Do you want to invest in foreign stocks from Nigeria? In that case, there are a number of methods to approach it. You can open a brokerage account with either an online broker or a local brokerage firm.
These solutions, though, can be challenging. Because of the paperwork necessary and the rules governing money transfers. Fortunately, there are a number of options, which we’ll refer to as online investment platforms, that eliminate the burden of opening a brokerage account.
You may invest in overseas stocks from Nigeria using these online investment platforms. Nigerians can engage in both global and domestic financial opportunities through some of these institutions. Stocks in the United States, China, and Nigeria, government bonds, US ETFs, and even the US real estate market are examples.
Why should Nigerians invest in foreign stocks?
When compared to bonds, stocks have been demonstrated to offer the highest potential for growth, as well as greater liquidity and diversity than real estate.
Financial investing prospects are no longer limited by region in today’s global environment. With a smartphone, anybody in the world can participate in the global economy and hold financial assets in any country. There is no requirement to be a citizen of the country.
As a Nigerian, you can invest in overseas stocks. There are three major advantages you obtain. Earning an income through dividends is one of these advantages, Diversification of an investment portfolio and participation in international and global businesses.
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Invest in US & Foreign stocks from Nigeria with Online Stock Trading Apps
A series of internet investment platforms is the greatest approach to investing in foreign companies from Nigeria. These systems make it simple to open a trading account, buy stocks, and keep track of your portfolio. All from the convenience of your smartphone.
In Nigeria, the main investing platforms for foreign stock investments are
1. Trove
Trove is an app that allows anyone in Nigeria to invest in foreign stocks. The Trove app allows you to invest in stocks from the United States, China, and Nigeria. With Trove, you can invest in bonds, ETFs, and more for as little as N1,000.
The company aims to popularize the concept of micro-investing. The idea is that anyone may amass wealth by investing small quantities of money on a regular basis. Instead of investing a large chunk of money all at once.
Trove provides you with tools to help you become a better investor. You can also move your investments from Trove to another brokerage. You will, however, need to close your Trove account in order to do so.
Product Features of Trove App
- Minimum investment amount: The minimum investment is $1,000.
- Documents needed: Required documents include a government-issued photo ID and a utility bill. The documents will be in the form of a picture rather than a tangible copy. Some fundamental details, such as (Verified Email Address, Verified Phone Number, Bank Account Information).
- Payment channel: Mastercard, VISA, and Verve cards issued by Nigerian banks are available as payment options. Make a bank transfer.
- Time to hold: As long as you want.
- Investment tracking: The Trove app allows you to keep track of the returns on investments you’ve made.
- Withdrawals: Uninvested cash in your wallet can be withdrawn for 3 business days or longer. If you’re taking out more money than you put in. You’ll have to sell some of the assets you bought. If you place a sell order, your monies will arrive in your account within 1 to 2 business days. You have the option of depositing the money into your wallet or your bank account. The minimum amount you can take from overseas securities is $50.
- Security of the application: Trove uses 256-bit encryption to ensure that your personal information is secure. And it’s all kept safe with cutting-edge security technology. DriveWealth LLC, a regulated member of FINRA/SIPC, is Trove’s partner. Holds all of Trove’s US trading accounts. It also safeguards its members’ stock portfolios. Up to $500,000 in total (including $250,000 for cash claims). Sigma Securities is the company’s other partner. The NSE and the Securities and Exchange Commission govern this company. All Nigerian trade accounts are held by this company. In Lagos, Nigeria, ARM Investment Managers is a licensed asset manager. Acts as a portfolio manager for Trove’s portfolios.
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2. Bamboo
Any Nigerian can invest in over 3500 stocks on the American and Nigerian stock exchanges using Bamboo or “Invest Bamboo.”
Nigerians can use their mobile phones or laptops to buy, hold, and sell stocks on these markets.
Bamboo’s mission is to help Nigerians increase their personal wealth by allowing them to invest in overseas stocks from the country.
Product Features of Bamboo App
- Platforms: Android, iOS
- Minimum investment amount: $20.
- Required Documentation: Prepare a government-issued photo ID and a utility bill. The documents will be digital images rather than hard copies. Some fundamental details, such as (Verified Email Address, Verified Phone Number, Bank Account Information).
- Payment channel: Mastercard, VISA, and Verve cards issued by Nigerian banks are available as payment options. Make a bank transfer.
- Time to hold: As long as you want.
Investment tracking: The Bamboo app allows you to keep track of the returns on investments you’ve made. - Withdrawals: Your funds will settle in your account between 1 to 2-3 business days after you place a withdrawal order using the app.
- Security: On all accounts, Bamboo employs state-of-the-art bank-level security, data encryption, and two-factor authentication (2FA). All Bamboo accounts are kept with a top-tier local and international brokerage firm that, as a member of the Securities Investor Protection Corporation (SIPC), protects each account up to $500,000.
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3. Rise vest
Risevest allows any Nigerian to invest in dollar-denominated possibilities using their smartphone for as little as $10. These investing prospects include 30 high-growth US equities, fixed income (Eurobonds), and US real estate.
After a comprehensive examination, Rise adds stocks to its stock index that are affordable and have strong potential. While simultaneously keeping an eye on the portfolio firms’ progress.
Rise’s yearly returns on US companies have averaged over 14% in the past, making it one of the finest ways to invest in foreign stocks from Nigeria. Actual returns, on the other hand, are determined by the market.
Product Features of Rise App
- Platforms: Android, iOS
- Minimum investment amount: N3600.
- Required Documentation: Government Issued ID and a Utility Bill ready. The documents will be an image, not an actual physical copy. Some basic information like (Verified Email Address, Verified Phone Number, Bank Account Information).
- Payment Options: Mastercard, VISA, and Verve cards issued by Nigerian Banks. Bank Transfer.
- Holding period: You can choose to make your investment plan available on-demand and also choose longer investment durations.
- Investment monitoring: You can track returns on investments purchased through the Rise app.
- Withdrawals: Same-day withdrawals.
- Security: Rise uses PCI-DSS compliant, bank-grade security, and two-factor authentication to protect all user’s accounts. Rise are SEC-registered investment advisers in the US and users funds are overseen by our partners who are also registered with the Nigerian Securities and Exchange Commission (SEC) so you know that your funds are safe and regulated at the highest standard of compliance.
4. Chaka
Chaka refers to itself as a Nigerian Investment Passport. The Chaka platform allows you to buy in overseas stocks from Nigeria. It allows any Nigerian to buy and sell equities in the United States, Nigeria, and China from any device.
With Chaka, you may start trading shares for as little as $10 or N1000.
Chaka, like the other online investing organizations on this list, strives to provide Africans with access to foreign stock trading and investment.
Product Features of the Chaka App
- Platforms: Android, Web
- Minimum investment amount: $10 or N1000.
- Required Documentation: Prepare a government-issued photo ID and a utility bill. The documents will be in the form of a picture rather than a physical copy. Some fundamental details, such as (Verified Email Address, Verified Phone Number, Bank Account Information).
- Payment Options: Mastercard, VISA, and Verve cards issued by Nigerian Banks. Bank Transfer.
- Holding period: As you like.
- Investment monitoring: You can track returns on investments purchased through the Chaka website or app.
- Withdrawals: Withdrawal of your available cash in your account can take up to 12 hours from when your request was made. To withdraw cash from sold stocks takes 3 days. It takes 2 days for the stock exchange (locally and globally) to settle cash for sold shares. It would take an extra day to process the transaction.
- Security: Every Chaka account is encrypted using bank-grade AES software. This secures data transmission between users’ devices and our servers.
Nigerians can now invest more easily thanks to the emergence of internet investment firms. To participate in the global economy, you don’t have to be affluent. You can invest in global and domestic equities, government bonds, and exchange-traded funds (ETFs). With a small bit of money and a smartphone app. Millennials are the target audience for the majority of these internet investment platforms. Anyone who is comfortable with a smartphone can use any of these platforms to invest in overseas stocks.
Your location can not prevent you from buying us stocks or foreign stocks from Nigeria. These applications remove the geographical and geographic hurdles that previously prevented Nigerians from trading US stocks. Here’s a brief tip before you start buying US stocks in Nigeria: don’t go all out. We suggest that you try out your favorite app with a small amount of money that you can afford to lose.
