Choosing a Stockbroker
The BSE does not recommend one broker over the other. Instead we have a stockbroker referral system in place for all broking firms registered and licensed with the BSE. We currently have Motswedi Securities, Capital securities and Stockbrokers Botswana. For further advice on this call the BSE at +267 3180201.
If it’s your first time getting involved in the sharemarket, it is highly advisable to speak to a client advisor at a stockbroking firm.
Providing personal information
Do not feel offended when a broker asks about your current financial position (such as assets, debts etc) before providing you with professional advice. He/she is obligated to do so in-order to provide you with relevant recommendations about investment options with knowledge of your specific circumstances, needs and objectives. We recommend that you physically meet your advisor in person before starting business together.
What type of services do you provide?
How do you charge for your services?
For example brokerage fees and other administration and transaction fees
How you manage my investment portfolio and how frequent do you do that?
This is highly dependent on your investment objectives and the level that you want to be involved. Quarterly reviews are advisable to review the overall performance of your shares.
How do you inform me of any sharemarket opportunities?
Demand mailed, emailed updates, research reports and other communication variables informing of opportunities
Do you conduct client lectures/workshops/seminars?
This is highly expected of from a serious broker
What level of association does you as a broker and the brokerage firm have with companies whose products you recommend?
The broker should not indicate any association unless a full disclosure is given
It is should be expected that a professional and competent broker will have an internal research department and subscribe to leading local and international finance and broking journals, and research organizations.
Placing an order with a broker
Stockbrokers usually prefer that you funds in advance before accepting your first order to buy shares. You will be required to set up a client account before you can start trading. They may require bank details for easy transfer of your funds for you purchase of funds, however most payments are done by cheque.
Keep yourself informed with what is happening in the market before placing an order, and have your broker confirm your order to you.
When placing an order, specify the amount and volume of shares you willing to buy or sell. When the broker deals on your behalf, he/she will come back to you and confirm if the price is acceptable to you. Always keep yourself abreast with market prices of your particular stock/s of interest. Note that your broker may not immediately act on your order, as it may take time for the market to be line with your limits of what price to buy or sell. However, very important to consider is that if you order is close to the market price, it will be much quicker to fill.
Paying and Settling
You need to reserve five days to enable the transfer of shares bought and sold, either by organizing payment for the stock you have purchased, or by providing access to shares you have sold.
There are several Transfer Secretaries in the Botswana market, who take responsibility of share transfers: Transaction Management, Grant Thornton Acumen, Corporate Services, RPC Data, Price Water Coopers and ABCH, just to mention a few.
Fees and Costs
Be aware that once you have engaged a stockbroker to act on your behalf and make initial investment with them, they are fees and costs that you will have to bear.
Brokerage fees are levied on any purchase or sale of shares. When buying or selling in different companies, it is considered two separate transactions. As a first step you should ask your broker/advisor for the scale of fees.
Please note there is a sliding scale of commission fees payable to brokers:
Buying P 15.00
VAT also applies in all transactions of buying and selling. Brokerage fees are standard with all Broking firms. The only difference is the level of service they each provide.
Home - About Us - Listed Companies - Brokers and Participants - Markets and Statistics - Investor Education - Guidelines to Listing - Regulatory Framework - Stock Dictionary - News and Events - Publications - Contact Us - Web Links - FAQs - Sitemap