Investing in US stock is arguably one of the best financial decisions a Nigerian can ever make. Apart from the fact that fifty percent of the global stock market value is distributed all over thr United States, investing in firms there will also help you gain more profit in naira. Before now, it was almost impossible to buy shares from Apple, Tesla, or Uber from Nigeria due to either geographical or economic restrictions. However, the story is different today, and we intend to take you through different ways to invest in US stocks from Nigeria.
Understanding US Shares and Stock Exchange Market
Before we dive into the different online brokers and merchants that can help you buy foreign shares, you must have a firm understanding of specific terminologies. First and foremost, the United States has the New York stock exchange (NYSE) and Nasdaq as the most famous markets for investors from Nigeria. Companies like Visa, Alibaba group, MasterCard, and Exxon Mobil trade on the NYSE while firms like Apple, Amazon, Tesla, and Google trade on Nasdaq. However, if you are confused about the companies to invest in, you can use the S&P 500 index which is a list of the top five hundred firms to invest in for both markets. The list is updated regularly based on the financial performance of these firms over a specified period.
Platforms That Can Help You Buy US Shares
Thanks to digital advancements, Nigerians can now invest in US stocks from Nigeria through their mobile devices. Certain financial tech firms have created platforms and apps that can help you achieve this. These startups are:
Trove: This startup was established to allow Africans to benefit from the financial dividends from local, US, and other global stock markets. The tech startup has several partners like Sigma Securities. This firm is responsible for all Nigerian trading accounts, and is regulated by local financial authorities.
You need a valid passport, a recent PHCN bill, and your bank verification number to enjoy the startup’s services. After obtaining these documents, you can download the app from your app store and start investing right away. If you’ve registered successfully, you can proceed to fund your wallet through a bank transfer or a naira debit card. The next step is to start investing with as low as $10 from your funded wallet. The investment fund has bank-grade security and can be left for as long as you wish. There’s also a monitoring segment in the app where you can check the status of your investments. If you want to withdraw your funds, you can do that anytime you wish, either into your wallet or local account.
The benefits of using this platform are numerous. One of the most helpful benefits is that you can buy shares for as low as one thousand naira, and you also have the option to purchase fractional shares of global companies even if you can’t afford the complete value.
Chaka: Another startup that operates in a similar way to Trove is Chaka. The firm can assist you in purchasing US shares from thousands of global companies. The merits of using their services are numerous. First and foremost, they are partners with licensed firms in Nigeria and the United States. Their partners ensure that customer funds are secured, safe and regulated by local and global authorities. Also, joining the startup is free but they charge minor operational fees when you purchase or sell shares. The registration steps and requirements are as listed for Trove and the process takes less than five minutes.
Start purchasing shares with as low as one thousand naira after you fund your wallets. You can fund the wallets through a bank transfer or naira debit card. It is pertinent that you visit their website or app regularly to see the returns of your investment. You must also note that the holding period of your stock is as long as you want. Besides, all withdrawals are seamless on the platform, but you must wait for three working days to withdraw global returns.
Rise: This app is another avenue to grow your funds in dollars through investing in global US firms like Apple, Google, and Tesla. Just like the platforms above, this fintech startup is home to several experts that can help you own and manage a dollar investment portfolio.
Apart from helping you invest in US stocks with as low as $10 in firms like Netflix, Amazon, and Facebook, the platform also allows you to invest in real estate and even save your money and enjoy the naira-dollar exchange disparity. Another advantage of using this startup is its low-risk nature, and its experts are always on the ground to offer the best financial advice. You can opt in for their services by opening an account through their digital channels.
Bamboo: This startup allows you to invest in carefully selected US stocks from Nigeria with as low as two thousand naira. The starting amount is pretty higher than what you need to get started on its competitors. However, the benefits they offer include a seamless way of finding and monitoring your investment portfolio, Bank-level security, and access to more than three thousand stocks on the New York stock exchange and NASDAQ. The requirements and procedure to join the platform are similar to what we’ve described for other platforms. Like few other platforms in its category, Bamboo doesn’t offer financial consultation services. Hence, the onus of monitoring and managing returns lie on the investor.
To sum it up, it is pertinent to note that investing in US stocks from Nigeria demands preliminary knowledge of what firms to invest in, risk measurement, and stock market dynamics. The platforms listed above serve as a conduit for your funds to contribute and work for global firms. However, market dynamics demand that you monitor and have adequate information concerning high-performing companies. With these new platforms, geographical barriers are no longer an excuse to buy shares in the United States.