This is a detailed guide on how to buy foreign shares in Nigeria
Nigerians can purchase foreign shares through a brokerage firm or through online investment platforms.
Brokerage firms can be both local and global, so there are a variety of hurdles to overcome including the cost of opening an account, tax issues, payment difficulties due to currency conversion, technical support challenges, and, of course, fraudulent brokerage firms.
It is because of this reason that online investment platforms are an excellent option for Nigerians to buy foreign shares.
The online platforms that allow foreign shares to be purchased in Nigeria are secure, safe and legit.
Both in Nigeria and in other relevant foreign countries, they are registered with the relevant government agencies, such as the Securities and Exchange Commission.
Let dive deep into how you can buy foreign shares in Nigeria
Why should You buy foreign shares In Nigeria
Buying foreign shares from Nigeria is an excellent investment option compared to investing in bonds, treasury bills, or even real estate. Foreign shares are more liquid, and have a greater range of choices.
In addition to becoming part owner of foreign companies, you also get to earn income through dividends when you buy foreign shares from Nigeria.
Best Investment Apps for Buying Foreign & American Stocks in Nigeria
The ease of buying foreign shares from Nigeria through online investment platforms is accessible to anyone with an internet connection. Investing online with these companies allows you to create a trading account and purchase shares from around the world as well as locally.
READ ALSO: 5 Top Real estate investment platforms in Nigeria
Below are the best Investment Apps for Buying Foreign Shares:
1. Risevest
From as low as $10 invest with the Risevest app in dollar investment opportunities like buying foreign shares from Nigeria. Risevest allows anyone to make automated investments in 30 high-growth stocks on the US exchange, fixed income assets like Eurobonds and US real estate.
It’s simpler to see Rise as more of an online Investment fund has you pick your investment type and the experts at Rise actually make the actual investments themselves.
Rise annual return on foreign shares is about 14%. Note that actual returns can depend on the market. The Rise app is available on Android and on iOS.
Product Features of Risevest 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 users 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.
2. Chaka
Chaka is another digital investment platform that offers first-class access to stocks listed on the Nigeria & U.S stock exchanges as well as global blue-chip companies from over 40+ countries. You can start trading foreign stocks with Chaka from as low as $10 or N1000
You can buy foreign shares from Nigeria with Chaka.
Chaka is available on Android and iOS.
Product Features of the Chaka App
- Platforms: Android, Web
- Minimum investment amount: $10 or N1000.
- 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: 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, it 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 protected by bank-grade AES encryption software. That protects communication between users devices and our servers.
3. Trove App
Anyone can buy foreign shares from Nigeria using the Trove app. Buy American, Chinese and Nigerian shares starting with a minimum amount of N1000. You can also buy other assets like bonds, ETFs and using Trove. They also offer investing guides that help you become a smart investor. You can use trove on Andriod, iOs and on the web.
Product Features of Trove App
- Platforms: Android, iOS
- Minimum investment amount: ₦1,000.
- 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: As long as you like.
- Investment monitoring: You can track returns on investments purchased through the Trove app.
- Withdrawals: You can withdraw uninvested cash in your wallet for 3 business days or more. If you’re withdrawing more than your invested cash. You’ll need to sell some of your purchased assets. If you submit a sell order it will take between 1 to 2 business days for your funds to settle in your account. You can either choose to deposit the fund in your wallet or bank account. For foreign securities, the least amount you can withdraw a is $50.
- Security: Trove ensures your personal information is well encrypted with 256-bit encryption. And stored using cutting edge security technologies. Trove’s partner, DriveWealth LLC, a regulated member of FINRA/SIPC. Holds All the US trading accounts on Trove. It also protects securities holdings of its members. Of up to $500,000 (including $250,000 for claims for cash). Its other partner, Sigma Securities. A firm regulated by the NSE & Securities and Exchange Commission. Holds all Nigerian trading accounts. While ARM Investment Managers, a licensed Asset manager in Lagos, Nigeria. Acts as Investment managers for the Portfolios on Trove.
4. Wealth.ng
Wealth.ng also offers personal wealth advisors on its platform. Wealth.ng also allows people give gifts by buying shares and other investment products in their name
Wealth.ng lets anyone buy foreign shares from Nigeria through its app and Website.
You can also invest in treasury bills, mutual funds, agriculture and real estate with wealth.ng. You can use Wealth.ng through its website or its app.
You can also buy shares from the Nigeria stock exchange with this platform.
5. Bamboo
Buy foreign shares from Nigeria with Bamboo as low as $20. There are over 3500 American and Nigerian shares on the Bamboo app. Every Bamboo account is insured up to $500,000.
You can build your personal wealth with Bamboo by buying foreign shares from Nigeria with from your smartphone. This online investment platform has bank-level state of the art security.
You can use Bamboo on Android and on iOS.
Product Features of Bamboo App
- Platforms: Android, iOS
- Minimum investment amount: $20.
- 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: As long as you like.
- Investment monitoring: You can track returns on investments purchased through the Bamboo app.
- Withdrawals: A withdrawal order from the app will take between 1 to 2-3business days for your funds to settle in your account.
- Security: Bamboo uses state-of-the-art bank-level security, data encryption and two-factor authentication (2FA) protection on all accounts. All accounts are held at a top-tier local and U.S. brokerage firm; which, as a member of the Securities Investor Protection Corporation (SIPC), insures each Bamboo account up to $500,000.
FAQ on How to Buy Foreign Shares In Nigeria
With these online investment platforms, you can invest in foreign stocks from Nigeria. Some of them let Nigerians invest in international and local financial opportunities. Like the US, Chinese & Nigerian Stocks, Government Bonds, US ETFs and even the US real estate market.
READ ALSO: 10 Best Performing Mutual Funds in Nigeria 2022
Can Nigerians buy US stocks
The U.S stock market is the biggest stock market in the world and everyone wants a taste of it. Buying U.S stocks as a Nigerian or as a non-U.S resident was a difficult process. At minimum, you will require a valid US visa or a green card to be able to invest in the US stock market.
Thanks to new age technology, you can now conveniently invest in the U.S stock market from your smartphone or computer.
Here are top Fintech startups that have made it easy for Nigerians to buy U.S stocks in Nigeria, with ease.
Is Now A Good Time To Buy Foreign Shares In Nigeria?
Yes, this is a great time to buy shares of foreign companies in Nigeria because Nigerian stock markets are highly unpredictable and the value of the Naira has steadily declined for years.
Buying foreign stocks in Nigeria is also a good time given that your investments will be in dollars, as will any profits you make from selling foreign stocks to Nigeria.