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.
Retail Trading
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. Do not forget to access the terminal which fits your experience and trading style the best. They are all different, for example Exness Webterminal is the only terminal in Exness which has a new log file for each session
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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