How to Buy Profitable Stocks in Nigeria & Foreign Markets

Are you looking to buy profitable stocks in Nigeria or foreign stocks but don’t know where to start? In this comprehensive guide, we will show you exactly how to buy a profitable stock in Nigeria and abroad, step by step.

You will learn:

• How to research the best stocks to buy and make your pick
• What a brokerage account is and how to open one
• How to buy profitable stocks in Nigeria, using Afrinvestor
• How to buy and invest in foreign stocks using Bamboo
• Frequently asked questions on how to buy profitable Nigerian and foreign stocks

Research the Best Stocks to Buy Today, and Make Your Pick

For an overview, you can use financial websites, stock market reports, and investment newsletters to gather information about different stocks. These are stocks from companies that are financially healthy and have strong growth potential. You can now use this list to start your research. Follow the steps below:

1. Know everything there is to know about the company

Before you buy stocks, you should know what the companies do and how they make money. Imagine going on a first date without knowing anything about the person—you wouldn’t do it, right? Similarly, you should research the companies thoroughly. Check their websites and understand their products, services, and market position. If you can explain the company to a friend, you know enough.

2. Price-to-Earnings (P/E) Ratio

The P/E ratio tells you if a stock is expensive or cheap. It compares the company’s stock price to its earnings. If a company has a high P/E ratio, investors are paying more for every dollar of earnings. A low P/E ratio may indicate the stock is undervalued. Compare the P/E ratio with similar companies to understand its value.

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3. Beta

Beta measures a stock’s volatility compared to the market. A beta higher than one means the stock is riskier, while a beta lower than one is less risky. High beta stocks can make more money but are riskier, while low beta stocks are safer but may have lower returns. Keep an eye on high beta stocks as they can be unpredictable.

4. Dividends

Dividends are payments companies make to shareholders from their profits. They provide a steady income stream and are popular among investors. Look for companies with a history of paying dividends, especially if you want passive income. Large, established companies often pay dividends regularly.

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5. Look at the charts

Stock charts show the price movement of a stock over time. While reading charts can be complex, basic chart reading is simple. Look for stocks whose chart trends upwards from the bottom left to the top right—this indicates growth. Avoid stocks with downward trends. If you’re unsure, add the stock to your watchlist for future consideration.

Open a Brokerage Account

An online broker is like a middleman that helps you buy and sell stocks, bonds, and other investments through the internet. Instead of calling someone on the phone or going to a physical location, you can do everything online using a computer or a smartphone.

How Does It Work?

When you want to buy or sell something, you log in to your online broker account. Then, you search for the investment you want and decide how much you want to buy or sell. The broker helps you find the best price and completes the transaction for you.

Why Use a Reliable Broker?

It’s important to use a reliable online broker because they keep your money and personal information safe. A reliable broker follows strict rules and regulations to make sure everything is fair and secure. They also provide helpful tools and information to help you make smart investment choices.

For buying profitable and trading stocks in Nigeria, we recommend Afrinvestor. For buying and trading foreign stocks in Nigeria, we recommend Bamboo.

How to Buy and Invest in Foreign Stocks (Bamboo)

Bamboo is a platform that lets people from Africa invest in stocks from all over the world. It’s designed to make investing easy for anyone, no matter where they live or how much money they have.

How to Create an Account on Bamboo

To get started, you need to download the Bamboo app from the Google Play Store or Apple App Store. Just search for “Bamboo: Invest. Trade. Earn.” and follow the instructions to download it. Once you have the app, open it and click on “Start Building Wealth.” Then, fill in all the required information, and you’re good to go!

After signing up, you can add money to your Bamboo wallet to start investing.

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By registering through this tab, you automatically qualify for future stock bonus offers on Bamboo. Don’t miss out…

How to Deposit Money into Your Bamboo Wallet

Here’s how to deposit money into your Bamboo wallet:

• Open the Bamboo app and click on the ‘+’ sign next to “Your Total Wealth.”
• Choose whether you want to deposit into your USD Wallet or NGN/GHS Wallet.
• Enter the amount you want to deposit and click the ‘Deposit’ button.
• Choose your preferred funding option and follow the instructions.
• Your deposit will show up in your Bamboo wallet instantly, but it might take up to an hour to fully process.
• You’ll get an email notification once the deposit is complete.

Deposit Options for Nigeria

• Direct Bank Transfer/Wallet Top-Up: Transfer money from your Naira bank account to your Naira Wallet in Bamboo. There’s a ₦100 charge for this option.
• NGN Debit/Credit Card: Use your Naira debit or credit card to deposit money into your Bamboo wallet. There’s a 1.4% charge for this option, capped at ₦2000.
• USD Debit/Credit Card: Use your USD debit or credit card to deposit money into your Bamboo wallet. There’s a 2.9% charge for this option.

Deposit Options for Ghana

• GHS Card: Use your GHS debit or credit card to deposit money into your Bamboo wallet. There’s a 1.95% charge for this option.
• Mobile Money: Deposit money into your Bamboo wallet using Mobile Money. There’s a 1.5% charge for this option.

How to Buy Foreign Stocks in Nigeria on Bamboo

Once you have money in your Bamboo wallet, you can start buying stocks. Here’s how:

• Click on the stock you want to buy.
• Tap ‘Buy.’
• Choose your preferred buy option.
• Enter your order details.
• Review your order and tap ‘Buy.’

If you buy stocks when the market is closed, your order will be executed when the market opens.

How to Sell Stocks on Bamboo

To sell a stock:

• Click on ‘US Stocks’ on the app homepage.
• Select the stock you want to sell.
• Tap ‘Sell.’
• Enter your sell details.
• Review your order and tap ‘Sell.’

How to Withdraw Your Money on Bamboo

To withdraw money from your Bamboo account:

• Click on the wallet you want to withdraw from on the Bamboo homepage.
• Click the ‘Withdraw’ button.
• Enter the amount you want to withdraw and click ‘Proceed.’
• Choose your bank account or add a new one.
• Enter your transaction PIN.

For Nigerian users, withdrawals below ₦500,000 will reflect instantly if they meet certain criteria, otherwise, they will be processed within 2-3 business days. For Ghanaian users, withdrawals via Mobile Money take 2-3 business days.

How to Buy and Invest in Nigerian Stocks (Afrinvestor)

Afrinvestor.com is a platform provided by Afrinvest Securities Limited (ASL) that allows you to trade and manage your investments online. Here’s how you can get started with Afrinvestor:

How to Create an Afrinvestor Account

To create an account:

• Visit the Afrinvestor website or download the Afrinvestor app from your app store.
• Click on “Open Account” and fill out all the required information.
• Select the type of account that suits your investment needs: Pop, Groove, Classic, Joint, or Corporate.
• Once you’ve submitted your form, you’ll receive an email confirming that your form and documents have been received.
• You’ll also need a CSCS account to trade, which you’ll be notified of within 48 hours of completing the form.

Types of Accounts and KYC Documents

Different account types have different requirements: Pop, Groove, Classic, Joint, or Corporate.

Know Your Customer (KYC) documents are mandatory and differ for each account class. You’ll be prompted on the required documents when opening your account.

How to Deposit Money into Your Afrinvestor Account

Here’s how to deposit money:

• Log into your Afrinvestor account.
• Click on the “Deposit Funds” option.
• Follow the prompts and input the desired amount to deposit.
• Choose your preferred payment method: bank deposit/transfer or GT bank USSD code.
• Confirm that the deposit was successful by checking your portfolio balance.

How to Buy Stocks on Afrinvestor

Once your account is funded, you can start trading:

• Click on the “TRADING” button after logging into your Afrinvestor account.
• Select the stock you want to buy.
• Choose the order type (BUY or SELL) and fill in the quantity and price.
• Set the validity period for the order.
• Review the cost of shares and commission.
• Click “Submit” to complete the trade.

Commission and Charges

• There’s a brokerage commission fee of 1.35% on equity trades.
• Treasury bills transactions attract a custody fee of 0.35%.

How to Manage Your Investments

• For fixed-income investments, click on the “FIXED INCOME” tab.
• For equity investments, click on the “PORTFOLIO” tab.

How to Withdraw Your Money

To withdraw funds:

• Click on the “Withdraw Funds” button.
• Follow the prompts and enter the amount you want to withdraw.
• Choose your bank account for withdrawal.

Funds will be processed based on withdrawal criteria, usually within 2-3 business days.

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Frequently asked Questions on How to Buy Profitable Nigerian and Foreign Stocks

1. How can I buy stocks in Nigeria?

You can buy stocks in Nigeria through a stockbroker, either online or offline. Many brokerage firms offer online platforms for convenient trading. For buying profitable and trading stocks in Nigeria, we recommend Afrinvestor. For buying and trading foreign stocks in Nigeria, we recommend Bamboo.

2. Which app is best for buying stocks in Nigeria?

Some popular apps for buying stocks in Nigeria include Trove, Bamboo, and InvestNow. While each app has its features and benefits, we do recommend the Bamboo app for buying foreign stocks in Nigeria.

3. How do I buy stocks to make money?

To buy stocks and make money, you need to research and select promising companies, monitor market trends, and make informed investment decisions. It’s important to diversify your portfolio and invest for the long term.

4. How to invest in stocks and make money in Nigeria?

You can invest in stocks in Nigeria by opening a brokerage account, conducting research, and buying shares of publicly traded companies listed on the Nigerian Stock Exchange (NSE).

5. Which stock is best to buy in Nigeria?

The best stocks to buy in Nigeria depend on various factors such as your investment goals, risk tolerance, and market conditions. It’s advisable to consult with a financial advisor or do thorough research before investing.

6. How do I buy Apple shares in Nigeria?

You can buy Apple shares in Nigeria through international brokerage platforms that offer access to global markets. Ensure the platform supports trading in US stocks and allows Nigerian investors to fund their accounts. In our experience, the best brokerage platform for this is Bamboo.

7. How much does Afrinvestor charge?

Afrinvest Securities charges brokerage commissions and fees for trading services. The specific charges may vary depending on the type of transaction and account type. It’s recommended to check their official website or contact them directly for current pricing information.

8. Who is the owner of Afrivest?

Afrinvest Securities Limited (ASL), the operator of Afrinvestor, is a subsidiary of Afrinvest (West Africa) Limited, a leading independent investment banking firm in Nigeria.

9. How do I contact Afrivest?

You can contact Afrivest through their official website, where they provide contact information such as phone numbers, email addresses, and office addresses.

10. What is the Afrinvest income portfolio?

The Afrinvest Income Portfolio is a managed investment portfolio offered by Afrinvest Securities Limited, designed to provide investors with regular income through investments in fixed-income securities such as bonds and treasury bills.

11. Who is the CEO of Bamboo Nigeria?

The CEO of Bamboo Nigeria is Richmond Bassey.

12. Is Bamboo investment legit in Nigeria?

Yes, Bamboo is a legitimate investment platform in Nigeria. It allows users to invest in US stocks and ETFs from Nigeria through a user-friendly mobile app.

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