The Zimbabwe Stock Exchange (ZSE) has taken a licking in recent years, but over the long-term it has proven to be one of the best places for Zimbabweans to protect the value of their savings.
But how much money do you need to open an account and get started investing there?
Minimum to Invest on ZSE
The minimum amount required to open a share trading account in Zimbabwe differs from broker to broker. Some require at least $2,000, while others have no set minimum. Invictus Securities is one broker without a mandatory minimum. (If you are aware of others, please let me know here.)
But please note, when you decide to purchase a stock you must purchase at least 100 shares per transaction.
Therefore, the minimum investment amount depends on the current price of whichever stock you intend to buy.
You can find the current price of each stock listed on the ZSE here:
Look at the “Closing Price” column in the Price Sheet to get an idea of the best share price currently available.
Don’t Forget Commissions and Fees
When you buy a stock you will also be charged 1.73% of the total trade value to cover your broker’s commission and various taxes and fees. When you sell a stock the cost adds up to 2.48% of the trade value.
Adding It Up
As I write this, there are several Zimbabwean stocks trading at a price of $0.01 per share.
Therefore, the minimum amount you can invest at today’s price is, in theory, $1.0173.
$0.01 x 100 shares + 1.73% commission and fees = $1.0173
On the other end of the spectrum, you’ll need at least $1831.74 to invest in British American Tobacco – Zimbabwe, which currently trades for $18.00 per share.
$18.00 x 100 shares + 1.73% commission and fees = $1831.74
A Word of Caution
Keep in mind that a low share price doesn’t necessarily mean a stock is a bargain. Nor does a high share price mean that a stock is overvalued.
A stock’s price must be weighed against a number of factors, including (but not limited to) the underlying company’s earnings, dividends, net assets, and potential for growth.
Where to Start?
Investing in stocks doesn’t offer a guaranteed return.
In fact, it can easily leave you with less money than you started with. And, if you’re new to investing, it can take time to familiarize yourself with different approaches to valuation and financial analysis that can improve your odds of netting a positive investment return.
So, just dip your toe in the water first. Invest only a small amount – an amount that you can easily afford to lose.
And invest first in a company that you know well, preferably one whose products or services you use regularly. Then, as your investment knowledge grows, you can invest more with increased confidence.
Do you have questions about investing on the Zimbabwe Stock Exchange? Let’s hear them in the comments.