Went to my broker to get a form for a friend and a company to open a CsCs account but to my greatest surprise i was told that any individual who doesnt have a minimum of =N=200,000 wont be able to open an account with CsCs which means such a person can either buy or sell shares on the floor.
Does it mean that anyone buying all this public offer are buying to keep the certificate under their pillow for as long as they dont have the stipulated fee to open a CsCs account.
Well, we would see where this country will lead us to. When they found out that Nigerians have realized the long time secret of the rich (stocks) they have now decided to block or make it difficult for the average and struggling masses.
They closed wonder banks, trying to pass a bill to stop public awareness of online trading ( so i heard) and now imposing an outrageous fee to open a CsCs account. Will the GAP between the rich and the poor be ever to reduced? i guess not.
Anyway folks how wa your hols.

The 200,000 fee is starting from jan 1st 2008

This sounds like a fairy tale.

@fizofly,

you need to step back and take a breather. your story is not sounding coherent

why would anybody want to pass a bill to stop public awareness of online trading? and by online trading, what type of market are you talking about?

CSCS might be at liberty to say, portfolios that are lesser than N200k worth cannot get into their system just like banks can say, for you to open a particular class of account, you must have a particular amount. what will happen is that somebody with the financial and personality clout will create a new CSCS for people who have portfolios less than N200k. dont forget that the CSCS is a private company and even though they are the only company giving this service right now, it is not a must that they must be the only one. that might be good for the capital market and the nigerian economy eventually as it will help deepen the market etc

what will simply happen from here on is that minimum opening balance to register with a stockbroking firm will be N200k but if you have shares certs that have a value of N200k, you will also be welcome

@ fitofly, why not show us an authentic likn to a publication that supports you 200000 claim, cause for now what we are arguing with is only your exchange with your broker who may not know anything in the market except his monthly salary.

Plerase let me clear something here, pertaining to the scrapping of the public intro of online biz i stated it that i was being told by a legit source someone up there. if i am not mistaken i first came up with the news that the so called wander banks were going to be scrapped long before the news even broke out and some people criticised me and said it was my imagination and all that but whats the outcome now? it is that same source i got about the online business news so you could either believe it or not but please dont insult me 'cus i am only sharing an inside news with you guys.
As for the guy saying someone selling his shares what 200,000k how many new comers in stock and average nigerians have such worth of shares and even if they do why should they sell everything worth 200,000k just to have a CsCs account.
This is injustice and we should fight against it

@fizofly,

i will repeat what i said before, you should always take a step back, breathe in & out before typing. your body too hot.

i didnt say people should sell shares worth N200k to get a CSCS acct, what i typed is that when people have share certs from buying IPOs and the value is up to N200k, they will be able to register for a CSCS account.

there's nothing like injustice in this, it's just business. if they choose to not entertain accounts less than N200k, another organization can come up to provide services to that market!!!!! it ignites competition in that industry and that ultimately benefits the common man like you and i and all those people you want to fight for.

CSCS can get away with anything right now because they are the only ones in nigeria offering their services, we need more players in that industry not fighting to keep a monopoly

cool down

So CSCS is a private company. No wander them dey twist our hands to register with them to see our monthly statements from them. So they want a step change in profits from the N 2,500 they will be collecting annually each account holder.

I am not commenting on the mininum of 200k but I am commenting on some people here who just insult contributors. I want us to know that[b] there is SENSE in NONSENSE[/b]. If you remove the NON from NONSENSE it gives SENSE. Its very bad to just insult contributors as a way of critizing. Sometimes I wonder if some people go to school and learn to mix. I bet most of these people that rude unjustly will have problem with colleagues at work and even with their boss becos they always see themselves smarter than other or I better say I dont know the reason(s) they have to do this. I am not saying criticism is not good but you have to criticize in a better and matured way. This is a forum and anything revelant to this topic is welcomed and respected. Its left for you to decide if its good for you as a person or not. Please lets change our mentality towards criticism. Dont criticize rudely. God bless us all , REMEMBER, THERE IS SENSE IN NONSENSE.

It's not hard and fast and there definitely is NO such law that stipulates you have to buy a minimum of so and so amount. It varies from broker to broker. I went hunting for a stockbroker a month ago and found that out. One asked me for share certs worth 200k;Another said I could bring 100k worth of share certs and cash to supplement;Yet another was willing to open with ANY amount because I was referred by a very good customer of theirs.

Another one said they want to even categorize according to occupation, and bankers would need a minimum of 1m to open a CSCS account. Just look around and stop feeling people are out to victimize you.

otokx:

This sounds like a fairy tale.

I quite buy the fact that it sounds like a fairy tale. It's something I have not heard though. I can't imagine that. With the DG of NSE saying recently that from 2009, all POs will be sent directly through CSCS account, how do they intend to credit a PO stock that says something like;

Minimum shares applied for 1000
Share price 5.00

to a CSCS account? That will be just N5000.00. All the same, from the way these guys are going with the recapitalization of Stockbrokers, it might be a rule that not written in black and white. Maybe the recap will make brokers sit up and do better business.

It's unfortunate that somethings happens and keep happening. Truth is, the Nigerian stock market is already moving faster that the 'poor' can keep up with the pace. The best way to make money is your ability to leverage on volume (simply put, more money), which I'm afraid some people can't. But then, POs still exist. At least, so far, people who request for low volumes (>10000 units) seem to be getting it. I would assume that class might still be poor and it gives them an even fairer chance than the so-called rich.

I have done trading with various brokers and experienced their various problems. The ones that never execute trades on time, those that don't even give you updates, those that can only buy when prices are high and sell when low, (the list is endless). I have come to a conclusion that higher the cost a broker requires from you the better service you get. They seem to give more preference to the 'rich.' Remember, they are businessmen. They make ~5% on your buy and sell so, 5% of 200k is definitely greater than 5% of 10k.

@Carolope,
Thanks a lot for the Contribution, I really make lots of senses and straight forward,

hello,

so i heard too but i think is just a benchmark set by the firm , it differs.I work with a stockbroking firm and our bench mark is N50,000.Also it is better when you invest with reasonable amount, u achieve more.
Cheers!

i mean't for secondary market no bench mark on public offer

CORExprs:

hello,

so i heard too but i think is just a benchmark set by the firm , it differs.I work with a stockbroking firm and our bench mark is N50,000.Also it is better when you invest with reasonable amount, u  achieve more.
Cheers!

@CORExprs.
Can you shed more light on different charges stockbroking frims charge. Some charge 5.2% buy/sell while others charge less. Why the difference?
What can I do to get a cheaper commission rate? The market in Nigeria is quite different from UK. Pls tell me.

I will appreciate your response.

Stock brokers trying to shift up their starting capital by asking prospective investors to pay more to get a cscs account should be commended. I have noticed that they offer better services than those that do business with just about everybody.

Sometimes last year, I warned that within a short time getting a cscs account will become more costly and difficult for the lower income bracket, many people refused to see my point. I went shopping for a stockbroker and got the following entry prices for a cscs account; IBTC 10 mil, ZSL. 5 mil. Cashcraft 1 mil. FUSL 500k. CSL 250k. Other lesser houses accept 100k or less.

I dont mean to annoy anybody but there is something wrong with our ppl. I went around asking family and friends to go on and invest since five yrs ago, none did, then it was easier to buy shares. Stocks were cheap, stock brokers were begging for customers, but nobody was interested. Now there is a rush and the stock brokers has raised the bar, then we start complaining. Where were we when lesser money was collected?

For the peeps that just found out about stocks, I urge you to keep trying, dont lose hope. If you really want to invest and you dont have the required cash, keep saving. Buy PO and keep trying.

I am not critisizing anybody with this post, its just to ginger us to try harder and invest while we can, it could be 1 million minimum next year.

Tell your friends to buy shares, encourage them if you can, dont hide your knowledge.

wabcom,

i think you got it all wrong, you may not have understand your broker info. i just chose a broker from this forum and he open an aaccount for me with me buying any stock or paying any money. pls may is 419 they want to play u but thank God u open up. NSL say by 2009 all tansaction will pass through the cscs account and electoric certificate or so.

ochenya200:

wabcom,

i think you got it all wrong, you may not have understand your broker info. i just chose a broker from this forum and he open an aaccount for me with me buying any stock or paying any money. please may is 419 they want to play u but thank God u open up. NSL say by 2009 all tansaction will pass through the cscs account and electoric certificate or so.

ochenya200,

i am wondering whether your post above is directed at me cause i can see a name that's similar to my username?