New ZAR X app to drive market inclusion, broaden investor pool

JOHANNESBURG (Capital Markets in Africa) – ZAR X today took a major step toward broadening financial inclusion in the country following the official launch of its new mobile app.

The ZAR X Mobi app makes it simple and easy for anyone to access the stock market in real-time via a smartphone or any Internet-enabled device to trade in the shares of companies listed on ZAR X exchange.

“This web-based app will break down the barriers that have for so long excluded the majority of South Africans from investing in equities and will put a powerful tool for economic transformation directly in the hands of the public,” states ZAR X CEO and co-founder, Etienne Nel.

The app leverages ZAR X’s proprietary digital technology platform, which facilitates a dynamic trading process and gives the exchange a degree of flexibility and accessibility which did not exist previously “This has enabled us to continuously adapt to the shifting demands of the modern financial services sector, which is being profoundly disrupted by digital, mobile and social technologies,” continues Nel.

The ZAR X app’s interface is intuitive, and it is visually pleasing, which makes it extremely easy to navigate and use. It also removes much of the complexity associated with equity investing. For example, the app makes Know Your Customer (KYC) and FICA compliance easy, with registered users able to meet these requirements by simply taking a selfie.

Users can register as either a Watcher or a Trader and can track the value of their portfolio, along with real-time information on portfolio holdings, cash on hand and open orders in the market. They will also receive notifications via the app for placed trade instructions, matched orders in the market, new listings, cash movements and ZAPS® announcements on corporate actions.

The agility and sophistication of ZAR X’s technology platform also significantly reduces the costs associated with investing in shares via the app. Opening a trading account is free, there are no monthly account fees and transaction fees are also low, which all mitigate capital erosion.

All cash balances held in a trader’s portfolio will also earn market-related interest, and registered users can open an account and trade without any minimums. The exchange also uses the Delivery Versus Payment (DVP) settlement model, which reduces settlement costs and removes risk.

While the ZAR X exchange does not allow high frequency trading or trading in CFDs, investors are able to apply to participate in initial public offerings (IPO) for as little as R1,000 worth of shares.

“App investors will be able to watch the issuer corporate video on their phone and can apply by ticking the e-Prospectus box and depositing the required funds into their trading account. There is no need to wait for a broker to call,” explains Nel. However, all app users will have access to a broker via the platform to receive advice and assistance on any trades.

And by making it easy and convenient for previously excluded retail investors and ordinary South Africans to participate directly in businesses as shareholders, the ZAR X Mobi app – the first released by a local exchange – will give listed companies the means to raise capital from a much larger and more diversified investor base.

The ZAR X Mobi App also breaks new ground by enabling potential issuers to participate in new listings simply by using a mobile device. This significantly reduces the onerous costs and complex administrative requirements associated with listing, which restricts many small and medium businesses from accessing public markets to raise capital to fund growth. ZAR X will list companies with a market cap of R200 million or more.

“The launch of the Mobi app is a significant milestone for ZAR X and is set to revolutionise share trading in South Africa. More importantly, the app offers a new avenue through which a broader segment of society can access investment opportunities to grow their wealth, while also promoting access to capital to drive much-needed economic growth in the country,” concludes Nel.