There is a rule called the Rule of 100. It states that an investor should hold a percentage of stocks equal to 100 minus his/her age. For example, a 33 years old man should have 67 percent of his investments in stocks. The lower your age, the more risk it is believed you can endure.
The Nigerian Stock Exchange is a no-go area for many people. Gone are the days when you can make something from Nigerian stocks. They are now a shadow of their former self. Range of problems from poor economic conditions, bankruptcy to bad leadership can cause the value of your stocks to go down in a moment.
That is why many advise investors to invest in foreign stocks. They are stable and reputable. You don’t have to fear to lose all your funds to one sham stocks.
Problems with Investing in Foreign Stocks
Investing in Foreign Stocks is easier said than done because of the many obstacles involved. It requires a stockbroker that would buy and manage your stocks. This is not just any stockbroker but one that allows Nigerians and is also transparent in its dealings.
This is why the average Nigerian shy away from foreign stocks. They instead put their money in gambling sites such as bet9ja or participate in Ponzi schemes.
BVN to the rescue
The introduction of Bank Verification Number (BVN) by the Central Bank of Nigeria (CBN) on February 14, 2014, means more benefits for the average Nigerian. The BVN captures the financial information of every registered user, and as such online banking, online loan system, and online stockbrokers can easily be accessed in a minute. You only need to input your BVN, and all your details are made available for use.
Investing in Foreign Stocks
Let me congratulate you on deciding on investing in foreign stocks. Investing in the stock market has proven to be a reliable way to create wealth over a long period. A $100 investment in the S&P 500 Index 50 years ago is worth about $12,000 today. With that in mind, this article would be a guide to investing in foreign stocks. The first thing you need is a reliable digital investment platform that would allow you to invest in U.S. stocks right from the comfort of your room.
There are lot of digital market platforms such as Trove, Chaka, and Rise that offers investment in foreign stocks but the best is Bamboo. Bamboo is the fastest, cheapest, and safest platform for Nigerians to invest in the U.S Stock Market. U.S. trade securities, including fractional trading, are provided to Bamboo users by DriveWealth LLC, which is a member of SIPC.
Bamboo is a digital investment platform that gives Nigerians unrivaled real-time access to the U.S. stock market from their smartphone.
Bamboo is relatively easy to use as the platform is explanatory. Any Nigerian with a BVN can sign up and fund their Naira or Dollar account to start buying and selling stocks in less than 5 minutes. Bamboo is available to download from the Apple Appstore and Google playstore.
The minimum amount to get started
Bamboo requires a minimum deposit of $20 to start buying and selling stocks. Flutterwave powers the Bamboo funding process.
The funding process includes various options such as
- NGN or USD Card – You can deposit with your MasterCard, VISA, Verve, American Express, and Discover cards. There is a deposit charge of 1.4%, which is capped at 2,000 NGN. The deposit usually takes 1-2 business days for funds to settle into your Bamboo wallet. You would see a processing notification until the funds are available for trading.
- NGN Bank Transfer – You can make a bank transfer from your account. The deposit charge is a flat rate of 150 NGN regardless of the amount deposited. The deposit usually takes 1-2 business days for funds to settle into your Bamboo wallet. You would see a processing notification until the funds are available for trading.
- Wire Transfer – You can make a wire transfer into the Bamboo U.S. bank account. There are no deposit charges incurred unless your bank charges you. The deposit usually takes 2-3 business days for funds to settle into your Bamboo wallet. You would see a processing notification until the funds are available for trading.
- Barter Transfer – There is a deposit charge of 1.4% of the amount deposited.
Buying and Selling Stocks
This is as simple as ABC. Bamboo supports fractional investing, meaning you can buy parts of any stocks based on how much you want to invest. You are not mandated to buy whole stocks. This is very useful because Stocks like AMZN (Amazon) that costs $2,410.22 may be too costly based on your financial strength. This is where fractional investing comes in and allows you to own a portion of the company.
You can see the price graph for each stock before buying or selling your stock.
Bamboo charges a 1.5% commission every time you buy and sell and sell stocks. That is their trading fee as they do not charge you for holding stocks or leaving your funds in your Bamboo wallet.
The Bamboo wallet exceeds traditional banking security standards. The Securities Investor Protection Corporation (SIPC) also insures your Bamboo account up to $500,000 while your wallet balances are insured by Federal Deposit Insurance Corporation (FIDC). The Bamboo application is also protected by pin code or a fingerprint. This prevents unauthorized access to the application.
You can withdraw your funds back into your bank account quickly. The withdrawn funds would be deposited into your bank account within 2-3 business days. The withdrawals can only be made into accounts in your name, and a withdrawal fee of 45 naira is charged for a Naira bank account, while $45 is charged for a USD bank account.
List of Stocks that could set you up for life
Forbes recently announced that Kanye West is now a billionaire, and $35 million of his wealth are in stocks. This is a Man that was $53 million in debt 5 years ago now a billionaire.
Warren Buffet made over 99% of his fortune after his 50th birthday. This shows that it is never late to start securing your financial future.
Subscribe to our Newsletter to start receiving our favorite stocks for building wealth.