How To Buy U.S. Stocks In Nigeria In 2022 [LATEST UPDATE]
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Finance

How to Buy USA stocks in Nigeria

How to buy USA stocks in Nigeria – If you are seeing this article, it means that you are thinking of how you could buy U.S. stocks in Nigeria. It is actually possible to buy U.S. stocks or other foreign stocks in Nigeria as some apps have been created to help you easily purchase foreign stocks even while in Nigeria.

The U.S. stock market is one of the biggest stock market in the worldwide as it account for more than 50% of the stock market value in the world and the total market capital for the New York Stock Exchange (NYSE) and NASDAQ is about 40.2 trillion  USD.

Stocks are the total collection of shares in a company and if you own stocks in a company, you are part owner of that company and will enjoy in the profit of the company.

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Stock trading is a very lucrative business and with the sensitization going about on why people should invest in stocks, a lot of people have started considering this investment.

Stocking trading is the buying and selling of stocks and it could be confusing for you especially as a beginner but that shouldn’t be a problem as we got you covered.

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Before the introduction of investment apps that now made it easier for people to buy stocks online, buying stocks from foreign companies was difficult as you would have to use an international broker who would charge commission for the service and you will still be required to have a valid visa or green card before you can buy the foreign stocks.

But now, everything has been made easy with the investment apps that enable you to buy stocks from anywhere and anytime.

In this article, we will be showing you the best U.S. company stocks to buy and the apps you can use to buy these stocks.

Without further ado, let’s start…

How To Buy USA Company Stocks

We are going to show you the steps you need to take in buying U.S. stock.

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Open a brokerage account

The first thing to do before you can buy stocks is to open a brokerage account a it is the funding source. This brokerage account is like the bank account that you open in minutes.

For you to open an online brokerage account, you will have to complete account application and give a legal means of identification after which you then select a means of funding your brokerage account either through electronic transfer or by a check.

Choose the company stock you want to buy

After you must have opened your brokerage account, you can then buy the stock. You will have to carry out a proper research before you choose the company stock you want to buy.

You will have to conduct research on companies that you have known for a while and some other companies you might have in mind.

You will also have to research about the status and how the company is making progress. Try to look at the annual report of the company as it will enlighten you about the profit and progress of the company.

The number of stocks you want to buy

This one is your choice to make but you should start from small and then later you can buy more when you have developed courage and experience.

If you already have the experience, you can buy as much as you can and even decide to fill your entire portfolio with shares.

The Requirements For Buying USA Stocks

There are no signed documents for non-citizens that want to buy US stocks as the US stocks are open to everyone. It is easy provided you have opened a brokerage account with a US broker.

The requirement you need to meet as a stock trader is understanding the chart analysis, price action, supply and demand trading, trade changes, stock order type and how the broker website you are using operates.

You need this basic knowledge so as to trade well and prevent loss of your money.

What Are The Best USA Company Stocks To Buy In Nigeria?

Amazon (NASDAQ: AMZN)

This is one of the most successful companies in the world and it also has one of the best performing stocks. To buy fractional shares from Amazon may range from around $3,000.

It’s quite on a high side but it is worth the price as the company’s revenue has doubled over the past three years and so it is best you invest in Amazon stocks.

The market cap is around $1.64 trillion and the stock price is $3,310.30.

Facebook (NASDAQ: FB)

This is the most popular and also the best social media platform in the world and so you can see that it has potential. It is an American conglomerate company that has connected a large number of people around the world together.

Some people work on Facebook but you can also buy Facebook stocks as it is a good choice of investment.

The market cap is around $575.66 billion and the stock price is $215.89.

Alphabet (NASDAQ:GOOGL)

Since its inception in 2015, its main aim has been to make Google more clean and accountable and since then it has become a successful corporation especially with its billions of revenue it made last year.

This company centres its operation on services connected to Google like Google maps, Google ads, Google cloud, YouTube etc.

The market cap is around $1.8 trillion and stock price is $2,785.20.

This company stock is one of the best for beginners and new investors and it also has a lot of potential.

Tesla (NASDAQ: TSLA)

This is one of the companies that are making wave in the wave today bringing the future to the present. Tesla provides a strong alternative for battery and it has a great impact on the battery sector.

The company is focusing on strengthening the solar city and also making it a strong alternative to batteries. It is also looking into electric cars and all these are the reasons the company is doing pretty well and gaining grounds in the market.

The market cap is around $1.03 trillion and stock price is $1,025.00

Tesla is one of the strongest companies with great potential and investing in its stocks marks the beginning of great things and besides it is beginner-friendly.

Walt Disney (NASDAQ: DIS)

This company is one of the top leading American multinational entertainment and mass media companies. It has its headquarters at Walt Disney studios complex in Burbank, California.

The market cap is around $252 billion and the Stock price of Disney is around $139.82 and it is really worth it so you can consider investing in it as a new investor.

Microsoft (NASDAQ: MSFT)

Some years back, Microsoft was the leading American company when it comes to stocks but ever since Amazon and Google came into play, the status of this American giant had changed.

Even at this, it is still performing very well even during the COVID-19 pandemic and its annual reports show that it is one of the best US stocks to buy.

The market cap is $2.24 trillion and stock price is $301.12.

Apple (NASDAQ: AAPL)

This is one of the biggest tech companies in the world and it is one of the high-profile producers and marketers in the world.

Their products are all over the world and are unique too. They produce Apply watch, iPhone, Macbook, iTunes, iPad, iCloud, Apple TV among others.

The market cap is around $2.7 trillion and the stock price of Apple is $170.98. Its annual revenue has been progressing over the years.

It is a good choice of stock to invest in as a new investor and beginner in stock trading.

Paypal (NASDAQ: PYPL)

This is an online finance company that provides an easy means of online payment, transferring and receiving money and other services too. In recent years, this wonderful company has gained the trust of many customers and marketers from around the world.

Its market cap is around $134 billion and current stock price is $114.65.

Investing in Paypal is another good choice as its annual revenue and other records speak for it and show that the company is doing well.

Netflix (NASDAQ: NFLX)

This is an American company that provides a means for millions of viewers and subscribers from around the world to stream and watch videos.

If you want to know how well Netflix is doing, consider the number of active viewers and subscribers that Netflix has around the world and you will see that it is actually doing well.

Netflix has the capacity to develop its own market share and this also makes it a good company to invest in as a beginner.

The market cap is $166.3 billion and the stock price is $379.12.

Nike (NASDAQ: NKE)

This company is one of the largest when it comes to manufacturing of sports equipment and athletes’ wears in the world. Even as it is an American company, it has spread all over the world.

Every year, Nike makes billions of revenue and there are chances that it will make more in the next few years so it is a potential stock to invest in.

The market cap is $210,454,587,884 and the stock price $134.30.

Pinterest (NYSE: PINS)

This is a social media platform that provides people with wonderful ways of learning arts, designs and many others. It is a wonderful place to invest your money and also their stock price is not really stable as it goes up and down.

The market cap $16.81 billion and stock price $26.32.

Spotify (NYSE: SPOT)

With the partnership deal sign with Joe Rogan and Kim Kardashian, Spotify is a promising company whose stocks have potential. The company has started gaining market shares and it is the best bet for new investors or beginners.

The market cap is around $26.62 billion and the stock price is $151.50.

Micron Technology (NASDAQ: MU)

This company produces computer memory and data storage. It is one of the digital companies that are making wave in the market today and an investment in Micron is going to be worthwhile as its annual revenue in recent years says a lot about its progress.

The market cap is around $87.73 billion and the stock price of Micron Technology is around $77.36.

Goldman Sachs (NYSE: GS)

This is a multinational banking company that offers financial services. This company is one of the leading financial companies that provide prime brokerage accounts, management of assets, investment management and many other financial services.

Its market cap is around $114.56 billion and its stock price was around $338.54 and it is a very suitable stock to buy for new investors.

T-Mobile (NASDAQ: TMUS)

This is an American network company that provides wireless network operation for customers. This company provides smooth-running network operation which as expanded its customer base.

T-Mobile is a great company to invest in as a beginner as its stocks has potential. It has good deals for new investors in stock trading and with its billion dollar revenue over the years; it is an investment you should consider.

The market cap is around $159 billion and the current stock price is $127.18.

Best Apps To Buy U.S. Stocks In Nigeria

We have discussed the U.S. company stocks that you can buy and here, we will be looking at 10 best investment apps to help you buy U.S. stocks even while in Nigeria.

Let’s proceed…

Trove

This is a great investment platform that allows you to create wealth through investing in stocks. It is a platform that allows you to invest in stocks, Exchange-Traded Funds (ETFs), bonds and other securities at the comfort of your home and with you mobile phone.

It was founded by Oluwatomi Solanke and former classmate Austin Akagu in 2018.

Features Of Trove

  • The minimum amount you can invest is $10 or N1,000
  • You will need to present government issued ID, a utility bill, Bank Verification Number (BVN), verified email address, bank account information and a verified Phone Number
  • You will be charged 1.5% of your deposits and N100 for transactions that are over N2,500
  • You are allowed to hold as long as you want
  • You can pay through bank transfer or use debit cards like Visa, MasterCard or Verve cards
  • It has a quick withdrawal window
  • It is available on mobile platforms like Android and iOS

Bamboo

This is another great investment platform that grants you access to about 3,000 stocks listed in both the Nigerian Stock Exchange and the United States Stock Exchange.

If you are interested in buying any of the American company stocks we discussed earlier, you just have to download the Bamboo app, sign up and then fund your account.

It was founded by Yanmo Omorogbe and Richmond Bassey in 2019.

Features of Bamboo

  • The minimum amount that can be deposited is $20
  • All your stocks are insured by the Securities Investor Protection Corporation (SIPC) and also the Financial Industry Regulatory Authority (FINRA) for up to $500,000.
  • It has an excellent user intuitive interface
  • It has a low commission of 1.5% if you buy and sell stocks
  • It has a good and sound customer service
  • It allows you to gift stocks to another person

Passfolio

This is a San Francisco-based fintech company that provides a digital platform that allows people from around the world gain access to US stock market.

There are two subsidiaries that are owned by Passfolio and they are Passfolio Securities and Passfolio Financial.

For you to invest with Passfolio, you will need to download the app, sign-up and then fund your account.

Features of Passfolio

  • It doesn’t have any minimum amount of deposit
  • You will be required to present photo of a Government Issued ID and a utility bill, bank verification Number (BVN), bank account information, verified email address and phone number.
  • You are allowed to hold as long as you want
  • Withdrawals takes about 1-2 business days
  • It doesn’t charge any fee or commission when buying or selling stocks
  • You can pay through banks transfer, use of debit cards and also wireless transfers. (payment options available varies based on location)
  • You can track the returns in the stocks you purchased
  • It is available on mobile platforms like Android and iOS

Chaka

This is another wonderful application to buy and sell stocks that offers users unlimited access to local and foreign stocks. It was founded by Tosin Osibodu in 2019.

This app makes buying of stocks easier for you as you can easily get access to global stock markets and also buy foreign stocks easily.

It is the first fintech company in Nigeria to receive the Securities Exchange Commission (SEC) first fintech license.

Features of Chaka

  • The minimum amount you can start with is N1,000 or $10
  • It allows you to invest in local and foreign stocks
  • They charge low commission of 1% when you buy or sell stocks above $200 and $2 for anything below $200.
  • They conduct free webinars and a functional community to help customers understand the market better.
  • There is quick withdrawal duration
  • It is available on Android and iOS.

Risevest

This investment platform allows you to invest in a portfolio of about 30 high-growth stocks in the US and it allows you to buy stocks from top foreign companies like Google, Facebook and Amazon.

Risevest does not only allow you trade stocks as it is a global asset manager. It provides you with investments in dollar where you can invest in and watch you money grow.

The expert fund manager of this app helps you to trade and you get the opportunity to choose from fixed assets, stock assets and real estate investments.

With Risevest, you just have to choose a plan and fund it and then Risevest team will take care of the rest.

You can invest with as low as $10 which is about N6,000 and it is reliable for new investors.

Features of Risevest

  • Expert fund managers that would help you make the right decisions on your investment.
  • It has an excellent community
  • They offer diversified portfolio options
  • It has relatively low management fee of a maximum of 2% of the total asset under management
  • It is available on mobile platforms like Android and iOS

Leadtrader

This investment platform is known for having the lowest brokerage fee with as low as 0.75% and as high as 1.35% when you allow them to trade in your stead.

Leadtrader was established by Lead Securities and Investment which is a securities trading company that was registered with the Security Exchange Commission (SEC) in 2014 and the Nigerian Stock Exchange (NSE) in 1987.

The app allows you to buy and sell securities and you can also fund your broking accounts with your debit card.

Features of Leadtrader

  • It has an auto asset management
  • It has a wide variety of trading options
  • You can make payments using you debit cards or bank transfer
  • It is quick and easy to register
  • It is available on mobile platforms like Android and iOS
  • The minimum investment amount is N50,000.

Meritrade

This investment platform is owned by Meristem Securities and it was established in 2014. It provides a secure platform for you to trade from your mobile phone and with this; you can buy and sell stocks from the comfort of your home.

It gives stock recommendations to customers and also has a good customer support.

Features of Meritrade

  • The brokerage fee for buying and selling of stocks is 1.35%
  • It has a sound customer support
  • It offer stock recommendation to help traders make the right decision
  • It has a minimum investment of N10,000.

Investnow.ng

This platform provides you with free research and some stock recommendations that will guide you in making choice on the kind of stock to buy. The registration is done online and you will be provided with services like dividend management, handling of issues that are related to registrars, share transfer and share certificate management.

Features of Investnow

  • It has a good customer support with WhatsApp chat option
  • It has a relatively low brokerage fee of 1.35%
  • The minimum opening balance is N50,000
  • It is available on Android

Afrinvestor

It was created by the Afrinvest Securities Limited (ASL) to empower brokerage clients to take control of their investments.

This is a good trading platform that has no minimum initial deposit and you get to receive daily reports, extensive market analysis and stock recommendations.

It allows users to initiate and execute trades, view and edit account information and also portfolio performance views.

This platform has different types of brokerage accounts and each of them has its own features and target audience. These accounts are: Afrinvest Groove account, Afrinvest Pop Account and Afrinvest Classic Account.

Features of Afrinvestor

  • It is available on mobile platforms like Android and iOS
  • It has a brokerage fee of 1.35% for buying and selling of stocks
  • It has no minimum amount of investment
  • It offers stock recommendation and market analysis
  • It has a sound customer support

ARM Stocktrade

This investment platform is very user-friendly as it includes real time data and pricing charts. It was founded by ARM Group in 2004 and it provides full-brokerage services between an investor and securities exchange.

It is a member of the Nigerian Stock Exchange (NSE) and it provides its services to local, foreign and institutional investors.

Features of ARMstocktrade

  • It is available on Android and iOS and also on web
  • Its brokerage fee is 1% for buying and selling stocks.
  • It has a high minimum amount of investment of N50,000.

Chipper Cash

This is a cross-border money transfer app in Nigeria that lets anyone send and receive money across Africa and the UK. With Chipper Cash, you can invest in stocks and crypto currencies.

You can build your investment portfolio using this trading platform as it allows you to buy fractional shares of local and foreign companies.

It has a low commission and you can easily execute trades as the app is available on Android and iOS.

How To Invest In The Stock Market As A Beginner

It is not always easy for beginners or new investors to invest in the stock market but that should be a problem. Let’s briefly give you some tips to guide you in investing in the stock market

Buy the right investment

You can do this by analyzing the company you want to buy its shares and stocks and know all the fundamentals of the company. Look into its management team, assess its competitive advantages, study its financial records and statements.

It’s not always easy to know the right investment as you cannot predict the future but critically looking into the company will guide you into choosing the right investment.

Buy index stocks instead of individual stocks

A lot of people do talk about purchasing individual stocks and some others tell you how they bought individual stocks and it did so well but this is not always the case as there are sometimes when individuals stocks perform very poorly.

As a beginner or new investor in stock trading, it is advised that you purchase index funds which can either be a mutual fund or an exchange traded fund (ETF). These funds hold dozens, hundreds or thousands of stocks and each share you buy of a fund owns all the companies included in the index.

Build a diversified portfolio

Buying index fund will mean that you have a range of stocks in fund as you own stocks in hundreds of companies across many industries.

Diversification is very important because it will help to reduce the risk of any stock in your portfolio hurting the overall performance of your stocks.

This is why it is advised that you buy ETF or a mutual fund.

Diversification could also be buying different stocks spread among different asset classes as buying stocks in the same sector is not really diversification as they move in the same direction for the same reason.

Prepare for a downturn

It is normal for loss to come as an investor and this is because the stock market fluctuates and so you tend to loss from time to time. You will have to prepare yourself to handle these losses.

This is the importance of diversification as a single stock cannot affect your overall return.

In investing, know that you will lose money as stocks do not have principal guarantees.

Try a stock market simulator before investing real money

If you want to enter the world of investing without actually taking any risk, you can use the stock simulator as this is more like practice. Here, you are not putting real money and it will help you know how you would react when you gained or lost money.

You should also ask yourself why you are investing and why you should invest in stocks.

Focus on your long-term portfolio

When it comes to investment, you will have to develop patience and tolerance as this will help you stay long in the investing game. Work on managing your emotions so that you will not be too frightened or too happy.

Set a guideline and stick to it so that you don’t sell out stock during some volatility.

Frequently Asked Questions

Final Note

From all we have said so far, you will see that buying stocks is a great way to invest and grow you money and we have shown you some of the best US company stocks to buy. There is a great possibility that buying these companies’ stock will be a good investment for you.

We didn’t just stop there as we also talked about the best ways you can buy U.S. stocks in Nigeria. We looked at 10 best apps to buy U.S. stocks in Nigeria. These investment apps have made it easy for you to buy stocks even at the comfort of your home with just your smartphone and computer.

You just have to look through the companies we discussed and also the apps so that you can start buying stocks in Nigeria.

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