Ecuador’s stock market is not widely used by citizens to invest their savings, but it is an option available to anyone.
According to information from the Guayaquil Stock Exchange, there are no investment maximums or minimums, but for the subject of commissions an initial investment of around $ 500 can be made. However, experts recommend starting with at least 1000 dollars.
“The stock market is an excellent investment alternative because it offers different instruments (shares, obligations, commercial paper, securitizations, invoices, etc.) of companies of all economic sectors with higher returns than those offered by the traditional financial system, currently there are commercial invoice closures with returns of around 9%, ”says Fabricio Arellano, head of statistics and operations of the Guayaquil Stock Exchange.
To be able to access this option, you should look for a stock house, which is responsible for selling and buying what is sold in the stock market.
The house requests documentation, ID card for Ecuadorians and passport for foreigners, and is responsible for establishing that the funds it receives have a legal origin.
After that, the securities house is the entity that makes the customer fill out the purchase order forms of the securities desired. Previously, the person must choose between the options given by the house, depending on which one is the best or most convenient for its closing conditions: price, performance, term, etc.
In the end, the securities house is responsible for carrying out the operation in the transactional system of the Guayaquil Stock Exchange (or in Quito) so that the operation can be closed.
“The main thing is diversification and having a better return because it is generally a long-term investment,” says Javier Santos, general manager of the Securities House More Values.
He adds that the house advises the client who looks for where to put his money, analyzing the client’s risk profile and then showing him the options that are available in the market.
Santos also says that depending on the type of investment this can be of fixed or variable interest and can range from 90 days to 10 years.
For Santos, profitability in the stock market is better than other options, and it is transparent because all companies that issue the stock market have to make their information public.
In 2018, Ecuador’s stock market traded 7475 million dollars.