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Forex trading in Nigeria is becoming increasingly popular for investment and as such the process has gradually become easier over the past decade. This is largely due to the country’s positive economic growth and the increased disposable income amongst the Nigerian middle class. If you are looking to get in on the action and start to trade forex in Nigeria here are some insights to help you get started.
The basic requirements to get start forex trading in Nigeria are pretty much the same as you’d find in any other country. Forex traders will need a smartphone or computer, a stable internet connection, some capital, and an account with a reputable forex broker. Electricity connection in Nigeria can be temperamental, to say the least, and bearing in mind that forex trading can be time-sensitive, this can often prove problematic. However, connections in urban areas are becoming more stable so this should help. It is wise for forex traders in Nigeria to input a hard stop loss when trading to prevent huge financial losses in the event of lost internet connectivity.
Beyond these logistical elements, budding forex traders will also need a profitable trading strategy if they want this venture to be lucrative. Getting blindly involved in the forex markets without a strategy is tantamount to gambling where the odds are stacked against the trader. This is why it is useful to either trade virtually till you get the hang of things or keep your risks small to ensure survival.
Understand The Legalities
Forex trading in Nigeria is legal as long as you trade your own money for personal benefit alone. This is similar to retailing trading regulations you’d find in most countries. If you plan on raising capital from third parties for their benefit you need to get a license. Although, it may seem like a tempting idea you can easily get into trouble with the law if the third party becomes dissatisfied with your services. Furthermore, forex trading for others is not for the fainthearted. So unless you’re a highly experienced trader with a license, stick to trading your own money without overextending yourself.
Find Yourself A Reputable Forex Broker
While there are a few local forex brokers in Nigeria, most traders opt to work with an international brokerage. FXTM is currently the sole international forex broker that has a physical location in Nigeria. It also operates a Naira trading account which makes life easier for traders as they can manage their portfolios without worrying about currency conversions when depositing/withdrawing from an FXTM trading account. Thankfully, the forex market in Nigeria is going from strength to strength and subsequently becoming a more attractive option for international business. It is likely that in forthcoming years, we’ll see more international forex broken venturing into the Nigerian forex trading marketing and thereby widening the options available for traders.
All in all, forex trading in Nigeria is still in development and has a long way to go before the infrastructure is anywhere close to the standard found elsewhere in the world. However, Nigeria’s economy is booming and there is a demand for forex trading platforms and brokerage options, so we should see this market broaden in coming years. If you are keen to get start trading forex in Nigeria, you’ll need to work hard to utilise the limited options on offer to you but now is a good time as any to get started by staying ahead of the game.