Retail Traders in Zimbabwe are Growing but watch out for Risks

Retail Traders in Zimbabwe are Growing but watch out for Risks
The participation by retail investors has grown globally significantly in the last few years. Compared to global standards, the participation by retail investors as a percentage of population is still low in Zimbabwe, but it has been growing.

Many young investors are trading stocks, forex & other asset classes to grow & protect income from growing inflation & currency risk. We looked at some factors that have & will continue to drive this growth of retail investors in Zimbabwe.
History of Trading Exchanges in Nigeria

Let’s first understand the history of the exchanges in Zimbabwe.

Zimbabwe Stock Exchange (ZSE) is one of the oldest exchanges in Africa, and was established in 1894. Although ZSE has stock listings across major industries, it is still relatively unexplored.In 2015, ZSE automated its trading system and brought an end to manual trading, further opening up the capital market to more investors.
The Victoria Falls Stock Exchange (VFEX) which was founded in 2020 as a subsidiary of ZSE offers an opportunity to trade stocks in United States dollar currency. This is intended to protect foreign investors from the currency risk associated with Zimbabwean Dollar (ZWL).

In addition, the government of Zimbabwe recently launched the commodity exchange known as Zimbabwe Mercantile Exchange (ZMX) to facilitate the trading of all agricultural commodities in the country.

Growth Factors Contributing to Retail Traders Participation

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