Trade Forex in Nigeria

Trade Forex Online Nigeria is your guide to trading forex on the global currency market from Nigeria.  Because forex trading involves putting your capital at risk, just as with stock market trading, it is very important to be smart about which brokers to use and read up on different elements of trading and strategy.

Top Brokers for Nigerians to Trade Forex Online

Broker Name  Visit Minimum Deposit Next Step
Visit EasyMarkets 50 USD
sign-upRead Review
xm
Visit XM
5 USD
sign-upRead Review
Visit AvaTrade 100 USD
sign-upRead Review
etoro-80
Visit Etoro
50 USD
sign-upRead Review

Forex trading includes all aspects of buying, selling and exchanging currencies at current or determined prices, in order to make a profit.  The forex market is established to enable currencies to be purchased and sold against one another. To facilitate this, currencies are paired when priced during trading.  In forex pairing terminology there is a base currency and quote currency and the goal of forex trading is to make profits as prices of these various currencies fluctuate.

An introduction to forex trading in Nigeria

The forex market is open 24/7 and is huge. Its daily volume exceeds $5 trillion.  Around 90% of private investors in the forex market are young educated Nigerians between the ages of 18 and 35. They’re lured by the potential for profit that the market presents. Remember the “The Wolf of Wall Street” and the rise to fame and wealth of the lead character? Such ambitions drive private investors in Nigeria to invest in the global foreign exchange market. Others are less attracted by the lure for wealth and fame, but turn to forex trading as a response the lack of opportunities in formal employment.

Up until the 1990’s, forex trading was relatively unknown on Main Street in Nigeria. This changed at the turn of the millennium, following the arrival of mobile telecommunications in Nigeria and improved internet connections.  Ordinary Nigerians with increasing access to the internet connectivity embraced the concept of forex trading. Many Nigerian forex traders see their trading as a part-time income earner. However, as the cost of internet connectivity falls, power cuts are less frequent, and global payments systems are more widely adopted, more Nigerians will see online forex trading as a viable alternative income earner.

In most respects, forex trading in Nigeria operates as in other parts of the world. A Nigerian forex trader connects the forex market via a broker, on an internet enabled device (mobile or PCM). On this website you can find out how to choose the right forex broker for you.

Today’s savvy Nigerian trader garners all the knowledge he can lay hands on before taking his/her first live position in the forex market. On the other hand, some jump into the market too soon, without learning the ropes. The most efficient way to a profitable forex career requires reading and practice. Read as much as you can about fundamental and technical analysis; design a trading system that suits you and ensure it gets traded for at least a month on a demo account; and then start small i.e. on a $100 live trading account. You can get more information about learning tools for free online here.

Forex trading platforms

Forex trading platforms with auto-trading capabilities such as MetaTrader 4, cTrader, etc., are available in Nigeria. Some were led to believe that these forex robots once configured, will auto-generate profits and all that’s needed is to log in periodically and initiate withdrawals with respective forex brokers. However, it’s now clear that most forex robots easily obtained online, do not deliver the promised return on investment. Few forex robots out there can yield consistent profits, and on top of that, they can cost thousands of dollars to procure – amounts most Nigerian retail traders are unable to afford.

Online Forex Trading in Nigeria

The risk involved in trading forex in Nigeria does not differ much when trading outside Nigeria. However, the latency of internet connectivity (the time it takes to access data) is something that is taken seriously in Nigeria when trading forex. Forex market participants often subscribe to more than one internet service provider, and switch connections if they experience slow connection speed. No trader anywhere in the world wants to see their ISP link go dead when in an open position – this is a major concern for traders everywhere.

Internet connectivity in Nigeria has improved over the year, having relied heavily on slow DSL internet service (usually below 50kbps) from its defunct national telecom operator NITEL. Things are shaping up with new telecom companies like MTN, Globacom, Airtel, Etisalat, etc. improving their services, with some offering speed above 10 Mbps. Power cuts are still an issue, and the Nigerian forex trader needs a backup power source such as a generator or an inverter.

When to trade forex?

The best times to trade forex is usually during periods of volatility (this somehow favours Nigerian traders) which is best during the European/London (08:00 – 04:00 PM GMT) and New York session (01:00 – 09:00 PM GMT). Fortunately, these sessions fall between 09:00 am – 10:00 pm Nigerian time.

Depositing and Withdrawing Funds

Until recently, depositing and withdrawing funds from a forex trading account was a big deal for Nigerian forex traders, but with the current adoption of MasterCard and Visa by most Nigerian banks, retail forex traders can easily deploy these credit cards options, to satisfy their banking requirements on various forex brokerage firms anywhere in the world.

Finally, Nigerian forex traders must make sure they always stay on the right side of the law – read our article about the legality of trading forex online in Nigeria.  Visit https://www.quora.com/How-much-volume-is-traded-per-day-in-the-forex-market for a more vivid demographic of daily forex volume, top traded currencies, turnover by currency, as well as by location, and a lot more.