So... How Do You Actually Invest Abroad from Nigeria?

Hi Reader,

Welcome to The Money Series and if you are new here, thank you for signing up. Personal finance can feel confusing and overwhelming, but this space is about learning, growing, and figuring it out together, one money decision at a time.

One question I get very often is:

“How do I invest globally from Nigeria?”

And I get it. Many of my readers live in Nigeria (and other countries) where access to the U.S. market isn’t always straightforward.

For many Nigerians living in Nigeria, investing still feels local. We think in naira. We think savings in Nigerian banks, Nigerian stocks, Nigerian real estate. But wealth today is increasingly global.

One of the simplest ways to invest globally is through the index funds and ETFs that tracks global markets or US stocks.

I’ve consistently emphasised the importance of index funds and ETFs, especially for beginner investors. Today, I want to show you how this works using a platform I personally use.

Please note that this is not a paid ad. I’m only sharing what I’m familiar with.

For years now, I’ve used the Bamboo App to invest in U.S. stocks, and I recently discovered that it can also be used to invest in ETFs.

Here’s what the interface looks like once you’re signed in:

From there, you can search for U.S. stocks, the S&P 500, or other market indices.

One major advantage of using Bamboo is that they offer fractional shares. This means you don’t need to buy a full unit of a stock or ETF. So even if one unit costs $100, you can buy 10% for $10.

For example, here’s what investing $10 (N14,600) in Vanguard’s S&P 500 ETF (unit cost: $638.11) looks like on the Bamboo App:

In this case, $10 buys 1.56% of one unit of the ETF.

You can also set up a recurring monthly investment, where the app automatically invests funds in your wallet into your chosen stock or ETF every month.

There are other platforms such as Risevest, Trove, and Chaka that give Nigerians access global markets. Some of them offer fractional shares too.

A few things to note:

☑️ You’ll need to verify your identity using your BVN or another form of ID

☑️ You’ll need a dollar-denominated account, since global index funds are mostly priced in USD

☑️ Platform and transaction fees apply when trading

Are there other platforms that you have used in your country of location that makes investing more simple and straightforward? I’d love to hear about them, reply and share!

Till next week, I am rooting for you, money-ly!

Dee

P.S.: Forwarded this email? Sign up here! Know someone who could benefit from this newsletter? Forward it!

Disclaimer: This does not constitute financial advice. Please conduct your research or consult your financial advisor for important financial advice.