Best Stock Brokers in Jamaica for 2022 • Benzinga
The Jamaican stock market has posted impressive returns in recent years. The Jamaican Stock Market Benchmark, or JSE Index, consisting of 37 stocks, increased by 300% in the last five years.
In 2018 alone, the index posted a return of 29%. This could be the reason why the number of people with accounts has increased from 5% to 10% of the Jamaican population in the last five years.
Nonetheless, investors looking for the best online brokerage offering services in Jamaica should know a little about the country’s financial sector and stock market before jumping in with both feet. Keep in mind that not all brokerages are created equal, so be sure to consider your needs carefully before opening an account with a broker.
Trading Stocks in Jamaica: What You Need to Know Before You Start
Despite recent stock market gains, Jamaica has experienced decades of low economic growth of less than 1% per year. The country’s service sector accounts for around 70% of GDP, with most foreign capital coming from remittances, bauxite production and tourism. Economic growth in Jamaica also continues to be hampered by bureaucracy, a high debt to GDP ratio, crime and corruption.
From the good side, Jamaica ranks 39e in global economic freedom among other countries according to The Heritage Foundation. The country also ranked fifth in the regional ranking for this metric in North America, after Saint Lucia, Chile, the United States.
Stock trading in Jamaica was limited to banks, lawyers and high net worth individuals before the establishment of the Kingston Stock Market in 1961 under the Bank of Jamaica. This evolved into the Jamaica Stock Exchange (JSE) several years later in February 1969, which is privately owned and aims to develop a vibrant stock and bond market in Jamaica.
The JSE is made up of several different markets. Companies wishing to list their securities on the stock exchange generally fall into one of four categories: the junior market, the main market, the bond market and the US dollar-denominated market.
In May 2015, the JSE launched its online trading portal. The exchange makes its trading software available to member firms and their clients. The exchange is only open for three and a half hours a day for trading, which does not affect the fact that the JSE is the best performing stock market in the world.
Features To Look For In A Stock Trading Account
Many international brokers, such as Interactive Brokers, accept Jamaican clients. You will need to open an account with one of the lesser known Jamaican stockbrokers registered as members of the exchange to trade stocks listed on the JSE.
These 13 Broker Members or Broker Members have all been approved by the Jamaica Financial Services Commission (FSC) to execute client orders on the JSE. Since you can only trade securities on the JSE through a member broker, key considerations such as regulatory oversight by the FSC and membership in the JSE exchange are consistent among the 13 Jamaican brokers.
The JSE hosts a trading platform for the exchange, which allows member brokers to give their clients access to use the exchange’s trading platform.
Even though the broker has its own trading platform, if you wish to trade securities listed on the JSE, you must do so through the platform offered by the exchange or with a broker over the phone who then enters your order with the exchange.
Costs and fees
Active trading could drive up commissions and fees. If you trade actively or even trade infrequently for investing, a broker’s commission and fee schedule could make a big difference to your net return.
Most full-service stockbrokers give clients access to research resources, which they compensate by charging higher commissions and fees.
Discount brokers offer the same execution services without the research and other premium offerings.
Good customer service that pays attention to your needs and provides service beyond the trading week would be your best bet. The customer service staff of most stockbrokers in Jamaica can be contacted by phone and email.
Other services offered by stockbrokers may involve trading in assets other than stocks, such as bonds, currencies, commodities
Some big brokers even offer portfolio management, wealth management, banking and lending services. Be sure to inquire about a broker’s additional services before opening an account if they are important to you.
Best Stock Brokers in Jamaica
Our list includes an international broker that accepts clients from Jamaica and provides a venue for trading and investing in non-Jamaican markets around the world, as well as a selection of the best local brokers in Jamaica from the 13 authorized member brokers to trade on the JSE.
Global and Active Traders
eToro USA LLC; Investments are subject to market risk, including possible loss of principal.
Start trading today
Despite its status as the world’s best-performing stock market, no JSE shares are found in US exchange-traded funds, not even emerging market funds. The time to start trading in this relatively obscure stock market may have arrived.
Moreover, the sale of broker JSE Barita last year was a boon for its investors. This could suggest the magnitude of future opportunities to make money in the rapidly growing Jamaican stock market.
Frequently Asked Questions
What factors should you consider when working with a Jamaican broker?
You should look at fees, research, service and trading platforms.
Can you do business online in Jamaica?
You can trade through a broker with access to Jamaican markets.