How can I Invest in the U.S with Stocks from Nigeria?

Many Nigerians are still not aware that they can invest in the U.S stock market from Nigeria, and it is as simple as making a few swipes from their mobile phone.

As Nigerians are faced with a harsh economy, a lot of them are looking for a safe haven where they can be shielded from the storm of a tough economic situation.

It is no surprise that many have fallen prey to a lot of failed schemes that promised them huge returns on investment, only to lose their funds which took weeks, months, or even years to gather.

Nigerians still lose money to Ponzi schemes and other forms of investments daily. The lack of financial education owing to minimal awareness has been a huge factor contributing to such a loss.

There are lots of ways to invest money in Nigeria and they offer good returns, real estate is one of them, and investing in stocks is another.

The challenge with investing in stocks for Nigeria is the calamitous outcome that came with the crash in the stock market, where a lot of Nigerians lost huge funds in the stock market.

This has made so many skeptical about getting back into the stock market with their hard-earned money.

A proper understanding of the stock market and how it works will help protect Nigerians who are still interested in investing in stocks.

Fortunately, technology has helped bridge the gap that once existed, now Nigerians can spread their nets and invest in stocks beyond the shores of Nigeria and invest in countries such as the United States of America.

Nigerians can now invest in fortune 500 companies like Amazon, Apple, Alphabet, Microsoft, and the rest.

What is a Stock?

A stock is a financial instrument that reflects a portion of a company's ownership. When you acquire a share of a firm's stock, you're buying a small piece of that company.

Investors buy stocks in firms they believe will appreciate in value. If this occurs, the stock of the company rises in value. After then, the stock can be sold at a profit.

You are referred to as a shareholder if you possess shares in a firm and partake in its profits.

Stocks are the bedrock of many investors' portfolios and are purchased and sold mostly on stock exchanges, though private sales are possible as well.

Government laws must be followed in order to safeguard investors from fraudulent operations. Over the long run, they have consistently outperformed most other assets.

The Nigerian stock exchange market is currently regulated by the Securities and Exchange Commission (SEC).

What is stock investing?

Investing in stocks entails purchasing stock in a publicly-traded company. The company's stock is made up of those small shares, and by investing in it, you're trusting that the company will develop and operate well.

Your shares could become more valuable, and other investors may be encouraged to buy them from you for a higher price than you paid. That means if you chose to sell them, you could make a profit.

Stock market investing is a long-term endeavor. A solid rule of thumb is to diversify your investment portfolio and continue investing through ups and downs in the market.

Putting money into an online investment account, which can then be used to invest in stocks or stock mutual funds, is one of the greatest ways for beginners to get started buying stocks.

Perks of Stock Investing to Nigerians

1. Income from Dividends. Dividends are a portion of the company's profits that provide a stream of income for many shareholders. Dividends are typically paid every quarter, but not all firms do.

They can elect to put this profit back into the business. Dividends allow corporations to disperse a portion of their profits to shareholders, even if the stock price has dropped.

Dividends obtained from stock ownership can provide investors with a number of advantages. Dividend payments can help you get a better yield on your stock investment.

2. Benefits of Diversification. The stock market provides investors with a diverse selection of products to invest in, including shares, bonds, mutual funds, and derivatives, depending on their risk appetite and financial goals.

Diversifying your portfolio by investing in a variety of stocks provides excellent diversity. By allowing diversification of investment portfolios and offsetting market risks, this flexibility helps to mitigate the risks associated with stock investing.

A well-diversified portfolio can help you generate wealth by leveraging growth in several economic areas, leading to a profit even if certain individual equities lose value.

3. Better Long-Term Profits. Over the years, the stock market has historically provided large returns to investors. One of the main advantages of stock investment is the ability to wait and watch your money multiply and grow.

Individual stock values fluctuate on a regular basis, but the stock market as a whole tends to rise in value.

A review of many asset classes reveals that the stock market has historically provided investors with the best returns, beating all other types of financial securities including the real estate market for decades.

4. Liquidity. Another advantage of stock investment is that they are extremely liquid assets. They allow you to buy or sell equities without having to look for buyers or sellers.

Other assets, such as real estate or long-term debt instruments, are not in the same boat. The term “liquid” is used by economists to describe how fast and cheaply you can convert your shares into cash.

Useful Investment Platforms for Nigerians to Invest in the U.S

Seeing the perks of stock investing, it is even more good news that Nigerians can now go as far as investing in the U.S stock market, playing big in the global market, and taking part in the market share.

This was not possible but technology with the introduction of various mobile apps has served as a link between Nigerian Investors and the U.S stock market.

From the comfort of your home in Nigeria and with just a few swipes you can invest in the U.S stock market.

Through the following listed medium, you can invest in the U.S stock market:

1. Bamboo: This stock trading program in Nigeria, also known as Invest Bamboo or Bamboo app, allows you to trade US stocks from Nigeria. This app gives you access to over 3000 equities listed on the New York Stock Exchange.

With this application, you may also buy an ETF (a collection of equities) and give stocks to others. Bamboo is an Android and iOS application.

You have the option of funding your account in either Naira or US Dollars, allowing you to choose which stock to purchase. The majority of customers who use this application prefer the USD account since it helps them to avoid the Nigerian currency's declining value.

2. Trove: Trove is a digital investment platform that allows you to invest in stocks, bonds, exchange-traded funds (ETFs), and other assets directly from your smartphone or computer in the United States, China, and Nigeria.

Trove also includes a set of tools to help you improve your investing skills.

The Trove application is accessible for Android users on the Play Store and for iOS users on the App Store.

3. Chaka: Chaka is a digital investment platform that provides first-class access to stocks listed on the Nigerian and American stock exchanges, as well as worldwide blue-chip firms from more than 40 countries.

With Chaka, you may start trading overseas stocks for as little as $10 or N1000. 

Chaka was the first fintech business in Nigeria to be granted a license by the Securities Exchange Commission of Nigeria (SEC).

The Chaka app is available for Android and iOS users on the Play Store.

4. Rise: The Rise app allows you to start investing in US equities for as little as $10. You can choose to have Rise specialists manage and manage your money in a portfolio of expertly-selected US stocks rather than doing it yourself.

Stocks are selected based on their long-term performance, growth prospects, and quality earnings.

Some of the guides on the platform make it an excellent place for a newbie to begin.

Rise is available for Android and iOS devices.

Investing vs. trading

Traders and investors are most often taken to be the same, but they really are not.

Traders buy and sell stocks in order to make a quick profit. While investors buy and hold equities perform better in the long run.

Investors often have a diversified investment portfolio of numerous stocks that they hold through good and bad economic times.