Forex Trading in Nigeria
Forex trading in Nigeria has become easier to urge involved in during the past decade, which have also mostly seen strong economic process and rising disposable incomes for several Nigerians despite post-2014 economic problems.
Nigerian Forex traders can learn here the way to start trading Forex, the right approach to learning the way to trade and deciding upon a profitable trading strategy to be used , and which Forex brokers are best suited .
Nigeria’s Financial Situation
Nigeria is home to over 186 million inhabitants, making it the foremost populous country in Africa and therefore the seventh most populous within the world. The population is anticipated to exceed 250 million by 2050, while the country is already home to the third-largest youth population also because the twentieth largest economy within the world.
A good measure of Nigeria’s increasing prosperity is that the fact the gross domestic product per capita (per person) increased from $352 in 2001 to $3,222 in 2014 – a rise of roughly 900%! However, the figure has fallen sharply since 2014 to a touch but $2,000.
Despite Nigeria’s position as a comparatively prosperous African country , most Nigerians would agree that getting by is neither easy nor simple. once you combine these challenges with the very fact that it’s not impossible to urge some spare cash together, you’ll see why Forex trading continues to become more and more popular in Nigeria. Despite this plus the very fact that Forex traders in Nigeria are believed to trade positions worth the maximum amount as $1.25 million daily on the average , only a few international Forex / CFD brokerages maintain a presence in Nigeria, so Nigerian Forex traders are in need of more impartial guidance, which may be found during this article.
Forex Trading in Nigeria
How to Start Forex Trading in Nigeria
The essential requirements to urge started are an equivalent as in the other country. Traders got to have a computer or mobile device, a stable internet connection, trading capital (more on what proportion you’ll need later), and an account with a trusted Forex broker. Reliability of internet connections and electricity supplies became considerably more reliable in recent years, especially in urban areas, which makes Forex trading easier. However, these factors mean traders in Nigeria should take care to never execute a trade without inputting a tough stop loss, to stop catastrophic losses within the event of a lost connection which can’t be re-established quickly.
Later sections during this article will discuss the practicalities of getting found out as a Forex trader. At now , I emphasize that there’s no point in trading Forex until you’ve got a profitable trading strategy which you’re psychologically able to execute. you’ll not achieve Forex with positive psychology alone, but a scarcity of psychological preparation can ruin the power to successfully execute even a winning, profitable trading strategy. the shortage of a sound trading strategy reduces Forex trading to gambling, with the chances stacked against the trader, and therefore the eventual loss of the whole trading account.
The most proven trading strategy which has been proven to succeed over the years may be a strategy which trades only within the direction of a robust trend, cuts losing trades short, and lets winners run. However, even with such an honest strategy, there’ll be losing trades and losing periods, which the trader must be psychologically able to accept as inevitable. By keeping risk small, a Forex trader can ensure survival through the losing periods and arising able to profit when the market turns profitable again.
It is important to not assume that Forex trading is straightforward money. It requires mental work and dedication.
Is Forex Trading Legal in Nigeria?
It is clear that Forex trading is legal in Nigeria if you trade your money for your personal benefit alone. This mirrors retail trading regulations in most countries. Raising capital from third parties for his or her benefit without a correct license to try to to so is against the law and, tempting because it could also be , can get you into trouble if the third parties become dissatisfied and complain. Forex trading where you’re managing other people’ money is extremely challenging psychologically. For these reasons, please trade only together with your own money where losses aren’t catastrophic to your ability to pay your essential costs of living.
How Much do i want to start out Trading Forex in Nigeria?
There are some Forex and CFD brokerages which require no minimum deposit and accept Nigerian residents as customers, so in theory a minimum of , you’ll trade Forex in Nigeria with as little as $1. the matter is that thanks to problems with leverage and currency exchange with most Forex brokers not accepting deposits directly in Nigerian Naira, it’s impractical to trade Forex with much but $100 or its equivalent. Even $100 are often problematic thanks to trade size and leverage issues, so it’s certainly true that something on the brink of $500 will work better.
One Forex broker expertly in serving Nigerian resident clients is FXTM, which, unusually for a serious international Forex brokerage, features a physical presence in Nigeria. FXTM requires a minimum deposit from Nigerian residents of only ₦2,000.
Forex Brokers in Nigeria
The Nigerian Forex market went through a boom-and-bust cycle between 2004 and 2010, and a wave of Ponzi schemes swept the country during this era . This atmosphere prevented interest in Forex trading in Nigeria from beginning , but the image has improved considerably since 2010 as a calmer financial environment and usually increasing prosperity began to prevail.
FXTM is that the sole international Forex / CFD broker with a physical location within the country. Adding to its appeal is that the Naira trading account, which makes it very simple for traders to manage their portfolios as no currency conversion are required so as to execute deposits and withdrawals to and from an FXTM trading account. The acceptance of bank wires from Nigerian banks may be a further improvement to the services offered by FXTM to Nigerian resident traders.
While there are a couple of local Nigerian Forex brokers currently operating, if I were a Nigerian resident Forex trader, i might strongly like better to open an account with a world brokerage rather than an area solution.
Other international Forex / CFD brokerages which service Nigerian residents include AvaTrade, Pepperstone, and IC Markets. Unfortunately, none of those brokers offer Naira accounts. Nigerian Forex traders will need to make sure that the brokers provide a payment processor catering to Nigeria, as currency conversions may pose a challenge.
Happily, the Forex market in Nigeria continues to strengthen and become a more attractive venue for international business, with the financial institution of Nigeria (CBA) and therefore the Securities and Exchange Commission (SEC) developing a stronger regulatory framework in recent years. More international Forex brokers are anticipated to follow FXTM into Nigeria, widening the selection for Nigerian Forex traders.
Best Forex Trading Platforms in Nigeria
The best Forex trading platforms for Nigerian resident traders are those offered through the Forex brokers mentioned within the previous section. The MetaTrader 4 platform is out there at every broker mentioned, while the MetaTrader 5 and cTrader platforms also are available at a number of them.
Forex Training in Nigeria
There are several institutions in Nigeria which claim to be ready to train aspiring Forex traders for trading success and profit, reciprocally for a fee covering the supply of this apparent education.
Although a couple of of those institutions could also be sincere in their intentions, and therefore the attempts of aspiring traders to take a position during a proper trading education laudable, the very fact remains that paying for Forex training in Nigeria isn’t be recommended. Simply put, you’ll find everything you would like to understand to become a successful and profitable Forex trader for free of charge on the web .
Aspiring Nigerian Forex traders will see a far better return from time spent reading through this site and rummaging through google permanently material than they’re going to see from investing in Nigerian Forex educators.
When you do find material on Forex trading strategies, ask yourself whether any supporting historical data is shown to support the claims made. If not, ask yourself why not.
Best Time to Trade Forex in Nigeria
One advantage which will be enjoyed for free of charge by everyone trading Forex in Nigeria is that the zone . Nigeria is one hour before London, the worldwide center of Forex markets.
The best time to trade Forex is that the time during which there’s the foremost volume and liquidity within the market. Studies have shown that the very best volume and liquidity within the Forex market occurs during the overlap between the London and ny sessions, with both remaining relatively high until ny closes for business at the top of its day. Happily, this suggests that the simplest time to trade Forex is between 2pm and 10pm Nigerian time. this is often convenient for many Nigerian Forex traders, because it means it’ll be easy for many to be awake during this era , and most of this point is after normal working hours, meaning that Nigerians don’t need to hand over their normal day jobs so as to day trade Forex successfully during peak market hours.