Are you thinking of starting forex trading in Nigeria and you do not know how to go about it? Read this article to the end. In this article, I am going to be guiding you on everything you need to know about trading forex in a country like Nigeria. This article guides you on how to become one of the richest forex traders in Nigeria.
It let you know if forex trading is legal in Nigeria and guide you on the best forex trading apps to choose. For many of us that do not know forex means foreign exchange – the buying and selling of foreign currencies by its exchange rate.
Forex trading officially started in Nigeria in the year 1875. This was when the gold monetary system was created. In July 1944, Bretton Woods led the establishment of a fixed exchange rate system with the U.S dollar replacing gold to become the main primary reserve of currencies.
At this moment, the establishment of three international agencies was created to monitor economic activities. Examples of international agencies are the IMF (International Monetary Fund) and the General Agreement on Tariffs and Trade (GATT).
What is Forex Trading?
In simple words, forex trading simply means the business of buying and selling of currencies of different countries using internet trading platforms. Forex trading is the buying, selling and exchanging of foreign currencies at determined or current prices. The forex market is the biggest market in the world. In forex trading, the price of one currency is linked to the price of another currency in trading.
In forex trading, you are always working with two currencies at the same time. The first currency is the ‘base currency’ while the second currency is the ‘quote currency’. The price difference between these two currencies is where you make profits as a forex trader in Nigeria or anywhere in the world.
Equipment Needed to Trade Forex
When it comes to starting forex trading in Nigeria there are few things you need to make your trade hustle-free. Some of these are:
1. Smartphone or Laptop
The trading of forex is 100% online. Due to this, you need a phone or laptop to always get connected to the internet. You need either a phone or a laptop for the business however if you can afford the two you should go ahead to buy them.
And if you cannot you can buy only one and as time goes when your profits start increasing you buy your laptop. Your phone will be used to trade outside your home with the laptop will be used when you are at home. Read our article on how to make money with your phone in Nigeria.
2. Fast Internet
The next thing you need asides from a smartphone is fast internet. A MIFI or WIFI or phone subscription will do. Make sure this line you are subscribing as a reliable internet. You need fast internet to monitor the trends in the forex market and to make fast decisions that could bring profits to your forex trading.
Capital Needed to Trade Forex in Nigeria
When it comes to starting forex trading in Nigeria many do ask how much capital is needed to start forex trading. And there have been so many suggestions from many forex exchange experts. Many experts have said you can start trading forex with 100,000NGN, 50,000NGN, 40,000NGN.
But you can actually start forex trading in Nigeria with 5,000NGN or less. All you need to do is to fund your account with the money then you can start trading.
Best Forex Trading Apps in Nigeria
There are many forex trading apps you can use to start trading forex in Nigeria. Some of these popular apps are
How to Start Forex Trading in Nigeria
Here are the steps to start forex trading in Nigeria.
1. Choose a Trusted Forex Broker
The first step to starting forex trading in Nigeria, Ghana, or anywhere in the world is to choose a reliable forex broker. A forex broker is a company that will connect you to the market. Forex is a market that is not centralized with relatively few regulations. Not all brokers in the market are verified. You need to do your findings and choose a reliable virtual account first.
2. Open an Account
After choosing a reliable forex broker, the next step will be to follow that broker’s steps to open an account. In doing that you will need to verify your identity and connect your account to your bank account.
When you connect your account to your bank account you will be able to transfer funds into your account and withdraw using your bank account. You can use a domiciliary account if you have one but if you do not have you can use your naira account.
3. Fund your Forex Account
Funding your account is also necessary as it is with this funding you will use in trading forex. You can fund your forex account from a third-party bank using an online bank transfer, a debit card, or a credit card. Like I said earlier, you can actually start forex trading in Nigeria with #5,000 or less. However, remember that the lower the money you invest the lower the profits you will make from trading.
4. Install a Trading Platform
Many brokers have different proprietary trading platforms and some of them integrate with third-party providers. So you need to download a trading software on your smartphone. It is with this trading app you will use to invest in the market.
5. Making Money from Forex Trading
You can make huge money as a forex trader but this does not come easy. It depends on consistency, good investments, and strict monitoring of the market. To make profit from forex trading you need to understand multiple strategies like scalping, day trading, swing trading, positional trading. You also need to understand.
CFDs simply mean the contract for differences track currency pairs. This strategy has to do more with the type of broker.
2. Market Sorting
Shorting means you are borrowing a currency to sell so that you can buy it later at a lower price.
3. Binary Options
It is either you trade in an all or nothing option or follow the price directly. The binary option gives you a yes or no option. When a currency pair price is above a certain level at a certain time or date, it is likely you win.
Forex trading can be a lucrative business because it is all about trading foreign currencies but it is mainly about prediction. The ability to predict is actually how you make big money. So if you are good at predictions, this might just be for you.