Forex trading can be a lucrative source of income for Nigerian investors. It entails betting on the rise and fall of currency movements. It has grown in popularity in Nigeria, with a daily trade volume of $300-450 million. You may be drawn to forex trading since it allows you to generate good gains in less time (minutes and hours rather than months) with your investment. Now, one question you should ask yourself is whether forex trading is a good fit for you. Here, we’ll break down the intricacies of forex trading, how you can start, as well as the best forex trading apps you can use in Nigeria.
What is Forex Trading?
Forex trading is the buying and selling of currencies for profit. Traders can enter deals in the forex market, which is an over-the-counter market where investors can trade currencies. This is a platform for institutional investors, banks, and retail traders.
The Foreign Exchange Market is the world’s largest trading market, with a daily average transaction of US$6.5 trillion. This is larger than all of the world’s stock exchanges combined. Trading activities are carried out via the “Interbank Market,” which allows you to perform trades 24 hours a day, five days a week, Monday through Friday.
How To Start Forex Trading in Nigeria
To access the global currency market, follow these steps:
Obtain an internet connection. You can connect to a Forex broker using any web device. however, it is normally best to trade mostly from home. To make investments, you’ll need to take in a lot of information, and all of that information is easier to fit on numerous screens. Check that your connection is stable and free of latency.
- Choose a trusted broker. The organization that will connect you to the market is your forex broker. Because forex is a decentralized market with limited regulation, not all brokers come fully vetted. First, conduct research and use virtual accounts.
- Create an account. Once you’ve decided on a broker, proceed with the account opening process. You will authenticate your identity and link your bank account.
- You must fund yourself. You must have money in order to make money! You can fund your FX account with a third-party bank, a cheque, a debit card, or a credit card.
- Configure your trading platform. Many brokers have their own trading platforms. Some work with third-party providers. In either case, you must download the trading software. This is the user interface you will use to make market investments.
- Profit. This is easier said than done, but it is definitely doable for a dedicated investor!
Forex Trading Strategies in Nigeria
A fundamental strategy is required for successful forex trading. You’ll also need a working knowledge of numerous methods to comprehend why short-term actions are made.
#1. Scalping
This lightning-fast technique aims to extract only a few pips (basis points) from each deal. Scalpers may only hold a transaction for a second or two before departing. You should be familiar with indicators, and you’ll need a quick trading platform and an Internet connection with no latency – timing is important in scalping. This method is based on an understanding of how charts move rather than the fundamentals that drive the long-term movement of currency pairings.
#2. Day Trading
A forex day trader makes intraday trades and is out of money by the end of the day. Day traders prefer to avoid big overnight changes. Because the currency market is open 24 hours a day, this is less of an issue. With this method, traders can still skip the weekend pause. Day transactions might last the entire trading session or barely a few seconds.
#3. Swing Trading
Swing trades seek to profit from short-term price movements. These roles can and should be retained for a period of days. To make money, swing traders may need to understand the fundamental macroeconomics behind a currency pair. Because a swing trade has a longer possible time period than a scalp or a day trade, news items, and macroeconomic conditions can have a greater influence on it.
#4. Positional Trading
Long-term trend trading is another name for potential trading. These traders are seeking substantial price changes in a currency pair. This form of trading may be suitable for you if you are a patient trader who is unconcerned about modest, short-term chart movements. You’ll need a solid understanding of market fundamentals as well as the infrastructure of the currency you’re dealing with.
Best Forex Trading Apps in Nigeria
All Forex traders must have a dependable Forex trading app. Whether you’re a newbie or an experienced trader, being able to check market data and alter trades on your phone is an important aspect of your trading day. Here, we’ll show you the top Forex Trading Apps in Nigeria.
What is a Forex Trading App?
A Forex trading app is a software application that you may download to your phone or tablet to trade Forex and other financial products. Forex brokers typically provide free Forex trading apps. Some apps are proprietary, meaning they were created in-house by a broker. However, many popular apps are created by third-party companies. Beginners typically find proprietary Forex trading programs to be easier to set up and use.
Forex trading apps allow you to open a demo or trading account with the broker, buy and sell assets, deposit and withdraw funds from your broker, display real-time market data, news, and analysis, and provide price alerts and other risk management tools.
What is The Difference Between A Forex Trading Platform And A Forex Trading App?
Mobile Forex trading apps are available, while desktop Forex trading platforms are available. Otherwise, they serve the same purpose. Both will link to your broker’s trading system and allow you to trade on financial markets. Desktop trading platforms are preferred by experienced traders who want more in-depth technical analysis and complex order types.
Forex Trading Apps In Nigeria
#1. AvaTrade
AvaTradeGo, the company’s flagship mobile app, was named the Best Forex Trading App in 2020 by the Global Forex Awards. The AvaProtect risk management function, which allows traders to have all of their losses totally returned for a modest cost, is one of the best features of the AvaTradeGo app. AvaTradeGo also offers a consistent trading experience with an advanced dashboard, intuitive management tools, clear charts, zoom for details, and a Market patterns function to track trading patterns across the AvaTrade community. AvaTrade’s costs are among the lowest for an account with a minimum deposit of $100 USD – as low as 0.9 pips on the EUR/USD.
#2. FXTM
Traders may access FXTM’s full range of CFDs, including Forex, spot metals, 180 company shares, commodities, indices, and cryptocurrencies, via the FXTM Trader mobile app. You may initiate and close trades in seconds, see live currency rates, manage your trading accounts, and monitor your FXTM Invest copy-trading account using FXTM Trader. FXTM is an established Forex and CFD broker that was founded in 2011 and is regulated by the UK’s FCA and the FSC in Mauritius.
#3. HFM (formerly known as HotForex)
The HFM HF App allows you to trade Forex, commodities, indices, stocks, bonds, and ETFs. In-app fund transfers, enhanced charting, and access to HFM’s HFcopy copy-trading account are among the other app features. A live rate stream for CFDs on Forex, commodities, stocks, and indices is also featured, as is a market news stream and the most recent analysis produced by the HFM research team.
#4. Pepperstone
Pepperstone, a well-known broker, provides mobile support, stringent regulation, and two simple accounts with ECN execution. The majority of orders are executed in less than 30 milliseconds, making them perfect for scalpers and clients that use expert advisors. The Standard Account is commission-free, and the EUR/USD average spread is 1.09 pips. The Razor Account has a 7 USD round turn commission, but the average spread on the EUR/USD is 0.24 pips, which is as near to zero spread as traders can get.
Pepperstone trading apps include live quotations, real-time charting, detailed news, and analytics. Pepperstone also provides Smart Trader Tools, VPS services, Capitalise.ai, and Autochartist – a strong pattern recognition plugin that automatically discovers trading opportunities based on price trends – to all customers.
#5. XM
XM is a well-regulated broker that offers three account types: a Micro Account, a Standard Account, and a commission-free XM Zero Account with super-tight spreads. Spreads on the EUR/USD start at 1.6 pips on the Micro and Standard Accounts. The XM Zero Account provides spreads as low as 0.1 pips and a round-trip charge of 7 USD. Education and research are among the best in the world for novices.
#6. IC Markets
IC Markets is an Australian ECN broker that offers two Raw Spread Accounts and a Standard Account on the MT4, MT5, and cTrader platforms, all with changeable spreads. All trading platforms have mobile apps, but for traders looking for the greatest mobile cTrader experience, IC Markets’ cTrader Raw Spread account is industry-leading and available on the IC Markets cTrader app for iOS and Android.
The cTrader Raw Spread Account has a lower commission than the standard Raw Account (3 USD per lot versus 3.50 USD per lot), and spreads are frequently as low as 0 pips, with an average of 0.1 pips on the EUR/USD pair. The cTrader app offers the same narrow spreads, strong liquidity, and dependable 24/7 customer service that IC Market is known for, as well as single-tap execution and a split-screen interface for tablets.
#7. Skilling
The Skilling Trader app is well-designed and is available for both Android and iOS devices. Beginners will find it simple to use, with a Trading Assistant to guide them through the software. The app makes it simple for traders to transfer, withdraw, and deposit funds, as well as search for instruments and build watchlists. It also includes a plethora of technical indicators and charts in a variety of time ranges. We also liked how simple it was to place orders, and the app includes all of Skilling’s educational materials and market news.
How to Select the Best Forex Trading App
With the correct Forex trading app, you can remain up to date on market news, consult charts, do technical analysis, and execute trades all from the comfort of your smartphone or tablet. But, with so many options available, how can you pick the best Forex trading app for you? Here are a few things to think about:
#1. Regulation and security
Make sure you use an app from a reputable, well-regulated Forex broker. Well-regulated firms offer safe trading environments and are open about their fees, charges, and risk management practices.
#2. Fees
Any commission spreads, or other costs related to using the app, such as rollover fees and deposit and withdrawal fees, are included in this category. Before you begin trading, be sure you understand your broker’s fee structure.
#3. User-Friendly
You don’t want a complicated or difficult-to-use program. Look for a user-friendly app with an intuitive design that offers a streamlined trading experience. Many respectable brokers offer tutorial walkthroughs of their apps to assist you in getting started.
#4. Trading Execution
Your app should be fast and dependable, which means orders should be placed, closed, and managed practically immediately. Apps with poor trade execution can significantly increase risk and perhaps result in bigger losses.
#5. Tools and Features
Check if the program includes the tools you need to maximize your trading prospects.
- Is it possible to get real-time market data?
- Is it equipped with advanced charting capabilities?
- Is it possible to trade automatically?
- Are you capable of performing technical analysis?
- Is it possible to set up automated price alerts?
Knowing what features you desire can assist you in narrowing down your app selection.
#6. Sample Accounts
Look for an app that offers a free sample account so you can test out its features and see if it matches your trading needs. You can also practice your trading methods in real-world market situations before investing real money.
#7. Financial Instruments
Many brokers only enable traders to trade on a subset of the instruments available on the platform’s desktop and browser versions. Consider whether the trading instruments you prefer are available on the app.
How To Make Money From Forex Trading in Nigeria?
#1. Learn the Fundamentals
Before you begin trading forex, it is critical that you understand the fundamentals of the market. Understanding currency pairs, reading charts, and employing various trading methods are all part of this. You can study the fundamentals of forex trading by using internet resources such as videos, eBooks, and webinars.
#2. Select a Broker
To trade forex, you must first select a forex broker. A forex broker is a business that gives traders access to a trading platform through which they can buy and sell currencies. When selecting a forex broker, consider variables such as regulation, costs, and customer service.
#3. Create a Trading Account
After you’ve decided on a Forex broker, you’ll need to open a trading account. This entails supplying your personal information to the broker and financing your account. You can fund your account using a variety of payment options, including bank transfer, credit/debit card, and e-wallet.
#4. Create a Trading Strategy
To profit from forex trading, you must first devise a trading plan. A trading strategy is a set of rules for purchasing and selling currencies. You can utilize a variety of trading tactics, including technical analysis, fundamental analysis, and price action trading.
#5. Begin Trading
You can begin trading forex once you have devised a trading strategy. Begin with a little sum of money and steadily grow your trading capital as you acquire experience. To avoid losing all of your trading cash, you must have a risk management strategy in place.
#6. Keep an eye on your trades.
To be successful in forex trading, you must constantly check your trades. This includes maintaining track of your open transactions, establishing stop-losses, and profit-taking as needed. You should also stay current on economic news and events that may have an impact on currency markets.
#7. Continue to Learn
Forex trading is always growing, and it is critical to continue studying in order to stay ahead of the game. You can learn from other traders, attend webinars and seminars, and read forex trading books and articles. The more you understand, the more likely it is that you will profit from forex trading.
Is Trading Forex Legal in Nigeria?
Yes, foreign exchange trading is legal in Nigeria. You are not breaking any laws in Nigeria if you trade Forex for yourself and use a broker who is licensed to conduct such transactions.
How Much Do You Need To Start Trading Forex In Nigeria?
According to several experts, you can begin trading forex with 100,000NGN, 50,000NGN, or 40,000NGN. However, you can begin forex trading in Nigeria with as little as 5,000NGN. All you have to do is fund your account with money before you can begin trading.
Can I Learn Forex On My Own?
With the correct mindset, resources, and effort, you can learn FX on your own. Understand the fundamentals of forex trading, select a platform, open a demo account, create a trading strategy, manage your risk, and continue to study and practice.
How Difficult Is Forex?
The learning curve is steep, and forex traders face substantial risks, leverage, and volatility. To be a great forex trader, you must have perseverance, continual learning, efficient capital management skills, the ability to accept risks, and a solid trading plan.
Can I Learn Forex In A Month?
Overall, it takes around a year to learn how to trade Forex, although it can take anything from 6 to 24 months. The fundamentals of technical analysis can be learned in a few weeks, but risk management and psychology will take longer – approximately a year or longer – to master the more you trade.
Is Forex Easier Than Crypto?
The ease with which an asset may be bought and sold is referred to as liquidity, and in this regard, FX is far more liquid than cryptocurrencies.
Conclusion
Profiting from forex trading in Nigeria necessitates knowledge, expertise, and discipline. It is critical to learn the fundamentals of forex trading, select a reputable forex broker, devise a trading strategy, begin trading with a little amount of money, monitor your transactions, and continue to learn. Forex trading can be a rewarding endeavor for Nigerians if approached correctly.
Related Articles
- WHAT IS FOREX TRADING? Detailed Guide
- The Impact of Foreign Exchange on Global Business
- How To Trade Forex: A Beginner’s Guide
- TOP 17+ THINGS TO SELL TO MAKE MONEY FAST IN 2023
References
