2020 is a challenging year for the Nigerian economy. Not only is the government grappling with the effects of COVID-19. Even before the outbreak, the national system suffered a blow due to plunging oil prices. A country heavily dependent on exports of oil and gas, Nigeria will take a long time to recover. Today, its residents need alternative sources of finance more than ever. Luckily, online trading is accessible to anyone.
Over the past decade, Forex has been increasingly popular in the country. Modern technology allows consumers to not only spend but also earn money from the comfort of their homes. Software and apps connect them to the global currency market where volumes of over 6 trillion US dollars circulate daily. So, how can you join this vibrant Internet community?
Overview of Opportunities
Although Forex is all about currency exchange, brokers offer many more instruments. Experienced traders develop diverse portfolios, adding more tools to their selection. All of them can be managed using the same trading platform. The more assets you have – the higher the returns and the lower your overall risks. Nigerian clients may choose:
- currency pairs;
- spot metals;
- CFDs on stocks;
- CFDs on commodities;
- CFDs on cryptocurrencies;
- CFDs on market indices.
Contracts for Difference (CFDs) are more than an extra source of profit. These derivatives are entirely virtual, and they allow you to speculate on prices without owning the underlying assets. In the conventional scheme, shareholders own a percentage of the corporation that issued their stock. CFDs, on the other hand, are agreements on the subject of price alone. No physical shares change hands – only CFDs themselves are bought and sold for profit.
Choosing a Platform
The most popular software includes MetaTrader 4 and MetaTrader 5, which may be downloaded for free. The earlier edition of the FXTM Forex platform has been the ultimate favorite for years, while the fifth version is suitable for the management of diverse portfolios.
Therefore, rookies tend to begin their journey in MT4 and gradually transition to MT5, which is more advanced. Mobile versions of the environment work with both iOS and Android. Now, global financial markets are in your pocket!
If you prefer trading from your PC or Mac, it is also possible. Sit comfortably in your favorite chair and start earning and trading now!
What is the difference between MT4 and MT5?
Using MetaTrader 4 provides access to the various market and using different financial instruments. It includes foreign exchange, commodities, and indexes. It is very easy to use and read, it impossible to choose among nine different timeframes, it monitors and analyses the market, very secured system with the function of more devices in one, and most important of all, the trade is safe and in line with the time that suits you.
MetalTrade 5 is an advanced version of MT 4 and not recommended to beginners. It is free to download as well but offers more. It offers more balance transaction than its predecessor, includes 44 analytical objects, alert that keeps you informed about any change on the market, and so on.
How to Open an Account
If you are new to Forex, the first step is to acquire a demo account. This will unlock the risk-free mode of the platform. All you need is basic contact information – fill in a simple form on your broker’s site, and login details will be emailed almost instantly. Enter them on the trading terminal – and voila!
Never rush into live trading. Take your time exploring functions in the simulated mode. Although Forex is no rocket science, it does require knowledge and skills. Hone your financial foresight by analyzing charts, learn how to open and close positions, set limits on acceptable risk, etc.
Once you feel confident, switch to a live account. Here, registration is similar but it involves a few more steps. After all, real trading involves real money.
Choosing a Broker
Today, Nigeria is attractive to many global brokerage brands. Since the tightening of regulations in Europe, they have been exploring alternative markets. Now, Forex services are being tailored to the needs of Nigerian clients. They may choose between local and international companies.
Unlike South Africa, Nigeria is yet to develop its regulations for the currency exchange. Now, legislation is still in the formative stages, which allows fraud to run rampant. As a result, neophytes find it hard to tell a legit broker from an impostor. Do not be lured in by low spreads or spectacular leverage alone.
This explains why global names are preferable. They have official licenses and their operations are overseen by reputable entities, such as the CySEC. Today, the only international brand with physical offices in the country is FXTM.
International brokers supply clients with a wealth of educational material. You will have access to articles, tutorials, and 24/7 support. A simple google search will provide even more content. As Forex is wildly popular across the world, information is abundant. However, remember to check its source before taking any tips on faith.
Another important opportunity is copy trading. The option is based on the delegation of financial decisions. Basically, you will be trading by proxy. A strategy manager (chosen by you) is trusted with managing a portion of your deposit. All of their actions are replicated in your account – hence the name. Successful trades are the goal for both parties – while you get a lion’s share of the profit, the expert receives their fee.
Like any form of investment, Forex puts your capital at risk. The result depends on your own ability to learn and apply a consistent strategy. Thus, take advantage of all the learning opportunities you have.