Forex Trading in Nigeria – How it Works, What you Need to Start Trading
You are aware of the recent buzz around forex trading in Nigeria. Those YouTube videos of successful traders doing 6-8 figures a month are making you want to trade. But… you just don’t know where to start.
In this post, you grab all the must-have bells and whistles to start off your forex trading journey to success. You have answers to;
- What is forex trading and how does it work?
- Is forex trading legal in Nigeria?
- Is forex trading profitable in Nigeria?
- Can you get rich by trading forex?
- How much do you need to start trading forex?
- Forex trading training in Nigeria/Forex trading for beginners
- Best forex trading platforms in Nigeria
- Best time to trade forex in Nigeria
- Best 5 forex trading tools for your success
But before diving in and out of the entire thing, see this list of 5 facts that an investor must have about forex trading in Nigeria.
- About 300 to 450 Million Naira is traded daily in Nigeria
- Forex trading is Nigeria’s future gold mine
- Anybody can learn and trade forex successfully
- Forex trading is not betting. It is a strategic business
- You can trade 24/7 around the clock
What Is Forex Trading And How Does It Work? Exploring Adam Khoo’s Way
Foreign exchange simply called Forex is a networking of central banks, individuals, and companies converting one currency to another. The foreign exchange system is built solely to bring sellers and buyers of foreign currencies together, a sort of money market. And the fun fact is, you’ve been involved but unconsciously in forex trading. Remember the last time you traveled out of the country when you had to convert your local currency to your destination’s at the currency exchange bureau. That is forex trading. Trading currency for another.
Before the nitty-gritty of how the forex trading market works, these answers to the 4 most asked questions about forex trading in Nigeria are must-have.
- Is Forex Trading Legal In Nigeria; the answer is yes. As long as you abide by the Foreign exchange (monitoring and miscellaneous provisions) Act, and trade through one of the licensed forex brokers in Nigeria, you are free to trade with nobody on your neck.
- Is Forex Trading Profitable in Nigeria; another yes. Trading forex in Nigeria either part-time or full-time is profitable as long as you are; trained, equipped with the best trading tools, and trading with tested winning trading strategies.
- Can You Get Rich by Trading Forex; the whole thing zeroes down to your financial IQ. You may hit massive targets on a single trade and blow everything up in a split second if you’re poor with handling money.
- How Much Do You Need To Start Trading Forex; you may start micro-lot trading with as little as $10. But as Adam Khoo had advised, trading to success begins with $100-$500. Nevertheless when starting out, beginning with a demo account to blend the skills and knowledge acquired into the REAL THING is a good rule of thumb. There is also an option of a no deposit bonus where newly registered users can get free money for trading. You can also start with that. The no deposit bonus often comes with some terms and conditions mainly, a trader is expected to complete a certain number of lots before they can withdraw the fund.
Back to how the currency market work…
The Forex trading market is the largest electronic market with a total trade volume of $4.9 trillion registered every day in the USA. As a decentralized transaction system, the forex trading market is an over-the-counter (OTC) market where two parties directly exchange all sorts of currencies over a flexible time span. Owing to the continuous rise and fall in currency value day-in-day-out, global currencies lost and gain volatility. It is this loss/gain in volatility that determines every trader’s ROI and investment actions.
Since you are selling currency to buy another, as a party of two, you own a currency pair namely; a base and a quote currency. The base currency is the one you buy while the quote currency, on the other hand, is the one you sell.
Making money from the forex market is in two ways thus;
- Selling a currency out when the price goes up to buy later when the price goes down
- Buying a currency up when the price goes down to sell later when it rises
Next is learning the basics of trading forex. You also receive hands-on recommendations on the best forex trading training resources.
Forex Trading Training in Nigeria/Forex Trading for Beginners
To start with, these basics of forex trading man you up against the game.
- Which forex broker should you use; there are six crucial factors of consideration for choosing the right forex broker. One is security. Whichever broker you are trusting your money with must be credible and have a membership with the Nigeria regulatory bodies. Seconding that, if the transaction cost charged by a broker is high, back off, you don’t want to splash out unguided. Also, depositing money to start off trading with and withdrawing your wins should be easy and fast. The broker’s trading platform interface should be intuitive, easy to navigate, and responsive (mobile-ready). By the way, you’re new to the whole thing and deserve an entry-level for Christ’s sake. Lastly, the execution of your every command should be fast, your broker should give you consistent signals, and the customer service should be up 24/7.
- Choosing an account that makes gain over loss; you are profit-oriented or at least passionate about making money than losing it. You will choose an account that keeps your goal in check. As a beginner, you will go for a demo account. Then as your knowledge expand you’ll switch to a real account with low leverage. Finally when hitting your targets strategically becomes a breeze you’ll increase risk.
- Finding winning currency pair; imagine starting with as low as $50 and exploding it up to $500 in a month. Finding winning currency pair keeps your money off the window, beats down loss risk, and hits real targets. It involves just three simple steps. The first thing is identifying the trend, studying the movement of the market over a time span, and noting regularities. Next is two-faceted, finding a working strategy for the trend, or making one yourself. The final step is knowing the ATR. The ATR is the average true range, the average amount of movement in pips per day of a trend.
- Cashing in on a working forex trading strategy; picture yourself having a clear vision of the ROI of each trade. A working forex trading strategy that has been used over and over again comes in handy. You will get free forex trading strategies online or simply learn how to strategize your forex trading game.
- Best Forex trading tools for your success; you’re diving into the market with sophisticated tools to make your strategies work and your little knowledge useful. In the last part of this post, you have the best 5 forex trading tools for your success.
Want to start learning forex trading the real way? This list covers platforms for forex trading training in Nigeria/forex trading for beginners.
- Forex trading courses on Udemy
- Learn Forex Trading with Forex Time (Lagos, Abuja, Warri, Port Harcourt, Enugu, etc)
Ready to start trading forex in Nigeria? Want to start with a demo or a real account?
Best forex trading platforms in Nigeria
Best Time to Trade Forex in Nigeria
The best time to trade in the forex market is when trends are moving and volatility is high. This, however, will either affect your trading strategy or vice versa. Whichever the case may be, however, noted below are the major trading sessions/trading hours for Nigerian traders.
|Trading Session||Nigeria Time (GMT +1)|
|New York session||02:00 AM to 11:00 PM|
|Asian session||12:00 AM to 09:00 AM|
|London session||08:00 AM to 05:00 AM|
Best 5 Forex Trading Tools for Your Success
- Forex Time zone converter; to secure trading in the targeted market’s time zone
- Broker Spread Comparison Tool; essential for choosing the best forex broker based on a tight spreadsheet and added benefits
- Economic news calendar tool; you want to catch the newest economic trends. You want a hands-on update on both recent and future fundamental economic releases to decide the present and future valuation of the currencies you trade. An economic news calendar tool to the rescue.
- Pip Calculator; trading is work in its own right. But as you trade, a clear cut, real-time report of your wins is a must. That’s where a pip calculator comes in.
Also read: What is the Easiest Way to Start Trading?
By now you have a basic knowledge of Forex trading. You have leads to trading resources, forex trading platforms/brokers, and cutting-edge tutorials and courses to bring out the forex trading genius in you. Chances are you’ll start trading immediately you leave here. But should you have a few questions, perhaps there are some dots you want linked together just now, use the comment box. You are never alone.
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