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Online Trading in the Age of Distributed Ledger Technology (DLT): The Doubts, the Pains, and the Opportunities

The 7th edition of the Online Trading Report analysed the Nigerian online trading portals with particular reference to the benefits of a unified African trading platform. This was predicated on two trends: changing investors' preferences and the economic integration of Africa. The digital transformation of investment services and the commencement of the African Continental Free Trade Agreement (AfCFTA) have made digital trading more compelling. Phase II and III of the AfCFTA protocols, which cover Intellectual Property Rights (IPRs), investment, competition policy, and e-commerce, influence the unification of Exchanges in Africa.  

In the immediate edition, Proshare analysts noted that the movement of equity and debt trading across national borders had fueled a consideration of the merits and demerits of a unified African trading platform among many African investors. Although the rise of African fintech companies has attempted to unlock the doors to transnational financial services, their offerings have been limited to money market services. However, the initiation of the African Exchange Linkages Programme (AELP), a flagship project of the African Securities Exchanges Association (ASEA) and the African Export-Import Bank has shifted toward the perspective of cross-border capital market trading. 

The growth of young investors in Nigeria and other economies has altered investment towards offshore markets in search of speed, ease, responsiveness, and higher returns. Hence, the previous edition of the online trading report enabled an understanding of customers'/users' experience and expectations of online trading platforms in the Nigerian Capital Market. Furthermore, it made advocacy for a Unified Exchange on the continent. This allowed the market to explore the benefits and threats of integrated trading and how it meets the changing customer market service needs. Essentially, the responses from the survey favoured all market operators, especially Capital Market Operators (CMOs), FX Trading Platforms, and Fintech Platforms. In the 2021 ranking, EasyTrade ranks first among CMOs, FXTM ranks first in FX trading platforms, and Bamboo ranks first in Fintech platforms (see illustration 6 below). 

Illustration 6: 

Ranking Criteria and Results – The Survey  

Review of Previous Ranking Reports

Our previous online trading platforms ranking reports released in H1 and H2 2016 focused on trading portals linked to the NSE trading platform, X-Gen. 

The report for the year 2017 focused on portals linked to the NSE trading engine and FX trading portals.

This was extended to commodities trading platforms alongside other platforms earlier focused on in previous ranking reports.

In 2019, all previous trading platforms in the 2018 ranking report were contacted with an extension to cryptos trading platforms and tech service providers.

All trading platforms contacted in 2020 were also contacted in 2021 except cryptos trading platforms.

Table 1:

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Online Trading in the Age of Distributed Ledger Technology (DLT): The Doubts, the Pains, and the Opportunities