2 cents wrote:https://kenyanwallstreet.com/nses-direct-investor-access-plan-sparks-broker-backlash/
Seems to me that the new CEOs idea is a good one to reduce commissions and possibly increase retail market participation. Maoni?
At 2.1% Kenya has some of the highest stock trading commissions. In some markets this is below 0.5%
Our brokers are getting in the way of something that could potentially be beneficial to them as well in the long run.
Times have changed but the brokers as still eating money for doing nothing!!!
These are not the days when brokers used to go to a hall with boards on the wall shouting to match bids and offers.
Nowadays you can put money in your MPesa transfer it to your CDS Trading account. Make orders yourself and voila!!! The broker gets the commission for doing absolutely nothing!!! If you buy shares worth 1m, that is roughly 20k. If the seller is coincidentally from the same broker, an additional 20k from the same deal.
What did we just pay 40k for? Being granted access to the system for that one transaction?? That is too steep. And coz all systems access the same thing, we don't need to be under a specific stockbroker to complete the transaction. We can have one MPesa like system anyone can access via their CDS Account number and password. I guess that is exactly what is happening at the moment actually with your broker just providing you with a customised front end dashboard.
And some characters like Dyer and Blair still charge you 1,200/= account maintenance fee!!!
Technology wise this changes are a piece of cake and a nobrainer!! The only reason for there being no change is so that some fellows can keep eating!!! We don't apply that in other industries. I remember people making money from sale of tokens!! Now that is a distant memory. Same with airtime scratchcards etc.!!!
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.