How To Invest In Stocks In Nigeria

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Choose How You Want To Invest

How to Invest in Stocks for Beginners in NIGERIA

These days you have several options when it comes to investing, so you can really match your investing style to your knowledge and how much time and energy you want to spend investing. You can spend as much or as little time as you want on investing.

Heres your first big decision point: How will your money be managed?

  • A human professional: This do-it-for-me option is a great choice for those who want to spend just a few minutes a year worrying about investing. Its also a good choice for those with limited knowledge of investing.
  • A robo-advisor: A robo-advisor is another solid do-it-for-me solution that has an automated program manage your money using the same decision process a human advisor might but at much lower cost. You can set up an investment plan quickly and then all youll need to do is deposit money, and the robo-advisor does the rest.
  • Self-managed: This do-it-yourself option is a great choice for those with greater knowledge or those who can devote time to making investing decisions. If you want to select your own stocks or funds, youll need a brokerage account.

Your choice here will shape which kind of account you open in the next step.

How To Open A Brokerage Account In Nigeria

Follow these simple steps to open a stockbroker account in Nigeria to buy shares for the first time.

Step 1: Fill the CSCS Account Opening Form

The CSCS maintains an electronic database about the ownership of Nigerian securities. Once the broker has opened an account for you, they should send you a copy of the CSCS account opening details and the account number. The account number will feature in all the stock trade you will undertake to ensure that they have a record of all your holdings.

Step 2: Fill the Brokers Account Opening Form

Once you have requested the broker on information on account opening, they should send you a bank account opening form. The form requires that you provide your ID number, passport number and other details such as your banking details and your address.

Step 3: Get Two Colored Passport Sized Photos and Copies of ID and Passport

Ensure that you have your two passport-sized photographs for the accounts opening. Also, ensure that you have a photocopy of your passport and ID. Also, have a cop of a recent utility bill that will serve as a proof of your residence.

Step 4: Send Your Documents to a Broker

Email the copies of all your documents to your broker. Alternatively, you can send them via courier services. They are expensive, but they are more reliable and secure.

Step 5: Deposit Funds to Your Account

Step 6: Send a Trade Order

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Sorry Im A Beginner What Are Shares

Basically, companies issue shares to access capital to fund their business growth. Company shares refer to an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder . The denominated value of a share is its face value, and the total of the face value of issued shares represent the capital of a company.

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Investing / Purchasing Us Stocks From Nigeria

There are actually different platforms that allow Nigerians to gain access to American stocks. They basically act like a bridge linking Nigerian investors to American stocks.

So basically, the steps needed to invest in US stocks from Nigeria are:

  • Get registered on a trusted platform
  • Fund the platform
  • Invest in stocks
  • Wrapping up

    Having foreign investments is undoubtedly one of the keys was to stay financially safe, especially when you are in a country with an unstable economy. Now that you have learned how to invest in US stocks from Nigeria, you can go ahead to making that decision.

    Whats more, please note that it is highly required of you to make valid research before jumping to invest in any stock. Also, invest yourself.

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    Location Isnt A Barrier

    Nigerian Stock Exchange Market Pick Alerts

    These apps eliminate the location and distance barriers formerly preventing Nigerians from trading U.S stocks. Before you start proceed to buy US stocks in Nigeria, heres aquick tip: avoid going all out. We recommend that your test out your preferred app with a small amount of money that you can afford to lose.

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    Best Stocks For Beginning Investors

    As a new investor, it can be a wise decision to keep things simple and then expand as your skills develop. Fortunately, investors have a great option that allows them to purchase shares in hundreds of Americas top companies in one easy-to-buy fund: an S& P 500 index fund. This kind of fund lets you own a tiny share in some of the worlds best companies at a low cost.

    An S& P 500 fund is a great option because it provides diversification and reduces your risk from owning individual stocks. And its a solid pick for investors beginners to advanced who dont want to spend time thinking about investments and prefer to do something else with their time.

    If youre looking to expand beyond index funds and into individual stocks, then it can be worth investing in large-cap stocks, the biggest and most financially stable companies. Look for companies that have a solid long-term track record of growing sales and profit, that dont have a lot of debt and that are trading at reasonable valuations so that you dont buy stocks that are overvalued.

    What Stocks To Buy Today

    Experts believe that today, it is possible for investors to acquire a variety of stocks to make profits. Therefore, the trader can also invest in Facebook, Apple, Amazon, Netflix, Tesla, and many others and the mentioned companies. In this reference, it would be advisable to remember that this list is subject to daily changes, so it would be wise to conduct thorough research beforehand. There is another relevant question regarding how old you have to be in order to purchase stocks. Under Nigerian law, it all revolves around the age of majority.

    Apple

    A new entry-level price for Apple’s shares is currently below what the stock market would consider a cup-and-handle price. According to MarketSmith’s analysis, the best buy point is 176.75. Short-term, the 50-day moving average of AAPL will be a key target in the coming weeks. The stock dropped below the benchmark during the past week.

    On the other hand, Apple’s stock price recently hit new highs as measured by the relative strength line. It is a positive development, but it also indicates how poorly the market has been doing. A stock with a strong RS line tends to break out first when markets are choppy.

    As of today, Apple scored 93 out of 99 on the Composite Rating. The company became the first to reach a three trillion-dollar market capitalization last month. Nevertheless, its market capitalization has declined since then.

    Microsoft

    Amazon

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    Nigeria Stocks To Watch In 2022

    The year 2021 was a roller-coaster for equities, with eight months of positive returns and four month of bearish season. The market ended with a positive return of 6.7 percent amid a remarkable last-minute rally that helped push the value of listed stocks up by N1.23 trillion.

    Interestingly, market liquidity and the record rally were driven majorly by domestic institutional and retail investors, thus reinforcing the potential of Nigerian investors in stabilising and growing the market.

    Notwithstanding imminent risks to equity market rally in 2022, Nigerian stocks are still attractive and should remain resilient in this year.

    The big question now is: what stocks should investors buy in 2022? Stocks seen reoccurring in many analysts BUY lists for 2022, which investors should actively consider in their equities portfolio this year include Dangote Cement, MTN Nigeria, Lafarge Africa, GTCO, Nestle Nigeria, Zenith Bank, BUA Cement, BUA Foods, UBA, Fidelity Bank, Access Bank, Stanbic IBTC Holdings, and Flour Mills of Nigeria.

    Currently in the Nigerian market, many of these stocks are undervalued and present attractive BUY opportunities for investors seeking both capital appreciation and for long-term returns.

    He remains upbeat on the prospect of the Nigerian stock market in 2022, as our cautious optimism reinforces our outlook of another positive return for Nigerian equity investors in the new year.

    Dangote Cement

    MTN Nigeria

    Flour Mills of Nigeria

    Choose A Regulated Investment Bank Or Stockbroker

    How to Invest in US Stocks from Nigeria – How I Invest $1,000!

    Investors appoint stockbrokers to carry out buy or sell instructions on their behalf. A stockbroker is a broker-dealer registered with the SEC that is a member of the Nigerian Stock Exchange.

    When choosing a stockbroker, important factors to consider include ease of access, affordability , integrity and reputation, and their status with the Securities and Exchange Commission .

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    Research On Stocks Investing

    The knowledge that you need to make good trades involves much more than knowing where to discover the best stocks to buy right now. As well analyzing the stocks themselves is necessary to determine which ones should be invested in, which is not always as simple as it seems. Certainly, to determine which stocks are the best to invest in, you have to consider certain specific aspects to make the right decision.

    What Is A Stock Exchange

    A stock exchange is an organized and regulated financial market where securities are bought and sold at prices governed by the forces of demand and supply.

    Stock exchanges basically serve as primary markets where corporations, governments, municipalities, and other incorporated bodies can raise capital by channeling savings of the investors into productive ventures and secondary markets where investors can sell their securities to other investors for cash, thus reducing the risk of investment and maintaining liquidity in the system.

    One of the major responsibilities of a stock exchange is to impose stringent rules, listing requirements, and statutory requirements that are binding on all listed and trading parties.

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    Top 5 Business Investment That Doesnt Need Your Physical Presence To Run In Nigeria

    It is more of a myth than reality that a business establishment without physical presence tends to collapse in its early stage.

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    Well, there are series of home-based business ideas out there that doesnt require physical presence for someone to be successful.

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    Without further delay, below are business opportunities in Nigeria that dont require employees.

    How To Buy Stocks: A Beginners Guide

    Nigerian Stock Exchange Market Pick Alerts

    The stock buying process is not as complex as it sounds. However, you will have to do some research and master the language before making the first purchase.

    To buy stocks, you will need an account with a brokerage company that can be created in just 15 minutes. Once youve added funds to your account, you can follow the steps below to locate the best companies to invest in and then choose the companies you want to invest in.

    Choose an online stockbrokerThe easiest method to buy stocks is to use an online stockbroker. Once you have opened and funded your account, you can buy shares and stocks online through the website of the broker. Another option is to use an all-inclusive stockbroker or buy shares directly from the company.

    The online account opening process can be as simple as opening your bank account complete an application for the account with a photo ID and decide if you want to add funds to the account using an electronic fund transfer.

    Do your research on the stocks youd like to purchaseOnce you have established and funded an account with a brokerage, you are now ready to get into the business of selecting stocks. Dont let the flood of information and live market fluctuations overwhelm you when you conduct your study. Make your goal clear The goal is to find businesses that you would like to be a part-owner of the best stock brokers in south africa.

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    Best Time To Buy Shares In Nigeria

    Buying the dip, as a high-return technique, is the best moment to buy shares in Nigeria. This strategy is used by investors seeking to enhance their position in the stock market and generate long-term gains.

    Buying the drop is not tied to a specific time, but appears as a trading strategy in the event that the price of a company’s share drops significantly and unexpectedly, as non-expert investors tend to sell their shares quickly to avoid further losses, while experienced investors buy as many of these shares as they can.

    At its lowest point, they anticipate that it will rise again in the future, yielding enormous rewards in the long term.

    How To Manage Your Investments

    Youve established a brokerage or advisor account, so nows the time to watch your portfolio. Thats easy if youre using a human advisor or robo-advisor. Your advisor will do all the heavy work, managing your portfolio for the long term and keeping you to the plan.

    If youre managing your own portfolio, youll have to make the trading decisions. Is it time to sell a stock or fund? Was your investments last quarter a signal to sell or buy more? If the market dips, are you buying more or selling? These are tough decisions for investors, both new and old.

    If youre investing actively, youll need to stay on top of the news to make the best decisions.

    More passive investors will have fewer decisions to make, however. With their long-term focus, theyre often buying on a fixed regular schedule and not worrying much about short-term moves.

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    Buying Shares In Nigeria Heres How To Do It

    January 6, 2022 by Finance

    If you have passively heard about investing in and buying shares and are wondering how to go about it, then you have come to the right place. Congratulations! Your curiosity has made you take the first step in growing your earning potential which is the end goal of buying shares.

    Investing in the shares or stocks market is a way of increasing ones wealth and financial security. Though it is not without some level of risks involved, buying shares can provide the foundation you need to secure your future financially.

    Firstly, before we take a look at the different ways to buy shares in Nigeria, lets get familiar with these basic terms:

    How Is A Trade Completed In The Stock Exchange

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    A trade, or, in other words, the investment flow of any financial instrument, could be summarised as follows:

    1. Sellers offer to sell a financial instrument at a price, for example, a bond issued by a company. Sellers aim to make this price as high as possible .

    2. Investors who wish to buy the bond, make an offer for a price. They want this price to be as low as possible . Then, Price 1 is higher than Price 2.

    3. Buyers interact with sellers until they are at the point where Price 1 equals Price 2. When this occurs, the financial transaction is completed, and the bond is exchanged between the seller and the buyer. For this interaction to occur, a Broker is needed: A company that has the role of mediation between sellers and buyers, ordering prices and quantities of financial instruments. Below we explain the services that these companies provide.

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    Determine How Much You Can Invest Then Buy

    The key to building wealth is to add money to your account over time and let the power of compounding work its magic. That means you need to budget money for investing regularly into your monthly or weekly plans. The good news is that its super simple to get started.

    How much should you invest?

    How much you invest depends entirely on your budget and time frame. While you may invest whatever you can comfortably afford, experts recommend that you leave your money invested for at least three years, and ideally five or more, so that you can ride out any bumps in the market.

    If you cant commit to keeping your money invested for at least three years without touching it, consider building an emergency fund first. An emergency fund can keep you from having to get out of an investment early, allowing you to ride out any fluctuations in the value of your stocks.

    How much do you need to start?

    Most major online brokerages these days dont have an account minimum , so you can get started with very little money. Plus, many brokers allow you to buy fractional shares of stocks and ETFs. If you cant buy a full share, you can still buy a portion of one, so you really can get started with virtually any amount.

    Its just as easy with robo-advisors, too. Few have an account minimum and all youll need to do is deposit the money the robo-advisor handles everything else. Set up an auto-deposit to your robo-advisor account and youll only have to think about investing once a year .

    S To Follow When Investing In The Nigerian Stock Exchange

    We start the article by detailing the 5 most important steps that you need to follow when starting to invest in Nigerian Stocks and Shares. Although we will detail more on each step subsequently, we thought that it was a good start to summarize the key points of the process. So, here they are:

  • Set up your goals and the strategy that you will follow to achieve them: Define if you are a long-term investor or a trader. Your strategy should answer questions like: Am I going to track the economys performance or am I going to pick each particular stock? At what price am I going to cash in the investment?. Your strategy shouldnt be just a matter of buying one single share, no matter how profitable you believe it will turn, simply because thats not a strategy.

  • Choose the Broker that best fits your strategy. This is a key step, if opening an account with a Broker that you end up being unsatisfied with, although you may open an account with another one, you should do it right straight from scratch, right? We display a list of the best brokers available in Nigeria in the following section.

  • Open a Trading Account with the Broker . Most Online Brokers will ask you to upload a few documents through their App, an ID and a proof of residence. Upload them and they should take care of the rest. In 1-2 days you are ready to go. Funding options range from credit cards to bank transfers and e-wallets.

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