From Idea to Ownership: Buying and Selling Shares with Kingdom Securities Limited

 Kingdom Securities Limited is a licensed stockbroker by the Capital Markets Authority (CMA) and a trading participant at the NSE. They offer various services, including brokerage, online share trading, portfolio management, and advisory services. Leveraging their connection to Co-operative Bank's extensive branch network, they provide a tangible presence across the country, making stock market access easier for many.

Let's break down the process of trading shares with KSL:

Step 1: Opening Your CDS Account with Kingdom Securities

Before you can buy or sell any shares, you need a Central Depository System (CDS) account. This account, managed by the CDSC (Central Depository and Settlement Corporation), electronically holds your shares. Kingdom Securities will help you open this account, which will be linked to them as your broker.

Required Documents for Individual Accounts (Kenyans):

• Certified Copy of ID/Valid Passport: For each account signatory.

• Two Recent Coloured Passport Size Photographs: Or a digital passport photo.

• Certified Copy of Bank Statement/Cheque Leaf/Bank Card (front side only): To verify your bank account details for funds transfer.

• KRA PIN Certificate: Essential for tax compliance.

• Duly Filled & Signed CDS1 Form and KSL Addendum: These are the official account opening forms provided by KSL. You can usually download these from their website or pick them up at any Co-operative Bank branch or KSL office.

Process:

1. Obtain Forms: Download the "Individual CDS Account Opening Form" from the KSL website or visit a Co-operative Bank branch/KSL office.

2. Fill Forms: Complete all sections accurately. Ensure your signatures match your ID.

3. Attach Documents: Gather all the required certified copies and photographs.

4. Submission: Submit the complete application form and documents to any Co-operative Bank branch nationwide, or directly to the KSL Head Office in Co-operative Bank House, 5th Floor, Haile Selassie Avenue, Nairobi.

5. Verification and Approval: KSL will process your application, verify your details with relevant authorities (like IPRS), and set up your CDS account. This usually takes a few business days.

6. Receive CDS Account Details: Once approved, you'll receive your unique CDS account number, which is crucial for all your future transactions.

Step 2: Funding Your Trading Account

You need money in your KSL account before you can buy shares. Kingdom Securities offers several convenient ways to deposit funds:

• M-Pesa Paybill:

  • Paybill Number: 400222

  • Account Number: 11170#YourCDSNumber (e.g., 11170#123456) – Always ensure you include your CDS number accurately!

• Cash Deposit/Bank Transfer/SWIFT/RTGS:

  • You can deposit directly into KSL's collection account at Co-operative Bank.

  • Account Name: Kingdom Securities Limited (Verify with KSL for exact details)

  • Account Number: 01136186729201 (Co-operative Bank, Co-op House Branch)

  • Bank Code: 11000

  • Branch Code: 11002

  • SWIFT Code: KCOOKENA

  • Crucial: Always indicate your CDS account number as the reference or narration for bank transfers so KSL can correctly credit your account.

Step 3: Placing a Buy Order

Once your account is funded, you're ready to buy! Kingdom Securities provides a few ways to place orders:

1. Online Share Trading (OST) Platform / KSL Trader App (Recommended):

   • This is the most convenient and modern way to trade. KSL's OST platform is web-based and accessible via computer or their KSL Trader App (available on Google Play Store).

   • Process:

     • Log in to your OST account using your credentials (if you haven't registered for OST after opening your CDS account, you'll need to do so via the platform's "Create your new account" option).

     • Navigate to the "Buy" section.

     • Search for the company you want to buy (e.g., Safaricom Plc).

     • Enter the number of shares you wish to purchase.

     • Specify your desired price:

       • Market Order: You're willing to buy at the current best available market price. (Fastest execution)

       • Limit Order: You specify the maximum price you're willing to pay per share. Your order will only be executed if the share price drops to or below your specified limit. (Gives you more control over price, but may not execute immediately if the price doesn't hit your limit).

     • Review and Confirm: Double-check all details before confirming the order.

     • The platform provides real-time market data, pricing, and supply/demand volumes to help you make decisions.

2. Via Email:

   • You can send your trading instructions to info@kingdomsecurities.co.ke.

   • Ensure to include: Your registered email address, your ID/CDS number, the name of the company, the number of shares, and your price limit (if any).

3. Walk-in/Co-operative Bank Branch:

   • You can physically visit any of the numerous Co-operative Bank branches nationwide or the KSL offices to place your order with a KSL representative. They will guide you through filling out the necessary forms.

Step 4: Placing a Sell Order

The process for selling shares is very similar to buying:

1. Online Share Trading (OST) Platform / KSL Trader App:

   • Log in to your account.

   • Navigate to the "Sell" section.

   • Select the shares you wish to sell from your portfolio.

   • Enter the number of shares to sell.

   • Specify your desired price:

     • Market Order: Sell at the current best available market price.

     • Limit Order: Specify the minimum price you're willing to accept per share. Your order will only execute if the price rises to or above your limit.

     • Review and Confirm.

2. Via Email:

   • Send instructions to info@kingdomsecurities.co.ke, including your registered email, ID/CDS number, company name, number of shares, and price limit.

3. Walk-in/Co-operative Bank Branch:

   • Visit a branch or KSL office to place your sell order.

Fees and Charges: What to Expect

When buying or selling shares on the NSE through any broker, including KSL, you will incur certain charges:

• Brokerage Commission: This is the fee charged by Kingdom Securities for facilitating the trade. For retail investors, this typically ranges from 1.5% to 2.1% of the transaction value, subject to a minimum charge per transaction (e.g., KES 100-200). It's advisable to confirm their current commission rates directly with KSL.

• Levies:

  • CMA Levy: A small percentage (e.g., 0.06%) charged by the Capital Markets Authority.

  • NSE Levy: A small percentage (e.g., 0.05%) charged by the Nairobi Securities Exchange.

  • CDSC Levy: A fixed amount per transaction (e.g., KES 50).

• VAT on Brokerage Commission: Value Added Tax (currently 16%) is charged on the brokerage commission.

These fees are automatically deducted from your transaction. When you sell shares, the net amount (selling price minus all charges) will be credited to your linked bank account, typically within 3 business days (T+3 settlement cycle).

Key Advantages of Using Kingdom Securities:

• Extensive Branch Network: Leveraging Co-operative Bank branches makes physical access and support very convenient across Kenya.

• Online Trading Platform/App: Provides 24/7 access to your account and real-time market data, empowering self-directed trading.

• Research Reports: KSL offers daily market wraps, weekly stockmeters, and company analysis reports to aid your investment decisions.

• Advisory Services: For those needing more guidance, they offer advisory and portfolio management services.

Buying and selling shares on the NSE, especially through a reputable broker like Kingdom Securities, is a straightforward process once you understand the steps. It opens up a world of investment opportunities right at your fingertips, allowing you to actively participate in Kenya's economic growth. So, get your CDS account ready, fund it, and take that exciting step into the world of stock market investing!