The most appealing point of forex trading might be the fact you can enter the market from anywhere in the world. The Forex Exchange Market is by far the largest trading market in the world. Unlike the stock market, Forex allows you to trade around the clock throughout the weekdays, which thus provides a much more flexible trading structure.
Why Invest in Forex in Nigeria?
So why should you start forex in Nigeria?
Over the past decade, forex trading has gained significant popularity in Nigeria with a daily trading volume of up to 450 million NGN. Naira, the Nigerian currency used to be a stronger currency than the US dollar a long time ago but has fallen quite drastically over the years. Therefore, forex trading is a great way for Nigerians to increase their wealth efficiently with the possibility of creating massive profit.
The Legality Concern
Yes, forex trading is 100% legal in Nigeria. The Central Bank of Nigeria regulates the foreign exchange market and as long as you’re only trading for yourself, and are working through a legitimate broker, you’re in the safe zone. However, it is illegal if you’re trading on other people’s behalf unless you’re a licensed broker.
Finding the Right Broker
This brings us back to the core question: where and how could you find a broker that will help you succeed? It’s impossible to invest in forex in Nigeria without a licensed broker. While you can easily find a list of Nigerian brokers, sadly, due to a lack of regulation, most of them would bring you more harm than benefits.
To identify a broker’s legitimacy, pay attention to the following items:
- The message — a trustworthy broker will never make a promise of massive wealth.
- The history — how long have they been operating? How was their performance?
- The licensing — always check to see if the broker are properly licensed.
- The reviews — research on their reputation and read the reviews from others.
Understanding the Basics
Next, make sure you understand how trading works before investing in forex in Nigeria. In short, forex trading always happens between a pair of currencies. You want to buy in low and sell high so you profit off the margin. There isn’t any minimum requirement to start trading. You can be spending one dollar at a time, or go high on volume to scale quickly.
In the end, it comes down to how well-versed you are with forex trading and how much risk tolerance you have. If you’re just starting, we recommend you to go in slow and steady so you can track your learning progress and slowly get acquainted with trading.
So, are you ready to start forex in Nigeria? If your answer is yes, take your first step and open an account on a reputable brokerage platform. Always remember that forex is a game of information, timing, and calmness. Never let your emotion drag you around, and never make hasty decisions without fully researching the currencies involved.
As long as you follow these best practices, you will enjoy your new forex trading journey.