A Nigerian startup has launched ComX, a commodity market app that is fast redefining commodity investment in Nigeria while democratizing the business through simplified market access that was previously accessed by just a handful of sophisticated institutional investors.
ComX enables trading in assets backed by commodities and enable investors to be exposed to commodities as an alternative investment class by providing features that simplify buying and selling commodities.
According to Ayodeji Balogun, CEO AFEX Commodities Exchange, ” Commodity dates back to days before stocks and bonds and other popular investment options.
It was a significant business, linking diverse cultures and people together. From oil palms, cocoa, groundnuts, cotton, etc. in the early days to the exchanges where these assets are now traded, commodities are still a popular investment vehicle.
Commodity trading offers investors especially startups a better risk-adjusted return on investment than traditional asset classes.
Startups hoping to get into the commodity trading can consider investing directly in the physical commodity or any commodity-backed financial instrument available on ComX platforms.”
He highlighted that there has been a great surge of interest in commodity trading.
In addition to developing commodity-backed instruments, the fintech startup is also engaged with Capital Market Operators and other Financial Institutions to offer commodity trading as an alternative asset class to investors.
The fintech startup aims to remove market entry barriers for commodity market investors through market education, knowledge of prevailing market prices, updates on operational risks, and product availability.
AFEX Commodities Exchange Limited was founded in 2014 as a viable commodities exchange model for the West African market.
AFEX operates 45 warehouses in Nigeria’s key grain-producing areas and accounts for 100,000 MT of total national storage capacity.
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