How to trade on the Ghana Stock Exchange?

Key takeaways

• To start trading on the Ghana Stock Exchange, you need a licensed broker and a Central Securities Depository (CSD) account.
• You can begin investing with as little as GHS 100–200, purchasing shares from various companies to diversify your risk.
• Profits come from two primary sources: dividends (when companies share profits) and capital gains (when you sell shares at a higher price).

Trading on the Ghana Stock Exchange is no longer reserved for big institutions. Today, any Ghanaian with a mobile phone and some extra cash can start investing.

What is the Ghana Stock Exchange?

The Ghana Stock Exchange (GSE) is the country’s central securities market where companies’ shares are traded.

Currently, there are over 37 companies listed, including MTN Ghana (MTNGH), GCB Bank (GCB), Ecobank Ghana (EGH), CAL Bank (CAL), TotalEnergies Ghana (TOTAL), Benso Oil Palm Plantation (BOPP), and Fan Milk Ghana (FML).

The exchange has two markets: the Main Market, for large, established companies, and the Ghana Alternative Market (GAX) for smaller and growing businesses.

Trading takes place from Monday to Friday (working days only), between 10:00 AM and 3:00 PM.

To understand how the GSE works, it helps to know a few key terms:

• Shares: Represent part ownership of a company. The more shares you own, the bigger your stake.
• Dividend: Money a company pays its shareholders from its profits.
• Capital gains: Profit made when you sell a share at a higher price than you bought it.
• Broker: A licensed middleman (usually a firm) who helps you buy and sell shares on the GSE.
• IPO (Initial Public Offering): When a company sells its shares to the public for the first time.
• Market price: The current price at which a share is traded.
• Portfolio: The collection of shares (and other investments) you own.

How to buy shares in Ghana?

To purchase shares in Ghana, follow these steps:

Step #1: Choose a licensed brokerage firm

You cannot trade directly on the GSE; instead, you must go through a licensed broker.

When choosing a broker, consider their reputation and track record, trading fees/commissions, and whether they offer online platforms or apps for easy trading.

Here are some popular Licensed Dealing Members/brokerages on the Ghana Stock Exchange:

To sign up on IC Securities, for example:

1. Visit the IC Securities website.
2. Click on Register.
3. Select account type (Individual or Institution).
4. Fill out the form and click Create Account.
5. Verify your email and mobile number for two-factor authentication.
6. Complete your personal, financial and ID information.
7. Read and accept the Disclaimer.
8. Review your information, and if you’re satisfied, click Complete Onboarding.

That’s it! Your account has been created.

Step #2: Get your Central Securities Depository (CSD) account

Before you can buy or sell shares, you need a CSD account. This is like a bank account, but for stocks/shares, which stores your shares electronically. Once your CSD account is ready, your broker will send your CSD account number.

To apply for a CSD account, you’ll often need:

• A valid ID (Ghana card, passport, or voter’s ID)
• A utility bill
• Tax Identification Number (TIN)
• Passport photo

To create a CSD account on IC Wealth:

1. Log in to the IC Wealth app (available on both Android and iOS).
2. Tap on TradeLive.
3. Tap the box that says “Continue with your existing CSD account or tap to Create on Here.”
4. Add a mobile money wallet or bank account.

Note: The mobile money wallet or bank account will be linked to your CSD account, and anytime you trade, money will be debited or credited to the account.

5. Select your investment horizon, objective, and knowledge.
6. Click on Next.
7. Select your Risk Tolerance level and upload a photo of your signature.
8. Tap on Submit.

The CSD account will be approved within two days to four weeks.

Step #3: Fund your account

Once your account is set up, deposit money into your brokerage account through mobile money or a bank account.

If you’re using IC Securities,

1. Log in to the platform.
2. Go to Tradelive.
3. Select Add Funds.
4. Select Tradelive Portfolio, enter the funding amount, then the payment type.
5. Submit and authorise payment.

You’ll receive a notification of a successful deposit and a deposit receipt via email. Alternatively, you can use the bank deposit details provided for both Ghanaian cedis and US dollars.

Deposits are usually reflected in your account a few minutes after the transaction. Bank transfers, however, may take up to three working days.

Remember: Deposits are free at IC Securities; however, other brokers may charge a fee.

Step #4: Place your order

It’s now time to start buying and selling. Do your research on the listed companies and place a buy order through your broker to purchase shares. Your broker executes the trade on your behalf.

This is how to place a buy order on IC Securities:

1. Log in to the platform.
2. Go to Tradelive.
3. Select Buy on the company whose shares you want to purchase.
4. Enter the number of shares you want to purchase and select Proceed.

You’ll receive a notification confirming the successful receipt and execution of your order.

The time required to complete the order depends on the availability of the shares. When the order is complete, its status will change from “processing/pending” to “complete.”

It takes approximately three working days for a completed order to be reflected in your portfolio.

#5: Withdraw investment or profit, or reinvest

When your shares gain value, you can sell them for profit. If you purchased shares of a company that pays dividends, you’ll receive your dividends in your bank account (or mobile money, if applicable).

These dividends can be withdrawn as cash or used to purchase additional shares.

Benefits of trading on the Ghana Stock Exchange

Here are some benefits of investing in the GSE:

• You become a part-owner of companies like MTN, GCB, or TotalEnergies.
• Dividends can provide passive income.
• If share prices go up, you can sell for a profit.
• Long-term investing grows wealth steadily.
• The GSE is regulated by the Securities and Exchange Commission (SEC), making it a safer investment option than unregulated options.

7 tips for beginners

Keep these tips in mind as a beginner on the GSE:

1. Start small and invest only what you can afford to lose.
2. Always use SEC-licensed brokers.
3. Always research companies before buying shares.
4. Think long-term; stocks grow best over years, not days
5. Diversify your portfolio. Buy shares from different companies and sectors. This way, if one company performs poorly, others can help protect your money.
6. Reinvest dividends to build wealth faster.
7. Stay with GSE news, annual reports, and company announcements.

Risks to know

Before getting started, be aware of these risks:

• Share prices can fluctuate rapidly.
• Companies may reduce or skip dividend payments, and not all companies pay dividends.
• Some stocks trade slowly, so buying or selling may take time.
• If a company performs poorly, its share price drops.
• Economic challenges, such as inflation or currency depreciation, can affect stock performance.
• Broader economic challenges, such as inflation or currency depreciation, can affect stock performance.

FAQs

What is the minimum amount required to start trading on the Ghana Stock Exchange?

You can start with as little as GHS 100–200, depending on the share price of the company you choose.

Can foreigners trade on the Ghana Stock Exchange?

Yes, foreign investors can open accounts through licensed brokers, subject to Ghana’s investment laws and regulations.

Do I pay fees to buy shares?

Yes. When you buy or sell shares on the GSE, you pay transaction fees through your broker.

Conclusion

Trading on the Ghana Stock Exchange is one of the smartest ways to build long-term wealth in Ghana. Start small, stay informed, and let your money work for you in the stock market.

We‘d love to hear from you; share your questions with us in the comments.