Meristem Stockbrokers Limited has identified issues associated with opening of account as a major factor limiting investors’ participation in online trading in the Nigerian Capital Market.
The group stressed the need for the process to be made less rigorous for an increased patronage on the platform.
The Group Managing Director of the company, Wole Abegunde, while addressing participants during the unveiling of MeriGame investment game on the Nigerian Stock Exchange, in Lagos on Wednesday, explained that it takes three months to complete an account opening process in an on line trading platform.
He argued that on line trading in the market may not record any boom, unless the account opening process becomes easier for more investors to participate.
“A number of hindrances that limits the number of participants in on line market is the process of opening account, the Know Your Customer (KYC), providing KYC on line is very challenging, almost impossible. It takes you three months to open an on line account, that problem must be solved before we can see the boom in online trading.
“Again, there is no wide spread availability of inter net connection even on the phone so you may not be able to trade on the phone do these are some of the limiting factors limiting increased participation in online trading.”
On the MeriGame investment game, he explained that the game is a platform where investors that have shallow knowledge of investing in the market can experiment trading in stocks on the NSE, using virtual fund that would subsequently be transferred into the investors account.
“You need not to fear the market provided you trade the market with knowledge and information and meriGame is providing, it is a platform that you can use to experiment trading in stocks on the NSE with virtual money, which means you are not going to lose any money and when you now get the knowledge in full, you then transfer the virtual money into trading into your money”, he added.
He noted that stock trading by oneself is generally perceived to be scary and doubt-ridden, adding that MeriGame would demystify the process while setting users up to trade real-time confidently.
According to him, the platform is the exact replica of MeriTrade platform giving access to trade all available stocks on the floor of the Nigerian Stock Exchange.
He added that users get funded with virtual funds to simulate financial capacity in real life trading as well as regular tips and recommendations to guide them in making choices on stock trading.
The Manager in charge of the investment game, Abisoye Oludipe explained that the platform has an ongoing championship game tagged ‘MeriGame Championship’ which rewards the top three winners financially with One hundred and fifty thousand at the end of each conclusive period.
“The winners of this game are the top three traders with the highest returns on the platform. The game even gets more interesting with a referral system that allows users refer people and get more virtual funds in return to increase their purchasing power on the platform.
“MeriGame also has a community forum that allows users and admin relate and get further clarifications about the platform and market trends amongst other general issues even lifestyle issues. Users get to practice how to buy stocks under real market conditions without burning a finger or finance while standing a chance to win financial reward.”