Malawi Stock Exchange Official Logo

How to Invest on the Malawi Stock Exchange

Post was last updated: June 10, 2020

Malawi Stock Exchange Official LogoOn this page you will learn how to invest on the Malawi Stock Exchange and grow your revenue as an official investor in Malawi. This is now as good as any time to seriously consider becoming an investor in Malawi. This is a niche that is growing rapidly and it is one of the best performing stock exchanges in the SADC region let a lone Africa. The Malawi Stock Exchange is still “small” compared to the other SADC members own exchanges but that simply means it is growing. It’s always better to invest early in something, than late and this is no different. Follow this simple guide and you can become an investor in flash.

Steps to investing in Malawi Stock Exchange

#1. Find yourself a broker

A stockbroker is the investors link with the Malawi Stock Exchange. A stockbroker is a licensed firm which buys and sells shares and securities on behalf of investors for a brokerage fee or commission. Stockbroking is a personal service, so before you begin, talk to the brokers to find out what services they offer. Your choice of broker will depend on what type of service you require.

You will then need to provide the following documents so that you can open your trading account:

  • A certified copy of your passport or national ID.
  • A recent bank statement for the account that will be your source of funds.
  • Proof of your residential address, you could bring a recent utility bill(escom or waterboard bill).

#2. Fund your account

After you open your trading account, your broker will provide you with its bank details so that you can send funds. The most efficient way to do this is via online wire transfer or using mobile money platforms like Airtel money or TNM Mpamba for a smoother transaction.

#3. Choose which company to invest in

A potential investor should decide whether he is interested in regular income or long-term capital appreciation. This decision will assist your broker in recommending whether your decision to invest on the Stock Market is suitable for your need. Remember the actual day-to-day behavior of share prices is governed by the law of supply and demand. Every buyer has his own reason for preferring one security over another.

#4. Place your order by buying shares/securities

After you have decided which companies to invest in, guided by your stockbroker, decide the price you are ready to pay for each security and the number of securities your money can buy.

#5. Always monitor your investments

You need to make it a habit to watch your investments and make sure they are growing and keep up to date by reading the Malawi Stock Exchange news on their official website, and of course by visit us here each week for more news relating to investments in Malawi.

Video example of how to invest in MSE

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