Stock Brokers In Nigeria?

Greetings everyone!

I just learned about this site and forum today and found out that it is very informative and useful.

I live in the United States and had been looking for investing in stocks in Nigeria. I had been studying the Nigerian market for more than a month and realized its potential to bring the good fortune. I learned from Nigerian Stock Exchange web site that I need to have a stock broker in Nigeria in order to invest and purchase public shares. Could anyone suggest:

* Some good stock brokers (with email and contact number) that I can rely on
* Some good websites in Nigeria that offers management of all stocks and related documents being owned

I would be very grateful for all your suggestions.

Thanks,

SNair

Hello hola2ng,

Thank you very much for providing the requested information so quick! Out of the four sites given, BGL Securities and Crossworld Securities seem to have most of the required information available online. I am certain to end my stock broker hunt by finalizing any one of these stock brokers.

I really thank you very much for providing this valuable information and look forward to meeting you again here.

My sincere thanks to Nairaland for offering useful forums like this.

Take care,

SNair 

Hi everyone, thanks for the knowledge that has been imparted through this forum.

I bought several shares too, but I don't have a stockbroker yet, just trying to get one now.

But can anyone enlighten me on CSCS (central securities clearing system)?, and what is the difference between

them and stockbrokers?

Thanks.

Identifying Fake Finance Houses in Nigeria

How do you explain investing in a firm that is not properly licensed by the
Securities and Exchange Commission and yet offers you ridiculous returns in
stocks such that not even the best and he biggest licensed stock broking firm
can ever think of making talk less of offering you? Abayomi Obabolujo, CRO,
Stocks Watch Magazine.

I got really excited when I read the April 25, 2007 edition of Stocks Watch. The Chief Research Officer of the reputable stocks magazine, Abayomi Obabolujo, wrote an enlightening essay on how to identify fake finance houses.
The message he was trying to pass across is so important, I have decided to replicate it here. Brace yourself; you are in danger of being a little more financial literate!

Excerpts from the essay; the real meaning of investment-II: Identifying Fake Finance Houses by Abayomi Obabolujo, CRO, Stocks Watch magazine

The System:

To my mind, the system to which your fund is being sent to create more of itself should be plain and simple to understand and not a kind of abracadabra that people and firms say they do to generate the kind of interests they offer. For example, when you give your money to a stock broker for investment purposes, you sure know it is for the stock of a specific company, whose business is well defined and proven. If your fund/deposit is in a bank, we all know what they do, including round tripping (when it was fashionable) and the excess charges, import and corporate financing and all the rest but how do you explain giving your money to an institution or someone who says he is into oil and gas without a proper license and yet offers you unimaginable returns that no legal petroleum marketing company can offer. Similarly, how do you explain investing in a firm that is not properly licensed by the Securities and Exchange Commission and yet offers you ridiculous returns in stocks such that not even the best and he biggest licensed stock broking firm can ever think of making talk less of offering you? You see, you must come to certain realities or else you will continue to expose yourself to dupes.

Please take this warning- don’t ever let the desire for highest possible returns in the shortest possible period blindfold your ability to think right. There is no well meaning institution that will ever offer you too high a rate because professionally, they do understand the risk element that is often associated with businesses in a place like Nigeria and would also want to guard against unfulfilled promises. More so, all business owners and institutions are by nature selfish – they want to offer you lower rates to get more. It is not in their character to offer you more and get little for themselves in profit. Let me share with you the Business module or mode of operations of a typical fake finance house.

INCORPORATION:

In Nigeria of today, incorporation is easy; all it takes is a business name, a lawyer or accountant and some naira. With time, your company is up for business; therefore, conspicuous display of certificates of incorporation does not authenticate anything and one of the ways to identify a fake finance house is by requesting to see beyond the certificate, specifically their memo and article of association. If they ever make this available to you, consider their share capital; if you see that it is much lower than how much you intend to invest with them, please check it, they may be fake. If a child must be tall, they say in my village, the legs must be thin, so also a company that must access multiples of millions of naira as deposit from Nigerians must in itself be able to boast of a correspondingly high amount. Can you imagine some of these so-called finance houses have less than N2million share capital, which shows that they never spent much in putting the whole thing together. Please check very well; many of them may just have registered a business name and not even a limited liability company. The importance of share capital in the life of an organization cannot be overemphasized. That was what necessitated the recent recapitalization in the banking, insurance and stock broking firms; for whoever should manage your funds should himself have enough of his to manage. Take the time also to look at the nature of business as stated in the MEMAT. You will clearly see that those things stated there are nothing more than mere jargons.
Still talking about incorporation, please take note of the day and year that your wonder finance company was incorporated and request to see their accounts – management or audited; also ask them if they have done any remittance as tax or such to anywhere. This is not very likely. If you could go this far at your verifications, I believe that at this juncture, the operators of such a finance company would have lost interest in you whatever the seeming size of your deposit. May I ask; why do you think banks and legal finance companies do make copies of their financials to hang in their offices and sometimes in their presentations? It is not for a show; it is because such documents carry big messages; please note this. Look beyond the certificate of incorporation in the glass at that reception, all that are glazed are not so valuable.

Nature of Business:

Operators of illegal finance houses pretend to be involved in oil and gas, stock market, export and import businesses and sometimes, properties among others. Often times, you really would see shadow evidence of that which they claim to be involved in like a few trucks for those that say they are involved in oil and gas, a couple of shares by those who claim to operate in the stock market and such things here and there but if you think very well, you will simply discover the lies in them. If you do oil and gas so much that you make so much such that could afford you to offer ridiculous rates by which reason you have successfully gathered so much money from undiscerning members of the public, then you must be a major operator and at that, you must be visible in that industry by your filling stations, trucks and such. You should also be bold to present the names of your major clients or patrons for verification. If a company operates big without assets that can easily identify them, then something is amiss. It does mean that your business in itself is illegal, a faceless kind of business. My friend, we know the major and independent marketers of oil and gas products in the country. Let someone stop deceiving you just to get your money. Don’t tell me that these people are into bunkering for such does exist in Nigeria only as illegal business and I do not see the reason as to why you must deposit your funds with someone to carry out such a nefarious activity as bunkering that you know cannot last forever; In any case can you call such a deposit an investment? No, it is an advanced level of gambling. In the stock market, we know those that are real market operators; please don’t fall prey into the hand of a charlatan who calls himself a fund manager.

Let me quickly add this comment before rounding off for this week. The length of time a system has worked does not invalidate the fact that it is a fake and dubious venture. If I may remind you, Omana, Omana did not fail in his obligations to his clients up till the time he was arrested by the regulatory authorities for operating an illegal finance house. How did he do it and how are they doing it today, can’t you think? As of today, to access funds for a legal business from banks is one of the easiest things; the rates are also low enough. Why can’t these guys approach the bank to access facilities at 25% per annum instead of offering you 120% and in some cases, 360% per annum for your own funds?

 Stocks Watch Magazine (April 25)

Ok !! Here the link

Source: http://youngentreprenoirs(dot)blogspot(dot)com/2007/04/nigeria-how-to-identify-fake-finance.html

Hey guys and ladies,

Everyone of you have been extremely great for the insight regarding stock and shares in Nigeria. I would very much want to thank "HOTSTEPPER" for volunteering the services of her uncle, aunt or even mom. Lady you are great. I reside here in the US and had been wanting to invest in some sort of shares for the longest. Now that First bank shares has come up, what other viable shares or stocks would any one advise? I am looking at close to #700K to invest in my lovely country. Everyone, please keep up the good work. Nigeria will live to forget her past woes. " ROME WAS NOT BUILT IN A DAY". If those of us DIASPORA invest in our country, there is bound to light at the end of the tunnel, believe you me. Mr webmaster, I also commend your efforts.

Thanks you wonderful brothers and sisters

Naijawebe

Hmmm
Cashcraft claim to offer an online dealing platform but it is NOT functional
The information regarding your holdings etc when you log on, is not current and the only info you can glean from your online account is how many shares you hold and the price you purchased at the time.

If you want to work out the value of your current holdings you have to copy into an excel spreadsheet and do this yourself by updating the shares prices,  It is hardwork but once you have setup the spreadsheet its easy

Zenith securities owned by Zenith Bank also offer an online share dealing platform, this i believe is actually functional but i have been trying to buy stock that is scarce at the moment so they have not fulfilled my order as of today
If i successfully trade online with Zenith securities i will inform the house

I do not know of any other brokers that offer online dealing that works, that is until i set up my own fully functioning company with all the software ( maybe eh?  )

However i suspect that it is due to lack of vision and software infrastructure in the various dealing houses as the technology does exist.
I also believe the brokers want to be able to fully control the markets by restricting access and shrouding share dealing in esoterica (for obvious reasons) rather than empower the client and allow market forces dominate

Comments both negative (but constructive) and positive are welcome

Obamedo

ushang:

if you'll do, could you address the issues raised about your company ont his thread? There're people who have had less-than-sterling experiences with your company. This is beyond meeting the capitalisation requirements; it's about service, and living up to claims made on your website.

The word is that there're more than a few people unhappy with Cashcraft; better to address that than another ad pitch.

.

@Obamedo you took the words out of my mouth, there i was ready to deposit sizeable amount with this Cashcraft people based on the fact that i was told they are focussed on asset management, have good website blah blah. So i sent email for someone to get back to me as i need a point of contact o true one Sunday guy got in touch after about a week or more and he has not replied my further queries since May 25th. Anyway he can forget, I can imagine what it will be like when i have now made the deposit  .

I have stayed with my original broker jeje at least he gets back within 3-4 days.

No wonder people are wary  of investing in Nigeria.

This website and forum has been very enlightening.
Does anyone know of any other reputable stock brokerage firm that allows online account monitoring and have low minimum requirements?

Easimoni - Thanks for making me laugh! I'm aching all over (lol)

Raise your voice here http://www.nairaland.com/nigeria/topic-58913.0.html

If we continue shouting, someone will hear and respond

Hi there people,
I was on the blessed site and found out the people are bad mouthing stockbrokers up in here. Well that is just too bad because who would have thought that now that the capital market is booming ,people will not start to invest.

I respect all your reason but be warned only a fool will not make money when the time is right.

Please shine your  .
CYBERMIST

@ Bankyme:
mail me at boke@alangrangesecurities.com
i will put you on my mailing list and u will be getting the priicelist daily

@cybermist

your site did not open.

Does anybody know or have heard about Forthright securities and Investments Ltd. A banker introduced them to me and i`m thinking of openining an account with them. They claim among other things on their website:

Collection of outstanding dividend and bonus:
That is dividend and bonus certificates that were lost in transit but returned to the registrar.
Confirmation of Holdings / updates of client's account with registrar.
Change of address, names & signature on behalf of our clients.
Consolidation of Account.
Registration of Executors (i.e. Probate registration).
Registration of Letter of Administration
Revalidation of dividend warrants.

On the surface these services are exactly what i`m looking for

Any advice welcome.