Introduction to Investment Platforms in Nigeria
Are you looking forward to growing your money through an investment platform but don’t know which of them is the best for you? If yes then you are not in the wrong place, continue reading. This article highlights the 11 best investment platforms in Nigeria, but before we continue, let’s first understand what is an investment platform.
Investment platforms are digital tools or services that allow individuals to invest their money in diverse financial instruments such as stocks, bonds, mutual funds, real estate, exchange-traded funds (ETFs), and cryptocurrencies. These platforms bestow a user-friendly interface that enables people to invest, manage, and monitor their investments conveniently.
Without a doubt, the development of investment platforms has become very popular in recent years. This is because more people are picking interest in growing their wealth through multifarious investment opportunities.
Nigeria, the most populated country in Africa, has a lot of investment platforms that offer different kinds of investment options for both beginners and experienced investors. These platforms typically offer various investment options, including various asset classes and investment strategies.
Having known, let’s ride on!
How Do I Choose the Right Investment Platform in Nigeria
This is the first question people ask when looking forward to investing their money. Do you know why? Nobody wants to invest where they will encounter losses or face challenges, but a place they can enjoy the fruit of their investment.
As such, choosing the right investment platform is the first step to consider, and also the beginning of your investment success. Hence not all of these platforms are worth your precious time and money, here are the important things to consider in other to choose the right investment platform in Nigeria:
- Conduct thorough research on the available investment platforms in Nigeria
- Choose an investment platform that offers a wide range of investment options that suit your investment goals, risk appetite, and financial capability
- Consider the fees or charges associated with the investment platform
- Measure the security of the investment platform
- Consider the user experience of the investment platform
- Evaluate the quality of customer service
- Research the past performance of the investment platform
- Consider checking user reviews and ratings
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11 Best Investment Platforms In Nigeria
Listed below are the 11 best investment platforms in Nigeria. Note that the arrangement of this list is neither Ascending nor descending.
- Pillow Fund
- Payday Investor
- Wealth NG
PiggyVest is one of the first online investment platforms in Nigeria. It was launched on the 7th of January 2016 as Piggybank and was only serving as a savings platform.
In April 2019, the company rebranded to “PiggyVest” and extended its services by offering both savings and direct investment opportunities to users.
As of now, PiggyVest is having over 4 million users and a lot have testified to their excellent services. They have an office located at Tesmot House, 3 Abdulrahman Okene Close, off Ligali Ayorinde, Victoria Island, Lagos.
Here are some of the important things you need to know about PiggyVest:
- Transfer from the bank account to the PiggyVest account is done with no bank charges. Also, you can withdraw for free, but only on set Withdrawal dates.
- Saving from the PiggyVest account is done periodically, i.e daily, weekly, or monthly. You can ONLY save between N50 – N50,000 daily, N800 – N200,000 weekly, or N3,000 – N500,000 monthly. Nevertheless, the system provides an option called Quicksave which allows users to add up to N500,000 per time.
- Interest rates range from 7% to 25%, depending on the feature you opt for.
- You can earn points called Piggy Points by saving consistently, which can be converted to cash in your Flex Naira account. 1 Piggy Point is equal to N10.
How To Get Started On PiggyVest
To start investing with PiggyVest, follow the steps below:
- Click here to visit their official website or download the app on Play Store
- Create an account. Your PiggyVest account name should be the same as your bank account name
- Add your withdrawal account
- Enter the required details to activate your account
- Make your first deposit and start saving.
2. Pillow Fund
It’s a financial cushion or emergency savings app that enables users to visually save their money in dollars and Naira while earning passively daily. The company is incorporated in Singapore but operates across over 60 countries, including Nigeria.
The main goal of Pillow Fund is to become a go-to platform for accessing global assets in emerging and frontier markets. They utilize traditional finance and technological infrastructure to develop and deliver financial services for the markets. To handsomely achieve this, they work closely with internationally recognized financial institutions and foster active local communities that promote financial literacy.
Here are some of the important things you need to know about Pillow Fund:
- You can earn up to 14% annual interest on your deposit
- Returns are credited daily at 11:30 AM in Nigeria
- You can deposit through your bank account, and easily withdraw to your preferred bank account without any stress
- You can save as low as N1,000, and there is no maximum amount that one can deposit
- You are free to withdraw your funds at any time, as there is no lock-in period for your fund
How To Get Started On Pillow Fund
If you want to get started with Pillow Fund, follow these steps:
- First, download the Pillow app on your Android or iOS device.
- Next, sign up by providing your information.
- Then, deposit fiat currencies into your account.
- Congratulations! You can now start earning your daily returns
Cowrywise, founded by Ahmed Razaq (CEO) and Edward Popoola (CTO), is a fintech firm that digitizes the investment management sector in Africa By making savings and investment options more accessible to the growing African middle class and millennials who have been traditionally underserved.
With this platform, users can conveniently save and invest their money without the need to go through the typical inconvenience of physically visiting a bank or financial institution.
As of now, Cowrywise is said to have over 500,000 users. It is a Y Combinator company and also happens to be the first Nigerian enterprise to be accepted into the Catalyst Fund program, backed by JP Morgan and UKAID.
Here are some of the important things you need to know about Cowrywise:
- You can save as low as ₦1,000 (One thousand Naira)
- Savings are periodic, i.e daily, weekly, or monthly for a minimum of 3 months.
- You can create savings plans as many as you can
- The minimum duration of savings and investment is 90 days and no maximum time limit
- After you begin saving, your plans will start generating daily returns from the next day onwards. The returns will be credited to your Cowrywise account by midnight every day
- The percentage of interest rate depends on how long you save. 3 months is 5.50% p.a, 6 months is 6.50% p.a, 9 months is 7.50% p.a, and above 1 year is 8.50% p.a.
- You can only withdraw at the set maturity date.
Carbon is a digital bank that operates on a credit-based model, providing contemporary banking services to driven, dynamic Africans who desire both autonomy and financial value.
The company first started as “Pay Later” and was operating only as a digital lending platform. They later rebranded to Carbon, and this time started offering various digital financial services including savings investment.
Here are some of the important things you need to know about Carbon savings and investment:
- They offer up to 15.5% returns on investments
- They offer many saving plans to conveniently meet up with users’ saving habits or goals. This includes Cash Vault, Goals, and FlexSave.
- You can schedule automated inflows into your investment plan at your own chosen time of the month.
Bamboo is another investment platform in Nigeria designed to provide you with smarter investment options and generate returns.
The platform was launched in January 2020 and is currently active in Nigeria and Ghana.
Without a doubt, Bamboo investment can be an attractive option for investors looking for simple, accessible, and affordable investment opportunities. They offer access to easy, secure, and reliable investment options in other to maximize real returns.
With this platform, you can invest in the U.S. stock market by buying shares and becoming a part-owner of various global companies like Apple and Microsoft, and you can also opt for fixed-income dollar-denominated investment, which allows users to earn up to 8% annual returns.
Trove is another popular investment platform to try out as a Nigerian!
They provide access to various financial assets listed on major local and foreign stock exchanges. The platform allows users to invest in fractional shares of companies, which means that users can invest in a portion of a share of a company rather than buying a whole share.
Trove operates as a technology platform and is neither a registered broker-dealer nor an investment adviser. Their approach involves collaborating with reputable and reliable partners to guarantee the safety of your investments.
With Trove, you can:
- invest as little as $10 or ₦1,000
- gain access to Nigerian stocks, foreign stocks, bonds, ETFs, and other investment opportunities
- have access to tools that can assist you to become a knowledgeable investor
- place a withdrawal request and the money will be wired to your domestic bank account within a business day
How To Get Started On Trove
- Visit their official website to create your account. You can also download their app from your favorite app store and get started
- Make payments to your wallet
- Start trading
7. Payday Investor
With Payday Investor, you can earn interest while investing your funds automatically periodically.
This investment platform is a registered trademark of ARM Investment Managers, a subsidiary of Asset & Resource Management Holding Company (ARM). The expertise of PayDay Investor is supported by a team of finance and technology experts who possess more than 24 years of experience in research-based and professional fund management.
Here are some of the important things you need to know about Payday Investor:
- Payday Investor offers several benefits to its users, including the ability to safeguard your investment principal, with no risk of losing it.
- You can start investing with as little as 1,000 Naira and earn higher interest rates, compared to traditional savings accounts.
- The investment process is fully automated, so you don’t have to worry about reminders
- You also have the flexibility to withdraw your funds at any time
- You can collaborate with your friends and family to invest toward a shared goal.
Another one on the list of the 11 best investment platforms in Nigeria is Chaka!
Without a doubt, Chaka is one of the top investment platforms that aims to provide technology solutions that enable individuals and businesses across Africa to access digital investment and wealth management opportunities without borders.
The company was founded in 2019 by Tosin Osibodu, Bolanle Osibodu, Oluwatomi Solanke, and Ibrahim Salau. It’s the property of Chaka Technologies Limited, a company duly licensed by the Nigerian Securities and Exchange Commission.
With Chaka, you can:
- invest in global brands with any amount of money regardless of the share price
- Invite the people dear to you to build wealth together and reap rewards. Whenever someone you refer creates an account and initiates a trade of $10 (or more), you can earn up to $50 per referral.
- Increase your wealth in Naira, by expanding your investment portfolio and keeping yourself informed about financial developments from across the world.
I-Invest is a popular and also one of the preferred marketplaces for financial services in Africa. The platform provides access to diverse investment opportunities from multiple financial service providers.
The company was launched in 2018 by Sterling Bank in partnership with Parthian Partners. It is regulated by the Nigerian Securities and Exchange Commission (SEC), making it a secured digital platform for investments.
With I-invest, investors can choose from a range of investment products to meet their investment requirements conveniently. They can also enjoy real-time access to products from anywhere in the world including Treasury bills, Fixed deposit notes, Commercial papers, Eurobonds, and Equities.
Additionally, I-Invest offers are effortless and come at no extra cost, allowing you to save time. Their services are accessible to all regardless of your bank. You don’t need to go through the process of completing any paperwork, waiting in long bank queues, or engaging a broker.
RiseVest is an investment platform that aims to make it easier for people to invest in global assets like stocks, real estate, and fixed income.
The company was founded in 2019 by Eke Urum, and its office is located at No. 358 Herbert Macaulay way, Yaba, Lagos, Nigeria.
They function as a personal investment manager and advisor, assisting you to invest in carefully chosen dollar-denominated assets, with a focus on providing safe and consistent dollar returns over an extended period.
Here are some of the important things you need to know about RiseVest:
- You can allocate capital across a portfolio of US stocks, US rental properties, and global fixed-income assets, all in dollars.
- You can start investing as little as $1 and there is no maximum limit
- You can withdraw from your wallet at any time. All withdrawal requests are processed within 24 hours
- The interest rate depends on your asset class. Stocks and real estate are 14% Per Annum, and fixed income is 10% Per Annum.
11. Wealth NG
Wealth Ng is owned by WealthTech Limited (RC 1547536), an affiliate of Sankore Securities Limited. The company is registered with the Nigerian Stock Exchange and is subject to regulation by the Securities and Exchange Commission of Nigeria.
With this investment platform, you can pay for your investments in any currency, earn an interest rate of up to 18%, and also have access to learn a lot concerning investment.
Benefits of Using Investment Platforms in Nigeria
Here are the benefits of using investment platforms in Nigeria if you care to know.
- They spread your risk and diversify your portfolio
- Many investment platforms offer access to global markets, which can provide you with opportunities to invest in international stocks and bonds
- Investment platforms often charge lower fees compared to traditional investment methods like mutual funds or financial advisors
- You can easily manage your investments online or through a mobile app, making it easy to track your portfolio and make changes as needed
- They provide investors with greater transparency and control over their investments
- Some investment platforms offer automated investing services, which can help you build and maintain a diversified portfolio without the need for active management
- Many investment platforms offer educational resources and research tools to help investors learn more about investing and make informed decisions
- They can help you to stop spending excessively and put away (and grow!) funds that you do not want to touch.
Risks and Challenges of Investing in Nigeria
Just like in any other country, investment platforms have made it easier for individuals to invest in various financial products such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs), and earn returns. However, for anything that has advantages, there are always disadvantages.
Here are some of the risks and challenges associated with investing in Nigeria through investment platforms:
- Investment platforms can be vulnerable to cyberattacks and hacking, which can lead to data breaches, identity theft, and loss of funds. For this reason, you should measure the security of any investment platform before deciding to invest with them.
- Investment involves market risks, and the value of investments can fluctuate based on economic conditions, geopolitical events, and other factors
- Investment platforms charge various fees and commissions, such as trading fees, management fees, and account fees. These charges can significantly impact investment returns. Therefore, investors should carefully consider the costs associated with each platform before investing
- While investment platforms provide investors with access to various investment products, they may not offer personalized investment advice tailored to an individual’s unique financial situation and goals
- Investment platforms may experience technical glitches or outages, which can affect investors’ ability to access their accounts or make trades. Therefore, it’s always advisable to consider the platform’s uptime history and customer support before placing an investment
- Some investment platforms may not offer the full range of investment products, limiting an investor’s ability to diversify their portfolio.
Conclusion: Which Investment Platform is Right for You?
Finally, you should note that almost all investment platforms have their downside and benefits. So, before deciding on any investment platform, it’s highly advisable to conduct thorough research in other to understand things like their charges, security, performance, etc, before placing your money.
Now, let’s hear from you!
Which Investment Platform is Right for You?
DISCLAIMER: This article is for informational purposes only and does not constitute financial advice. The content of this article is based on research and personal experience, and may not be suitable for everyone, and it is subject to change at any time. In case you have concerns beyond this article, please do good by consulting a financial advisor before making any investment decisions. We are NOT responsible for any financial losses or damages that may result from the use of this information.