Passfolio is a new US broker-dealer that lets Nigerians and people from other 170+ countries invest in the US stock market. The best part? It’s commission-free.*
Based in San Francisco (US), Passfolio was founded in 2018 with the mission of democratizing access to US investments throughout the world. The company is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org.
With the Passfolio app, available in the App Store and in Google Play, Nigerian investors can easily fund their accounts using Naira with local bank transfers. Naira deposits convert to USD through Passfolio Financial and allow the purchase of stocks from the US market with Passfolio Securities.
3,800+ stocks, ETFs and REITs
Investors can access more than 3,800 stocks, ETFs and REITs from the US market through Passfolio Securities. The platform is integrated with DriveWealth, which serves as their clearing broker partner.
If you’re looking to invest in your favorite companies from the US market, like Amazon (AMZN), Google (GOOG), Microsoft (MSFT) and many others, Passfolio might be a good option for you. You can also start with as little as ₦500, because Passfolio supports fractional shares!
No commission fees
One of the ways Passfolio aims to democratize the access to US investments is by charging no commission fees*. This applies only to stocks priced at $5 or more - the larger part of the stocks available in the app. Securities less than $5 cost $0.02/share - you can check the full fee schedule here.
According to David Gobaud, Passfolio’s founder and CEO, commission-free US stock trading was popularized by Robinhood a few years ago and is now common in the US, with the biggest broker-dealers such as E*TRADE and Charles Schwab offering it to US citizens.
“If US citizens are able to invest commission-free, why can’t you?”, David Gobaud says. “When people hear about our service, they may not believe it and think it is too good to be true”. Instead of commission fees, the company’s main sources of revenue come from currency conversions of local deposit methods and premium subscription features.
Support for Nigerian bank transfers
Passfolio had been growing in Nigeria for the last months, and decided to offer more features specifically for Nigerian investors. Recently, they announced support for BVN verification and local bank transfers in the country.
Now, Passfolio clients in Nigeria can easily convert Naira into US dollars to fund their accounts. For that, users are charged a fixed 0.2% fee and additional 1.4% fee capped at ₦2,000. More information about fees can be found here.
Through Passfolio Financial*, users can also trade and fund their accounts with cryptocurrencies.
Passfolio makes it possible for users to fund their accounts using cryptocurrencies by first converting them into dollars through Passfolio Financial*, then moving the dollar proceeds to their brokerage accounts at Passfolio Securities, where users are then able to buy stocks.
This way, investors can deposit and trade Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Zcash and 20 other cryptocurrencies in the app.
Sponsored by Passfolio
* Securities less than $5 cost $0.02/share. Please see Passfolio’s disclosures on other charges: https://passfolio.us/fees
Please read important legal disclosures: https://passfolio.us/legal
Securities and cryptocurrencies are very different types of assets. Cryptocurrencies are not securities. Purchasing cryptocurrencies comes with a number of risks. Please read Passfolio Financial Cryptocurrency Risk Disclosure. Currency and cryptocurrency exchange services provided by Passfolio Financial LLC, a US Money Services Business registered with FinCEN. Passfolio Financial LLC is not a broker dealer. Cryptocurrencies are not protected by either FDIC or SIPC. Securities products and services offered to self-directed investors through Passfolio Securities LLC Member FINRA / SIPC. Passfolio Securities, LLC does not provide cryptocurrency-related services. Passfolio Securities LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org. Passfolio Securities LLC, Passfolio Financial LLC and Panchain, Inc. are separate but affiliated companies. To purchase securities using cryptocurrencies, you must first convert it into U.S. Dollars using Passfolio Financial LLC. You must then move the U.S. Dollar proceeds to your brokerage account at Passfolio Securities LLC where you can use it to buy securities.
*This is a featured post.