The integrated global financial system allows investors to buy and sell stocks anywhere in the world, including Nigeria. Online brokerages allow individuals to direct their own investments. Therefore, anyone with an Internet connection and some liquid cash can invest in any stock market, at home or abroad.
Decide whether you want to invest in individual stocks, ETFs (exchange-traded funds) or other indices. It is advisable for beginners in overseas investing to start by studying the different indices in the markets they are considering. These indices mirror the stocks in those markets. Examples include the Dow Jones Africa Titans 50 Index (DJAFK) and the Market Vectors Africa ETF (AFK). See links in Resources below for more on African ETFs and indices.
Pick an online brokerage based on your decision in Step 1. Investing in indices and ETFs will allow you more brokerages to choose from than if you pursue trading in individual Nigerian stocks. There are many online brokerage firms to choose from. They normally charge a monthly fee and between $3 and $20 for individual trades. For a fixed monthly fee, some will allow you to make automatic monthly investments for a specified number of trades with no minimum amounts.
Open a brokerage account that allows you to trade in Nigerian stocks directly if that is what you plan to do. Some brokerages may require that you submit a separate application to buy overseas stocks. Euro Pacific, for example, allows you to trade in overseas stocks directly. See a link to Euro Pacific in Resources below.
Use a Nigerian stockbroker. Contact the stock brokerage firms in Nigeria and closely follow the Nigerian market. See a link in Resources below to the Nigerian stock exchange for contact information for brokerage firms (also called issuing houses) authorized to trade stock in Nigeria.
Open your brokerage account and link it to your funding account. This allows you transfer the funds needed to begin investing.