Forex Trading in Nigeria
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What is Forex Trading?
Forex trading includes all aspects of buying, selling and exchanging currencies in order to make a profit. The forex market was established to enable currencies to be purchased and sold against one another in pairs. 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.
The Forex Trading Market
The forex market is open 24/7 and is huge with a daily volume exceeding $5 trillion. Up until the 1990’s, forex trading was relatively unknown. This changed at the turn of the millennium, following the arrival of mobile telecommunications and improved internet connections around the work.
Ordinary Nigerians with increasing access to the Internet connectivity have 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 and global payments systems are more widely adopted, more traders see Forex trading as a viable alternative income earner.
When do you trade in Forex?
The best times to trade forex is during periods of high volatility because it is these larger movements in the market that allow for the profitability of building and selling currency at different prices. The forex market is most volatile during the European/London (08:00 – 04:00 PM GMT) and New York session (01:00 – 09:00 PM GMT). There is additional volatility following major news events, and also at the start of the trading sessions when the market has yet to normalize.
Forex trading platforms
Forex trading platforms with trading capabilities such as MetaTrader 4, cTrader, etc are available to all traders. Often times forex brokers will have their own trading platforms that support special functionality on their platforms – and a good example of this would be eToro to allow for their social trading component.
Risk Management in Forex Trading
Today’s savvy Nigerian trader garners all the knowledge he can lay hands on before taking their 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 ensures it gets traded for at least a month on a demo account; and then make a deposit that suits your trading plan. You can get more information about learning tools for free online here.
Depositing and Withdrawing Funds
Retail forex traders can easily use credit cards options to make deposits in accounts, to satisfy their banking requirements on various forex brokerage firms anywhere in the world. Most brokers also allow for Neteller, PayPal, and other e-wallets to be used as well as bank wire. On the odd occasion, you may find a broker that will allow you to make a deposit at a local bank branch.
Is Forex trading legal in Nigeria?
Nigerian forex traders must make sure they always stay on the right side of the law. As long as you are using a regulated broker, and you are trading for yourself and not on behalf of others, then it is perfectly legal. It is important that you declare you earnings in your taxes just as you would with any other form of self employment. For more on this, read our article about the legality of trading forex online in Nigeria.
What is Forex Trading?
Forex trading includes all aspects of buying, selling and exchanging currencies in order to make a profit. The forex market was established to enable currencies to be purchased and sold against one another in pairs. 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.
The Forex Trading Market
The forex market is open 24/7 and is huge with a daily volume exceeding $5 trillion. Up until the 1990’s, forex trading was relatively unknown. This changed at the turn of the millennium, following the arrival of mobile telecommunications and improved internet connections around the work.
Ordinary Nigerians with increasing access to the Internet connectivity have 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 and global payments systems are more widely adopted, more traders see Forex trading as a viable alternative income earner.
When do you trade in Forex?
The best times to trade forex is during periods of high volatility because it is these larger movements in the market that allow for the profitability of building and selling currency at different prices. The forex market is most volatile during the European/London (08:00 – 04:00 PM GMT) and New York session (01:00 – 09:00 PM GMT). There is additional volatility following major news events, and also at the start of the trading sessions when the market has yet to normalize.
Forex trading platforms
Forex trading platforms with trading capabilities such as MetaTrader 4, cTrader, etc are available to all traders. Often times forex brokers will have their own trading platforms that support special functionality on their platforms – and a good example of this would be eToro to allow for their social trading component.
Risk Management in Forex Trading
Today’s savvy Nigerian trader garners all the knowledge he can lay hands on before taking their 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 ensures it gets traded for at least a month on a demo account; and then make a deposit that suits your trading plan. You can get more information about learning tools for free online here.
Depositing and Withdrawing Funds
Retail forex traders can easily use credit cards options to make deposits in accounts, to satisfy their banking requirements on various forex brokerage firms anywhere in the world. Most brokers also allow for Neteller, PayPal, and other e-wallets to be used as well as bank wire. On the odd occasion, you may find a broker that will allow you to make a deposit at a local bank branch.
Is Forex trading legal in Nigeria?
Nigerian forex traders must make sure they always stay on the right side of the law. As long as you are using a regulated broker, and you are trading for yourself and not on behalf of others, then it is perfectly legal. It is important that you declare you earnings in your taxes just as you would with any other form of self employment. For more on this, read our article about the legality of trading forex online in Nigeria.
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