It is important your broker has this service in place because it is key for risk management. So check with your broker to know if they have it, and much they charge for it. fxprimus review Most traders in Nigeria are registered by brokers under some offshore regulation. Therefore, when you look at any forex broker’s website in Nigeria, you will not find any warning related to number of losing traders. But there is no such requirement if the broker is regulated in regions where the regulations are not scrict.
Table of Contents
An overview of foreign exchange in Nigeria
In the table below, we have compiled list of brokers & their trading platforms that we have found to be best in terms of security, withdrawal time & more in meeting the expectations of profitable traders in 2024. Forex trading can now be done by anyone in Nigeria, anytime, from home or anywhere through the internet. 👉 Overall, Tickmill is the best Nasdaq 100 Forex Broker in Nigeria.
- Similarly, HF Markets (HotForex) is also well regulated as it is licensed by FCA, FSCA, CySEC & few other major regulators.
- Once you have found the Forex Broker of your choice, you can then open an account with that broker to start trading (or demo account to learn).
- The size of Nigeria’s external reserve is often measured in terms of import cover, the number of months of imports the reserves can finance.
- For the Central Bank of Nigeria, for some years now, of all the monetary challenges the country has been grappling with, foreign exchange and high inflation have been the elephant in the room.
What to Look for in a Nigerian Forex Broker
The biggest risks include market volatility, overleveraging, and scams from unregulated brokers. Operating under the jurisdiction of St. Vincent and the Grenadines, it provides trading services to retail clients worldwide, including Nigeria. Yes, swap-free Islamic accounts are available upon request for eligible traders, including Nigerians. Forex/CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading Online Forex/CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Traders must consider how much money they are willing to invest and the degree of risk they are prepared to face to avoid losing their initial deposit. It is important to remember that forex trading is a high-leverage business. Those who are prepared to take the risk, however, will reap greater benefits. Having a trading strategy can help Nigerian traders define broad rules and a road map for trading, even if they cannot always foresee and time market action. Every currency in the world is assigned a three-letter code, with the Nigerian Naira expressed as NGN in the forex market. The US dollar (USD) is engaged in the great bulk of foreign exchange trading even though there are more than 170 other currencies in existence.
- Yes, swap-free Islamic accounts are available upon request for eligible traders, including Nigerians.
- Patience and discipline remain two of the most defining attributes.
- Axiory executes all orders under 200 milliseconds because of the connection that the broker has to Equinix datacentres.
- They will be able to guide you on the brokers that you need to avoid & the ones that you can go for.
- There are many forex brokers who have retail accounts name Pro Account.
- Whereas Exness has a minimum deposit of $10, you can also deposit via Online Bank Transfer.
This improved standing can result in lower interest rates and more favorable loan conditions. Investors who are not keen on engaging in independent trading can still achieve significant profits by copying the trades of successful traders. Building a portfolio is time-efficient and offers the possibility of passive income. With a decent win rate and risk/reward ratio, a dedicated Nigerian forex day trader with a decent strategy can make between 5% and 15% per month, thanks to leverage. The benefits of Forex Trading While forex trading and the foreign currency market have significant hazards, they also include numerous benefits that may make them a profitable and appealing activity.
Open Account with a Forex Broker
All the forex brokers operating in Nigeria are unregulated, so the traders are trading at their own risk. That is why it is really important to make sure that you only trade via forex brokers that are licensed by multiple Top-tier regulators. However, some forex brokers like HF Markets and FXTM have offices in Nigeria. There could also be accounts with low minimum deposits requirement like $5. There are a few brokers with minimum deposits as high as $500 or more.
With a unique combination of educational materials, trading tools, and high-quality customer service, this broker ensures excellent conditions for successful trading. How much you will earn per day with forex trading depends on how much capital you invest, your particular strategies and risk levels. When you bitit review are averaging a monthly profit of 3%-7% you can consider yourself a successful trader.
Forex trading in Nigeria is largely unregulated & it is carried out through online platforms. This situation has led to the proliferation of Forex brokers consisting of the good, the bad and the outright scam brokers. Most dealing desk brokers usually have an in-house price book so they set the price of trading instruments. Because of this, there’s likely to be a conflict of interest where the broker stands to benefit from your trades. You can review their legal documents to see how they deal with conflicts of interest. Swap fees on Exness depend on the trading instrument and the swap rate is determined based on your order, whether sell (swap short) or buy (swap long).
The CEO of NGX Regulation Limited, Olufemi Shobanjo, emphasised the importance of liquidity in capital markets, highlighting initiatives that boost investor confidence and promote market stability. This move is part of the bank’s strategy, led by CEO Jamie Dimon, to expand its African presence. JP Morgan’s new US-Nigeria entity is poised to offer dollar loans to major corporations, complementing its advisory and asset management services. According to the apex bank boss, Nigeria has a competitive naira, which is a game changer that should attract investors to the economy.
Trading Tools & Education
If you hold a position for longer term, then you are a swing trader. Normally in day trading, you plot the levels of importance for you & trade based on those levels. This levels can be derived from Standard deviations, historical support & resistance, or by using technical indicators. Day trading is not strategy per se, it is more of a trading routine.
What is a Currency Pair in Nigeria?
When you are using methods like card, or cryptos, there may be extra currency conversion, and transaction charges involved. Most brokers that accept NGN bank transfers don’t charge any extra fees for funding or withdrawals. Also, you should ask does the broker’s app supports these features as well, and the popular indicators like MACD, RSI etc. or any other tool that you usually use in your trading. It is best to test this out on their platform with the broker’s demo account before depositing any real money. As an example, this ‘Contract Specifications’ page on ForexTime’s website has a table of all the trading instruments which they offer.
Therefore, check if your broker has a policy of not increasing spreads unnaturally. Other brokers who are market makers can even take opposite side of your trades & make money from your losses. Generally, in the forex market, a broker can have billions traded on their platform daily. For example, if 1 billion USD is being traded monthly, then at 1 pip spreads, the broker will make USD 100,000 in that month. The information is commonly linked to the ‘Trading Accounts’, so you will see which accounts can be opened in which currencies. This is really important, because otherwise, your losses could exceed your account balance.
To qualify for VIP analytics, you must make a cumulative deposit of at least $500. Once you are eligible, you will get exclusive market analytics for the next 30 days. After 30 days, your trading activities will be reviewed and if you have not deposited up to $500 and opened at least one trade within the last 30 days, you will be disqualified.
Traders can withdraw to Nigerian bank accounts, with instaforex review a minimum withdrawal amount of ₦3,000. The minimum amount is $5 if you are withdrawing to Skrill and cryptocurrencies wallets. Exness is one of the low-cost beginner-friendly CFD brokers that accept traders based in Nigeria.
Now let’s look into some of the most popular forex trading strategies. Depending on the movement of the currency pair that you were trading, you will either be profitable or make a loss once you close the trade. Generally, the broker will mention the minimum lot size for an instrument on their Intrument details page (Trading Specifications).
