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6 Best Shares for Beginners on the Nigerian Stock Exchange

Best Shares for Beginners in Nigeria

The 6 Best Shares for Beginners on the Nigerian Stock Exchange revealed. We have carried out in-depth research to identify the best shares for beginners to start trading on the NGX in Nigeria.

6 Best Shares for Beginners on the Nigerian Stock Exchange Revealed (2022)

Overview of NGX Share Trading for Beginners

The Nigerian Exchange Limited (NGX) runs a fair, orderly, and transparent market that attracts the greatest investors and African businesses from across the world.

 

When issuers make the latest offers, investors could purchase securities directly from the primary market to participate in our market, or they can trade in already-listed securities on our secondary market platform.

 

An investor must choose a securities dealer or stockbroker who is a registered Trading License Holder of NGX to handle account opening and trading to buy securities in the main or secondary market.

 

Dangote Cement (NGX: DANGCEM)

Cement is produced by Dangote Cement Plc, which also has factories for the preparation, production, and distribution of cement and associated goods. Nigeria and Pan Africa are the two business sectors for the company.

 

Through its subsidiaries, the company engages in a variety of activities, including mining operations for limestone, coal production, cement grinding, and exploration.

 

With a market value of NGN 4.52 trillion or around 16.7% of the whole Nigerian Company Exchange equity market, Dangote Cement is now the second most valuable stock on the NGX.

 

In terms of year-to-date performance, Dangote Cement is ranked 53rd on the NGX with a share price of 257.00 NGN at the beginning of the year and has subsequently increased by 3.11% on that price assessment.

 

✅ Growth, Valuation, Trading Resultsℹ️ Information
Share Price265.00 NGN
Market Capitalization4.52 trillion NGN
Shares Outstanding218 million NGN
Gross Turnover22.12 NGN (TTM)
Earnings Per Share10.04
P/E Ratio9.27
Dividend Yield7.55%
Shares Outstanding17 billion

 

Ecobank Transnational Inc (NGX: ETI)

A bank holding company, Ecobank Transnational Incorporated SA, originally Ecobank Transnational Incorporated (ETI), offers banking and financial services via its subsidiaries. Domestic, Corporate and Investment Banking (CIB), and Treasury are its divisions.

 

The domestic market focuses on providing services to small and medium-sized businesses, local governments, government agencies, and the retail sector.

 

With a market value of NGN 182 billion, Ecobank Transnational Inc. is presently the 19th most valuable stock on the NGX and accounts for around 0.671% of the equity market on the exchange.

 

With a share price of 8.70 NGN at the beginning of the year, Ecobank has subsequently increased its value by 13.8%, placing it 37th on the NGX in terms of year-to-date performance.

 

✅ Growth, Valuation, Trading Resultsℹ️ Information
Share Price9.90 NGN
Market Capitalization182 billion NGN
Gross Turnover18.4 million NGN
Earnings Per Share4.66 NGN (TTM)
P/E Ratio1.85
Dividend Yield7.45%
Shares Outstanding18.3 billion

 

Fidelity Bank Plc (NGX: FIDELITYBK)

Nigerian commercial bank Fidelity Bank Plc was established in 1987 as a private limited business with a merchant banking license and is authorized internationally by the Central Bank of Nigeria (CBN).

 

With a share price of 2.55 NGN at the start of the year, Fidelity has subsequently increased by 13.7% on that price valuation, placing it 38th on the NGX in terms of year-to-date performance.

 

A market capitalization of NGN 84 billion, or around 0.31% of the equities market on the Nigerian Company Exchange, places Fidelity Bank Plc as the 26th most valuable stock on the NGX currently

 

✅ Growth, Valuation, Trading Resultsℹ️ Information
Share Price2.90 NGN
Market Capitalization84 billion NGN
Gross Turnover15.5 million NGN
Earnings Per Share1.24 NGN (TTM)
P/E Ratio1.93
Dividend Yield11.67%
Shares Outstanding29 billion

 

Honeywell Flour Mills Plc (NGX: HONYFLOUR)

As a firm that mills flour, Honey Flour Mills Plc’s core business is producing and selling foods made from wheat, such as flour, semolina, whole wheat meal, noodles, and pasta. Both Apapa and Ikeja are among their functioning segments.

 

With a market value of NGN 16.7 billion, Honeywell Flour Mill is now the 53rd most valuable company on the NGX and accounts for around 0.062% of the equity market on the exchange.

 

✅ Growth, Valuation, Trading Resultsℹ️ Information
Share Price2.10 NGN
Market Capitalization16.7 billion NGN
Gross Turnover2.26 million NGN
Earnings Per Share-0.12 NGN (TTM)
P/E Ratio1.93
Dividend Yield3.26%
Shares Outstanding7.93 billion

 

Nigerian Breweries (NGX: NB)

Nigerian Breweries Plc is a brewery with a Nigerian basis. The business produces, markets, and sells beer, stout, non-alcoholic malt beverages, and soft drinks. In Aba and Kaduna, it runs around two malting factories and more than ten breweries.

 

Along with producing cans, labels, cartons, and bottles, it also concentrates on supplementary business and engages in exporting.

 

With a market value of NGN 392 billion, Nigerian Breweries is now the 12th most valuable company on the NGX and accounts for around 1.45% of the equity market on the exchange.

 

✅ Growth, Valuation, Trading Resultsℹ️ Information
Share Price47.70 NGN
Market Capitalization392 billion NGN
Gross Turnover181 million NGN
Earnings Per Share2.32 NGN (TTM)
P/E Ratio18.34
Dividend Yield3.37%
Shares Outstanding8.22 billion

 

United Bank for Africa (NGX: UBA)

Leading pan-African financial services company United Bank for Africa (UBA) PLC is present in 20 African nations as well as France, the United Kingdom, and the United States.

 

Customers could get banking, pension fund custody, and other financial services from the business in the retail, commercial, and corporate sectors of the African market. When the British and French Bank (BFB) started doing business in Nigeria in 1948, UBA was born.

 

With a market value of NGN 239 billion, or around 0.884% of the Nigerian Company Exchange’s equity market, United Bank for Africa is currently the 15th most valuable stock on the NGX.

 

✅ Growth, Valuation, Trading Resultsℹ️ Information
Share Price4.76 NGN
Market Capitalization59.2 billion NGN
Gross Turnover11.4 million NGN
Earnings Per Share3.49 NGN (TTM)
P/E Ratio1.80
Dividend Yield11.43%
Shares Outstanding12.4 billion

 

How to choose the Right Share Broker in Nigeria

Traders could not have picked a more favourable time to enter the investment market than the present. Competition among online brokers is high, which means costs are dropping down and features are being boosted.

 

Those interested in trading global financial instruments could choose from a wide variety of online forex and CFD brokers. However, there are several factors to consider when choosing a broker and we will go through them here.

 

Commission Charges

Individual stocks, options, mutual funds, exchange-traded funds, and bonds are the main investment types offered by brokers. Some will also provide exposure to the forex market, futures trading, and cryptocurrency exchanges.

 

Both the suitability of the broker’s offerings to your investment requirements and the fees you must pay is dependent on the investments the broker has available. You should pay close attention to the commissions that are involved with the investments you like.

 

Overall Reliability

There is a diverse selection of brokers available. Several have been popular for many years, while others have just recently emerged.

 

That does not imply they cannot be trusted, but if they are managing transactions for clients, they are members of a self-regulatory organization like the Financial Industry Regulatory Authority (FINRA), the Financial Conduct Authority (FCA), and other regulators, or subject to additional oversight.

 

Account Fees

While it could be impossible to eliminate account fees, they may be kept to a minimum. To withdraw funds or investments, or to close your account, most brokers will assess a fee. When switching brokers, your new firm could pay some or all your transfer expenses.

 

If a broker does not charge them, or if you do not use their optional services, you could avoid paying most additional costs.

 

Annual costs, inactivity fees, trading platform subscriptions, and additional charges for research or data are all examples of the kind of expenses you should be aware of.

 

Pricing and Execution on Trades

Cost is less of a factor today, leading to commission-free transactions becoming the norm at most brokerages.

 

However, you should consider the brokerage’s position on the controversial practice of paying for order flow and how much it costs before making a final decision.

 

This is especially true if you are an active trader who wants their deal completed at the best price possible, even if it means a difference of a few cents.

 

Additional Tools, Educational Materials, and Features

Look for a brokerage that provides free educational tools like live webinars, detailed how-to instructions, video tutorials, glossaries, and more if you are just starting in the investment world.

 

You should also look at the broker’s commitment to educating its customers about the inherent hazards of more complex trading tactics like options.

 

The Best Share Brokers in Nigeria

In this article, we have listed the best brokers which offer share trading to traders. We have further identified the brokers that offer additional services and solutions to traders.

 

Best MetaTrader 4 / MT4 Share Broker in Nigeria

Overall Rating

4.9/5

Rated #194 of
Recommended FX Brokers

💰Minimum Deposit

USD 0

🌐 Regulators

FCA, CFTC, ASIC, FSC, BVI and IIROC

📱 Trading Desk

MetaTrader 4 (MT4)

MetaTrader 5 (MT5)

Crypto

Yes

📈 Total Pairs

45 

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, OANDA is the best MT4 Share Broker in Nigeria. With FX and CFD broker OANDA, Nigerian traders may register three retail accounts.

 

Due to the quality and transparency of its services, OANDA is among the best online brokers. OANDA supports MetaTrader 4 on all platforms and devices.

 

Best MetaTrader 5 / MT5 Share Broker in Nigeria

Overall Rating

4.7/5

Rated #5 of
Recommended FX Brokers

💰Minimum Deposit

$100

💰Sign-up

50% of Initial Deposit

🌐 Regulators

FSC, FSA

📱 Trading Desk

MT4, MT5

Crypto

Yes

📈 Total Pairs

83

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, BDSwiss is the best MetaTrader 5 Share Broker in Nigeria. Nigerians can use four retail accounts from BDSwiss to trade on different financial marketplaces.

 

BDSwiss provides MetaTrader 5, which works with smartphones, desktop computers, and web browsers.

 

Best Share Broker in Nigeria for beginners

Overall Rating

4.8/5

Rated #1 of
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

ASIC, FSA, CBI, BVI,FSCA,FRSA,CYCES, ISA, JFSA

📱 Trading Desk

MetaTrader 4, MetaTrader 5, Ava Social, Ava Protect, Trading Central

Crypto

Yes

📈 Total Pairs

55+

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, AvaTrade is the best Share Broker in Nigeria for beginners. Demo accounts, which may be used as practice accounts, are available from AvaTrade, allowing beginners to trade with virtual money before putting real money at risk on active markets.

 

AvaTrade provides several recommendations and guiding aids on its website to help users stick to their trading plan.

 

Best Low Minimum Deposit Share Broker in Nigeria

Overall Rating

4.1/5

Rated #380 of
Recommended FX Brokers

💰Minimum Deposit

USD 0

🌐 Regulators

📱 Trading Desk

Crypto

Yes

📈 Total Pairs

16

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, Fidelity Investments is the best Low Minimum Deposit Share Broker in Nigeria. One of the finest methods for Nigerians to access global markets is via Fidelity Investments.

 

Nigerians just need a 400 NGN minimum deposit to begin trading shares on international markets.

 

Best ECN Share Broker in Nigeria

Overall Rating

4.7/5

Rated #3 of 
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

CySEC, FCA, FSA, FSCA, Labuan FSA

📱 Trading Desk

MT4, MT5

Crypto

Yes

📈 Total Pairs

62

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, Tickmill is the best ECN Share Broker in Nigeria. Some of the best trading conditions and trade execution times are offered by Tickmill.

 

Barclays and a few other well-known foreign banks and hedge funds are among the liquidity providers for Tickmill’s ECN approach.

 

Best Islamic / Swap-Free Share Broker in Nigeria

Overall Rating

4.8/5

Rated #6 of 
Recommended FX Brokers

💰Minimum Deposit

USD 5

🌐 Regulators

CySEC, FCA, FSA, DFSA, FSCA, CMA

📱 Trading Desk

MetaTrader 4 and MetaTrader 5

Crypto

No

📈 Total Pairs

47

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, HF Markets is the best Islamic / Swap-Free Share Broker in Nigeria. HF Markets is one of the most prominent businesses in Nigeria because of its enormous market share.

 

HF Markets offers the option to convert numerous accounts into Islamic accounts, exempting traders from swap fees.

 

Best Forex Trading App

Overall Rating

4.8/5

Rated #20 of
Recommended FX Brokers

💰Minimum Deposit

USD 50

🌐 Regulators

CySec, FCA 

📱 Trading Desk

No Trading Desk

Crypto

Yes

📈 Total Pairs

47

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

* Etoro has lowered the amount of the minimum FTD to $ 50 for the following countries: Germany, Austria, Netherlands, Norway, UK, Ireland, Spain, Italy, Sweden, Switzerland.

 

Overall, eToro is the best forex trading app. eToro was among the earliest and most prominent social trading and investment sites.

 

Nigerian traders will find and invest in financial instruments across several markets thanks to eToro’s multi-asset platform

 

Best Naira Trading Account Share Broker in Nigeria

Overall Rating

4.9/5

Rated #2 of 
Recommended FX Brokers

💰Minimum Deposit

$10

💰Sign-up bonus

No

🌐 Regulators

CBCS, CySEC, FCA, FSA, FSC, FSCA

📱 Trading Desk

MetaTrader 4, MetaTrader 5

Crypto

Yes

📈 Total Pairs

97

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker Website

 

Overall, Exness is the best Naira trading account Share Broker in Nigeria. Exness may only have 278 tradeable financial items, but the broker more than makes up for this with the calibre of its services.

 

Nigerian traders are spared from currency conversion costs if they open an account in local money. Additionally, traders may anticipate having access to MT4 and MT5.

 

Best Lowest Spread Share Broker in Nigeria

Overall, Admirals is the best lowest spread Share Broker in Nigeria. Admirals provides sophisticated trading tools, educational information, and some of the finest pricing and trade execution for experienced traders with low spreads.

 

Best Nasdaq 100 Share Broker in Nigeria

Overall Rating

4.5/5

Rated #68 of
Recommended FX Brokers

💰Minimum Deposit

USD 100

🌐 Regulators

IFSC, CySec, ASIC

📱 Trading Desk

MT4

Crypto

Yes

📈 Total Pairs

55

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

XM

 

Overall, XM is the best Nasdaq 100 Share Broker in Nigeria. The XM commitment of no rejections or requotes is well-known. A few stock exchanges through XM, notably Nasdaq 100, provide a variety of trading opportunities to Nigerian traders.

 

Best Volatility 75 / VIX 75 Share Broker in Nigeria

Overall Rating

4.7/5

Rated #37 of
Recommended FX Brokers

💰Minimum Deposit

USD 200

🌐 Regulators

ASIC, CySEC, FSA, SCB

📱 Trading Desk

MetaTrader 4

Crypto

Yes

📈 Total Pairs

65

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, IC Markets is the best Volatility 75 / VIX 75 Share Broker in Nigeria. Nigerians could trade CBOE Volatility Index futures CFDs with IC Markets.

 

One of the major true ECN brokers on the market is called IC Markets. All traders in Nigeria are guaranteed access to substantial liquidity and small spreads thanks to IC Markets.

 

Best NDD Share Broker in Nigeria

Overall Rating

4.8/5

Rated #38 of 
Recommended FX Brokers

💰Minimum Deposit

USD 0

🌐 Regulators

FCA, CFTC, NFA, BaFin, FINMA, ASIC, FMA, MAS, FSA, FSCA, DFSA, JFSA, METI, MAFF.

📱 Trading Desk

MetaTrader 4

Crypto

Yes

📈 Total Pairs

80

☪️ Islamic Account

Yes

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, IG is the best NDD Share Broker in Nigeria. Trading on more than 19,000 markets is possible using IG’s No-Dealing Desk (NDD) approach.

 

Narrow spreads and a variety of accounts are offered, tailored specifically to the unique needs of different Nigerian traders.

 

Best STP Share Broker in Nigeria

Overall Rating

4.7/5

Rated #57 of
Recommended FX Brokers

💰Minimum Deposit

USD 10

🌐 Regulators

IFSC

📱 Trading Desk

MetaTrader 4

Crypto

Yes

📈 Total Pairs

32

☪️ Islamic Account

No

📊 Trading Fees

Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Broker

 

Overall, RoboForex is the best STP Share Broker in Nigeria. RoboForex provides a variety of account types to accommodate various trading philosophies.

 

With competitive spreads starting at 0.0 pips, each account offers some of the greatest STP and ECN execution that traders can hope for.

 

Best Sign-up Bonus Share Broker in Nigeria

Overall Rating

4.8/5

Rated #8 of
Recommended FX Brokers

💰Minimum Deposit

$5

🌐 Regulators

SVGFSA

📱 Trading Desk

MT4, MT5

Crypto

Yes

📈 Total Pairs

80

☪️ Islamic Account

Yes

📊 Trading Fees

Very Low

🕒 Account Activation Time

24 Hours

🏛️ Visit Official Website

 

Overall, OctaFX is the best sign-up bonus share broker in Nigeria. Nigerian traders who register for an account on OctaFX’s website get a no-deposit incentive ranging from $8 to $16.

 

Conclusion

Contrary to spending, investment puts money aside for the future in the hopes that it will increase over time.

 

While you can easily invest even if you are inexperienced, share trading and investment involve a lot more than simply choosing the best investment, which is a challenging enough task in and of itself. You also need to be aware of the limitations that apply to you as a novice investor.

 

FAQ

How do I trade on the Nigerian Stock Exchange?

You can start by learning more about stock trading, after which you can research and evaluate a stockbroker licensed by the NGX.

Once you have registered, you can carry out fundamental and technical analysis to choose your stocks and start building your investment portfolio.

 

How much do I need to buy shares in Nigeria?

You can start trading shares in Nigeria from any given amount because you can purchase individual shares through a broker.

 

How can I learn more about the Nigerian Stock Exchange?

You can read online sources such as guides, tutorials, eBooks, and others. You can also watch videos, take online courses, consult an expert, and start with a demo account.

 

How long will it take to sell shares in Nigeria?

It can take up to 48 hours for your NGX-registered stockbroker to complete the transaction.

 

What is the difference between a share and a stock?

While they can be used interchangeably, stock refers to the part-ownership that a holder has in one or more shares, while a share is the single unit of ownership in a company.

Author Details

Louis Schoeman

Louis Schoeman

Featured Forex and Stocks writer

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