Kazakhstan reports growing number of brokerage accounts

In March, the number of brokerage accounts in Kazakhstan rose by 23.4% since the beginning of the year and reached 1.19 million, according to the Central Securities Depository (KCSD).

As the KCSD reported, there are 680,000 sub-accounts and 508,000 brokerage accounts registered through omnibus accounts in the country. This year, these two types of accounts rose by 23.6% and 23%, respectively.

The agency believes that initiatives and reforms by the regulator and professional actors of the financial market have driven the growth in the number of brokerage accounts. Among these reforms are the introduction of new digital tools, simplification of rules and regulations and creation of new investment opportunities for retail and institutional investors.

«Over the previous period, in 2017-2021, the growth of the quantity of sub-accounts in the Central Depository was quite slow, because Kazakhstanis weren’t so interested in securities at the time. As of April 1, 2022, there were 315,000 sub-accounts registered with the KCSD. In other words, this is a 115% increase in sub-accounts (excluding omnibus accounts) on a year-to-year basis. This is a historical record high in the industry,» Adil Mukhamedzhanov, head of KCSD, said.

Non-residents account for just 0.7% of securities holders, according to the system.

About 36.3% of investors are people aged 35 to 54. Another big group is people aged 25 to 34 (31.1%). The share of investors aged 55 and older has shrunk from 16.6% to 14%. The group of investors aged 18 to 21 hasn’t changed (18.7%) compared to last year.

In terms of geography, Almaty (19.9%) and Astana (11.3%) are still leaders in the market, the KCSD reported.