Residents of Nigeria have access to the foreign exchange market and its exciting financial opportunity. Read our guide on the basics of Forex trading.
Forex Trading In Nigeria
This money-making opportunity is based on changes in currency exchange rates. Travelers usually need to convert their national currency into the currency of the destination country. In the case of Forex, these exchange pairs can bring real profit to a shrewd trader.
This special kind of trading is a vast marketplace, like stocks or commodities. It is global, decentralized, and never stops on business days. Here are a few things every rookie player needs to know before diving into the process.
The exchange rates are determined by macroeconomic factors and the Forex market itself that is considerably volatile and vibrant. Small players have access to the so-called Retail trading, which has a 5.5% share of the whole market. Hence, the overwhelming majority of players are large-size institutions and investors.
It was only a decade ago that smaller players got access to the currency markets. Today, they can register a brokerage account with a Forex Broker and speculate on currency movements, just like big players do.
Popularity In Nigeria
The retail volume of trading in this country reaches up to 450 million Naira daily. The number of foreign brokerages operating here is rising. Specialists from Alpari and other firms educate newbies on finance, market rules, and opportunities, as well as potential risks.
Education is also provided by specialized groups, such as the Online Forex Traders Association of Nigeria (OFTAN). Regulations concerning the Forex market are being devised by the Central Bank of Nigeria and the Securities Exchange Commission of Nigeria.
Overall, Forex trading in Nigeria is easy when done through a broker, as you will use a convenient platform. Not only is the minimum investment N1,000, but you may also use mobile apps to speculate on the go. Basically, all you need is knowledge and an Internet-connected device.
Before You Start
Gaining a source of additional income, especially such a promising one, is tempting. However, there are a few things you need to consider before setting off on your speculation journey. As the sphere still lacks regulations, you have to be very careful with your choice of a broker.
In essence, you will be trusting someone else with your hard-earned cash, so exercise caution. First, check that the candidate is regulated by credible regulatory agencies abroad. Foreign presence is a must.
Next, examine the platform you are being offered. Usually, you will be given a demo version, where trading is only virtual and, hence, perfectly safe. If you find the program clear and convenient, you may switch to the ‘Live trading platform’ mode and get your money involved.
Spread in Forex Trading
You have to be familiar with this indicator. It defines the commission you pay to your broker for each instance of trading. Look at historical spreads from different providers. Pick the one the spreads of which are the lowest, but only if their customer support is efficient. After all, you should never be kept waiting if you decide to cash out.
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