Stock Exchange

How to Invest in the Casablanca Stock Exchange

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The African continent is currently the fastest growing region in terms of new investors added to the market. Find out how to invest in the Casablanca Stock Exchange. We also include a brief description on how to invest in International Stock Exchanges from Morocco.

How To Invest in the Casablanca Stock Exchange in 6 steps


1. Pick a Broker

Brokers are the authorized intermediaries to trade financial assets on the Casablanca Stock Exchange.


2. Open a Trading Account with the Broker

The only requirement is to be of legal age and have residence in Morocco. The broker will provide you with access to their investment platforms, allowing you to send purchase and sale orders to the central system of the Casablanca Stock Exchange.


3. Choose the Asset in which to invest

The investor has to decide whether to invest in shares, sovereign bonds or corporate bonds.


4. After making a decision, send a Buy order via the Broker

Submitting a purchase order for a financial asset. It is possible to set a limit price or a market price of the selected asset.


5. The transaction is completed once buying and selling prices match

When the bidding price of an asset equals the asking price, the trade is executed. The Brokers makes the transaction payment at the Stock Exchange in your name, and they deliver the transaction amount to the buyer / seller broker. You become the legal owner of the asset.


6. The Broker issues the transaction notification and charges their fees

There is no fixed fee, which means that when choosing a broker to invest in the Casablanca Stock Exchange, it is important to choose the one that can better adapt to the investor's personal situation.


How does the Casablanca Stock Exchange work?


What is the Stock Exchange?


Based in Casablanca, the Casablanca Stock Exchange was founded in 1929 and is the main Stock Exchange of the country.


In short, the stock exchange is the institution that facilitates the negotiation of financial instruments in Morocco. Supply of financial instruments such as stocks, bonds, currencies, and the demand for these instruments (i.e. investors) interact here.


The Stock Exchange holds daily "Trading Sessions", for which it provides the physical, technological, human and operational means that allow efficient communication between Brokers, Issuers and Investors.


What is a Securities Issuer?


Issuers of securities are companies that seek to grow through raising capital at the Casablanca Stock Exchange. These companies raise capital by issuing debt (bonds) or capital (shares). Issuers of securities may be government controlled entities or private companies, but no matter who owns the company, it is the issuer who backs the investment.


For example, if you invested in bonds from a private company, it is the company the one that will be required to pay the principal and interests to the bond investors.


How is a Trade completed in the Stock Exchange?


A trade, or, in other words, the investment flow of any financial instrument, could be summarized as follows:


1. Sellers (supply) offer to sell a financial instrument at a price, for example, a bond issued by a company. Sellers aim to make this price as high as possible (Price 1).

2. Investors (demand) who wish to buy the bond, make an offer for a price. They want this price to be as low as possible (Price 2). Then, Price 1 is greater than Price 2.

3. Buyers interact with sellers, until they are at the point where Price 1 equals Price 2. When this occurs, the financial transaction is completed and the bond is exchanged between the seller and the buyer. In order for this interaction to occur, a Broker is needed: A company that has the role of mediation between sellers and buyers, ordering prices and quantities of  financial instruments. Below we explain the services that these companies provide.


What is a Broker?


Transactions of financial assets can only be completed through a company that works as an intermediary between investors and sellers. These intermediaries are known as Brokers.


Through complex technological tools, brokers manage transactions between investors, ordering the purchase and sale orders of financial assets by price and by order of arrival, and by performing this service, they obtain a commission when, for example, executing the operation of buying a share.


Brokers are, then, market intermediaries, companies in which buyers and sellers interact and come together to buy stocks or bonds at the negotiated price.


In order to invest in the Casablanca Stock Exchange, an investor then needs to open an account with a local Broker.


Investing in International Financial Assets [From Morocco]


As we have mentioned many times in this guide, trading of financial assets must be done through a Broker. In the case that you decide to open an account with a broker who trades in the Casablanca Stock Exchange, you will be allowed to trade locally listed assets only.


If you in turn decide to open an account with an international Broker, you may invest in countless international assets. In other words, you can invest in international financial assets such as stocks listed on the New York Stock Exchange from Morocco through an international Broker.


The job of an international Broker is to connect their clients with international Stock Exchanges. In other words, if a client intends to buy Apple shares (which are listed in New York), the broker buys it for the client, and deposits it in the client's trading account. In general, almost all major Brokers provide access to Exchanges from the United States, Canada, the UK, Japan, Switzerland and Europe.


Opening an account with an international broker is usually an online process, and you can operate in the international financial market from your phone in just a few days.


International Brokers available in Morocco


Find some of the best Brokers offering the most popular trading platforms for international financial instruments. Some of these Brokers have a minimum deposit of USD100, others have no minimum at all. All of these are trading platforms offering CFDs on Shares, Indices, Commodities, ETFs among other asset classes:


El contenido de esta web y los servicios que se ofrecen no pretenden ser, no son y no pueden considerarse en ningún caso, asesoramiento en materia de inversión ni de ningún otro tipo de asesoramiento financiero, ni puede servir de base para ningún contrato, compromiso o decisión de ningún tipo. Los CFD son instrumentos complejos y están asociados a un riesgo elevado de perder dinero rápidamente debido al apalancamiento. Entre un 74 y un 89 % de los inversores minoristas pierden dinero cuando comercializan con CFD. Debe considerar si comprende el funcionamiento de los CFD y si puede permitirse asumir un riesgo elevado de perder su dinero. Los USD30 de bono de Trading de XM no están disponibles a residentes en la Unión Europea.

  

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