How to Buy Shares on Ziidi Trader

Learn how to buy shares on Ziidi Trader in Kenya using the M-PESA app. Discover the steps, costs, how to sell shares, and what you need to get started. Ziidi Trader allows you to buy and sell shares listed on the Nairobi Securities Exchange (NSE) directly from your phone using the M-PESA app.

Unlike the traditional process, you do not need to open your own CDS account or a separate broker trading account to get started.

In this guide, we explain what Ziidi Trader is, what you need to get started, how to buy and sell shares, the costs involved, and some important things to consider before investing.

What Is Ziidi Trader?

Ziidi Trader is a share-trading platform available through the M-PESA app that allows users to buy and sell shares listed on the Nairobi Securities Exchange.

The platform uses an omnibus structure, meaning the shares are held through Safaricom’s CDS and trading arrangements rather than in an individual CDS account belonging to the user. Your investment holdings are recorded and managed through the Ziidi Trader platform.

This simplifies the process because you can access the NSE without going through the traditional process of opening a CDS account and broker trading account.

What You Need to Buy Shares on Ziidi Trader

Before buying shares, you need:

• An active M-PESA account and the M-PESA app.
• To opt in to Ziidi Trader.
• Money available in your M-PESA account.
• To choose a company whose shares you want to buy.
• To understand the risks involved in investing in shares.

You do not need to complete the traditional broker onboarding process or open an individual CDS account to use Ziidi Trader, according to the supplied source.

6 Steps How to Buy Shares on Ziidi Trader

1. Open the M-PESA app and log in.
2. Go to Financial Services and select Ziidi Trader.
3. Select the Trade tab and search for the company.
4. Select the company and tap Buy.
5. Enter the number of shares, choose your preferred price, and review the charges.
6. Tap Buy Shares and confirm your order.

Step 1: Open and Log In to Your Ziidi Trader Account. Open the M-PESA app and log in. Go to Financial Services and select Ziidi Trader. You may be asked to enter your M-PESA PIN again.

If you are using Ziidi Trader for the first time, you will need to opt in and accept the applicable terms and conditions. Once you are onboarded, you can access the Ziidi Trader interface.

Step 2: Search for the Company. Select the Trade tab to view the available shares. You can scroll through the list of companies or use the search option to find the company you want to invest in. The platform displays company information, including the company name, logo, and current share price.

Step 3: Select the Shares You Want to Buy. Select the company you want to invest in. You will see options to buy or sell the shares. Select Buy to place a purchase order.

Step 4: Enter the Number of Shares. Enter the number of shares you want to purchase. For example, if a share costs KSh 20 and you want to invest KSh 200,000, you could buy 10,000 shares before accounting for transaction charges.

You can also enter your preferred buying price. Alternatively, you can select Use Best Price, which uses the best available market price at the time of the order. Remember to leave enough money to cover applicable transaction charges.

Step 5: Review and Place Your Order. Ziidi Trader will display the estimated cost of the shares and applicable charges. Review the trade summary carefully to confirm the number of shares, share price, total share value and applicable charges. If everything is correct, select Buy Shares.

Step 6: Confirm Your Purchase. Select the account you want to use for payment. The supplied source indicates that M-PESA was the available funding option at the time of the example, while other Ziidi funding options were shown as coming soon.

Proceed to confirm your order. Your purchase may be completed in one transaction or in several batches, depending on the availability of sellers in the market.

For example, if you request 100 shares but only 54 are available at the relevant price, you may initially receive 54 shares while the remaining 46 stay as a pending trade until they are matched. You should receive confirmation once your trade has been executed.

How to Buy Safaricom Shares on Ziidi Trader

To buy Safaricom shares on Ziidi Trader:

1. Open the M-PESA app and go to Financial Services > Ziidi Trader.
2. Log in and select the Trade tab.
3. Search for Safaricom PLC or Safaricom.
4. Select Safaricom PLC from the results.
5. Tap Buy.
6. Enter the number of Safaricom shares you want to purchase.
7. Choose your preferred price or select Use Best Price.
8. Review the share value and applicable transaction charges.
9. Tap Buy Shares and confirm the transaction.
10. Wait for the order to be matched. Your Safaricom shares will appear in your portfolio once the purchase is completed.

If your entire order is not matched immediately, the remaining shares may appear under Pending Trades until they are matched with available sellers.

How Much Does It Cost to Buy Shares on Ziidi Trader?

The amount you need depends on the following:

Number of shares × Share price + applicable transaction charges

For example, if a share costs KSh 20 and you purchase 100 shares:

100 × KSh 20 = KSh 2,000

Applicable charges are then added to the transaction.

Ziidi Trader displays the charges in the trade summary before you confirm the purchase, allowing you to review the costs before placing the order.

The exact charges can change, so check the charges displayed on the platform before confirming your transaction.

How to Check Your Shares on Ziidi Trader

After your purchase has been completed:

1. Open Ziidi Trader in the M-PESA app.
2. Go to your portfolio/investments section.
3. View the shares you have purchased.
4. Check the current value of your investment.
5. Check your completed and pending trades.

If an order has only been partially executed, the remaining shares can appear under pending trades until they are matched.

How to Sell Shares on Ziidi Trader

Selling shares follows a similar process:

1. Open M-PESA and select Ziidi Trader.
2. Go to the Trade section.
3. Select the company whose shares you want to sell.
4. Select Sell.
5. Enter the number of shares you want to sell.
6. Enter your preferred selling price or use the available best-price option.
7. Review the transaction details and charges.
8. Confirm the sale.

The sale may also be completed in batches depending on the availability of buyers in the market.

Conclusion

Ziidi Trader makes it easier to buy and sell NSE shares directly through the M-PESA app without opening an individual CDS or broker account.

However, understand how the omnibus structure, fees, and risks work before investing. Remember, share prices can rise or fall, so research your investments and invest according to your financial goals and risk tolerance.

If you prefer to invest through a platform that follows the traditional CDS account structure, Dosikaa is an alternative worth considering. It provides access to NSE share trading while working within the traditional framework.

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