A Layman’s Guide to Investing: Buying US Stock in Nigeria
One of my earliest memories of the stock market was on my 10th birthday when my mother got me *drum roll please*… shares! I was so confused because I honestly would have preferred a CD player or a digital camera but the lesson here was to teach me that I could own part of a company. Over the years, I subconsciously picked up a few buzz words and if you’ve watched movies like The Big Short or The Wolf of Wall Street, you might have picked up some too.
Fast forward to 2020, I now own tiny parts of many companies and it is exciting to see the innovation in the Nigerian market in this regards. I will be comparing three awesome investment platforms that have been a part of my journey of investing in US Stock from Nigeria. So here is a breakdown of Rise, Bamboo and Chaka from my experience:
About the platforms:
Rise is a digital wealth manager that gives Nigerians access to a diversified Dollar denominated investment portfolio. The company offers users a mix of US real estate, US stocks and Eurobond investments to offer users a combination of assets, across risk levels and return targets to allow both upside growth and downside protection. Rise also offer bespoke advisory services and direct US investments for high net worth individuals as well as an investment club and learning community to democratize investment knowledge for our users.
Website: https://rise.capital/
I love that they have a referral scheme so shamefully, here we go; Tap the link to download the app and join Rise with my code 1E576HN to get $5 free when you invest at least $10: https://m.rise.capital/iSny5hqN2bjd5VBT6?code=1E576HN
Bamboo is an investment platform that is unlocking the limitless potential of the global markets to Africans by providing real-time access to different dollar-denominated investment assets right from their mobile phones or computers. Bamboo makes it fast and seamless to discover the best global and local companies to invest in. Users can fund with their dollar or local currency balance almost instantly and start investing in stocks, Eurobonds and mutual funds. Bamboo is launching first in Nigeria and expanding across the continent.
Website: https://investbamboo.com/
I love that money in your wallet gains a small interest while not yet invested and that you can gift a stock to anyone who has the app as well.
Chaka is an app and website to invest and trade dollar assets. You can also buy local assets. Even in globally challenging financial times, Chaka gives users access to assets to protect and grow their wealth such as US Treasury Bonds (GOVT), Gold (GLD), Short S&P500 (SH) as well as blue-chips like Apple, GTBank, Alibaba and thousands more. You have a direct line to the NASDAQ, the New York Stock Exchange and the Nigerian Stock Exchange.
Website: https://www.chaka.ng
I love that they have analyst rating where you can check the views of top investment analysts to see if they recommend to buy, hold or sell a particular stock. Another referral code situation; You can sign up in less than 5 minutes and also have a chance to refer others and earn. Sign up link https://chaka.ng/register?code=FUNMEB79
Is there an App?
Rise: Yes, on the Google Play store and the iOS App Store
Bamboo: Yes, on the Google Play store and the iOS App Store
Chaka: Yes, on the Google Play store and the iOS App Store
How do we transfer funds?
Rise: Via the App through a bank transfer or by adding a card (for periodic funding)
Bamboo: Via the App through various methods such as Naira and USD card payments, as well as bank transfers, wire transfers and Pay with Barter
Chaka: Via Both the App and website through bank transfers in Naira and USD as well as card payments on Monnify and Paystack.
Can we buy Nigerian stock?
Rise: No, this is not available
Bamboo: This is not available, but coming soon
Chaka: Yay! Yes we can
What is the investment method and minimum amount?
Rise: On the App Only with a minimum deposit amount of 3,600 Naira
Bamboo: On the App Only with a minimum deposit amount of $20
Chaka: Both on the App and the Website with a minimum deposit amount of 1,000 Naira or $10
Do they invest on your behalf?
Rise: Yes, you invest in their portfolio of 20 of their highest conviction stocks
Bamboo: No, you choose what to invest in
Chaka: No, you choose what to invest in
My experience depositing $200:
Rise: I did this deposit from the iOS app and the only option to add cash to my wallet was to transfer funds using mobile banking. I did a transfer from my Naira account and my wallet was funded immediately, so that was a plus. There was the possibility to create a plan however, and this way, I could add my card details and opt in for the auto-invest option where you decide when and how much of course.
In summary, see the breakdown below:
Deposit on platform: $200
Method: Bank transfer
Transfer fees: 53.75 Naira
Rise Wallet Credited: $200
Bamboo: I did this from the iOS app and there were quite a number of options to choose from. Going through the options for payment however, I realised the fees were going to be fees added on top of the chosen amount so I changed my deposit so that my total amount was $200 and then I used the USD Debit/Credit Card option to make payment. I paid $5.64 in fees and my wallet was credited in 1–2 business days.
In summary, see the breakdown below:
Deposit on platform: $200
Method: USD Debit/Credit Card
Transfer fees: $5.64
Bamboo Wallet Credited: $194.36
Chaka: I did this deposit from the website and chose the Paystack option to make payment. My issue here was that I used my dollar card but it converted to Naira first and as a result, I lost a bit of money owing to the different exchange rates. I’ll use my Naira card next time but ignoring that for now, I paid $3.23 in fees and my wallet was credited in 1–2 business days.
In summary, see the breakdown below:
Deposit on platform: $200
Method: Paystack Credit/Debit Card
Transfer fees: $3.24
Chaka Wallet Credited: $196.76
My experience investing $50 in Amazon (AMZN):
Rise: I set out to invest $50 in Amazon but realised that with Rise, you don’t invest in a single stock but rather, to their stock plan. So I took $50 from my wallet and invested in a stock investment plan which invests my money into a portfolio of 20 of their highest conviction stocks (AMZN was one of them at the time I invested so Yay!). The expected return on this portfolio is 12–14% per annum by the way, and is classed at high risk.
Bamboo: This was quite straightforward; once my wallet was credited, I searched for AMZN and clicked to buy. I invested $50 and a commission of $0.75 (1.5%) was taken and as such, I bought $49.25 worth of shares.
Chaka: Once my account was credited, I searched for AMZN and clicked to buy. I invested $50 in Amazon and a commission of $2 (4%) was taken and as such, I bought $48 worth of shares.
All in all, three great platforms so shout-out to you all for all that you do for the Fin-tech industry in Nigeria. God bless the hustle!
Thank you for reading. This comparison was done from my perspective and I believe it stands true for the time this was written. I hope this was helpful!
