Platform · Trading

Dividend reinvestment: your app, your investors, our engine underneath

Give investors one exchange-branded app to fund an account, trade, collect and reinvest dividends, withdraw cash and borrow against their shares. Licensed member brokers still execute every order.

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In short

Dividend Reinvestment gives an exchange one branded app where investors fund an account, trade, receive and reinvest dividends, withdraw cash and borrow against their shares. ZagTrader runs the order management, back office, accounting and risk behind the app through APIs. Licensed member brokers still execute every order, so the regulatory model stays as it is.

Built for: Stock exchanges that want their own investor app, with member brokers executing every order
Covers: Funding, multi-broker trading, dividend distribution and reinvestment, withdrawals and margin against shares
In production: With a regional exchange since April 2025, about nine months from project start to go-live

What runs in production today

The exchange owns the app and the investor relationship. ZagTrader keeps orders, cash and holdings in step across every party.

Headless engine

Order management, back office, accounting and risk, used only through APIs. The investor never sees a ZagTrader screen.

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Wallet bridge

Cash moves between the exchange's investor wallet and the trading account in both directions, with card, bank transfer and bank payout rails connected.

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Automated accounting

Every deposit, trade, fee and withdrawal posts a ledger entry and is reconciled against the wallet.

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Multi-broker routing

Investors link one or more member brokers and choose the broker for each order. Orders reach brokers over FIX.

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Live buying power

Order value plus estimated commission is reserved when the order is placed, then adjusted on fill or released on cancel.

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Dividends back into the market

Cash dividends land in trading cash on pay date and become buying power at once, to reinvest in a few taps or withdraw.

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From dividend to reinvestment

Cash dividends land in the investor's trading cash on pay date and can be reinvested or withdrawn straight away.

1
Entitlement on record date
ZagTrader works out each investor's entitlement from their holdings on record date.
2
Withholding tax
Withholding tax is deducted at the set rate, leaving the net amount for each investor.
3
Cash on pay date
The net dividend lands in the investor's trading cash on pay date, with a ledger entry per investor.
4
Investor notified
The investor is notified, and the dividend is buying power at once.
5
Reinvest
The investor buys the same or another listed stock in a few taps, through their chosen broker.
6
Or withdraw
The same cash can go back to the wallet and on to a bank account through the withdrawal flow.

Everything inside Dividend Reinvestment

Every movement of money is checked, reserved, reconciled and logged.

Capability	What you get
Exchange-branded app	Mobile and web. The exchange owns the brand, the app design, the investor relationship and the choice of wallet and payment partners.
Onboarding and KYC	Onboarding and KYC through APIs. Accounts with incomplete KYC open as suspended, and cash cannot be used for trading until verification completes.
Funding	Card top-up and bank transfer by IBAN into the exchange's investor wallet, or direct links to banks, open banking and mobile wallets.
Wallet bridge	The investor moves cash from the wallet to the trading account and back. ZagTrader credits the cash balance and posts the ledger entry for each movement.
Multi-broker trading	Investors link one or more licensed member brokers and choose the broker for each order. Orders reach brokers over FIX, and brokers execute on the market as they do today.
Buying power	Order value plus estimated commission is reserved at placement. On a fill, cash adjusts by the executed value and actual commission and the holding updates; on a cancel or reject, the reservation is released at once.
Dividend distribution	Entitlement from holdings on record date, withholding tax deducted at the set rate, and the net amount posted to trading cash on pay date with a ledger entry per investor.
Reinvestment	The dividend becomes buying power at once. The investor buys the same or another listed stock in a few taps, through their chosen broker.
Automatic reinvestment	A standing rule, such as reinvesting into the paying stock, can be added as an option agreed with the exchange at rollout.
Withdrawals	ZagTrader checks the available balance, posts the entry and credits the wallet, which pays out to any local bank account. Only settled, unreserved cash can be withdrawn, with no back-office step in normal operation.
Validation	Each deposit and withdrawal is checked for account status, currency, limits and ledger accounts. A failure returns a clear rejection.
Reconciliation	The trading ledger is matched to wallet balances intraday and at end of day. Any break raises an alert.
Maker-checker and audit	Sensitive changes need a second approver. Every transaction and change is logged and kept for at least five years.
Margin against shares	Eligible holdings are pledged at the depository through an integration and released automatically when the loan is repaid. Buying power is cash plus the financed value of eligible shares, after a haircut set per security or group.
Margin alerts and calls	Two warning levels and a margin call, each with its own threshold and investor notice. On a call, the investor adds cash or shares, or reduces the loan. Investors are prompted to repay or renew before their margin term ends.
Liquidation	If a call is not met within the grace period, positions are sold under rules the exchange and broker agree, with approval steps where required.
Risk oversight	A dashboard shows positions, collateral, utilisation and finance income per investor and broker. Risk parameters change from the back office without code.
One investor view	A single API call returns the investor's cash and margin accounts together, by national investor number.

Frequently asked questions

Why offer dividend reinvestment?

For the exchange, dividend cash goes back into listed stocks instead of sitting idle, lifting retail participation and trading activity. Brokers get extra order flow from a new digital channel, with no app of their own to build. Investors reinvest in a few taps, or withdraw to a bank account, from the same app.

Do member brokers still execute the orders?

Yes. Licensed member brokers execute every order on the market, as they do today, so the regulatory model stays as it is. Investors link one or more brokers and choose one for each order, and orders reach the broker over FIX.

Who owns the app and the investor relationship?

The exchange. It owns the brand, the app design, the investor relationship and the choice of wallet and payment partners. ZagTrader runs the engine behind the app through APIs, so investors never see a ZagTrader screen.

How are dividends paid and reinvested?

ZagTrader works out each investor's entitlement from holdings on record date, deducts withholding tax at the set rate and posts the net amount to trading cash on pay date, with a ledger entry per investor. The investor is notified and can reinvest in a few taps or withdraw to a bank account. Automatic reinvestment, such as into the paying stock, can be added as an option agreed at rollout.

Can investors borrow against their shares?

Yes. Eligible holdings are pledged at the depository and released automatically when the loan is repaid. Buying power is cash plus the financed value of eligible shares after a haircut, with two warning levels, a margin call and liquidation under rules the exchange and broker agree.

How is it rolled out?

In phases on the same engine. Phase 1 covers onboarding and KYC APIs, multi-broker trading, the wallet bridge, back office and accounting. Phase 2 adds dividend distribution and reinvestment, share pledging and margin against shares. Phase 3 adds management dashboards, data warehouse feeds and further products such as futures. The phases can be arranged to suit the exchange, for example starting with dividend reinvestment.

What does the exchange need to provide?

Wallet or payment partner APIs, or the banks to connect to directly; depository access for holdings, corporate actions and pledges; FIX connectivity with the participating member brokers; and the market data feed and the national digital ID or single sign-on used for login.

Is it live, and how long does it take?

The model has been live in production with a regional exchange since April 2025. It went from project start to go-live in about nine months.