₦airaland Forum

Please house which broker is the best in terms of seamless transactions and low fees?
I have checked Cardinal Stone as someone here advised but the information about their charges are not explicitly stated in their website.

BullBearMkt:
I am pleased to share the Nigerian Exchange (NGX) 2024 Report, it provides insights into the outlook for 2025. The report primarily focuses on technical analysis, offering a detailed evaluation of market performance across various sectors throughout the year.

I hope you find it informative and beneficial. Please find the report via the link below:

https://drive.google.com/file/d/1awkzS7eWZRLuS7NBZcKIooXeA77E6n3b/view?usp=sharing

Welldon, BullBearMKT

megawealth01:
MTN has never won the FG. It can only happen if the FG wants it so

FG can't justify Starlink increase and sideline long term tax payers.

Besides, it's not just FG Vs MTN but FG Vs all Telcos..
MTN is just the figure head and most dominant.

Well, They may not get their 100% but I fear they may get a substantial increase.

chimex38:
FG can't justify Starlink increase and sideline long term tax payers.

Besides, it's not just FG Vs MTN but FG Vs all Telcos..
MTN is just the figure head and most dominant.

Well, They may not get their 100% but I fear they may get a substantial increase.

You gat a point there

emmaodet:
Hello bro.
Just a question - assuming i have a 30m mutual fund with ucap and have collected 5m loan from ucee but since i am eligible for up to 29m, is it possible maybe after a month to refinance my loan? by getting more loans than the initial 5m from ucee?

With N30 million you are eligible for about N27 million.

After getting an initial loan of N5 million you can always ask for additional loan provided your collateral can accommodate it.


I used my Eurobond fund to get loan when it N900 to $1.

When the exchange moved to N1300 to $1, I applied for additional loan and I was granted

emmanuelewumi:
This is a loan I have been taking for the past 4 years.

Interest on N1million at 30% per annum for 6 months is 150k. payment is bullet payment of interest and principal at maturity. The worst case scenario is to pay interest alone and rollover the principal.

If after 6 months you paid the interest and 500k out of the initial N1 million

You will get another offer letter for the rollover of the 500k and the interest at 30% will be 75k.

Meaning total interest payment will be 225k.


If you are lucky that interest rate is lower, the rollover will be at the prevailing interest rate.

Since the payment is bullet payment, I usually invest the money I want to use in servicing the loan in a Money Market fund earning 22% or thereabout

Now your explanation is very clear.case is closed
Thanks

Locotrader:
Now your explanation is very clear.case is closed

Emmaodet is a young investor and maybe his first time of collecting loan.
He is supposed to seek your advice before embarking on this margin loan.Your wealth of experience is second to none in this market.

I wish him well and advice young investors to seek advice first.Not all margin loans are good.

I think Emmaodet is intelligent enough, 15% in 6 months is not bad based on what intelligent investors can achieve in the next 6 months.

Yhe beauty of margin loans is that you are not under pressure of making monthly payments, at maturity you can even pay just the interest and rollover the principal for as long as possible

HesInMe:
Stockbrokers calling for an endless bull market -- when the market is near all-time highs... Easy, high-interest margin loans for investing in stocks.... A frenzy in penny stocks trading. I'm getting PTSD flashbacks.

Be fearful when others are greedy.

It is not all stocks that are acceptable as collateral for margin loans, most of the popular penny stocks marketed here are not acceptable as collateral, but you can invest the loans in those stocks

awesomeJ:
I missed your post on this.
Please answer these:

1. Can I open the account virtually?
2. How long after before I'm eligible for the loan?
3. What's the max amount?
4. Do I need to use ucap as my brokers, if so what's their fee % on trades?


I've been paying 7% flat on facilities, I was hoping to reduce it to 5% this year. Now I'm seeing 2.5%?

You can apply virtually.


Minimum loan of 500k

Maximum loan of N100 million.

emmanuelewumi:
I think Emmaodet is intelligent enough, 15% in 6 months is not bad based on what intelligent investors can achieve in the next 6 months.

Yhe beauty of margin loans is that you are not under pressure of making monthly payments, at maturity you can even pay just the interest and rollover the principal for as long as possible

Ok.I edited the post after the clarity from you.
I can see.
Tnx

Please what happens if the price of the shares you gave as collateral are about to fall below the value of the collateral? Will they do a margin call?

emmanuelewumi:
I think Emmaodet is intelligent enough, 15% in 6 months is not bad based on what intelligent investors can achieve in the next 6 months.

Yhe beauty of margin loans is that you are not under pressure of making monthly payments, at maturity you can even pay just the interest and rollover the principal for as long as possible

emmanuelewumi:
You can apply virtually.


Minimum loan of 500k

Maximum loan of N100 million.

Thank you boss.

awesomeJ:
I understand, but I believe his priority shouldn't be to investors, rather it should be to the other 90%+ of the population who could certainly use more value for their little earnings vs consistent dilutions.


Also, I agree about the impact of FPIs in 2024, but I'm saying it's time to start winding down on the rates


Why keep borrowing dollars from FPIs at 30% when we were offered $9bn in eurobond at 10%.


Carrying $5bn at 10% would cost just $500m, so why should Cardoso prefer to carry it at 30% and expend $1.5bn, that extra $1bn can be used to reduce the debt stock of the country if nothing else.


I just feel the man is getting too comfortable with performance that seem quite mediocre in my opinion.


In 2017 too, Emefiele elevated yields to around 20% but by late 2018 when rates became stable, he started winding it down to a point where yields in Nigeria became as low as US yields (sub 1%) yet the stability stayed, black market was even doing 355 to official 362.

It took terrible COVID shock to the oil market where sellers were paying buyers to lift oil (oil selling for below $0) for the currency to start faltering again, but even then the fall wasn't as steep. It was under 40% yoy.

You have made my point. In 2018 after some Eurobonds and more stability in the economy, Emiefele began to reduce rates. I believe when things start getting more stable in the Nigerian economy, Cardoso would reduce rates drastically. He has said it himself.

We can’t be that bullish with Eurobonds now because we already have lots of it to service compared to 2018 and 2019, where Buhari could easily take close to $5 Billion. Remember that global rates were also more favourable then ( no global spillover effect of inflation caused by Russia Ukraine war and COVID).

Note that under no circumstance is a negative rate above 10% good for the naira. Even 5% is too much sometimes and we are at 6% currently. Ghana, during their crises in 2022, ensured they began to have positive rates and this has reduced inflation drastically. If we reduce rates from what it is now, people / investors would not be incentivised to hold naira that much and naira falls even quicker than what high money supply effect can do. Because with money supply, the CBN still have a way of sucking that out of the system.

Raider76:
Please what happens if the price of the shares you gave as collateral are about to fall below the value of the collateral? Will they do a margin call?

The price of Mutual funds can't fall that is why you can get 80% of the value of the investments as loan loan.


If you used stocks as collateral, they have less than 50 stocks that are accepted as collateral and you can get 40% to 50% of the value as loan


For you to take margin loans make sure you have cash flow and you have more than an average knowledge of the market.

Valthegreat:
Please house which broker is the best in terms of seamless transactions and low fees?
I have checked Cardinal Stone as someone here advised but the information about their charges are not explicitly stated in their webtsite.

Please the masters here should help me before I make mistakes. I Want to invest funds but I need help so as not to use bad platforms.
Kindly give me suggestions on the best online broker to use for seamless transactions and low fees too

BullBearMkt:
I am pleased to share the Nigerian Exchange (NGX) 2024 Report, it provides insights into the outlook for 2025. The report primarily focuses on technical analysis, offering a detailed evaluation of market performance across various sectors throughout the year.

I hope you find it informative and beneficial. Please find the report via the link below:

https://drive.google.com/file/d/1awkzS7eWZRLuS7NBZcKIooXeA77E6n3b/view?usp=sharing

I have a question. Weldon and nice work.Why you stop on few stocks when I was beginning to enjoy the thing,lol.

emmaodet:
Hello bro.
Just a question - assuming i have a 30m mutual fund with ucap and have collected 5m loan from ucee but since i am eligible for up to 29m, is it possible maybe after a month to refinance my loan? by getting more loans than the initial 5m from ucee?

If you want to rollover your loan, make sure you inform the a week before the loan matures

emmanuelewumi:
With N30 million you are eligible for about N27 million.

After getting an initial loan of N5 million you can always ask for additional loan provided your collateral can accommodate it.


I used my Eurobond fund to get loan when it N900 to $1.

When the exchange moved to N1300 to $1, I applied for additional loan and I was granted

Thanks very much. Have learnt alot from you

emmanuelewumi:
I think Emmaodet is intelligent enough, 15% in 6 months is not bad based on what intelligent investors can achieve in the next 6 months.

Yhe beauty of margin loans is that you are not under pressure of making monthly payments, at maturity you can even pay just the interest and rollover the principal for as long as possible

I structure my loan in such a way my mutual fund will pay for it. So i am not worried about the payback.
Also, it is one of the few options convenient for me.
Most banks won't grant me loan because am not eligible for it since i don't work in nigeria and not under the list of accredited companies for employee loans.
I am not a full staff neither rather contractor, so it makes getting bank loans very hard.

emmanuelewumi:
If you want to rollover your loan, make sure you inform the a week before the loan matures

Okay thanks.
Well noted

BullBearMkt:
I am pleased to share the Nigerian Exchange (NGX) 2024 Report, it provides insights into the outlook for 2025. The report primarily focuses on technical analysis, offering a detailed evaluation of market performance across various sectors throughout the year.

I hope you find it informative and beneficial. Please find the report via the link below:

https://drive.google.com/file/d/1awkzS7eWZRLuS7NBZcKIooXeA77E6n3b/view?usp=sharing

Thank you, BullBearMkt.

Raider76:
Please what happens if the price of the shares you gave as collateral are about to fall below the value of the collateral? Will they do a margin call?

Yes, they will do a margin call but that will be on rear occasion.
You can only access 30% of your stock portfolio, so it is very rear for your portfolio to fall below 30% now.
Mutual fund is about 70-95% portfolio for loan

emmaodet:
Yes, they will do a margin call but that will be on rear occasion.
You can only access 30% of your stock portfolio, so it is very rear for your portfolio to fall below 30% now.
Mutual fund is about 70-95% portfolio for loan

They also consider the moving average stock price for the past 6 months and discount it to determine the loan amount to approve

For those looking to US for real estate.. worth considering.
Read to the end.. Hello all. For those of us who are interested in acquiring real estate in USA but do not have the funds, Iyanu is here with a solution! I will give you property options to choose from as well as provide you with funding options for your purchase. Am i nice or what!!!

Options available are already tenanted and dollar income yielding .. 20 units of tenanted and income yielding 3 bedroom townhomes in Valdosta Georgia..
Of particular importance is the fact that the CEO of the company that owns the townhomes is a learned colleague called to the Nigerian bar in 1992. He is also a lawyer in the US where he currently resides. He also has an estate of houses, flats and lands under development in Ajah lagos. A man of integrity. My company is one of their partners in the sale of their properties.
Now the great news! Come 11th January, few days from now, there'll be a webinar where the CEO of the company that owns the townhomes and a US based mortgage provider will be speaking on how Nigerians both in Nigeria and in the US can access funds to purchase homes in the USA, both for investment (rental income) and as personal homes.. You can't afford to miss it !!!
All those interested should send me a message so i can send you the registration link for the webinar. Webinar is absolutely free. No strings attached but i need to introduce you to the developers so they'll know you are from me. Without that they won't pay me my commission if you decide to buy. You don't have to pay me any commission. Owners will pay my fee. Feel free to get in touch by message/mail or Whatsapp or call. My numbers are on the e-flyer attached.

emmanuelewumi:
They also consider the moving average stock price for the past 6 months and discount it to determine the loan amount to approve

My only issue with it is that UCAP charges 1% fees.

If I take loan at 84% from my current guys, I pay 350k interest per month.

But with UCAP I will pay additional 500k in brokerage fee compared to MCSE.

Cos I trade c. N100m monthly.


Whoever knows folks at Morgan Capital, please convince them to partner with an MFB.

With Morgan's 0.5%, even 60% p.a is still cheap.

awesomeJ:
My only issue with it is that UCAP charges 1% fees.

If I take loan at 84% from my current guys, I pay 350k interest per month.

But with UCAP I will pay additional 500k in brokerage fee compared to MCSE.

Cos I trade c. N100m monthly.


Whoever knows folks at Morgan Capital, please convince them to partner with an MFB.

With Morgan's 0.5%, even 60% p.a is still cheap.

60% p.a just to buy stock?
Well you can say this in a bear market

awesomeJ:
My only issue with it is that UCAP charges 1% fees.

If I take loan at 84% from my current guys, I pay 350k interest per month.

But with UCAP I will pay additional 500k in brokerage fee compared to MCSE.

Cos I trade c. N100m monthly.


Whoever knows folks at Morgan Capital, please convince them to partner with an MFB.

With Morgan's 0.5%, even 60% p.a is still cheap.

What is the loan amount that charges 350k per month? If it is 5% monthly, the loan amount should be N7 million


They have one of the cheapest rates for loan. Do the Cost Benefit Analysis. UCAP loans at 30% per annum and the current 5% per month that you have been doing.


The mutual funds of UCAP is currently N1 Trillion, some few billion from it can be given to their Microfinance Bank at 28% so at 30% they have 2% margin

Locotrader:
60% p.a just to buy stock?
Well you can say this in a bear market

Crazy. He should change his financiers

Toluway:
Welldon, BullBearMKT

Thank you, Oga Toluway! I appreciate it.

Streetinvestor2:
I have a question. Weldon and nice work.Why you stop on few stocks when I was beginning to enjoy the thing,lol.

Thanks @Streetinvestor2. I’m happy you enjoyed reading it! Next time, by God’s grace, I’ll try to include more stocks.

IamR:
Thank you, BullBearMkt.

Thanks @IamR. I appreciate it!

Locotrader:
60% p.a just to buy stock?
Well you can say this in a bear market

The guy risk appetite na different level. The 60% is what most microfinance bank charge. They collect 5% per month plus compounding when you fail to pay interest in any month. They be thieves with biro.And have away with police to intimidate you to recover back