How To Invest In Uganda Stock Market

Here is how you can invest in stock market in Uganda

  1. Pick a Stock Broker: Brokers are the authorized intermediaries to trade financial assets on the Uganda Securities Exchange.
  2. Open an SCD Account with the Stock Broker: To open a Security Central Depository (SCD) account, you need a valid ID and three passport photos. Note that the account opening is free, and there are no monthly or annual charges. In addition, the Stock Broker will provide you with access to their investment platforms, allowing you to send purchase and sale orders to the Uganda Securities Exchange’s central system.
  3. Choose the Asset in which to invest: The investor has to decide whether to invest in shares, sovereign bonds or corporate bonds.
  4. After making a decision, send a Buy order via the Stock Broker: Submitting a purchase order for a financial asset. It is possible to set a limit price or a market price of the selected asset.
  5. The transaction is completed once buying and selling prices match: When the bidding price of an asset equals the asking price, the trade executes. The Stock Broker makes the transaction payment at the Stock Exchange in your name, and they deliver the transaction amount to the buyer/seller Stock Broker. You become the legal owner of the asset.
  6. The Stock Broker issues the transaction notification and charges their fees: There is no fixed fee, so it is essential to choose the broker that better adapts to the investor’s situation when investing in the Uganda Securities Exchange.