For all those investors who wish to buy international financial assets (and start investing straight away), the list above includes some of the best brokers offering trading platforms of financial instruments like CFDs on Shares, Indices, Commodities, ETFs, among other asset classes. Some of these Brokers have a minimum deposit of USD100; others have no minimum at all. So, they are quite accessible to the general public.
How To Invest in the TTSE in 7 steps
Open a TOP Account: Investors are allowed to enter orders directly to The TTSE trading system via the TOP platform. Navigate to the TOP Homepage and select the “Sign Up Online” button. Follow the steps after, and upon successful completion, your TOP account will be created. You will receive an email advising that your account was created and to activate same by clicking the link within the email. Next, you will have to choose a local broker (The approved intermediary).
Pick a Broker: Brokers are the authorised intermediaries to trade financial assets on the TTSE.
Open a Trading Account with a local broker: The only requirement is to be of legal age and have a residence in Trinidad. The broker will provide you with access to their investment platforms, allowing you to send purchase and sale orders to the TTSE's central system.
Choose the Financial Asset to Invest in: The investor has to decide whether to invest in shares, sovereign bonds, or corporate bonds.
After deciding, send a Buy order through the broker: This means that you have to submit a purchase order for a financial asset. It is possible to set a limit price or a market price of the selected asset.
The financial transaction is effective when the buy and sell prices match: When the bidding price (the buyer) of a financial asset coincides with the asking price (the seller), the trade gets executed. The Brokers make the payment at the Stock Exchange in your name, and they deliver the transaction amount to the buyer/seller. You become the legal owner of the asset.
The broker issues the transaction notification and charges fees: There is no fixed fee, which means that when choosing a broker to invest in the TTSE, you will have to choose a broker that can better adapt to your investment strategy.
How does the Trinidad & Tobago Stock Exchange work?
Based in Port of Spain, the Trinidad & Tobago Stock Exchange was founded in 1981 and is the country's leading Stock Exchange.
In short, the stock exchange is the institution that facilitates the negotiation of financial instruments in T&T. The supply of financial instruments such as stocks, bonds, currencies, and the demand for these instruments (i.e. investors) interact.
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.
The following markets are available on TTSE:
First Tier Market
This is the most active market for equity securities listed on the TTSE. Companies with a minimum initial market capitalization of TT $4,000,000.00 will be listed on this market. As at March 31st 2019, there were 27 companies with 29 securities listed on this market, with a capitalization value of approximately TT $129 billion.
Second Tier Market
This is the market for equity securities issued by companies with a minimum initial market capitalization of TT $2,000,000.00. As at March 31st 2019, there was 1 company with 1 security listed on this market, with a capitalization value of approximately TT $99 million.
Mutual Fund Market
This is the market for mutual funds with a minimum initial market capitalization of TT $4,000,000.00. As at March 31st 2019, there were 5 mutual funds listed on this market, with a capitalization value of approximately TT $5 billion.
Government Bond Market
This is the market for TT dollar bonds issued by the Government of the Republic of Trinidad and Tobago. As at March 31st 2019, there were 19 bonds listed on this market, with a total face value of approximately TT $18.97 billion.
Corporate Bond Market
This is the market for TT dollar denominated bonds issued by companies. As at March 31st 2019, there were 3 bonds listed on this market, with a total face value of TT $4 million.
US Dollar Equity Market
This is the market for equity securities denominated in US dollars. It was launched in August 2011 and as at March 31st 2019, there was 1 security listed with a market capitalization value of US $11.42 million listed in this market.
US Dollar Mutual Fund Market
This is the market for mutual funds denominated in US dollars. It was launched in June 2013 and at the end of March 2019, there are no securities listed in this market.
SME Market
This is the market for securities issued by companies that are classified as small and medium enterprises according to the TTSE Listing Requirements. As at March 31st 2019, there was one security listed on this market with a capitalization value of TT $63.74 million.
What is a Securities Issuer?
Issuers of securities are companies that seek to grow through raising capital at the TTSE. These companies raise money 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, the company will be required to pay the principal and interests to the bond investors.
The following companies issued shares at the TTSE:
Banking:
FIRST CITIZENS BANK LIMITED
FIRSTCARIBBEAN INTERNATIONAL BANK LIMITED
NCB FINANCIAL GROUP LIMITED
REPUBLIC FINANCIAL HOLDINGS LIMITED
SCOTIABANK TRINIDAD & TOBAGO LIMITED
Conglomerates:
ANSA McAL LIMITED
GRACEKENNEDY LIMITED
MASSY HOLDINGS LTD
Energy:
TRINIDAD AND TOBAGO NGL LIMITED
Manufacturing I:
ANGOSTURA HOLDINGS LIMITED
GUARDIAN MEDIA LIMITED
NATIONAL FLOUR MILLS LIMITED
ONE CARIBBEAN MEDIA LIMITED
THE WEST INDIAN TOBACCO COMPANY LIMITED
UNILEVER CARIBBEAN LIMITED
Manufacturing II:
TRINIDAD CEMENT LIMITED
Non-Banking Finance:
ANSA MERCHANT BANK LIMITED
GUARDIAN HOLDINGS LIMITED
JMMB GROUP LIMITED
NATIONAL ENTERPRISES LIMITED
Non-Sector:
CALYPSO MACRO INDEX FUND
CINEMAONE LIMITED
CLICO INVESTMENT FUND
ENDEAVOUR HOLDINGS LIMITED
EPPLEY CARIBBEAN PROPERTY FUND
LIMITED SCC DEVELOPMENT FUND
EPPLEY CARIBBEAN PROPERTY FUND
LIMITED SCC VALUE FUND
L.J. WILLIAMS LIMITED, "A"
MPC CARIBBEAN CLEAN ENERGY LIMITED
Property:
POINT LISAS INDUSTRIAL PORT
DEVELOPMENT CORPORATION LIMITED
Trading:
AGOSTINI'S LIMITED
L.J. WILLIAMS LIMITED, "B"
PRESTIGE HOLDINGS LIMITED
International Brokers operate easy-to-use apps that allow you to buy and trade financial assets (like US Stocks, Commodities, Indices) on any device.
How is a Trade completed in the Stock Exchange?
A trade, or, in other words, the investment flow of any financial instrument, could be summarised as follows:
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).
Investors (demand) who wish to obtain the bond make an offer at a determined price level. They want this price to be as low as possible (Price 2). Then, Price 1 is higher than Price 2.
Buyers interact with sellers until they are at the point where Price 1 equals Price 2. When this occurs, the trade occurs, and the bond exchanges hands between the seller and the buyer. A broker is needed to fulfil this transaction: A broker is a company that mediates between sellers and buyers, ordering prices and quantities of financial instruments. Below we explain the services that these companies provide.
What is a Stock Exchange Broker?
Financial Transactions should be fulfilled 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. By performing this service, they obtain a commission when, for example, executing buying a share.
To invest in the TTSE, an investor needs to open an account with a local Broker. There are seven Stock Brokers available:
NCB Merchant Bank,
WISE (West Indies Stockbrokers)*,
Republic Wealth Management*,
JMMB Securities*,
First Citizens,
Caribbean Stockbrokers*, and
Bourse Brokers*.
* Also approved to act as Bond Brokers.
Investing in International Financial Assets [From T&T]
As we have mentioned many times in this guide, financial assets have to be traded through a Broker. In the case that you decide to open an account with a broker who operates in the TTSE, you will be allowed to trade assets listed locally only.
If you, in turn, decide to open an account with an international Broker, you may invest in countless global assets. In other words, you can invest in international financial assets such as stocks listed on the New York Stock Exchange from Trinidad 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 (listed in the NYSE, New York Stock Exchange), the broker acquires the shares in the client's name and deposits the values in the client's trading account. In general, almost all International 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 trade the financial markets from your phone in just a few days.
Best Brokers to Buy International Stocks available in Trinidad & Tobago
This article will help you start investing, from the minimum amount of money required to open an account to some ideas to consider in your portfolio.
TRADING