How to Buy US Stocks in Nigeria

How much should I invest?

The minimum amount required to invest in US stocks can vary depending on the brokerage firm you choose. Some brokers have no minimum investment requirements, while others may require a minimum deposit of $50 (36,500 naira) or more. You don't have to be a millionaire to buy US stocks; almost everybody can access an investment in the US stock market.

Additionally, it is indispensable to note that while you can purchase fractional shares, some brokers may have restrictions on the minimum amount you can invest in a single stock. It is always a good idea to compare the fees and minimum investment requirements of different brokerage firms before deciding where to invest your money. The alternatives that we presented before are very accessible.

Best brokers to buy US stocks in Nigeria

Below are the best stockbrokers in Nigeria, as analyzed by TradersUnion experts:

RoboForex

RoboForex Review

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RoboForex offers a wide array of products and services for those interested in investing. For instance, RoboForex offers tight spreads starting at 0 pips with low commissions. With the help of fast order execution via the best trading platforms, RoboForex MetaTrader 4 and 5, many traders assert that they offer exceptional Forex trading conditions. The companies offer up to 36 FX pairs, metals, and an array of CFDs.

RoboForex offers CopyFX, which is its copy trading platform. It allows users to engage in copy trading with a minimum deposit of $100. With a high level of personalization, users can control every step of their investment journeys.

It offers two ways of investing in the foreign exchange markets: 1) Become a Forex trader and trade directly in the market with the help of a Forex broker, and 2) Forex copy trading or CopyFX allows new users to begin trading immediately by copying the moves of professional traders.

Lastly, RoboForex offers over 12,000 stocks, Indices, and ETFs on bonds, securities, commodities, etc., which are available across six platforms. They are available in over 169 countries and in 10 different languages. This makes it a highly useful platform for Forex investors across the globe.

IC Markets

IC Markets Review

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Your capital is at risk.
Up to 75.93% of the broker’s non-professional clients incur losses when trading CFDs.

One of the top stock brokers for traders from South Africa is IC Markets, an Australian-based Forex CFD broker that is regulated. Through IC Markets, South Africa investors have access to over 10,000 securities from some of the most well-known companies in the world, including Facebook, Apple, and BHP Billiton. Additionally, you can trade over 730 large-cap stock CFDs with fast execution on the NASDAQ, ASX, and NYSE stock exchanges.

ASIC, FSA, and CYSEC are just a few of the numerous international financial regulators that oversee IC markets. In addition to stock trading, it is also possible to engage in Forex, futures, and commodity trading. Because of its high leverage, small spreads, and low commission costs, IC Markets draws traders. For a better trading experience, IC Markets offers traders three cutting-edge trading platforms: IC Markets MetaTrader 4, MT5, and cTrader.

888 MYR is the required minimum deposit amount. IC Markets provides traders with a minimum leverage of 1:20 and a maximum leverage of 1:50. Traders with a high-risk tolerance and the ability to trade with low volatility typically prefer high leverage, while those with small initial deposits prefer low leverage.

Trading fees at IC Markets are divided into various account types. The commission fees for the Raw Spread account, formerly known as the True ECN account, are 15.54 MYR per lot, while the commission fees for the Raw Spread account, also known as the cTrader Raw account, are 13.32 MYR per lot. The standard account is not subject to any commission charges.

Best stock trading apps in Nigeria compared

How to start trading stock in Nigeria?

Starting to trade stocks can sometimes be a complex process that varies depending on the broker. However, here is a general step-by-step guide on how to start trading stock in Nigeria, according to TradersUnion:

• 1

  Research and Choose a Broker: Start by researching and comparing different brokers to find one that meets your specific trading needs and requirements. Compare their fees, products, and regulatory compliance, and ensure the broker has a good reputation

• 2

  Verify Your Identity and Residency: To open a brokerage account, you'll need to verify your identity and residency. This usually involves providing a government-issued ID, proof of address, sometimes a passport, and maybe a tax ID number. The exact requirements may vary depending on the broker

• 3

  Complete the Application: Once you have chosen a broker and verified your identity, you will need to complete the account application. This will usually involve providing personal and financial information, such as your employment status, income, and investment goals

• 4

  Complete any Necessary Regulatory Requirements: Depending on the broker, you may need to complete additional regulatory requirements. For example, some countries require permission from the banking regulator to transfer funds abroad, so you may need to get permission before opening your account

• 5

  Fund Your Account: After your account is approved, you'll need to fund it with the required minimum deposit. This usually involves transferring funds from your bank account, eWallet, or credit card to your brokerage account. Most international brokers offer a wide array of deposit methods and various currencies. Look for a broker that offers your currency and a convenient deposit and withdrawal method

• 6

  Start Trading: Once you fund your account, you can start trading in international markets. Keep in mind that different brokers may have different trading platforms, fees, and products, so familiarize yourself with the platform and the fees before making any trades

Is investing in US stocks worth it?

The US stock market has 500 of the largest companies listed on its exchanges. The S&P 500 index is based on the market capitalization of these companies listed on the NASDAQ and NYSE. The top 10 companies in this list, like Amazon, Tesla, Facebook, Alphabet (Google), Apple, Hathway, JP Morgan Chase, and others, have only outperformed themselves every year and account for 27.5% of the overall market capitalization.

If you are looking to invest long-term and secure steady dividends, you will definitely want a piece of these companies. However, the stock index SP 500 gives a 10% return on average, but you can lose money if you invest poorly.

What are the best stock trading brokers for beginners in Nigeria?

Roboforex and eToro are great choices for beginners because they offer commission-free trading for US stocks, very good educational materials, and a user-friendly platform with a large social trading network. Social trading allows beginners to learn from other experienced traders and even copy their trades, making it a good option for those who are just starting out in the world of trading.

Can I trade with an international stock broker?

Yes, you can trade with any international stock broker of your choice if they are well-regulated and accept clients from Nigeria, but you should be careful to follow local rules and regulations.

Do I pay taxes for stock trading in Nigeria?

In Nigeria, profits from stock trading are classified as Capital Gains Tax. Generally, any profit you make on the sale of a stock is taxable at either 0%, or 10% if you held the shares for more than a year, or at your ordinary tax rate if you held the shares for a year or less. Nigerian traders are not subject to any particular tax deductions. Still, every citizen should file their annual Personal Income Tax Return.