Forex Trading in Nigeria

Forex trading in Nigeria is a currency hot spot for enthusiasts, growing in popularity! Nigerians are seeking trustworthy Forex brokers.

Are you one of them?

ng.tradefx.co.za Specialises in guiding Nigerians to finding the ideal Forex & CFD broker that suits the needs of Forex traders in Nigeria.

Our company’s mission is to provide fair and transparent broker reviews, focusing on fair trading conditions, safety and security of funds, and regulation. We only review and then verify (Broker Verified ) the top leading brokers for Nigerian traders!

Don’t get scammed out of your hard-earned (NGN) Nigerian Naira due to the LACK OF DUE DILIGENCE!

Experience the journey with us!

Forex-Trading-in-Nigeria

Trading successfully does not happen overnight. Nor is it a matter of luck. Our review process for brokers accepting Nigerian traders is done to help beginners make the right choice when it comes to selecting their first forex broker.

“broker hopping” – Traders’ lingo for changing brokers on a frequent basis, avoiding it is something we strive to do, and so should you!

More than just a review site

In addition to the 100s of articles on TradeFX Nigeria, on a monthly basis, we add over 80,000 words of fresh content to the site.

We are all about educating traders just like you, from beginners who are just getting started to profitable traders who are looking to improve their skills. We have beginner guides, forex courses, general information, strategies, and of course, broker reviews.

Are you looking for more information or are you thinking about signing up with a broker for the first time? Get information on becoming a profitable trader and maximizing your returns!

WARNING: Forex scams are common. Don’t become a victim. Read our reviews before opening a trading account!

TIP 1: As a Nigerian looking to choose a broker, it is important to read the forex broker reviews before making your decision.

TIP 2: We showcase and feature our top 3 brokers, a good starting point to see what the marketplace has to offer!

1.
4.8 stars from 476 ratings

Broker Verified

Blackstone Futures is a CFD and forex broker that helps traders have a great trading experience. One of the best forex brokers in South Africa and Nigeria?
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
2.
4.7 stars from 374 ratings

Broker Verified

Markets.com is known to be the most reputable forex & CFD and online forex broker. So let's dive into the review and see if that is true.
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
3.
4.6 stars from 139 ratings

Broker Verified

Do you want to know more about Exness broker? Then, let's just not waste a single second and dive into the discussion of the Exness review.
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.

List of Forex Brokers in Nigeria

Explore our in-depth reviews before you start trading forex in Nigeria.

Broker
Rating
Regulated
Bonus
Min. Deposit
Max. Leverage
1.
Blackstone Futures Broker Review
4.8 stars from 476 ratings

Broker Verified

FSCA

up to 30%

USD 100

1:400

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
2.
Markets.com Broker Review
4.7 stars from 374 ratings

Broker Verified

FCA, ASIC, CySEC, FSCA, BVIFSC

up to 50%

USD 100

1:300

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
3.
Exness Broker Review
4.6 stars from 139 ratings

Broker Verified

SFSA, FSC (BVI), CBCS, FSCA, FSC (Mauritius)

up to 10%

USD 10

1:2000

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
4.
HotForex Broker Review
4.4 stars from 189 ratings

Broker Verified

FSCA, FCA, CySEC, FSC, DFSA

up to 100%

USD 10

1:1000

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
5.
Deriv Broker Review
4.2 stars from 346 ratings

Broker Verified

MFSA, LFSA, VFSC, BVIFSC

up to N/A

USD 10

1:1000

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
6.
XM Broker Review
4.2 stars from 379 ratings

Broker Verified

ASIC, FCA, CySEC, IFSC

up to 100%

USD 10

1:888

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
7.
FXTM Broker Review
3.6 stars from 145 ratings

Broker Verified

CySEC, FSC, FCA, FSCA, CMA

N/A

USD 50

1:2000

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.
8.
OctaFX Broker Review
3.4 stars from 235 ratings

Broker Verified

CySEC

up to 50%

USD 10

1:500

Review Visit Site Visit Site
CFD service. Your capital is at risk.
Remember that CFDs are a leveraged product and can result in the loss of your entire capital. Please ensure you fully understand the risks involved.

Forex traders in Nigeria should always trade with a regulated entity.

OUR GUARANTEE: All of our listed verified brokers are regulated, some by multiple regulatory entities globally!

I don’t see the broker I am looking for

TIP 3: Use our site search to pull real-time broker reviews as you search!

We strive to provide all Nigerian traders with a broker where you can trade Indices, Equities, Commodities or Forex safely and successfully.

Top Forex Brokers List 2021

Forex Trading Nigeria – Nigerian Naira (NGN)

With the right broker and local presence, forex trading in Nigeria can be both profitable and financially exciting.

A trader-designed platform, TradeFX Nigeria is created by successful traders. It was designed with new traders in mind.

By answering these questions, we’re helping you choose the right forex broker.

Forex-Trading-Nigeria

Forex Trading NG

The forex market in Nigeria is booming! Average citizens are looking for market opportunities to increase their financial situations with the hope of succeeding at a better lifestyle.

Search volumes show monthly searches above 24,000 for the term “forex trading“. This puts them 4th on the list of countries for the exact term.

With a huge demand for the search for a reputable broker accepting Nigerian clients, brokers are expanding into the Nigerian market. With no official regulator, this is a fairly easy task.

Despite the lack of brokers who offer their home currency, NGN (if at all), as an alternative, brokers offer the United States Dollar (USD), Great British Pound (GBP) or EURO (EUR). Very popular trading account currencies for Nigerian traders.

Nigerian Naira (NGN) – History

In the Federal Republic of Nigeria, only the Central Bank of Nigeria (CBN) is authorized to issue legal tender money.

The Nigerian Naira (₦ official symbol) was first officially introduced on 1 January 1973 by Obafemi Awolowo.

The current inflation rate is sitting at 12.26%, which is an alarming rate.

How to Trade Forex for Beginners Guide

Every trader needs a helping hand, especially when starting out as a beginner.

With an influx of brokers, mentors, signals, EAs (trading robots) and charting software, where exactly do you start?

The answer is quite simple! It all starts with a quality education from reliable sources. 

We have put together a starter guide, just for traders like you.

Broker Regulation in Nigeria

Regulatory entities have proven to be one of the deciding factors when choosing a broker.

Nigerians mostly depend on the Central Bank of Nigeria (CBN) for a “legal” framework and support for forex and CFD trading within Nigeria.

The 4 most common and trustworthy regulatory bodies to consider are the FSCA (South Africa), FCA (United Kingdom), ASIC (Australia) and CySEC (Cyprus).

Since Nigeria has no official regulatory entity for forex and CFDs (contract for difference) the above mentioned are good options. They are ethical and protect their clients by taking action when needed against fraudulent companies.

 Broker Types – How do they operate?

Most traders place a lot of importance on the method of operation, though some place more emphasis on it than is really necessary. Most brokers can be placed into 3 main categories of ways they handle liquidity, and ultimately client funds when (if) it “goes to market.”

Below are the abbreviations for each:

  • ECN (Electronic Communication Network)
  • STP (Straight Through Processing)
  • MM (Market Maker)

To elaborate, a broker has a dealing desk or a non-dealing desk. People refer to this as A-book and B-book brokers. What is the difference?

Although each has its pros and cons, all three can still provide fair trading conditions, which is what traders should be most concerned about!

Due to the stigma of being a market maker brokers will not openly admit that they are such.

ECN – Electronic Communication Network

ECN stands for Electronic Communications Network. Brokers are individuals who help clients gain direct access to market participants through electronic channels. Forex financial experts are also known as ECN brokers.

By consolidating quotes from multiple participants, ECN brokers can offer tighter bids and asks. Most of the time, an ECN broker’s clients are either market traders, banks, or individual investors.

STP – Straight Through Processing

Straight Through Processing is a Forex brokerage model in which orders are sent directly to the market by clients without having to be dealt with by a deal desk. Typically, STP accounts are considered to be a hybrid between markets makers (dealing desks) and exchanges.

MM – Market Makers

Both bid and ask prices are set by market makers on their systems and are publicly displayed as quote screens. Their customers, ranging from banks to retail forex traders, are prepared to make transactions at these prices. By doing so, they help the market by providing liquidity.

Trading Platform

Brokers offer a variety of trading platforms. Brokers who do not offer the industry standard MetaTrader 4 (MT4) are rare. Other popular platforms include MetaTrader 5 (MT5), cTrader, and broker-designed proprietary platforms.

MT4 – MetaTrader 4

Trading platforms are mainly designed for Forex trading, including MT4 (MetaTrader 4). This system provides huge flexibility and can be used by EAs, robots, and custom indicators.

The adoption of MetaQuotes’ MT5 hasn’t gone as well as planned, and it’s not as popular as everyone expected.

MT5  – MetaTrader 5

The MetaTrader 5 (MT5) platform is a MetaQuotes multi-asset trading platform that lets you trade forex, commodities, and futures.

In MT5, traders can view charts, stream live markets, and place orders with their broker, just like most other online trading platforms.

Expert Advisors, or EAs, are the most popular feature of MT5.

cTrader

cTrader provides the convenience of quick entry and execution, coding customization, and easy trading features.

With Spotware’s cTrader, novice, as well as experienced traders, are able to use its features.

Direct access to the interbank market is offered through this platform, along with various pre-sets, algorithmic trading systems, and portable charts.

In volatile markets, you are able to manage your positions more efficiently with improved charting capabilities and order management systems.

Trader Trading Conditions

Trading costs can be reduced by factors such as leverage, spreads, and account types. These factors directly affect profit and loss. Trading costs are therefore the main factor a trader should consider.

What is leverage?

Trading forex over other asset classes has the advantage of leverage, one of its most powerful features. How does leverage work in forex trading? How is it used?

By using leverage, traders gain access to a larger position than what they would normally be able to control.

The advantage to leverage trading is that you are able to trade much bigger volumes with less money than you’d use if you invested all your own money instead.

What is spread?

In Forex, the spread is the difference between the Bid and Ask prices for a given currency pair.

You will see two prices in your trading platform; a bid price (buy) and an ask price (sell price). The asking price will never be lower than the bid.

How do account types impact trading costs?

In addition to different leverages, lot sizes (standard, mini, micro and nano), and spreads, there are different account types available. Minimum deposits are also based on the type of account a trader has with their chosen broker.

Swap-free accounts, low spreads without commissions, or even zero spread accounts can help you save money and boost profits.

Trading style and approach highly influence the size of your ideal account.

Forex trading for beginners

For beginners in Nigeria, it is not easy to make high profits in forex trading in just an overnight. It is impossible until and unless you are not aware of the basic trading concepts. Even advanced traders can face high losses in forex investment if they follow the wrong strategies in trading.

To start a successful forex trading journey, it is imperative to learn the theory of what forex trading is all about. So here it is to be mentioned that forex trading is all about practice and practice.

Sometimes losing huge amounts of money in the first few deals can make you frustrated a lot. Therefore, it is important to learn some trading strategies. Just figure out how analytics work in trading to protect yourself from getting bankrupt.

Plus, it is also important to note down the future forecasts by experts. You should learn how to reduce the diversified risks. Selecting a reliable forex broker also holds an equally important role. Check out their license and see if they are certified to perform trading activities or not.

As a beginner, Nigerians should always select a secure trading strategy. One best strategy is copy trading, in which a new trader can mimic any other professional trader strategies. This is how they can understand the whole concept of trading and make some profitable decisions.

Once you move into a trading market, never start trading with a live account. Instead, understand the basics of the forex market by creating a demo account. Hence, it’s a safe approach to test your trading skills and knowledge without facing any loss.

In addition, start with the minimum deposit amount. A maximum deposit means high-risk chances. Therefore, you should always deposit that much amount which you can afford to lose.

Furthermore, stick to smaller investments. Never put your entire deposit into a single trade. Always remember that forex is all about running in a long race.

Keep your fear, greed, and other emotions in control. There is no space for emotions in the forex market.

Last but not least, never stop learning We provide an abundance of resources for traders in Nigeria.

Forex meaning

If we clearly define forex meaning, it is a marketplace or platform where you can easily trade currencies. For conducting business and trade, the currency should change hands.

If you are travelling to another country from Nigeria, you have to convert your local currency over there. And this is done based on prevailing exchange rates. And this is possible through Forex. Forex market is the largest marketplace which is related to buying and selling of currencies.

A single question that probably hit so many minds is that why forex trading is so much popular. Certain firms won’t charge commissions, but they do ask for bids or spreads.

They even allow you to trade based on your convenience, 24 hours a day and seven days a week. In addition, leverage trading is also possible, which can magnify your overall potential gains and losses.

It would help if you always narrowed down your trading focus by selecting the best currencies. Also, avoid getting lost in the market with certain options that might even mislead you.

Another best thing about forex trading is that it is accessible to an ordinary person living in Nigeria. You don’t need to be rich enough to enter the forex market. However, if you are a strong player in trading and know-how to earn a profit, no one can stop you from being a part of this market.

Few major players in Forex are banks, central banks, individuals, investors, and corporations. However, some biggest banks worldwide are completely dependent on forex trading to perform their business operations.

Central banks also have a major role in Forex. Open market operations and interest rate policies highly influence currency rates.

Hedge funds are also part of the forex market for speculating trades at any time. Moreover, all those firms engaged in export and imports are also dependent on Forex to easily facilitate goods and services.

What is forex trading?

Do you want to know what is forex trading? The term forex trading is all about speculating on different currency pairs for potentially making some high profit. But, of course, we all know that currencies are generally traded in the form of pairs.

And therefore, by exchanging from one currency to another, a trader speculates if one currency will fall or rise in value against another currency.

The value of any currency pair is influenced by economic, trade flows, geopolitical and political events. All these factors are responsible for affecting the demand and supply of forex. As a result, it often creates some daily volatility which can offer vast trading opportunities.

Not just the currency pairs, but forex trading is also about selling and buying different securities such as stocks.

One major element of the forex trading market is leverage which plays an important role in the forex activity for Nigerian traders. With leverage, a trader can purchase multiple original investments.

If any forex trader is employing the leverage of 20:1, it means that they can buy $20,000 of the foreign currencies at just $1,000. Some firms even allow the leverage of 1:500 or 1:1200.

In a forex trading activity, there are certain risks involved from which a trader should be aware. One major risk is associated with small market movements that can display a big impact. In addition, some FX trading products are based on high leverage.

For the newbie Nigerian trader, it gets a lot difficult to predict the currency markets. This is because a variety of factors can affect the exchange rates.

In addition, trading delays can also affect the trading results. For example, it won’t allow you to make trades according to your preferences due to a lack of liquidity.

Different forex trading tools and software programs are available for beginners to learn the forex market basics. Some of the brokers even offer you trial sessions to experience the trade market in real-time.

What is forex trading, and how does it work?

Right through this guide, we will discuss forex trading and how it works to earn quick money. The term forex trading is about making some trade by selling and buying currency in the world.

The currency of one country (Nigerian Naira) is different in terms of value from the currency of another country. In short, the value of today’s money is different from the value of tomorrow’s money. Through this money value, you can do selling and buying and make some profits later on.

Forex market is currently working within a huge networking channel based on corporations, the world, and individuals.

Another best thing about the forex market is that they are not restricted to any set of trading hours. You can trade 24 hours a day and seven days a week. Since the entire world is associated with the forex market, therefore, the market is always open.

According to advanced traders, the actual rule of forex trading is about selling high and buying low. But in the middle of this trick, you need to be careful about the right time to sell or buy currencies.

Graphs are an important forex trading tool with which a trader can make better trading decisions without facing any big loss. Keep yourself updated with forex’s latest news to see more business trends or strategies.

Before forex trading, the concept of currency trading was quite complex due to the emergence of high barriers. But now, the forex market is extremely popular among exporters, importers, speculators, long-term holders, multinational corporations, day traders, and managers.

Remember the rule that you should base your decision on inspecting the previous market performance and trader activity. The majority of the new Nigerian traders even prefer to use copy trading in which they follow the strategies and trading approaches of advanced traders.

How to trade forex for beginners?

How to trade forex for beginners is such an important point to discuss before taking your first step. In forex trading, different currency pairs are exchanged through a network of sellers and buyers. Thus, currency pairs are merely traded to make some money from the fluctuating exchange rates.

Even if you are new to forex trading, you should always be learning something new about the market. So write down how it works, the best trading hours in the forex market, how you should trade, etc.

In forex trading, currencies are always traded in pairs. Major currency pairs, minor currency pairs, and exotic currency pairs are the three main types of currency pairs.

The major currency pairs include the Euro or EUR/USD and USD/JPY or Japanese Yen. You can also select the British pound sterling or GBP/USD. We also have EUR/JPY under the minor pair’s category.

Volatility and volume of major currency pairs are high, while those of exotic and minor currency pairs are lower.

With the help of charts, you can predict the future price of an asset, which is a crucial part of forex trading. However, to learn how to read charts, you will need to choose a specific trading strategy. Find out which of these strategies fits your goals and trading style by doing some research.

Practice and experience are the two most important aspects of forex trading. Therefore, it would help if you practised new trading strategies on a demo account once you have learned them.

Different brokers offer new traders access to the demo account to learn excellent trading strategies for a vast improvement. A demo account works the same way as a live trading account and helps you see how price moves.

Last but not least, you should be careful about selecting reliable brokers who facilitate your trades. Consider their trading platforms, how many trading products they offer, fees, commissions, and customer service.

What is forex trading all about?

Do you know what is forex trading all about? The term forex trading is a method in which buying and selling of currencies are involved against one another. The combination of these two pairs of currencies is known as currency pairs.

Remember that when you are in forex trading, currencies are always traded in pairs. Each of the currency pairs is presented in a unique code of three letters.

The first two letters of the code represent the country, and the third letter is for the currency, i.e., the code JPY = Japanese Yen.

Forex prices are also known as rates. They are used for expressing the value of any single currency against the other one. For example, a rate or price in euro-dollar is generally quoted as EUR/USD = 1.23700.

In forex trading, 1 unit of the base currency is equal to 1.23700 US dollars. This generally means that for buying 1 euro, you need to pay 1.23700 US dollars.

If you are selling, then the FX rate will specify how many units of a quote currency you will get in exchange for a single base currency. For instance, the rate often tells you that you can receive 1.23700 US dollars once you sell 1 euro.

A trader in Nigeria is free to open a long or buy position if they believe that the value of a certain base currency will eventually increase. Similarly, a trader can open a short or sell a position. But this is only if they believe that the value of a certain base currency will eventually decrease.

Diversity and flexibility are the two major advantages of trading forex. But there are certain pitfalls from which you need to be careful. A variety of trading options and high leverage are the two major elements that can disturb your trading journey a bit.

How to learn forex trading?

Do you want to know how to learn forex trading? Beginners who want to trade successfully in the forex market are eager to learn how to do it. However, to learn forex trading effectively, you need the best forex education from a professional trader.

New traders within Nigeria need to understand how forex trading works, how to make forex trades, what active forex trading hours are, and how to manage risks! There are also many books, websites, and educational tools that you may find useful.

Experience can be your best teacher if you want to be unbeatable on the forex market. It is never a good idea to open a live trading account unless you are familiar with the basics of forex trading.

There are also demo accounts available on almost all brokers so that you can experience a real trading environment with virtual funds.

Moreover, it would help if you had a thorough understanding of the products you are about to trade. Most new traders make the mistake of choosing all those products that are moving in high jump without considering whether or not they will be profitable for them.

Using high leverage or trading randomly in both directions can lead to a high loss of money.

Apart from that, currency pairs you are selling and buying can also impact your trading success. Currency trading is a great option because it allows you to use leverage. As you do a bit of research, you can find a variety of currency pairs to start trading on.

Always remember that managing emotions and risk go side by side. For example, stop trading if you are greedy or have some fears. In such a psychological state, a trader normally makes big mistakes.

While looking at a forex trading chart, always use a logical mindset approach and see where potential success is possible. Then, hold your excitement while conducting the forex chart.

Each broker has their minimum deposit required to start trading, which is not more than $100. So start your research work on forex trading and move into this world as an expert trader.

How to start forex trading?

Beginners have difficulty understanding the entire process of how to start forex trading. However, advanced traders within Nigeria can make a lot of money with this system in just one night despite its complexity!

Please don’t panic; we’re here to show you how to start forex trading and what basic components are mandatory to start with. So let’s get started below.

Choosing the trading platform on which you wish to begin your journey is the first step.

Pick a currency pair and open a chart. Then, depending on your preferences, select a timeframe. We recommend a 15-minute timeframe. If you are looking for currency pairs to trade, you can pick AUD/JPY, which has a strong downtrend and simplifies the whole process.

Once you’ve chosen a currency pair, it’s time to place the order. Setting the levels of a stop loss and take profit is optional, but it is highly recommended.

Professional traders recommend setting a stop loss at a half-pip amount to achieve long-term success. Then, once you have submitted your trade order, you can wait for the confirmation to pop up on the display screen.

If anything wrong happens with the executor, you can straight away contact the broker to investigate your trade through a reference number.

The waiting period in forex trading might freak out so many traders because it panics you a lot due to the constant movement of market prices. It is hence helpful to turn off the display screen to avoid any distractions.

Furthermore, different brokers have online courses and training programs to help new traders start successful and easy forex trading.

So this was the end of the discussion about how you can start a quick forex trading without any pain. First, always select currency pairs after researching them to see how they work in a forex market.

How to Trade Forex?

For beginners, the concept of how to trade forex is a complicated structure to understand. But it is overall a fascinating experience in a lifetime. Moreover, once you become a pro master in forex trading, you are given countless opportunities to make handsome money.

Even though you still become an expert in forex trading, your journey does not stop here, and you should keep on polishing your trading skills all the time. Nigerian traders can also trade by opening their trading accounts in different brokers who are supporting Nigerian currency.

Stay a bit alert when selecting risk levels during forex trading. To test any complex trading strategy, you have to create a specific number of trades. Try to limit the risk in each trade to open some more options for you to test advanced trading strategies.

For the new traders, understanding the concept of time frames in forex charts is not an easy thing. Anything you view as a buying opportunity on the weekly trading chart can also be a sell signal towards the trading intraday chart.

If you use a weekly chart to grab basic trading directions and a daily chart for time entry, make sure you balance both in sync.

In case you are new in the trading world, make sure you follow the previous actual trades. Do this by following their directions on forex charts. This is how you can indicate when you should exit or enter a trade. Plus, you should also determine if you have made a loss of profits. Finally, note down all results carefully for future use.

As soon as you fund your trading account, it will be helpful if you prepare yourself to know that your money is at high risk. But don’t panic and just imagine your trading money as your vacation money. You should only fund that much amount, which you won’t regret even if you lose.

Look for reliable and registered brokers who are certified in performing trading activities through various trading products.

Forex Trading App

To move into a smooth and hassle-free experience of trading during travel time, choosing a forex trading app is something that can be a real survivor for you. A forex trading app is compatible with tablet or android phones in which you can perform trading with just one click.

Almost every broker has designed their mobile trading apps through which their clients can perform quick trading in a second. Let’s discuss a few famous forex trading apps for your help.

IG Trading app is a famous trading app covered with all advanced trading features for beginners and pro-traders. It is fully packed with some powerful tools and is the number 1 choice of traders in 2021.

SaxoTraderGO mobile app is a popular mobile app providing a seamless trading experience across different devices. Even the charts can sync across mobile and well along with other advanced features.

CMC Markets’ mobile app has an interface that is quite similar to the NextGeneration web platform. Clients can access some powerful analytics and research tools to have an outstanding trading experience through this app. Plus, you can also watch CMC TV to keep yourself updated with upcoming market trends.

TD Ameritrade logo Thinkorswim app is fully packed with a bunch of powerful trading tools along with an intelligent layout for a user-friendly operation. In addition, it offers more than 80 currency pairs with advanced charting based on 300 indicators.

City Index mobile app is another powerful platform offering the latest tools from Trading Central. With these tools, clients can access various research options and trading charts. It also includes complex order types which makes this app much different from others.

FXCM’s Trading Station mobile app is a perfect balance of superb charting, supports complex order types, and has smart trading designs. Users can also draw with great precision a magnifying glass that auto-zoom the trendline into an order position. Traders from Nigeria can also use this app to start trading with any successful broker who supports Nigerian currency.

Look for the trading app, which is friendly, easy to use, and available with various powerful trading tools for a quick trading experience.

Forex Trade

Forex trade is generally a term used to describe the individuals associated with the active exchange of foreign currencies.

Forex trade can also take the shape of speculators who are seeking to sell or buy a currency to gain some profit from an ongoing currency price movement. Finally, it can be a hedger who is always looking forward to avoiding extreme exchange rate movements.

Being a forex trader, you can sell and buy currencies from a foreign exchange market. Major duties of a forex trader include analysis of currency pairs or researching forthcoming currency movements. You can even predict or analyse in what direction the coming currency price will move.

In forex trading, currencies are always traded in the form of pairs known as currency pairs. In this way, if you buy one currency, you have to sell the other one simultaneously. Various brokers in different countries even allow Nigerian clients to open their trading account in Nigerian currency.

Each currency pair in forex trading is categorised into two parts, i.e., base currency and quote currency. Base currency is always equal to 1 and is a quote in the first list. The quote currency is the second currency that is listed in the quote.

In forex trading, the spread is an important component which is a difference between the selling price and buying price of any currency pair. Hence, it is also known as ‘buy-sell spread’ or ‘bid-ask spread.’

Another important component in forex trade is leverage which is similar to a loan. With leverage, you can borrow money from any broker with which you can trade huge sums of currency.

With forex trade, you need to put down a smaller deposit known as margin. The broker will also top up the trading account with specific money which you want to trade. By using leverage, you can increase your profit ratio if your investment is successful.

Forex trade is open 24 hours a day and seven days a week, which involves a huge global market.

MBA Forex

MBA forex is known to be a reputable training and capital investment company. This platform is working with the central vision in which they are impacting the general populace with the basic knowledge related to forex trading.

This platform is also aiming to bring about some sustainable financial freedom at a premium level. Currently, they have more than 10,000 active investors and around ten business locations in Nigeria. Plus, they even claim to have their locations in the UK and UAE.

If you are new to trading, you should know that trading is not one-night hard work. On the contrary, it requires so much knowledge and necessary experience to perform something profitable.

MBA forex also claims that their team has long years of experience in the market of trading. They also claim that they have an excellent investment plan to enable the investors to earn some high profit.

Maxwell Odum is the CEO at MBA forex trade, and according to him, his company is just focusing on increasing job opportunities and money-making. We all know that Nigeria has a high poverty level that can be chopped up by implementing a profitable trading strategy.

It would help if you choose MBA forex because it has:

  • Excellent Security
  • Easy options of payment
  • High return on your investment
  • Friendly user interface

Two different platforms are offered by the MBA trading company. This includes Investment Platform and Trading Institute.

You can invest in the minimum amount requirement on MBA forex, which is not more than $1000. And they guarantee that each member will get 2.5% – 15% ROI per month based on the amount they have invested.

Online learning and training classes are also available at the cost of $95,000 for the starting three months. The online fee for international students is around $1000. Classes are generally divided into three sections scheduled on Monday, Tuesday, Wednesday, and Friday.

Best Forex Trading App in Nigeria

To start trading in Nigeria, the best forex trading app in Nigeria is available to make your trading experience a seamless opportunity to get profitable results.

Through trading apps, traders can perform their trading activities with just one click through mobile phones. Let’s highlight a few of them below:.

AvaTrade

AvaTrade broker is available with a mobile app named AvaTradeGo. This trading app has been voted the best on the trading platform in 2020 to provide traders with a stable trading experience.

Moreover, it is available with an advanced dashboard and has intuitive management tools.

You can also get clear charts and market trend features for monitoring the latest trading trends within the AvaTrade community. The minimum deposit requirement is $100 with as low as 0.9 pips.

XM

XM is a popular well-regulated broker, supporting both MT4 and MT5 native XM apps. This broker is available in three different account types: micro account, standard account, and commission-based XM Zero Account based on super-tight spreads.

Each trading account offers tight spreads, i.e., 1.6 pips on Micro and for the Standard account and 0.1 pips for the Zero Account.

HotForex

HotForex is a well-known trading platform regulated by FSCA. It offers traders various trading instruments, including bonds, indices, commodities, shares, and ETFs. Unfortunately, they do not offer crypto CFDs for trading.

The latest HotForex HF App offers some advanced features of in-app fund transfers and advanced charting. In addition, users can also access HotForex’s copy-trading accounts, i.e., PAMM and HFcopy.

Markets.com

Markets.com has been operating since 2010 with more than 2,200 trading instruments to choose from. This includes stocks, indices, commodities, Forex, bonds, and ETFs.

The broker also offers a mobile trading app, Markets based on low-cost trading, fast processing, and more than 2,200 financial instruments. This app is natively designed for iOS and Android users for a seamless and stable trading experience.

Best Time to Trade Forex in Nigeria

Despite the recent economic troubles in Nigeria, the market of forex trading has become popular and more accessible over the past decade.

It is theoretically possible to trade Forex in Nigeria with as little as $1, as some Forex and CFD brokerages require no minimum deposits and accept Nigerian residents as clients.

Unlike with the rest of the commodities, it is not practical to trade Forex with much less than an investment of $100 or equivalent. This is due to leverage and currency exchange issues and because most Forex brokers refuse to accept deposits directly in Nigerian Naira.

Trade size and leverage can make even $100 problematic, so something close to $500 would be better.

The time zone is one of the benefits that all traders in Nigeria can rely on. As part of the global forex market, Nigeria shares the same time zone as London.

For us, as soon as the market gets into more liquidity and volume, it generally gets into the best time to start trading Forex.

We all know that there is a certain overlap between New York and London sessions once the liquidity and volume in the forex market get high. Both of them stay high until New York closes itself for further forex business.

Therefore, the best time to start trading in Nigeria’s forex market is between 2 pm till 10 pm.

Nigerians can trade Forex if they have a broker that is licensed to do so. Most countries have a regulated foreign exchange market. So to trade in Nigeria, look for legally certified brokers to step into the Nigerian forex market.

If third parties become dissatisfied, you could be in trouble if you raise capital from them without a proper license to do so.

For the newbie, handling forex finances and knowing the market movements can be tricky and challenging to understand. However, different websites offer online tutorials and video guides to understand what the Nigerian forex market is and how to win profitable results on a lesser investment.

Equity in Forex

A trader’s equity in Forex refers to how much money they have in their trading account (i.e., their balance), plus or minus any profits or losses from open positions. In this case, a trader’s equity is equal to their balance if they do not have any open positions.

In the same way, just like the balance lies in different places on the trading platform, a trader’s equity may also be located in different places, depending on whether the Nigerian trader uses MT4 or MT5.

Under the Trade tab in the MT4 Client Terminal, the equity is displayed. Under the Trade tab of the Toolbox on the MT5, you can see the equity.

If there are fewer losses and the market is facing some turnaround, more margin is freed up. This is how the equity will be able to margin all over again.

The new trade is often determined by a certain extent to which the forex equity will exceed the final margin.

If the equity is moving against you, then possibly the market will also move against you. In that case, the equity drops, even more, making it impossible for the trader to continue to open more trades.

As a Nigerian trader, you can even maintain structure within your forex trading activities by simply understanding the role of the entire equity in Forex. The margin call potentially doubles a trader’s risk, which could be avoided by taking on a smaller amount of risk.

Forex trading includes equity as one of its most essential aspects. Therefore, to ensure that the account never suffers from losing trades, equity has to be high.

Increasing the equity of the account, or using the right leverage/margin requirements according to the size of the account, can accomplish this. Finally, take advantage of a risk-free demo account to test your newly-acquired knowledge.

It’s a safe way to evaluate how well you have understood the information and how well you can apply it to real-world situations.

Forex Chart Patterns

If we talk about forex chart patterns, they work as on-chart action patterns. So they got higher than the average probability of any follow-through in a specific direction.

With the help of these trading patterns, price action traders can get some clues using technical chart analysis in their forex trading decisions. Every single chart pattern has a high potential for pushing the price towards a new move.

To benefit from upcoming price swings, a forex trader in Nigeria has to identify the chart patterns.

To quickly read forex chart patterns, traders should follow the below-mentioned steps:

  1. Define the shape of any top pattern for predicting price movement.
  2. Figure out if it is reversal, continuation, or has a bilateral chart pattern.
  3. Draw the support and resistance levels.
  4. Please wait until the price breaks the support or resistance to make its way inside the market. Never open trade before the breakout because this can lead to a rise of a false breakout.
  5. To avoid any losses, define the stop-loss and take-profit levels in advance.

Here we would like to mention that it is not guaranteed that the chart pattern will show 100% accurate results. It might be possible that you won’t be able to apply it in all market conditions.

Some patterns will occur during the high volatility, and some might work during calm market conditions. Plus, the chart’s timeframe can also leave some impact on the overall strength of chart patterns.

In addition, chart patterns are categorised into various groups, i.e., continuation, reversal, and bilateral. Support and resistance concept is the primary key in each group of chart patterns after which traders can catch accurate signals.

In short, chart patterns are responsible for providing accurate stop-loss, entry, and take-profit levels. Although these patterns are in various shapes, each type is set with its own basic rules that you need to follow when reading signals.

Forex Charts

Forex charts display the historical price and volume data for several different currency pairs. Thus, a forex chart illustrates the historical price movement over a specified time frame, along with technical patterns and indicators.

To plot a chart, we must decide how much we want the visualisation to be compressed. For example, time frames can be intraday. This includes ticks, 1-minute, 5-minute, 10-minute, 1-hour, 4-hour, etc., based on daily, weekly, monthly, or annually.

A one-hour chart, also known as an hourly chart, is the most commonly used intraday chart. If your trading style and preferences are low, you can have tick charts, which plot the price every second.

To anticipate long-term price movements, investors focus on weekly and monthly charts. However, market players in Nigeria who are experienced usually use a combination of both short-term and long-term charts.

A Forex trader who can scan charts will have a huge advantage. You must know the direction of a currency pair before you open a trade.

Choosing random trades on which a trader has no knowledge is the biggest mistake. Look at various currency pair graphs before you open a Forex trade in Nigeria. Notice those which already have gained high profit in the past.

Some graphs will be better than others, depending on the strategy you intend to use. For example, you will need a line chart if you plan to stay in your position for days, weeks, or months.

Graphs with more information are needed for strategies such as swing trading and scalping. For example, some may use a candlestick chart to illustrate the volatile movements of a currency pair.

Others may use a bar chart to profit from minor changes in prices. With the help of forex charts, it makes it easy for a trader to determine in which direction a currency pair will move.

Forex Demo Account

The use of a forex demo account allows you to experiment with online trading platforms in a risk-free environment. Live trading account and demo account are both a little bit different from one another in terms of:

  1. There will be no such slippage, interest, or dividend adjustments in the demo account. Traders won’t be able to experience out-of-hours price movements on the trades made through the trading demo account.
  2. Unlike the live trading account, the use of a demo account for trading purposes is completely risk-free. As you are investing your virtual money, it won’t involve any risks of losing the money or facing huge losses at the end of trading.
  3. On a demo account, there are no charges for chart packages.
  4. If you do not have sufficient funds to cover the margin and running losses, which normally occur in a live account, your trades will never be closed.

Additionally, Nigerian brokers provide demo account traders access to their client services and customer support staff. You should choose a broker whose demo account service is unlimited and does not put any sort of restrictions on the traders. Some brokers close the demo account after a specific time which is not beneficial for traders.

Demo account trading is becoming vastly popular because it lets newbie traders enhance their trading skills and gain better trading knowledge by investing virtual money. In addition, it’s a completely risk-free environment with no chances of giving any loss.

For example, you need to go with various online Nigerian broker options to select the demo account that suits your trading preferences. Then, find the one which goes in line according to your trading style.

Experienced and novice forex traders routinely use demo accounts to practise trading currencies and new brokers or strategies. Demo accounts allow them to practice their skills in a real-life environment without risking their money. It even lets the traders identify common trading mistakes they need to avoid before they step into a live trading world.

For new and experienced traders alike, forex demo trading is undoubtedly a valuable addition to the arsenal of trading tools.

Forex Indicators

Do you want to know how to use forex indicators in a trading strategy? Undoubtedly, forex indicators are the most common component traders use in their trading strategies for a profitable achievement.

Indicators are used to highlight trading opportunities, increase objectivity, and make a suitable strategy for automatisation.

Moreover, forex indicators are technical indicators based on computerised calculations. These indicators predict the price change in the financial market.

Nigerian traders can apply it to any chart, including those of the currencies. Calculations are generally based on previous market prices and sometimes the volume.

Best forex indicators are working on the basic assumption that previous/past patterns will likely repeat themselves, providing some similar circumstances to arise.

For example, if a currency dropped directly after political fallout, it could have resulted from repeated episodes of political instability. Forex indicators will record and use this information to predict whether or not similar behavior will occur in the future.

Trading on their next market account based on this data can help traders gain insight into how currency prices and the market as a whole are affected.

Many indicators are available on the next markets, so it can be hard to determine which one to use when placing a trade. When you are new to Forex, you may not need to use every available Forex indicator. But you may need to use a few when analysing market behaviour and predicting future market events.

By choosing a reputable Nigeria Forex broker, you can ensure that you have access to various materials. Examples include Forex indicators, Forex signals, and a Forex calendar.

Using different tools to construct a strategy can help you learn more about the market and better understand its performance.

Forex Investment Companies in Nigeria

If you want to get an idea about the best forex investment companies in Nigeria, then you are at the right place. Here you will get all the required information about reliable investment companies to choose for trading.

Forex trading is allowed in Nigeria, and for successful trading, it is essential to look for the best forex Investment Company or broker. Be smart and prevent financial scams by trading with CBN-regulated forex brokers.

CM Trading broker is a well-known investment company in Nigeria to start trading with. This platform is excellent for both intermediate traders and beginners.

Started operating in 2009 and regulated by FSCA, CM Trading offers welcome bonuses for the new clients. Variable spread starts from 0.9 pips with the maximum leverage of 1:500. For opening a trading account, the minimum deposit requirement is $200.

XM broker is another top leading broker in Nigeria with the highest leverage ratio of 1:888. In addition, this broker is available with two trading platforms, i.e., MT4 and MT5, for a seamless trading experience.

The minimum deposit requirement for opening a trading account is $15. Hedging and scalping are also allowed with XM Broker.

Last we have AvaTrade, which is the most recommended forex broker in 2021. This broker is regulated by the Irish Central Bank, United Kingdom FCA, and Japanese FSA.

No doubt, AvaTrade is the safest forex broker with an easy-to-learn interface for beginner traders. It has the safest bank account functionality with negative balance protection. The welcome bonus is also offered to the new traders with a high leverage ratio of 1:400. More than 50 currency pairs and a variety of stocks are available for trading purposes.

To end this discussion, it is evident that forex trading in Nigeria is expanding more and is becoming a legal activity to make some money out. As the Nigerian economy is proliferating, the concept of the Nigerian forex market is becoming even more popular among traders.

Forex Market

The Forex market allows individuals and banks to sell, buy, or exchange currencies for speculative and hedging purposes. Forex market is also known as foreign exchange. It is one of the largest financial markets worldwide.

A forex market combines central banks, commercial companies, hedge funds, investment management firms, investors, and retail brokers.

Nigerian traders can enter the forex market at any hour of the day they want to. It operates 24 hours and 5 days a week in which trillions of dollars of trading are done daily.

Thus, forex trading can eventually provide higher returns, bringing enormous risks for the traders.

A forex market is based on two different levels, i.e., interbank market and over-the-counter (OTC) market. There are different forex accounts that you can open with an investment of as little as $100.

The US dollar is the most traded currency in the forex market to date today. Second, we have the euro, and on third, we always recommend the traders to pick the Japanese yen.

JPMorgan Chase is the largest trader within the forex market, having 10.9% of the forex market share globally. He has been the market leader for the last three years. UBS is the second leader with an 8.2% market share.

The reason why forex trading is becoming so much popular is due to its flexible nature and lack of restrictions. As a result, a larger amount of trading volume is available, with the markets operating 24/7.

In addition, a variety of trading options is also available for a seamless and stable trading experience. A variety of currency pairs can be selected for trading and other instruments such as indices, gold, commodities, CTFs, etc.

Be careful when selecting forex brokers with whom you are starting your trading journey to be the next leader of the forex market.

Forex Risk Management

Forex risk management consists of basic implementing rules and a few measures to ensure that all negative market effects of trade are successfully managed.

To develop an effective strategy, it is imperative that you set up a risk management plan from the beginning since it is better to do so before you trade. For example, here are some of the Forex trading risks:

  1. Currency risk: Currencies might fluctuate in value, which will be putting the foreign assets at risk of being too much or too less expensive.
  2. Interest rate risk: Volatility is influenced by the sudden shifts in interest rates and is referred to as interest rate risk. FX prices are affected by interest rate changes because changes to the interest rate will impact spending and investment levels across an economy.
  3. Liquidity risk occurs when you can’t sell or buy an asset quickly enough to avoid a loss. There can be certain periods of illiquidity even though the forex is known to be a highly liquid market. This might be depending on the currency and, to some extent, governments’ foreign exchange policies.

The first step is to completely understand your level of risk appetite and what type of trader you are. In exchange for a higher potential profit, some traders take larger risks. Some traders, however, are risk-averse and prefer to minimise their risk.

You can decide how much risk to take per trade by identifying your risk appetite. For example, conservative traders might prefer to risk 0.5-1.0% of their account balance per trade, while aggressive traders might risk 2-3% of their account balance per trade.

Your trading plan should include risk management once you have a clear picture of your risk appetite. And for that sake, you should know what kind of trader you are and how much you are ready to lose.

It is hazardous to trade without a stop and profit target, especially for beginners. You may be tempted to ignore your rules and leave losing positions running in hopes that they will turn profitable eventually.

Effective risk management can be accomplished by having well-defined rules and stop-loss orders in place.

Forex Signals

Trading forex pairs is made easier through forex signals, a popular and innovative financial tool. Forex signals, generated either by an automated system or by an individual trader, will help traders determine when they should enter or exit a trade.

For Nigerian traders, a forex trading signal is a signal to enter or exit a position, i.e., to go long or short. Signals for forex trading are equally based on specific times or prices. Therefore, it can easily be observed through some technical or fundamental analysis.

Once signals have been received, it depends on the traders whether they want to act upon it or not. Forex signals are used differently by each trader. But still, as a general rule, every trader should keep these four steps in mind:

  1. Decide which currency pair to use
  2. Create an entry point
  3. Place a stop-loss order
  4. Take a profit input

Forex signals are efficient in their work. Nigerian forex traders might spend a lot of time researching and analysing to trade successfully. But forex signals never require traders to analyse charts and patterns constantly.

Still, you should conduct your independent research and don’t just rely on signals.

Minimising risks is made easier with the help of forex signals. The proper forex trading signal can help you minimise the risk of losing money. It will indicate the right time to enter or exit a trade.

Consequently, it even assists you in getting an idea of where to place your stop loss.

Plus, it has a learning curve, which is relatively short. For forex traders, signals can assist them in understanding how these signals correspond to their trades.

One major drawback of forex signals is that they might show inaccurate results most of the time. But it is possible to minimise this risk by taking some precautions, including training and practice.

Forex Trading Investment

Foreign exchange, or FX trading, is the exchange of different currencies on a global market that is decentralised. Undoubtedly, Forex trading investment is known to be the world’s largest and most liquid financial market.

In forex trading, currencies from around the world are bought and sold simultaneously.

To trade on the Nigeria forex market, you must simultaneously buy and sell currencies. However, you can do this in different ways.

You may wish to go long (buy) the currency pair if you believe the FX ‘base currency’ will rise relative to the price of the ‘counter currency.’ Conversely, you may wish to sell the currency pair if you believe the opposite will happen.

This asset class is popular with traders due to several benefits:

  1. Leverage (the capability of trading on margin)
  2. Spreads remain tight due to high liquidity, keeping trading costs low
  3. Prices react rapidly to economic announcements and breaking news.
  4. Trading is available every day of the week from Sunday to Friday
  5. Being able to go long and short

To perform trades successfully, Nigerian forex traders implement FX trading strategies. As a result, trading is distinct from guesswork because traders can follow a strategy that informs their decisions.

Trading strategies can be created by adopting components of other strategies, but they must be modified to fit the trader’s needs.

Forex signals and technical indicators are often part of a currency trading strategy. For example, a forex trading signal can provide you with indications to determine the entry and exit points in a forex market.

You can either determine these signals manually or use an automated system. For example, chart patterns and averages can be used manually to determine to buy and sell opportunities.

Trading signals are determined by algorithms, which execute trades based on several predetermined conditions.

Forex Trading Platform

Forex trading platform has already gained popularity in the last decade. With technological advancements and an increase in mobile-accessible platforms, trading currencies has become easier than ever before.

The business of forex traders is to trade currencies. A lot of patience and strategy is required in this challenging process. The year 2021 will provide traders with even more excellent opportunities for advanced algorithms, artificial intelligence, and high-frequency trading strategies. This will allow traders to optimise their trades even further.

Forex is a form of trading in which currencies are bought and sold to make a profit. The forex trader speculates whether the value of a currency pair will increase or decrease.

Despite forex trading’s potential risk and unpredictability, this is also why some investors find it appealing. Opportunities in forex trading are created by volatility or unpredictability, and these opportunities can lead to profits (but also losses).

Before trading forex, consider these factors:

  1. You can choose to control a substantial investment with even a small amount of money through leverage. Potential returns can be high, but there is the possibility of significant losses as well.
  2. You can trade almost 24 hours a day, or 6 days a week, i.e., Sunday until Friday. As a result, you are free to even react quickly to different market conditions and economic events.
  3. The forex market is very liquid, especially for the most significant currencies, with a high level of trading activity. However, liquidity concerns may arise when trading obscure currency pairs.
  4. The trading of forex currency pairs takes place in 10,000 unit increments without commissions. As a result, the bid/ask spread reflects the cost of the trade.

Compared to other financial markets, the forex market additionally offers low transaction costs. Comparing trading in forex with trading in other markets, the transaction costs are extremely low on a percentage basis. This is because dealers mainly operate forex, which provides a two-way quote after deducting a spread to cover their upcoming risks.

Forex Trading Robot

Forex trading robots are programs that trade automatically for you using different types of algorithms.

A forex trading robot analyses the price movement in the currency market and buys and sells currency pairs based on a set of signals and algorithms. Typically, Forex trading robots operate fully automatically and are fully integrated into online trading platforms like forex brokers.

Nigerian market participants can save time and effort when using a trading robot. The market analysis required for forex trading can be quite labor-intensive for traders. When people analyse large amounts of data, they always have some limits.

Forex trading robots can provide traders with accurate information within minutes after analysing the market data.

The forex trading robot software is typically applied directly to the charts of the forex market. Then, based on historical market data, the robot determines which direction prices might take.

The trading robot settings can also be changed according to your preferences. For example, your trading plan’s entry and exit points can be set, so you never make unnecessary mistakes during your trading.

Forex robots come in different types. Some are designed for specific strategies and timeframes, while others are designed to analyse the Nigerian market for any trader.

Both custom-made and bought trading robots can be classified as expert advisors. The problem with bought robots is that they do not always fit the needs of investors and custom-made trading robots.

Even though Forex trading robots don’t make huge profits on their own, they can successfully trade Forex for traders. Several types of robots are currently available on the market, each working differently.

Some trading robots are designed only to analyse the market, while others can also trade currency pairs on your behalf. Forex robots can continue analysing the market when you sleep, making them very useful to forex traders.

Forex Trading Strategies

The most important part of forex trading is to identify a successful strategy. Various forex trading strategies are available to help you make money on the market, and different traders use them.

Trading for profit requires traders to eliminate losing trades and achieve more winning trades. New traders can achieve this goal by following any trading strategy. However, let’s highlight the top 3 trading strategies used by advanced traders:

A common type of trading strategy in Forex is scalping, which focuses on small market movements. Using this strategy, many trades are made in an attempt to achieve small profits per trade.

Consequently, scalpers will generate a huge number of small gains just for generating larger profits. It is, although, entirely different from holding a position for hours, or days, or even weeks.

Scalping is very popular in Forex because of its vast liquidity and high nature of volatility. To profit from a few small fluctuations in the price, investors have to seek those markets where the price action is continuously moving.

Day trading involves trading currencies within a single trading day. This strategy applies to all financial markets, but it is still the most common strategy to use in Forex. This trading approach recommends opening and closing all trades on the same day.

A position should never remain open overnight to minimise risk. Unlike scalpers, who typically stay in the market for only a few minutes, day traders monitor and manage trades throughout the day.

The strategy of position trading is long-term. Contrary to day trading or scalping, this strategy is primarily driven by fundamental factors.

To identify cyclical trends, a position trader will somehow monitor monetary policy, political developments, and various trading fundamental factors.

Over the whole year, an experienced position trader will merely open a few trades. And thus, it is predicted that these trades will result in pips of profit of a few hundred per trade.

How to Calculate Pips in Forex?

Do you want to know how to calculate pips in forex? Pip is basically known as the smallest price move, made by an exchange rate based on forex market convention.

Most of the currency pairs are priced to almost four decimal places in which pip is the last 4th decimal point. In short, pip is equal to 1/100 of 1%, or it has one basis point.

Currency exchange (forex) is based on a concept called a pip. To disseminate the exchange quotes, these forex pairs provide bid and ask quotes along with four decimal places.

A forex trader buys or sells currency whose value is based on the value of another currency.

Pips are the units used to measure changes in exchange rates. For most of the currency pairs, the smallest possible change is around 1 pip. This is because these pairs are hence quoted to a maximum of four decimal places.

The 1/10,000 or 0.0001 can be used to calculate a pip by dividing it by the exchange rate. One pip which is usually 0.0001is calculated by simply dividing the current value of the currency pair by its one pip.

When trading currency pairs of similar volatility, pip values can help you determine the risk involved and the margin required per pip. If you do not know the pip value of a currency pair, you cannot accurately assess the risk involved in holding a position in that pair.

Due to the leverage typically used in forex transactions, the pip value of positions gets multiplied by the leverage.

Using money management techniques, you can determine the optimal position size for any trade, provided the account size and risk tolerance are within limits. If you do not know these risks, you might take on too much risk or too little risk.

Is Forex Trading Gambling?

If you have been new in the forex trading market, then the first question that hits your mind is that is forex trading gambling or not. To a certain extent, it might be true because you invest your small money to get profits or make more money.

No one can deny that there is a small percentage of gambling involved in opening a forex position. But, being a beginner, you can take better help from trading tools to make a refined and educated decision that won’t bring any losses.

But just like in gambling, you do meet some scammers and can face loss. The same is the case with the Nigeria forex market as well. In trading, you can also meet some brokers or trading platforms that are not certified and regulated to perform trading activities. So be careful!

No doubt that the Nigerian forex market is currently backed by the largest and most vital financial institution worldwide. Traders won’t trade with banks but will move into the retail market to start trading.

As the forex market is fully supported by specific organisations, it guarantees a high level of legitimate profits, which is not possible in a gambling world.

While gambling, a gambler always faces enormous challenges on legal fronts. But with a forex market, you can straight invest your money on a legal basis over commodities, stocks, bonds, indices, and many more instruments.

The majority of the traders lose a high percentage because they are not following an appropriate trading strategy. So before you start trading, make some clear and severe decisions to achieve your limits and goals.

To prevent your trade emotions, you can use stop losses and always listen to your inner voice. Prevent your natural human greed by using a take profits strategy. Follow some advanced traders and figure out what trading style they follow.

Lot Size Forex

A lot is a unit of measurement used in currency exchange transactions to indicate the value of the currency units bought or sold. You will receive a lot size forex quote every time you place an order to trade a position.

The standard lot size of a currency is 100,000 units, but there are other sizes as well. For example, there are also micro, nano, and mini lots. Mini lots are 10,000 units, micro lots are 1,000 units, and nano lots are 100 units. Each of these can be found on a chart provided by the broker.

For those new to Nigerian forex trading or who want to test the waters, nano lots are useful. However, as a beginner, it is recommended to trade mini lots to reap the most benefits from trading.

Advanced traders also prefer to use mini lots to gain maximum control over different forex positions. However, traders who have a good understanding of risk management should use standard lots.

The size of the lot plays a critical role in your risk management strategy. Therefore, it is essential to understand what forex lot size you will be trading to calculate how much risk you are prepared to take.

Several factors impact the amount of forex lot size you choose, including your account capital, risk tolerance, potential leverage, and profit target. For example, advanced forex traders typically risk less than 1% of the account capital when choosing a forex lot size.

To buy or sell currency pair positions successfully in the Nigeria forex market, traders must understand a forex lot size. A forex lot size defines how many currency units are purchased or sold in a given transaction.

Traders can calculate profits or losses based on the forex lot size and price movement in pips upon exiting a position.

Knowing how much to trade in a particular currency pair will help you develop a trading strategy, a risk management plan and boost your performance in the forex market.

No Deposit Bonus Forex

You can start trading without risking your capital with a no deposit bonus forex offered by your Nigerian forex broker. Most of them are reserved for new traders, and they come with a string of terms and conditions about how to use them and when to withdraw your profits.

Signing up with all your personal information is all you need to get the forex no deposit bonus.

It would help if you began by deciding which currency is best for you and who will manage your account. Dollar, Euro, British Pound, and Japanese Yen, Australian Dollar, and Russian Ruble are the most common base currencies.

Following that, a bonus will be credited based on your chosen base currency. Nonetheless, the bonus amount you will receive will vary depending on the forex broker you choose.

In any trade involving a no deposit bonus campaign, there are several terms and conditions to consider. Among them are:

  1. Clients with active trading accounts are eligible for the forex No deposit bonus.
  2. The applicant must verify personal information/KYC.
  3. Brokers, times, and campaigns vary in the amount they earn.
  4. You can only take advantage of the promotion if you meet the promotion eligibility criteria, such as the country/region, the applicant’s age, etc.

You can acquire a no deposit bonus by following these steps:

  1. Look for the Nigerian broker that is suitable for you
  2. Sign in to your account
  3. If required, upload or provide verification documents
  4. You can claim the opportunity of no deposit bonus by clicking

You should always choose a Nigerian broker that can offer Forex-no deposit bonus. Unlike promotional offers, best brokers are ranked using a variety of criteria.

To help you compare Brokers and their bonuses, you can find different forex reviews one by one for your convenience. A good no-deposit bonus should be combined with Forex-Broker features.

Price Action Forex

In forex trading, speculating on any currency pair’s future movement is considered a multi-facet process. Price action forex is the movement of currency’s pair price in a specific period. And this price change brings the technical forex analysis in front of the trader.

In the middle of various forex tools available for Nigerian trading, the majority of the short-term day traders rely exclusively on price action. Their main aim is to determine price trends and use technical analysis to inform their trade decisions.

Step No 1: 

First of all, open a new chart and draw the support and resistance level. Then, different chart patterns are included to open a new chart, such as trend lines, ascending and descending channels, or horizontal areas.

Step No 2:

To start trading daily, you should have a tight hold on your patience level. Then, wait for the daily forex sessions to close. Closing prices will help you to conduct price action trading without any hassle.

The two most common daily close forex charts are New York and GMT close charts. However, for serious and successful trading, the New York forex trading chart is the best option.

Step 3:

Last, you must watch for the forex price action to buy and sell signals. This is the moment when the candlestick pattern comes to rescue you. The most common candlestick patterns are engulfing form and pin bar.

All beginner Nigerian traders should understand that trading price actions are quite a speculative game in which two traders will interpret price action differently.

One trader might notice a bearish downtrend, and another trader will notice the price action displaying a potential near-term turnaround.

For an accurate interpretation of price movement, traders can use other tools with price action as well.

Support and Resistance in Forex

As a historical price zone, support and resistance in forex are where prices slow down and reverse before the trend begins again. It is common for the forex market to repeat this behavior in the future when its direction changes.

When prices increase and adjust downward at certain zones, this gives rise to the highest level before adjustment. These levels are called resistance levels.

The lowest level occurs when the market shows a rebound, leading to the support zone.

From a psychological perspective, resistance is a price zone that scares investors a lot. However, investors have become greedy about the support price zone.

Buying near support in uptrends and chart patterns where prices constantly move upwards is one of the primary trading support and resistance methods.

It is also possible for a trader to sell the short near the resistance in the downtrend or if the price is gradually dropping.

As soon as the resistance and support lines cross, they will interact with the trend, causing the line to break out in the opposite direction. Traders can anticipate breakouts from a trend with the help of confluence areas.

Lower lows are considered the support levels in a downtrend, while lower highs are considered resistance levels. Uptrends have the opposite effect.

There is a resistance level for each consecutive higher peak and a support level for each higher trough.

Areas can have specific effects or experiences when they are surrounded by support or resistance levels. For example, when the prices are arriving from a distant location, this effect is relatively stronger.

Last but not least, without the support and resistance analysis, a basic forex trading experience would be incomplete. Therefore, to call yourself an expert trader on the forex market, you need to master the beauty of this forex indicator.

What is Leverage in Forex?

Borrowing money (called capital) and using that money to purchase currency, stocks, or bonds is leverage. Forex traders frequently use leverage. For example, trading in a currency can be done more effectively by borrowing money from a broker. Let’s learn more about what leverage is in Forex.

Due to leverage, favourable movements in the exchange rate magnify returns from a currency. But, on the other hand, leverage is known to be a double-edged sword since it can even magnify huge losses.

Leveraged trading is possible in the following markets:

  1. Indices

Essentially, an index measures the performance of a group of assets within a particular exchange, region, area, or sector. CFD trading and ETFs do not allow trades of indices since they are not physical assets.

  1. Forex

Buying or selling currencies to make a huge profit is known as Forex or the foreign exchange. Foreign exchange is the world’s biggest financial market. Because forex trading involves relatively small movements, many traders opt to use leverage.

  1. Cryptocurrencies

The idea of cryptocurrency is a virtual currency that can be traded similar to Forex but without a bank or government to issue it. As a result, traders can gain exposure to the major cryptocurrencies, including bitcoin and ethereum, or leveraged products without investing large capital.

Leverage offers numerous benefits.

The use of leveraged trading can be compelling if you understand how it works. Some of the advantages include:

  1. Taking advantage of opportunities. Leveraged investments free up capital to invest in other investments. This will allow an investor to increase their investment capacity.
  2. Putting a stop loss on the market. Using a few leveraged products to determine the market movements will help you figure out which markets are rising and which ones are falling. And this concept is known as going short.
  3. Dealings are available 24/7. Some markets are available to trade around the clock, including the key indices, Forex, and cryptocurrency markets.

What is Lot Size in Forex?

Before identifying entry and exit points, traders need to understand the significance of what is lot size in Forex. This is because lot size can directly influence the risk they are taking.

Even if you have the best trading strategy, you will fail if you do not understand how large your lots should be.

Trading with a certain lot size will directly influence how much a market move will affect your account. Larger lots can generate big profits, but large losses as well. As a result, your trading volume has an impact on your strategies and risk management.

Maintaining a reasonable lot size relative to the amount of trading capital available in your trading account will enable you to trade successfully in the future.

Standard lots, mini lots, micro-lots, and nano lots are the four types of lot sizes you will encounter when trading in the forex market.

It is essential to know what lot size a forex trader is using, as it directly impacts their risk. Market movements affect a Nigerian trader’s accounts, and the size of a lot is a measure of how big those effects are.

The concept of lots is relatively new. But, as we all know, the popularity of forex lots grew as the Nigerian internet market took over. Calculating and managing trades was now the responsibility of computers.

Since so many trades happen each day, developers needed an easier way for computers to process these transactions. They did this by reducing the large numbers.

But what does a standard lot mean in Forex? Standard lots are 100,000 units of currency, and instead of being calculated 100,000 times, they are calculated only once.

The use of lots can therefore speed up the trading process quite a bit for the forex traders.

What is Margin in Forex?

In the forex market, the concept of margin trading is based on the opening and maintaining positions in either one or two currencies by involving a good deposit with a broker.

The margin, rather than a cost or fee, is a set-aside portion of a customer’s account balance for order trades.

Depending on the brokerage firm, margin requirements may vary, and this practice comes with several consequences.

The Nigerian broker will hold the trader’s initial deposit when the trader opens a position in forex. Then, to calculate the used margin, just take the amount of money that the broker has locked up to let the trader’s position stay open.

Margin is used to cover more positions as more funds in the trader’s account become available. Traders in Nigeria use available equity to determine how much margin they should set up for new positions.

As a result, margin level is defined as the equity ratio in the account of used margin, which is expressed in percentage terms. You can use the below-mentioned formula for calculating the margin ratio:

Margin level = (equity / used margin) x 100

A forex margin calculator makes it easier to calculate the margin required for a trade. In addition, most brokers have calculated forex margin automatically or offered, so traders are no longer required to calculate the margin manually.

The forex margin calculator hence asks a trader to enter their currency pair, trade currency, and unit size and leverage.

To sum up, margins are an essential concept in leveraged forex trading. Margins represent the amount of money a trader has to invest in making a trade and holding it.

Forex margins are not the transaction costs. But instead, they act as a security deposit which the broker holds as soon as forex trade gets active.

What is Moving Average in Forex?

The moving average in statistics is a formula used to analyse data points by averaging subsets of the whole data set.

Technical analysis uses moving averages (MA) as stock indicators. Moving averages are calculated to smooth out price data by creating a continuously updated average price.

As a result of the calculated moving average, the impacts of short-term price fluctuations on a stock over a specific time are mitigated.

A moving average is a valuable tool in technical analysis, an approach to investing that focuses on understanding and profiting from price movements of securities and indices.

Moving averages can be used to detect a change in momentum, such as a sudden decline in the price of a security. Thus, moving averages are somehow used to confirm their suspicions that a certain change might occur.

An increase in share price above a company’s 200-day moving average, for example, might be seen as a bullish signal.

A moving average is a completely customisable indicator, which means that investors can calculate averages for any period they want. 15 days, 20 days, and 30 days, 50 days, 100 days, or 200 days are known to be the common periods used in the moving averages.

When calculating the average, a shorter time is used, the more susceptible it is to price changes. Conversely, if the time is longer, the average will be less sensitive.

The moving average hence measures the average change in the entire series of data over time. In finance, moving averages are frequently used by various technical analysts just to monitor price trends for certain securities.

As a moving average rises, it may be viewed as a sign of an upswing in a security’s price or momentum, while a declining trend is viewed as a sign of falling security.

Nowadays, many different kinds of moving averages range from simple measures to complex formulas requiring specialised software to calculate.

What is Pip in Forex?

Do you know what pip is in forex? Traders use pips to measure price movements or profits and losses. In addition, traders often use pips as a means of managing risk.

The trader can quickly determine the trade-in stop-loss pips, limiting the potential loss of any losing trade.

For Nigerian traders, pips help them calculate the appropriate position size so that they are not taking on too much risk when they open trade positions.

Investing in pips, leverage, margin, swing trading, forex scalping, and day trading will help you develop a powerful trading strategy.

Profit of USD 10.00 is equal to 100 pips. The pip value, equal to $1, is part of any USD/JPY currency pair trade executed at the lot size of .1.

Pip values are calculated by dividing one pip, which is 0.0001, by the current value of the currency pair. This figure must then be multiplied by your selected lot size, which equals the total amount you will trade.

The best pip ratios are observed for the currency pairs GBP/USD and EUR/USD. Among all currency pairs, the EUR/JPY often has the highest ranking.

The GBP/USD and EUR/JPY each have a four-pip spread; however, they are outranked by the pair of USD/JPY, whose spread is three pip. This is because a pip plays a major role in forex trading to get high profits on a lesser investment.

It is common for GBP/USD to move 120 pips daily on average. It is generally determined by the size of the lot that you are about to trade that determines the value of 10 pips. Thus, 100 pips equal one lot.

Forex strategies involving 50 pips daily are those that are implemented in intervals of an hour. To take advantage of the daily movements of any currency pair, it will capture 50% of the benefit. There are usually only two currency pairs that work with this strategy, GBP/USD and EUR/USD.

What is Price Action in Forex?

This snippet explains to you all about what is price action in forex. The term price action refers to the price movement of a financial asset. Therefore, studying price action theory is an essential component of technical analysis.

In short, price action is about moving into the bare bones of trading in which traders can understand technical indicators or use chart pattern recognitions.

Plus, price action, also known as PA, effectively teaches a Nigerian trader about breakouts, trade trends, or swings. It even explains the support and resistance levels.

According to price action traders, market psychology is the primary driver of price movement. However, there are various technical and fundamental reasons for the price movements in which traders’ reaction towards the price equally plays a significant role.

In addition, price action also gives an overview of people’s emotions. Greed, fear, and market expectations are a few elements that can compose the entire market and move in different directions.

Thus, price action trading can also work just because the price chart has displayed market behaviour.

Through in-depth knowledge about price action, Nigerian traders can understand the concept of selling and buying power in a forex market. Banks widely use price action, retail traders, banks, or multi-billion dollar hedge funds.

To end with this discussion, it is evident that price action is a vital trading term. Therefore, different traders stick to this trading approach to gain attractive results in the forex market.

Always use price action to your advantage by identifying support and resistance levels on your chart and trade in between them. Traders can use them as guides to create a directional bias to see where the market is heading.

In short, it is impossible to trade successfully in a forex market without having any knowledge about price action.

What is Spread in Forex?

Let’s discuss a bit about what is spread in forex! The spread is generally defined as the difference between the bid (sell) and ask (buy) prices of any currency pair within forex trading.

The ask price and the bid price are the two prices in a currency pair. When you sell your base currency, you pay the bid price, and when you buy your base currency, you pay the ask price.

Forex spreads can be calculated using the price quotation for the last large number of sell and buy orders. Thus, the spread is one of the essential components of a successful trading journey in the forex market.

A spread is paid upfront when you trade forex, CFDs, spread betting, or any other asset. CFD commissions are commonly compared when you trade CFDs paired both during the entry process and afterwards.

By opting for a tighter spread, you can increase your trading value. A Nigerian trader can use an indicator to enhance their forex spread strategy. Almost all brokers offer an indicator as you open the live trading account.

This spread indicator is displayed on a trading graph to let the buyer know the exact direction of a spread. In most cases, this spread relates to the bid and ask prices.

A Nigerian trader can track the spread over time within a particular forex pair by using a spread indicator. In general, the spreads on liquid currency pairs are tighter. However, for exotic pairs, the spreads are more comprehensive.

By reducing the profit, spread acts as an opportunity cost, which can be captured based on daily range. Therefore, trades that have a high opportunity cost are more likely to suffer actual losses.

This occurs because the New York session ends at 10 PM GMT and spreads in the forex widen. As the trading volume rises, the spread on the New York Exchange will widen more.

AbokiFX

With AbokiFX, you can now trade foreign exchange at your fingertips. This brand-new application allows you to view live exchange rates against almost all major currencies on your Android or iPhone.

This application provides you with an array of information about current foreign exchange rates. With this app, you will learn Forex by looking at currency price graphs and using historical data from previous trades.

AbokiFX has become the most preferred platform for exchanging information between the Nigerian Naira and the rest of the currencies. This includes British Pound and US Dollar, Euro, or Ghanaian Cedi, Cameroonian Franc, etc.

Aboki provides you with currency-focused news that keeps you informed. So that you can stay informed about global events, or you can view the latest news about the specific countries, regions, and even the latest economies.

No matter what level you are at as a forex trader, getting the latest news and currency quotes are crucial for making the right trades.

These forex apps are the best option to consider where you can have some latest forex tools or the system specializing in a certain currency. Moreover, it teaches you how to start successfully. Any currency pair you are all interested in will be hence displayed with the most current exchange rate.

New or experienced investors will find this useful.

Aboki also provides valuable information regarding which markets are most stable and which ones should be focused on. You can use this information to decide what currency pairs to monitor depending on the changing economic situation in several countries.

Keeping an eye on these factors can also keep you updated on what’s going on with your portfolio.

Whether you trade currencies in the form of pairs such as USD/JPY, or AUD, GBP, or any other major pair, you should stay informed and fully updated to gain some profits throughout the day.

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