I am one of the early casualties of forex market foray into Nigeria. Useless Anonymous who has blown several managed accounts, held failed fx-expo,. With an initial investment of , Nairas, you would have earned 6, Nairas after 3 months since your purchase price was cheaper than the price you sold your dollars for. Wow, Basil did all these and still walking a free man?
The Role of Forex Brokers and Leverage
Before you start trading you should be given a chance to backtest your trading strategy on a demo account. Those typically expire in a month and by that time you can familiarize yourself with various peculiarities of a platform.
When you are ready to trade real money, a broker should offer you a number of accounts to choose from. If your budget for investment is tight, within a range of a few hundred dollars say, you should open a micro account. Then, you will be able to trade 1k micro lots and not risk much. If you want to try deeper waters and can afford to invest a thousand or a few thousand dollars, you should try a mini account. You will have the possibility to trade 10k size lots and hopefully, make bigger money than you would on a micro.
Standard lot size is k. It means you need more than 10 thousand dollars to trade such huge amounts. However, if you can afford 20 or 50k investment size, a standard account might be a good choice for you. There is give and take between a broker and a customer. He offers you the possibility to trade and a good service and you make him money by means of spreads. As a Nigerian trader, you should expect this service to be in your native language or dialect and you should also get it online 24 hours per day through the working week.
If your broker is indifferent to your questions, problems, and issues, you should say goodbye to him and search for trading opportunities elsewhere. Additional services come in the form of educational materials: Ebooks are often offered by brokers to their clients on various topics. Recruited analysts try to foresee shifts in the policy of Central Banks and predict how that will affect exchange rates of currencies.
Most brokers also have forums where traders can chat and help each other. Some even offer monthly trading contests that have high money prizes. Your real money trading experience starts with your broker. In order to stay protected from unscrupulous brokers, it is advised to follow the steps laid out above.
We hope they helped you to form a picture of what a reliable broker looks like. Your other option is to pick a broker from the below list. We have compiled this list based on objective research. Best Forex Brokers in Nigeria This page may not include all available products, all companies or all services.
Join the Leading Industry Event! Nigerians marveled at the returns and discovered upon investigation that those funds running into billions of dollars were actively trading in the forex market!!
Nigerians mostly retail traders decided to take the bull by the horn and launched deep into unknown and untested terrain. The result was massive failure. For example Alpari, Liteforex, Instaforex and many others. The influx of foreign brokers also helped in popularising forex because they embarked in a national campaign, going into various cities, educating investors and on-boarding clients in thousands.
To be candid, the statistics of about , traders in Nigeria being pelted on the internet is not bloated. We likely had more! We strongly believe that the market will take a new shape, attracting institutional players when the government regulates the industry. In addition, the SEC and CBN will also be attending the 2nd Lagos Forex expo scheduled to hold in August 13th and 14th to observed the level of participation by traders and brokers at the event.
Its very likely that FX regulations in Nigeria will be finalized this year. This article is poorly researched and filled with misinformation. Someone who wants to sell sponsorship at his exhibition feels the best way is to lie to brokers that the SEC is taking an interest in setting up regulatory frameworks.
Kindly research the background of your authors before you publish, to save Nigerians the embarassment of poorly written article that has misinformation in it. As for selling of Sponsorship to brokers for the event, we have already closed brokers sponsorship reservation before this news was posted and as for the Author Mike Fowope, he has a strong financial service reputation and a leader in the field. Anonymous, there is nothing to lie about. For Your information Sec Called a meeting and we all went to CBN to discus the issue of regulation with all the issues arising from from forex trading.
You could visit basil page to check our pictures at CBN head quarters in abuja. Please you also should veryfy your information before you make unguarded comments.
One of the major problems that has plagued foreign exchange trading in Nigeria and the reason it lacks participation from big money are lies peddled around and the failure of the small guys in retail to for once just be modest and straightforward in their assessment of the current reality on ground.
Anonymous, I share your views and enthusiasm for the state of the forex market in Nigeria. However, I strongly disagree with you that Emeka Basil orchestrated the event in his quest to secure sponsorships from brokers for his expo or for any order insidious motive.
For example, an operation that uses a leverage of 1: This means that a deposit of dollars will allow you to buy Euros worth 10, dollars if you are trading using 1: This is why the brokers give leverage to their traders.
The brokers make more money when their clients trade large volumes , because their commissions are proportional to the volumes traded. Because of that, the brokers want to give their clients the chance to trade larger amounts, as long as they can cover their potential losses with their margin balance.
Based on historical volatility for various currency pairs, forex brokers have determined what are the leverage ratios that are safe to provide for their clients. Most forex brokers offer at least 1: This is because they want even their smaller clients to trader high volumes.
By using leverage, a trader can decide how much he wants to risk and how much the potential profit will be. You can double your money in a single day, but you can also lose your entire balance in the same amount of time if you use excessive leverage. Nigerian traders are using leverage to their advantage, because they can aim for higher profits without having to deposit large amounts of money. Because of high leverage, forex trading is accessible to everyone, as you can deposit amounts as low as 10 dollars and experiment with the broker's platform and learn how to become a better trader.
Many Nigerians have started with low amounts and once they mastered forex trading they increased the stakes to increase their profits. High leverage brokers offer an unprecedented opportunity for Nigerians to trade on the forex market even if they lack the money to finance large forex trades. A mobile phone with an internet connection and as low as 10 dollars are enough to test the forex market nowadays. In order to trade on the forex market, Nigerians need to choose a broker.
Currently there are no forex brokers based in Nigeria, but this didn't reduce the appetite of Nigerians for trading forex, as all the major international forex brokers accept traders from Nigeria. This gives Nigerians a wide range of options when it comes to the broker they want to use. Going with one of the highest rated forex brokers in the world will be a natural choice for most people. Here are some of the most sought after features of forex brokers by Nigerian traders:. Some of the major forex brokers are actively targeting the Nigerian market and have a large number of clients from Nigeria.
Current data shows that the following brokers have the largest number of Nigerian traders, meaning they are the most popular forex brokers in Nigeria:. All of them are very high rated brokers, which shows again that Nigerians have done their due diligence when it comes to selecting a broker and are trading with some of the best companies in the world. Forex trading is getting very popular in Nigeria with thousands of new traders joining the ranks every month.
A combination of mobile trading platforms, high leverage and low minimum deposit requirements have made the forex market accessible to everyone. A mobile phone connected to the internet and as low as 10 dollars are enough to get someone started into forex trading, so it is no surprise that as more people find out about forex trading, the number of traders grows as well.