So, you have decided to try and start Forex trading in Nigeria in 2019, but have suddenly realized that you know as much about the industry in the country as you know about how long it takes Pluto to go around the sun. This is not something to worry about at all since this article is dedicated to providing you with a crash course on the subject of Forex trading within the country. If you want information that is more in-depth, you should check out our tips page. The list below will give you the info needed to avoid scams or losing money while furthering your education will help you earn more. So, let’s stop stalling and get into what the best way to start trading within the borders of Nigeria is.
Here’s a bonus: it takes Pluto around 248 years to make a full circle around the sun.
1. Ask yourself why you want to start trading Forex?
So here is the thing. Many people get into the Forex industry just because they think this is where they will be able to get fabulously rich and it’s not wrong of them to do so, but it is also incredibly conceited to think that you are the one that is going to hit the jackpot. Especially if you are going into the market with just a little bit of money. I mean, even some of the richest Forex traders in the world had to invest a boatload of cash in order to make the boatload of cash back. So be careful what expectations you have when you go into the industry. The first thing you are going to have to do is set some realistic expectations to how much money you are going to end up making, set some realistic goals and make sure that you stick to those goals. If you don’t, you end up losing a whole bunch of money.
2. Learn about Forex
How are you going to make money in an industry, if all you know about the industry is that someone made money within it? This is the question that should be bothering you a lot and it is also the question that you should immediately answer with “by learning about the industry”. If you are going to be trying to start Forex trading in Nigeria while being ignorant of the industry as a whole, you are going to be making the biggest mistake of your life. The best way to trade in any place in the world is to know what you are doing, and the best way to learn about something is to find resources to learn about it. All it takes to learn about Forex is to google anything related to “education” and “Forex” and bam, you have dozens and dozens of resources. Some of the ways to learn about the industry are:
- Online seminars, also known as Webinars, because combining words is cool
- Online academies
- Articles, Blogs, and other similar written resources
And if you are not sure that any of those are reliable enough, it should not be too hard to find places that will offer you Forex trading training in Nigeria. The industry is popular enough in the country for multiple brokers and educational institutions to offer you a chance to learn about it. Although, these meetings might not be free to attend and are more likely than not going to cost some money. Learn about them ahead of time by asking around, so that you don’t end up going to a useless course. I mean, come on, there are almost two hundred million people in Nigeria, someone is bound to know about Forex educations courses.
3. Understand the context
And while you are educating yourself about the industry, make an effort to learn about the context that you are going to be working in. This means learning about the Forex industry specifically in Nigeria, and also what is going on in the markets around the world right now. One thing that is true about the Forex industry is that it is constantly changing. I mean, it is stable enough to be appropriately tradeable, but there always something changing. There is always a currency that is on the rise or in freefall, always a country that is struggling to keep up in projected growth and so on and so on. The market is constantly in flux simply because anything at all can affect how much a currency is worth.
The country elected a new president that is more democratic and promises quick GRP growth for the country? Bam, the currency increases in value. Oh, the president got the flu? Bam, the currency falls in value. The country goes through a renaissance while the president is sick and the number of tourists coming to the country increases tenfold? BUY THAT CURRENCY NOW because its gonna explode in value. Oh, wait, the country got into a war? Well, bad news, all that currency you bought is gonna start going down now.
Keep an eye on the news and keep an eye on what other people are doing. That is the only way to guarantee that you don’t end up falling behind. Context makes everything on these markets.
4. Find out which are the best Forex trading platforms in Nigeria
Okay, so now that you have learned about the industry and about all of the practices associated with Forex, all you have to do is learn about who the best brokers are. Easy-peasy right? Well, you’re wrong. Picking a broker is the most complicated, annoying and most drawn-out process that you will be going through before you can even begin Forex trading, especially in Nigeria. There are many brokers around the world and, since there are so many of them, it is easy for scams and liars to become hidden within the list. If you are not careful, you might end up picking a broker that is terrible for you and for your money. So, in order for you to not end up doing the exact opposite of hitting a jackpot, here is a quick list of things that you need to learn about a broker before you even end up working with them.
- One of the most important aspects of determining whether a broker is legitimate or whether it is a scam is finding out whether they have a license. The license should be provided by a reliable financial regulator. Internationally these include Cyprus based CySec, the UK based FCA, South Africa based FSCA, and others. Within Nigeria, the SEC (Securities and Exchange Commission) is the one responsible for providing licensing to brokers. If you do not see an SEC license, you should consider staying away from the regulator.
- Consider the platform that the broker is offering to you for use. Is it the MetaTrader 4, the MetaTrader 5, CTrader, a browser-based platform or an in-house produced platform? Any of these could have some reliable features that would be useful to most traders, but each of the platforms is different in many ways. These differences are the ones you should be considering so that you can make sure that you are getting what you want.
- Spreads and Leverage
- Spread is the amount of money you are likely going to end up paying for opening and closing your position on a currency. It is the amount of money you will end up paying, basically. Leverage is the multiplier of the money that will be lent to you if you decide to take it and trade it. In the end, you need to make sure that both of these quantities are something that you approve of and don’t end up getting in the way of your trading experience.
- Education and other products
- You should also consider whether the broker provides you with a chance to get more educated on the subject of Forex and if there are other things they are offering. The more bonuses you get for starting to trade Forex in Nigeria with a specific broker, the better it is right? Just make sure that those benefits are actually given to you and are not just an empty promise.
5. Try to get a Demo account
Once you have figured out a broker that you might enjoy working with, try to figure out how to get a demo account with them. A demo account will allow you to experience whether you like to work with the broker or not and it will also allow you to try out some trading techniques that might be interesting. You could also go ahead without one and end up on the market without any knowledge of what trading looks like, be confused and lose money, but hey that’s up to you. Some of the best trading accounts allow traders to get imaginary funds that they can apply to the real market and see how their decisions pan out. These help build speed and skill when trading, two of the most important aspects of anyone who wants to start Forex trading in Nigeria or elsewhere in the world.
6. Try to get a bonus
A bonus will multiply your trading capital by adding money to your account for completing an action. Some bonuses even provide bonuses for simply registering with the broker, meaning that you don’t even have to invest money in order to be able to start trading. Not all brokers provide this opportunity though, and some scam brokers end up using bonuses as a way to lure in unsuspecting victims. This is why it is important for you to make sure that you are dealing only with the best bonuses that you can get your hands on.
It doesn’t matter to us if you are trying to start trading with a broker in Nigeria, England or in Poland, I need you to do one thing. I want you to plan ahead. This means that you sit down and think about how much money you want to make. What techniques you are going to use to make this money. What your currency pairs of choice will be. How much time you are going to spend trading. How much money you are going to dedicate to trading. How much money you are willing to lose while trading. All of these things will help you prepare for the life of a trader and prevent you from either losing too much money without stopping or overexerting yourself. Planning is the number one thing that helps any and all Forex traders in the world and in Nigeria to end up making the money they need to be making.
8. Start Forex trading in Nigeria
After all, is said and done, all you have to do is just start trading. This means to register an account, deposit money and start trading. It is that simple. Although, all things considered, it is also going to be the most complicated and complex thing you have ever done in your life, so be careful how you go about it. Trading is a complex subject that involves a lot of learning and a lot of work, so make sure you know what you are doing before you get involved and invested in it. If you do, you should be able to make something of it. If not, you will end up just like the rest of the 90% of all traders on the markets – losing money. But hey, I am optimistic about your future on the markets and you should not be giving up either. Go ahead and start preparing!