5 Popular Types of Stock Portfolio
Top Nigerian Stock Broker You Can Invest With
May 10, 2022
Stock101
If you’re looking to invest in stocks, you’ll need to go through a broker. Here is a list of the top Nigerian stock brokers, so you can choose the one that’s right for you.
The journey to stock investing begins before you set your first buy order. But, of course, tons and tons of research precede the process, including the choice of best Nigerian stock broker.
Stocks are listed publicly on the stock market. To invest in them, you have to buy a portion of them. Unfortunately, it is impossible to buy stocks directly from the stock exchange. This is where a broker comes in.
A broker is an intermediary that allows you to access the capital market to trade securities and stocks. Essentially, they are individuals or companies that mediate stock transactions in exchange for a commission.
With the rise of technology, brokering has evolved. Just with a smartphone, you can buy, sell or trade stocks from the comfort of your home.
Nigerian Stock Broker: What to Look for When Choosing One
It is probably not wise to choose the first broker you come across. For example, there are several reputable online brokers to choose from in Nigeria. While we cannot recommend the best Nigerian stock broker, we believe that there are certain factors to consider before making a choice.
Fees
The amount an online broker charges as a commission are essential to take into cognizance. Most brokers charge commissions after every executed trade. In Nigeria, you also have to factor in the broker’s deposit fees, withdrawal fees, and exchange rate. These fees vary depending on the method you choose to fund your account. Therefore, select a broker that charges the lowest fee possible to maximize profit.
The Broker’s Reputation
In a scam-filled world, the broker’s reputation you are entrusting your money with is significant. You may read online about the broker or check their reviews on various app stores to be double sure. Forums like Nairaland and reviews on the Google Play store are recommended places to check.
Regulatory Position
In Nigeria, the Nigerian Securities and Exchange Commission and the Central Bank of Nigeria (CBN) regulate the affairs of stock brokers. Therefore, ensure that your broker has the necessary license to operate within Nigeria. Information regarding this is not supposed to be private, so do not hesitate to ask essential questions.
Ease of Withdrawal and Deposit
It is equally important to ensure that your online broker accepts and pays through straightforward payment methods recognized in Nigeria. If you have to go through a third party or a complicated process, you might want to be a bit skeptical of them.
Top Nigerian Stock Broker
Finding the right stock broker is essential in your stock investing journey. With so many brokers to choose from, it can be difficult to know where to start. However, by considering factors such as fees, account minimums, and investment options, you can narrow down the field and find a broker that meets your needs.
Bamboo
Bamboo is a Nigerian stock broker that gives access online to international stocks, including the American Stock Exchange and the Chinese stock market. They have over 3500 online stocks listed on their platform from the US stock market. With as little as $20, you can sign up and begin your investment journey.
You can have access to Bamboo by downloading the mobile application. It is compatible with both android and iOS devices.
Pros
- They have a sleek user interface that is easy to navigate.
- Trades foreign stocks, ETFs, and REIFS.
- They provide helpful stock information and expert opinion that is helpful for newbies.
Cons
- Slightly expensive fees when compared to other Nigerian stock brokers.
- No web application yet.
- Cannot trade on the Nigerian Stock exchange.
Chaka
Chaka is the first SEC-licensed digital investment platform in Nigeria. They give access to international stocks and Nigerian stocks as well. With as little as $10 and zero investment experience, you can begin investing with Chaka. With SmartInvest, Chaka helps you automate and manage your investments by recommending portfolios tailored to your goals and risk appetite.
Pros
- Free deposit and withdrawal fees.
- They trade Nigerian and foreign stocks alongside ETFs and REITs.
- Friendly user interface.
Con
- The app is somewhat slow and filled with bugs.
Trove
Trove is a Nigerian stock broker that allows you to invest in stocks, bonds, and various securities. With Trove, you can access the American stock exchange, the Chinese, and the Nigerian stock market. In addition, Trove provides many valuable features and educational materials for its users. Download the mobile app and begin investing with as little as $10.
Pros
- No withdrawal fee.
- Has the cheapest deposit fee.
- Trades of both Nigerian and foreign stocks.
- They provide valuable additional features and information for users.
Cons
- The app update can be problematic.
- The app has low reviews on the Google Play store.
Passfolio
Passfolio is an online brokerage that allows you to invest and trade in stocks, ETFs, REITs, cryptocurrency, etc. They have over 6,000 stocks and 75 cryptocurrencies listed on their platform. With as little as $1, you can begin to invest fractionally in your favorite stock.
Pros
- Free commissions.
- Easy to use.
Con
- The app is slow and has some glitches.
Concluding Thought
So, if you’re looking for a top online broker to invest with in Nigeria, any of the ones we’ve listed above should fit the bill. Just make sure to do your research before signing up so that you can be confident you’re dealing with a reputable company.
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