The rapid advancement of technology has significantly altered how various sectors operate, and the Nigerian capital market is no exception. The ability to buy and sell shares directly from a mobile device has become a game-changer, offering a more accessible and efficient way for investors to engage with the stock market.

With over 172.8 million Nigerians owning mobile phones and 106.4 million being active internet users as of the fourth quarter of 2018, the rise of online trading platforms provided by investment firms has revolutionized stock market participation. These platforms enable investors to place their orders from anywhere in the world, reducing the need to visit the Nigerian Stock Exchange (NSE) trading floor.

Despite the availability of these tools, however, participation from younger demographics remains low. Data from the Nigeria Deposit Insurance Corporation (NDIC) shows that only 8.1% of investors in the equities market are aged between 25 and 34, while those aged 15 to 24 make up just 0.9%, indicating that there is still untapped potential in engaging younger, tech-savvy investors.

The Online Trading Platforms have been designed to enhance financial inclusion. Mr. Charles Fakrogha of Foresight Securities and Investment Limited explains that these platforms encourage tech-savvy individuals, including high school students and undergraduates, to access the stock market through their mobile devices. He calls this approach “Smart Trading,” where investors can place orders themselves, which are then validated by stockbrokers to ensure accuracy and risk management.

For investors, the benefits of these platforms are significant. They provide access to the stock market from anywhere, offer more transparency in transactions, and allow for efficient price discovery. Lead Capital Plc’s Managing Director, Mr. Wale Adewumi, highlights that online platforms eliminate potential conflicts between stockbrokers and investors by transferring control of share transactions to the investor. This makes the process fast, convenient, and more transparent.

However, it’s essential that users fully understand the implications of using these platforms. While investors have more control, there are risks, particularly if they are not seeing the broader market trends when placing specific orders.

Online trading platforms represent a significant shift in how shares are traded in Nigeria, offering a modern, mobile-driven solution for a growing market. As technology continues to evolve, the Nigerian capital market is set to become even more accessible to a wider audience, including the younger generation, who stand to benefit from the convenience and transparency of these innovative platforms.