You capital is at risk when trading. You have successfully subscribed to receive the BI newsletter. The following three brokers are listed in no particular order. And yes, forex trading is legal in Nigeria.
Account Type
Nowadays, it is more common in Nigeria to trade on a mobile phone than on a laptop or desktop computer. Forex trading apps can be used in trading, price quotes, currency comparisonsand analysis, and research. Active currency traders like to have access to market news, quotes, charts and their trading accounts at their fingertips at all times. Apps make it easy for traders to trade while on the go, giving the trader complete independence from onlie desk, and an opportunity to take advantage of unscheduled economic events. Here are the top most rated forex trading apps for beginners and advanced traders in Nigeria.
Here Are the Best Stock and Forex Brokers in Nigeria:
It involves speculating on the rise and fall of the currency fluctuations. But is trading in the forex market really profitable for small individual investors? How much income can you earn from trading forex part time or full time? What are the risks? There are so many other questions that may come to your mind if you are a beginner forex trader.
1. CowryWise – For savings and investment
It involves speculating on the rise and fall of the currency fluctuations. But is trading in the forex market really profitable for small individual investors? How much income can you earn from trading forex part time or full time? What are the risks? There are so many other questions that may come to your mind if you are a beginner forex trader.
We will try to answer all these questions and more with this guide. Busy right now? Don’t worry. Chapter 1. What is Forex Trading? Chapter 2. Understanding Currency Pairs. Chapter 3. How to start Forex Trading? Chapter 4. Forex Trading Strategies. Chapter 5. Forex Trading Platforms.
Chapter 6. Traders can place their trades in the forex market, which is an over-the-counter market that allows investors to trade currencies. This is a platform for investors, institutions, banks, and traders. This is larger than all the stock markets in the world combined.
Have you traveled overseas? If you have then the chances are that you have already traded currencies. This is because you need to acquire the currency of the country you are visiting by exchange the currency of your home country. In this example you are physically buying USD by exchanging your Nairas. When you change your Naira into a different currency to spend money on your trip, you are actually making a forex transaction.
The rate that you get from your exchanger is decided on the basis of the real time exchange rates plus the profit margin of the money changer. In theory, this is what online forex trading on the internet is all about, but still a bit more than exchanging currencies through a Money Changer. All transactions in the forex market are based on the purchase of one currency for the sale of another currency. It is really important to understand what currency pairs, and how they work before you can start trading Forex.
The opportunities to make profits are higher. As you may have noticed that these are the crosses of all the major currencies excluding US Dollar. Best online trading app in nigeria a beginner Forex Trader, you need to stick to major pairs only as it offers high liquidity and predictable market movements. While trading forex, you would come across these common terms. We will be explaining all the important terms. This price is the quote by the broker.
It is the last decimal in the price. For Example: In the quote 1. At this price, you can sell base currency in the pair. This price is shown on the left side in the quote ticker by the Broker. At this price, you can buy the base currency mentioned in the pair. It is shown on the right side of the quote ticker by the Broker. Forex trading can now be done by anyone in Nigeria, anytime, from home or anywhere through the internet.
You need to signup with a Forex broker. We will tell you exactly who to choose. In order to trade forex, you need to find a broker. We have compiled the list of best forex brokers for Nigerian traders. ForexTime is the best broker for Forex trading in Nigeria. Start with Demo Accounts: Never start trading directly on a live account if you are a beginner as your real money will be at risk. 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.
This account will enable you to place your trades in the interbank market at the live currency prices. Once the verification is complete, you will need to make a deposit to fund your live account. These funds will be used to place live trades at the real market prices. The long position implies that you are buying a currency pair and are betting on it to rise in value in the future. For ex. Buy order in forex is similar to buying an equity stock.
You buy the currency at a low price, and once it reaches a higher value, you can then sell off the currency, thus making your profit. The short position can be taken when you believe the price of the currency will fall in the upcoming period. You can place a sell order when the currency is at a higher price and then when the value falls significantly, you can buy it back at lower price, thus realizing your profit.
Profit or Loss? 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. You will make a loss in this case. There are many different strategies that are followed by successful forex traders.
But most of them fall into 2 categories which are ‘Technical Analysis’ and ‘Fundamental Analysis’. Technical Analysis involves the study of charts patterns, currency trends. While the fundamental analysis is mainly related to trading based on the news events like GDP, Job data. Most technical forex trading strategies involve some level of study and analyse of the chart or trend patterns of the currencies before making an actual trade.
Good thing is that almost all brokers around the world now offer MT4 or MT5, which are excellent platforms for sound technical analysis. Only based on your strategy, you can make actually get the best returns in the future. We call the high the resistance. Once the price crosses the previous high to achieve a higher high, there is a huge chance that the old high will become the new low in a trending market.
The low is now called the support. If you are a new investor, it is a good strategy to begin trend trading with one of these pairs. This is because these pairs are very liquid and have stable volatility. Since these currencies are stable, they will help you in managing your risk initially.
It is always a good strategy, to begin with, a USD pair because of stability. There are various other pairings available which do not include the USD. Day trading is not strategy per se, it is more of a trading routine. In this strategy, you place your trades, and close them within the same day or within a hour window and book your profits or loss.
You can realise profits quicker in this strategy, although the amounts might be smaller. This is a very common strategy followed by a wide variety of small investors. Another strategy is known as scalping.
This strategy is based on opening a position for a short time and closing it to make a small profit. These strategies can be a great way to book profits quickly. If you are ready to start Forex trading then you may have doubts on which broker should you choose to trade online.
On the positive sideforex trading has the potential to bring good income if you trade with a working strategy. And you don’t even need very high capital to start.
On the downsideone bad trade without proper money management can be disastrous, or trading with real money without practising on demo. These are just the few risks. How you can manage these risks? Be cautious, have a fully tested trading strategy on demo and use good risk management to be successful at forex trading. At Forextrading. NG our ultimate aim is to help you choose the best broker for your needs.
NG is an Investment Comparison website with an aim to help Investors in Nigeria find the best forex brokers. Read More. Read full risk disclaimer. All Rights Reserved, See Best Brokers!
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ONLINE TRADING NIGERIA SHARES
Understanding Currency Pairs
Your capital will be at risk when using any of the recommended platforms in this article. For your convenience, these stocks can be traded as CFDs and options, in both long and short positions. The AvaTradeGo app — which was designed in-house — provides all the tools and features you need to effectively analyze and research markets as well as open and close positions. Open a demo account Tradlng Deal What can you trade? Do you think this sounds exciting? Not all traders want to limit themselves to one market such as the stock or forex market in Nigeria. Trafing is one of the biggest names in the business. Read our in-depth XTB review. EasyMarkets EasyMarkets. Finding a reputable online broker is tfading than it should be. The agency was founded in and in became an essential arm of the Central Bank of Nigeria. The mobile investment apps allow individuals — experts and beginners- to save money with the option of investing in securities such as stocks, bonds, mutual funds, and the Agric sector. Leave a Reply Cancel reply Your email address will not be published. The country has vast deposits of natural resources such as iron ore, coal, niobium, bauxite, lead and tin, as well as natural gas and of course crude oil. While stockbrokers are still available to execute trades on behalf of investors, these apps allow you to take control of trading with your phone. As you can imagine, figuring out which brokers are safe or not, is, therefore, best online trading app in nigeria main priority.
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