Availability of the Internet in most areas has made online trading in the Capital Markets to keep developing and gaining momentum. Many Nigerians now turn to online trading as an alternative source of income aside from their normal job. However, it is crucial for one to get necessary information on any business before embarking on such. In this post, we will guide you on how to open an online brokerage account in Nigeria.
What is an online brokerage account about?
An online brokerage account is an account that allows you to trade stocks, shares, bonds, and other assets via an online platform.
An online brokerage account is very similar to a normal bank account. The major difference between the two is that a brokerage account allows you access to the capital market to trade securities and stocks.
Note: to be eligible to open an online brokerage account in Nigeria, you must be at least 18 years of age.
What are the uses of an online brokerage account?
An online brokerage account can also be used for the following:
- To trade stocks, bonds, shares and other assets
-
Use as a savings account to keep and withdraw funds anytime you want.
-
Acquire investment education, test out tools and trading strategies.
Types of brokerage accounts
There are two types of brokerage accounts to choose from:
- Cash account: this is used for warehousing your capital.
-
Margin account: this is used for warehousing loans given to you by the broker.
An online brokerage account can be funded through a transfer from your normal bank account.
How to open an online brokerage account
Online brokerage accounts are easy to open and you don’t really need a deposit to open one. Follow the steps below:
-
Choose the type of brokerage account you need,
-
Decide on a brokerage company,
-
Fill out account application form,
-
Fund your account,
-
Start investment.
Requirements to open brokerage account in Nigeria
- Valide means of identification. i.e. Int’l Passport, NIN, Driver’s licence, Voter’s Card, etc
- BVN (Bank Verification Number)
- Proof of address, i.e. utility bill
- CAC registration certificate