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ECN Trading

ECN stands for Electronic Communication Network or ECN broker which are Forex financial experts. They use electronic communication networks to allow clients to directly access other participants in the currency market. ECN is traded by a non-dealing desk platform. In other words, it means brokers will not forward orders to the liquidity provider.

Advantages of ECN trading

Advantages of ECN trading

●     Able to trade outside market hours

Even though you are busy with work during working hours, investment is not exempt because you can trade even outside market hours. Therefore, it is an advantage for traders who are unable to trade during normal business hours. Moreover, you can choose to trade at any convenient time or trade independently, which is a highly flexible trade.

●     Suitable for one who has high privacy

For , traders do not have to disclose their information. Therefore, this is good for investors who want to keep their private information confidential or do not want to disclose personal information in public. This is another advantage that greatly attracts investors.

●     Transparent price

Transparent price is considered to be the most beneficial to traders because all ECN brokers can access and trade at the same price. The amount of historical price data can always be checked, which helps investors to prevent price fraud. Therefore, traders can check the historical data of both past and present prices for use in future calculations.

●     All traders are equal

ECN trading will not allow one trader to gain benefits from the other. All traders can have equal access to the data. Therefore, you do not need to worry about inequality during trades.

Disadvantages of ECN trading

●     Trading fee

Although there are many advantages of ECN trading, there are definite inevitable disadvantages. There are higher charging fees and commissions on general trading than ECN trading. The trader should cogitate to reconsider the profits they received in each trade.


Investing your fund with ECN brokers is another alternative to facilitate traders more efficiently. This will help traders to conveniently trade currencies through brokers. Also, traders can choose to trade at any convenient time and not limited to trading only during business hours and the price is transparent, which they can check the history and prices. Anyone can trade and receive equal rights in trading.

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How to Make Money in The Stock Market for Beginners

Stock market investing sounds daunting to most people. Where does the fear stem from? Misinformation and lack of knowledge. In 2020, the barrier to entry has never been lower, and beginners have everything they need to begin their stock market journey.

Before delving into the specifics of how to approach this, it is essential to clear up the stock market terminology and offer some transparency as to what certain principles and ideas mean.

Investor Vs Trader

These words are often used interchangeably but they are not exactly synonyms. An investor is someone who buys company shares with the intention to sell for a profit in the long haul. A trader, on the other hand, is a person that buys company shares but does not hold on to them for long, looking to sell in within the day, week or month.

Where’s the value in differentiating between the two? It creates clarity as to what hat you’ll be wearing when you decide to make money from the stock market. Are you a trader or are you an investor? How much time and effort are you willing to allocate to this? Answering these questions is critical in shaping your game-plan and overall approach to the stock market.

Stock Market

The stock market refers to the buying and selling of company shares. The price of each stock is an amalgamation of company news, performance and what investors/traders value the company, at that specific point in time. The constant change of stock prices presents a window of opportunity for investors to sell at a higher price than they bought a stock at, translating into profit.

How does a trader/investor know when to buy or sell as stock? Well, that’s literally the name of the game. There is a lot of disagreement as to what is the right strategy to follow in order to make money in the stock market but the reality is, there is no one definite answer. The market is volatile and factors determining the change in prices are too many to track at all times.

What would be the wise thing to do is spend some time studying the available . Knowledge is power, and before investing a single penny in the stock market, you need to understand how this marketplace works as well as the literature around trading strategies. Before becoming a player, try to be a coach and absorb as much information as you can. Studying and reading up on stock market trading strategies is probably the best investment you’ll make. It will enable you to make an informed decision about which route you’ll be taking.


There’s an abundance of trading strategies available for beginners. Every one of these strategies serves a different risk tolerance and follows a different methodology to interpret the market. There is no right way of looking at this as all strategies are based on solid principles and can prove profitable under the right circumstances.

As we’re about to enter 2020, it is safe to say that stock market trading is similar to a portfolio of different stocks and trading instruments in the sense that it needs to be diversified. Sticking to one strategy can be detrimental and rob you of the opportunity to make money. Let’s explore some stock market trading strategies and see which one would suit your profile and situation.

Buy & Hold

This is exactly what it says on the tin. Under the buy and hold principle, the investor buys stocks and holds on to them for the long run, putting faith in the business they have invested in. The successful use of cases of this strategy is countless. Investors like Warren Buffet have made a bulk of their money by holding on to stocks for decades, giving the company they invested in the time to develop, grow and reach its potential.

Can you imagine if you had invested in Apple before the iPhone made its appearance or Instagram before it was installed on almost every phone that has an Internet connection? These types of investments require patience but also a good eye for business. How could someone have predicted the meteoric rise of either Apple or Instagram? The answer is that they couldn’t but that doesn’t mean that long-term investment is an investment based on luck or chance.

Whilst long term investments do involve you taking a leap of faith, there’s a lot you can do to legitimize your choice. First and foremost, stay up to date with market news and trends. We can’t emphasize enough the importance of independent and personal research. A good trader/investor and a relentless reader before anything else.

If you were to look at the current business landscape, for example, artificial intelligence and virtual reality are some of the predominant ideas technologies that will be taking over the news and our lives in the following years. An investment related to companies developing such technologies would make a lot of sense and would not be considered a lucky guess.

Start Small

Are you aware of the saying “You need money to make money”? It would be a good idea to forget it. Entering the stock market world as a beginner can quickly become a loss-making affair if you’re not careful. Losing money early rapidly is the most common deterrent for new traders/investors. How do you avoid it? Start small and take baby steps.

The first thing you should go after is a demo account. A quick look online will reveal many free demo account options where you essentially trade with fake money. This simulation is the perfect way to get through the jitters of the first few trades. You practice, learn and get wiser without losing money.

Once you go through this initial step, you should still keep a risk-averse stance and move into trading . Instead of trading the full price of a stock, brokers will nowadays allow you to trade a fraction of the stock, lowering the amount of investment you will incur.

Momentum Trading

The momentum trading principles supports the notion of making buying/selling decisions based on a stock’s recent performance. This school of thinking postulates that a stock that has been trading in a certain direction carries force behind it that will allow it to trend in the same direction for the foreseeable future. One way you could describe this trading practice is “buy high, sell higher”. Even though you weren’t able to catch the stock at its lowest price point does not mean you can’t profit from it.

Unlike the aforementioned buy and hold strategy, momentum trading is a short term practice that is employed by traders, not investors. If the timing has ever been a valuable attribute, one could argue that it is the primary skill required in momentum trading. As a trader, you need to identify the right entry point and when to sell the stock. It is of paramount importance to be able to sense when stocks are about to shift gears and keep trending in the same direction. This usually happens when a company or market-wide news breaks out.

Just like every trading strategy, momentum trading comes with its pros and cons. On the positive side, you can earn a lot of money in a short time-span. On the negative side, it needs a lot of commitment and time as you need to be ready to react to market news.


How do you make money in the stock market as a beginner? You employ patience and make a conscious decision to invest time and effort in educating yourself around the matter at hand. Once you have nailed down these basic principles, you’re then ready to enter the world of stock market trading / investing. The strategies explored in this blog are just the tip of the iceberg with a lot more options available.

Hopefully, the presentation of these ideas has opened up the floodgates for thought and research into the world of stock market investing. For more information and tips on beginner trading, visit the .

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What Are the Differences Between the Stock Exchange and Stock CFDs?

Financial engineering had been one of the reasons why the world managed to evolve so much during the past few decades. Technological developments had fostered the appearance of new financial instruments, and thus, those involved in the industry had been huge beneficiaries. The stock market is where public companies are being traded 5 days a week, with people trying to profit in many different ways.

Stocks vs. stocks CFD

When you own a company’s stock, you become a shareholder, basically owning a small piece of the underlying business. Stocks are liquid, meaning their prices fluctuate based on supply and demand principles, so you profit when the stock goes up, or when the company pays dividends.

However, trading with physical stocks is not on the taste of all people. Considering that there is an increasing number of companies which do not pay dividends, traders had been attracted by new instruments, some of them being  (CFDs).

Trading CFDs means you don’t own the underlying instrument and you are able to generate return solely on the rising and falling of the price. Most of the popular trading companies available at the present time offer CFD trading. Although some had developed complex offers, like the  DMA trading, most of the traders deal with CFDs.

Most of the platforms who allow access directly to the stock exchanges, work on a commission-based system. For each stock you purchase, you’ll have to pay a commission. In dealing with CFDs, on the other hand, the system is most of the time based on  (the difference between the bid and ask price) and an overnight swap.

CFD trading is, thus, a more affordable way to get involved in the stock market without having to own stocks. Although you’re not eligible to receive dividends, you’ll be dealing with volatile instruments, meaning price variations over given periods of time, will be high.

In order to choose the right type of instruments, you must carefully consider some important aspects. How much capital can you commit, which broker is the right for you, what type of strategy will you use (short-term trading or a long-term approach), as well as what are the most suitable trading costs for you. The bottom line is that both stock and CFD trading carry advantages and disadvantages, and it is up to you to decide how can you put them into the balance.

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Three Basic Trading Strategies for Beginners

There are many ways to trade the  markets. Prior to risking your capital, you need to determine the type of trading strategy you plan to use to take advantage of the marketYour strategies could be fundamental where you look for changes in the macro-environment to take a view on a currency pair, or you could use technical analysis. This is the study of past price action which helps you predict the future movements of a currency pair. Here are three basic trading strategies that a beginning trader can use.

Trend Following

A trend is the movement of price in a specific direction that continues to perpetuate. The markets in theory only trend 30% of the time, which means that it’s important to jump aboard as soon as a trend starts. One of the easiest trend-following strategies to follow is the moving average crossover strategy. A simple moving average is the average of a specific number of days. For example, a ten-day moving average takes the simple average of the past 10-days. On day eleven, the first day in the averaging period is dropped from the calculation. A moving average helps remove some of the choppiness of day to day changes in an exchange rate.

A Simple Moving Average Crossover Strategy

 crossover strategy tells you to buy an exchange rate when a slower moving average (such as the 10-day moving average) crosses above a longer-term moving average (such as the 40-day moving average). You can see from the chart of the USD/JPY there are several signals that tell you when to purchase the USD/JPY currency pair and when .

Trading Strategy Chart

The risk management of this strategy can be as simple as reversing your position when the reverse signal appears.

Exponential Moving Average Crossover

Another similar trading strategy is the exponential moving average crossover strategy. This trading strategy increases the relevance of the recent days, by weighting the current period more than the prior period of the moving average. Since a moving average is a lagging indicator, the exponential moving average attempt to generate a trend signal ahead of a simple moving average crossover trading strategy.

Momentum Trading Strategy

A simple momentum trading strategy is the Moving Average Convergence Divergence Crossover Strategy. The MACD generates a momentum buy and signal.

Momentum Trading

The MACD evaluated momentum by analyzing the difference between a short term moving average (the 12-day moving average) and a longer-term moving average (the 26-day moving average). This is called the MACD line. It then compares this difference (the MACD line) to a moving average of the difference (the MACD signal line). When the MACD line crosses over the MACD signal line a buy signal is generated (green arrows). When the MACD line cross below the MACD signal line (the red arrows), a sell signal is generated. The risk management of this strategy can be as simple as exiting a position when the reverse signal occurs.

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A list of things to consider before you start trading Forex in Nigeria in 2019

So, you have decided to try to find out how to 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 Nigeria Forex 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 to start Forex trading in Nigeria

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
  • Videos
  • 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. And now that there are more and more Forex brokers in Nigeria, it should be pretty easy to start trading

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.  Many Nigerian Forex brokers will allow you to receive this information on their own platforms. 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

Forex trading training 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.

  • License
    • 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. If you do see an SEC license, it might be a good sign that you are working with the best Forex broker in Nigeria.
  • Platform
    • 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. Any Forex broker in Nigeria can offer any of the platforms. 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 loaned 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 trading 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. Many Forex trading companies in Nigeria offer the opportunity to get your hands on a bonus such as this.

7. Plan

start Forex trading in Nigeria in 2019It doesn’t matter to us if you are trying to start trading with a Nigeria Forex broker, 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 Nigeria online Forex trading

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. The Nigeria broker that you will end up trading with agrees with this too. So go ahead and start preparing!

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What do Forex bonuses accomplish?

Receiving a Forex no deposit bonus, or even a deposit bonus always serves a purpose for the company as well as the customer. However, many traders tend to ignore the background intentions of a Forex broker, when they offer a financial benefit the size of their whole account.

So what exactly does the bonus system accomplish? Why do Forex brokers keep offering it?

Bonuses are there to keep you engaged

Most Forex brokers encourage their traders to use their bonuses in the hopes of keeping them engaged on their platform. No matter how you look at it, trading with money you don’t necessarily own, takes away the whole stress aspect of Forex and allows traders to learn far more than initially intended by the broker.

By trading with the bonus in order to hit the imposed cap for withdrawals, traders tend to get used to using a specific platform, which then leads to them at some point depositing more money if they managed to lose it all from the get-go.

Therefore, bonuses can be considered as  for the broker. Similar to a trial version of your web services.

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What are Equity Indices and How do You Trade Them?

Equity IndicesEquity indices are baskets of stocks that are traded together. The most liquid equity indices are stock indices that cover some of the most actively traded stocks in the world. In the U.S, the Dow Industrials, the S&P 500 index and the Nasdaq 100 are the most popular equity indices. In Europe, the German DAX the FTSE 100 and the French CAC are the most liquid. In Asia, the Nikkei and the Shanghai along with the Australian All Ordinary are the most robust indices.

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Publicly traded Swedish companies to keep an eye on

Sweden is home and birthplace of some of the most successful and innovative businesses in the world. Because of the highly digitally connected economy, Sweden is able to foster innovation and hence the birth of some of the international well-known brands. Below are some of the leading publicly traded Swedish companies that you should keep an eye on in 2018; Continue Reading →

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The most important technical indicators for every forex trader

most important technical indicators Over the years, traders have devised various tools to try and help them successfully trade the markets. Of the hundreds that have been invented so far, only a few have stood the test of time, and that is because they have continued to prove effective in many market conditions. These are the most important ones every trader should know about, and even the software developers know it. That is why the most popular forex trading platforms, including those developed by SpotOption will have them pre-installed. In fact, I doubt you will find any trading platform that doesn’t have all of these available. Continue Reading →

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Cryptocurrency Trading – A Sneaky Profit Opportunity by AionNext

Cryptocurrency and AionNextIt’s getting interesting in the Cryptocurrency Revolution. Don’t believe us? Bitcoin appreciated 30 percent in a single week last summer, leaving at least a few analysts scratching their heads and pushing up price targets from $5,000 to $7,500. About the same time, a new cryptocurrency, FileCoin, collected over 200 million in an IPO that came to a premature halt when frantic investors crashed the servers with their demand. What pioneering currency trading software platform designer AionNext wants you to remember is that there is a lot of money to be made, but you need to be smart. There’s a lot of money to lose too.

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