Why Nigeria Is Becoming Africa’s Fastest Growing Forex Trading Nation
Forex trading is popular all around the world. In 2021, its appeal is stronger than ever due to the harrowing effects of COVID-19 on local economies. Nigeria has been hit hard by falling oil prices and lockdown measures. Fortunately, beginners and experts may still make money in the largest financial market through the Internet.
Nigerians have been familiar with Forex since the 1970s. However, until the 1990s, it was the domain of large institutional players. Then, individuals started buying and selling currency pairs through brokers. Today, Nigeria is one of the fastest-growing Forex trading nations on the continent.
The national economy is now in dire straits as a result of the pandemic. Over 200 million residents are now officially jobless, and restrictions prevent the normal functioning of many businesses. By August 2020, the unemployment rate had risen by nearly a quarter.
Conditions for Further Growth
The recently unemployed citizens are seeking new opportunities to make money despite the restrictions. This makes Forex a particularly appealing prospect, as it is the largest and most liquid market in the world. Its sheer turnover is spectacular. Every day, institutional and retail traders buy and sell over $6 trillion worth of currencies.
Today, this marketplace is more accessible than ever thanks to cutting-edge software and apps. Traders may use any device, be it a Mac computer or an Android phone. All popular operating systems are covered. Powerful trading terminals like MetaTrader 5 in Nigeria allow the compiling of diversified portfolios. Traders enjoy a substantial income if their strategies are consistent.
Another component of Forex’s popularity is accessibility. This market welcomes novices as well as seasoned experts. Anyone can learn to trade Forex for free. Today, the Internet offers an abundance of educational material from brokers and experienced professionals. This includes articles, blogs, books, video tutorials, and even entire YouTube channels.
Traders may access theoretical and practical learning. International brokerages like Forextime offer free demo accounts that unlock trading software as a simulator. Users may try different strategies, explore the features, and get used to the digital environment overall. When they are ready to trade with real money, the switch to a live account is easy.
Forextime is also the only broker offering accounts denominated directly in the naira. Holders avoid conversion fees, and they can start trading with the equivalent of just $10. These conditions are undeniably attractive to the local population.
Clients do not just gain access to free articles and cutting-edge software like MetaTrader 4 or FXTM Trader. They also receive guidance around the clock at least 5 days a week. Brokers help them find the most suitable strategies and learn the basics of risk management.
The fundamental forces behind the currency market are beyond anyone’s control. Traders make money by predicting trends, but they cannot foresee everything. Thus, they must learn to protect what they have before raising the stakes.
Other benefits include advanced analytical tools, reliable technical support, and security features. Virtual private servers protect traders from losses that may result from technical glitches or power outages. Anyone can make money with a laptop, tablet, or even smartphone if they are willing to learn and follow strategies religiously.
Trading on margin enhances the purchasing power of retail traders. Their broker lends a portion of the company’s funds, which is referred to as leverage. For instance, with a leverage of 1 to 100, one may open a position worth $10,000 when there is just $100 in their account.
This magnifies potential profits but also ramps up the risks. Therefore, leverage must be approached with caution, and it is only recommended for experienced traders. In Nigeria, these ratios are higher than in Europe and many other countries.
Licensing of Brokers
Even today, the country lacks any comprehensive Forex regulation. Sadly, scams are quite common. To be safe, residents should choose international brands licensed and authorized by industry watchdogs like the FCA in the United Kingdom or the CySEC in Cyprus. The South African FSCA is also a reliable monitoring body.
A Place for Vigorous Trading
Today, Nigeria has an immense volume of daily currency trading. It is poised to surpass South Africa in the near future, as the industry is so increasingly popular. The country’s presence in the global Forex community is growing. Now, after the outbreak of Covid-19, the development of the fx industry has gotten an additional impetus. As a consequence of soaring unemployment, more and more residents are interested in FX trades.