I was researching trends in Nigeria right now and instead of seeing posts about celebrities splashed everywhere on the Trend table, you should’ve seen the smile on my face when I realized that one thing Nigerians want to learn about is how to buy shares in Nigeria. And, as your favorite Tech writer, I couldn’t disappoint. I had to compile this article explaining all you need to know about buying any shares that you need here in Nigeria.
Before I get on with the steps you need to take before you get shares here and also before I reveal the best platform for you to get these shares here in Nigeria, we’ll be looking at a few subheaders… like what shares are all about, why you should be interested in them and a few other important key points.
Shares reflect a portion of ownership in the firm or corporation whose shares you acquire. When you own shares, you own a portion of the firm, and, depending on the sort of shares you own, you are entitled to earnings and assets.
Shares owned by you are referred to as Outstanding Shares. now, let’s imagine FaqonTech has 300,000 outstanding shares and you own 30,000 of those shares. This means that you own 10% of the stake in FaqonTech. Pretty cool right?
These companies that give out outstanding shares are Public companies. And these outstanding shares can be owned by anyone in the Public excluding the Board of directors and the founders of the Company.
The name itself is pretty self-explanatory. A shareholder is simply someone that owns shares in a company. These shares are also referred to as “stock” or “equity”.
What is Stock Trading?
Stock trading is the activity of purchasing and selling shares on a stock market in the hope that the shares will rise in value. A share investment is when you buy and hold shares for a long period of time.
The most prevalent type of stock trading comprises traders who buy shares when they are cheap and sell them when they rise in value, frequently on the same day. These traders are known as day traders, and they rely on slight changes in the price of a stock to create little profits that accumulate over multiple instruments. You have to be highly skilled to get into day-trading or you’ll make lots of losses instead of gains.
Stock exchanges are known as the secondary market where all publicly traded company shares are listed. These exchanges function by connecting potential buyers with sellers on their exchange platforms.
Note: Before you get into stock trading, make sure you make lots of research first. Don’t just rush into what you don’t understand. You may regret it later. When conducting your research, don’t let the flood of information and market changes overwhelm you. Make your objective clear. The idea is to locate businesses in which you want to invest.
Now, we’ve checked out a few subheaders and we’ll be heading into the main topic –
Before we get right into “How to buy shares in Nigeria”, you need to look for what platforms you can trust to get whatever shares you desire. Well, I have been researching on the best platform to do this, and I came across “Trove”. This is a platform developed with its users in mind. The app is very simple to use and they offer thousands of local and international stocks to choose from.
I just want to note that I haven’t been paid by Trove to write this article and I’m only recommending them because it’s a platform I use myself and I’m satisfied with after checking out lots of other platforms myself.
Now, for you to get shares with Trove is very easy and I’ll walk you through the process now… If you encounter any issues while signing up, make sure you contact me using the comment section below, I’ll make sure to get back to you very quickly.
- Download the Trove app from the Google Playstore or the Apple Appstore. You can also create an account with Trove using their web platform
- Now, you’ll be asked to input your email address and also set a password for your account. Make sure your password is very strong with a combination of numbers, letters, and special characters. something like – #Faq0nTech2022
- Input the referral code –TLQXS3 into the box provided and then click on continue. When you use this referral code, you may be given a bonus on your account
- You will now be asked a series of questions relating to your investment experience. Make sure you answer them according to how it pertains to you
- Next, you should complete your profile by answering some more questions about yourself like your occupation, personal information, document uploads, and bank account details. Be rest assured that all your details are as safe as can be
- After answering all those, verify your identity by going through a simple verification process. You can use Selfie verification, National Identity card, Driver’s license, Passport, or your Utility bill for this registration. Then for the last phase, you will be asked to sign on a piece of paper and upload the image of your signature.
Sounds stressful? Not really. But it’s absolutely necessary as verification of your identity is very important for a task as important as buying shares.
The entire procedure should take no more than 15 minutes. Your profile will then be reviewed and validated within 1 to 2 business days. However, while your account is being verified, you can still fund your Trove wallet or even start Virtual Trading to practice trading Stocks.
How To Fund Your Trove Wallet
Funding your trove wallet is as simple as Cryptocurrency… Lol…
If you check your Trove app, you’ll see that there are two different wallets there. You have the Naira wallet and the Dollar wallet.
The Naira wallet will be used for buying Nigerian stocks and the Dollar wallet will be used for purchasing Foreign stocks. You don’t need a Domiciliary account to fund your dollar wallet, all you have to do is add your bank card to the trove app, then you click on the dollar wallet, click on fund and then specify the amount you want to fund in dollars. Trove will automatically give you the equivalent of that amount in Naira and then you can fund your dollar wallet directly with your bank card.
Note: You can only use the funds in your account to start trading when your account has been verified.
Before we continue with the article, for those of you that prefer a more visual representation of things, there’s a video I found on YouTube that shows how you can easily purchase stocks on the market using the Trove app. Here’s the video below:
To buy shares using your Trove wallet;
- Click on “All themes” at the top part of your screen
- Now, you can see different groups of assets
- You can now proceed to click on one of these groups to see all the assets listed under it
- If you’re interested in purchasing any of the assets listed, click on the asset and then click on “Buy”
- You will now be redirected to a page where you put in the amount you want to purchase the asset for and you’ll be shown how many shares you’ll get by investing that amount in the asset
- After reviewing your buy-order, the asset will now be listed in your Portfolio and you can do as you wish. You can either wait till it rises after a long time and sell or become a day-trader and sell with each slight increase in the asset’s pricing.
Now, its not absolutely necessary that you use Trove as your preferred platform for buying stocks, you can make research into other platforms that allow you to buy those Stocks that you’re interested in and use them instead. Just make sure whatever platform you’re using is very secure and legitimate.
Did you find this article interesting? Well, I certainly hope you did. If you have any other questions concerning Buying Stocks in Nigeria that wasn’t explained in this article, please leave them in the comment section below.
If you also have any additions you think should be put in this article that could be helpful to others, make sure you alert me using the comment section below. Thanks for reading!