If you’re planning to buy shares or seeking to trade on the Nigerian Exchange Group, identifying the best stockbrokers in Nigeria to help execute this order is the first step you need to take.
Stockbrokers are a fundamental part of investment trading, they act on behalf of clients to facilitate investment dealings like buying and selling of stocks as well as other securities. In this article, we will highlight the most important attributes to look out for when hiring a stockbroker; and why you can trust FBNQuest the best stockbroker in Nigeria for your investment needs.
What is the job of Stockbrokers in Nigeria?
Firstly, a Stockbroker is a registered representative of the financial market and acts as an Investment Adviser to individual investors and financial institutions and helps them execute buying and selling of stock and other securities on the exchange market.
Trading stocks on the national stock exchange in Nigeria, known as the Nigerian Exchange Group is only accessible to members only. This is where the role of a Stockbroker comes in. A Stockbroker, sometimes known as a Broker is usually licensed by the Securities & Exchange Commission to trade on the stock market and can act as the middleman to help you execute a sell or buy order.
How to Find the Best Stockbrokers in Nigeria For Your Investments
Choosing a Stockbroker for your investments is a very important decision, however with various brokerage services available today it can be difficult to know the best Stockbroker for you. To help you narrow your search and identify the best stockbroker in Nigeria for your needs, we recommend the following tips:
Understand available brokerage options
There are two main types of Stockbrokers and it is important to understand which will serve your investment needs best:
- A full-service Stockbroker is usually assigned by a brokerage firm and does more than execute investment trades on your behalf but instead acts as a personal Investment Advisor offering a wide range of financial services including investment management as well as market insights and analysis recommendations. One of the best Stockbrokers in Nigeria that offer full-service options is FBNQuest Securities.
- Discount Stockbrokers are popular for lower commission rates and fees while offering only basic investment tools for research and trading. Discount Stockbrokers leave investors to make independent trade decisions and are only responsible for carrying out buy and sell orders.
Determine your investment priorities & interests
The next step in identifying the right Stockbroker is knowing what your investment goals are. For instance, if you’re seeking to invest as a supplementary way to increase your current income, then you may be seeking a Stockbroker who can fully represent you and manage your trades on your behalf. On the other hand, you might be seeking to become a full-time investor and would be involved in picking and making practical decisions about your investments with an online solution like FBNQuest Securities offers.
Research the reliability & performance history of the Stockbroker
Finally, it is important to read up on your list of preferred Stockbrokers. Research the Stockbroker’s past performances and if they can be trusted. Most importantly, look out for what previous customers have said about the Stockbroker. It is also important to learn about what guarantees the brokers offer to protect against fraud and what the terms are for reimbursements in case of losses.
Three Important Features of the Best Stockbrokers in Nigeria
As you carry out further research in identifying the right Stockbrokers available in the country, here are three qualities that distinguish the best Stockbrokers in Nigeria from many others.
- Access to diversified assets to choose from including stocks, private equities and mutual funds, ETFs, bonds etc.
- Transparent pricing including account fees and commission rates
- Excellent customer service and contact options
Why FBNQuest is One of the Best Stockbrokers in Nigeria?
As a Stockbroker, FBNQuest offers investors access to diverse assets to choose from while offering expert financial advice on investment planning to meet your goals and match your unique stage in life.
Over the years, FBNQuest has invested over N20 billion in over 70 private equity companies, making it one of the trusted stockbrokers for alternative asset classes. With remarkable market research capability, the company leverages unique insights into investing in private and public companies.