A closer look at how to begin stocks investment on the Nigerian Stock Exchange, NGX.
Buying and selling shares of publicly listed companies on the Nigerian Stock Exchange NGX can be done in two ways – either as a self-investment or with the help of a professional advisor.
For either of these options, there is a need for a stocks management account but the account will differ depending on the option chosen.
The professional advisor option for stock investment in Nigeria
This option works well for people who have little time to spend managing their stock investments. More so, people who have little understanding of stocks investment are often advised to go with this option.
A professional can handle a customer’s investment by sketching a stock portfolio for them. They do all the complicated work in managing a stocks portfolio for the long term as well as helping updating the plan.
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Professional stock advisors would typically charge customers’ for the services rendered.
There are other stock investment methods for those who don’t want to manage it themselves. One of the most popular ones is using Robo-advisors.
Robo-Advisor service providers have been slow to take off in Nigeria unlike in the rest of the world.
At this time, making financial plans in Nigeria is handled by investment tech solutions. They offer their services to clients through capital management platforms.
They package savings, investment plans as well as advising investors on stock market engagement and gains.
The option to manage stock ivestment personally
Managing stock investments personally is always a good idea if the investor already has knowledge of the market.
It is also for those who have time to make investment plans and smart decisions.
To begin a personal and self-managed stocks investment on the NGX, an investor needs a brokerage account.
All the hard work that comes with stock investment and portfolio management will be done by the investor.
Other things to know before investing on the NGX
The amount an investor chooses to invest will depend on their budget. The brokerage accounts do not require any minimum neither does Robo-advisors and professionals stocks handlers.
However, it is important to have money in the stocks investment account from time to time.
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