Right off the bat, the answer is no. It is never too late to become a trader. Even before the pandemic, Nigeria had the second-biggest Forex trading volume on the continent.
It is poised to surpass South Africa in the near future. Trading is all the rage, but this does not mean it is too late to jump on the bandwagon.
What Trading Is All About
Trading is a trendy concept, even though it is nothing new. Individuals have been able to access the global currency exchange since the early 1990s. Today, however, entry is easier and more affordable than ever. In Nigeria, one may open a live trading account with just $10.
In the past, trading was the domain of large institutional players like banks or hedge funds. Today, they still partake in the activity alongside corporations and retail traders. Individuals buy and sell currencies for speculation purposes. As the exchange rates are permanently in flux, you may gain profit by buying or selling at the right time.
For example, if you expect the euro to become more expensive, you can buy more euros today and sell later. Even negative trends (downtrends) can be lucrative. If the same currency is expected to drop, you may sell it now, so you can buy back more euros later. Trading is an exciting opportunity for those who like analyzing the market.
The choice is not limited to currencies. Nigerian traders may choose from a broad range of instruments. Everything is done through software for desktop computers and mobile apps. It works on any Windows or Mac devices, as well as iPhones and Android smartphones.
Forex trading is done through comprehensive platforms that fall into two categories. First, there are generic solutions. These are environments used by different brokers, such as MetaTrader 4 or MetaTrader 5.
Both systems are still the industry favourites, despite their long history. The key is to choose a responsible MetaTrader 4 broker in Nigeria so excellent support is guaranteed.
On the other hand, there are proprietary systems developed especially for brokerage companies. For instance, Forextime has unveiled its ultra-modern FXTM Trader app that gives access to 250+ instruments.
The choice of a platform is largely defined by the broker. It is imperative that you pick a regulated company that is licensed in full accordance with existing regulations.
Overview of Instruments
So, what instruments can a resident of Nigeria trade online? Forex is a common choice, as it is the least complicated realm.
After all, most people have exchanged currencies at some point in their lives, so the logic is intuitively clear. Beyond currency pairs, there are other options:
- precious metals like gold and silver;
- stocks of the largest corporations like Facebook or Alphabet;
- CFDs on commodities;
- CFDs on cryptocurrencies;
- CFDs on market indices;
- CFDs on stocks.
All of these instruments follow a similar logic. Traders buy low and sell high, cashing in the difference. Spot metals are priced against major currencies like the Euro or the American dollar.
CFDs, or Contracts for Difference, are virtual derivatives connected to various assets. To make money, you don’t need to own the latter — you merely speculate on their price.
Eventually, a talented trader assembles a diversified portfolio of assets across markets, which means high profits and lower risks. If you follow a consistent strategy and calculate risks well, you may expect to achieve a 10% monthly return on capital. Everyone can start small and gradually increase their volume.
How to Get Started
If you have zero experience in Forex, you may acquire it for free. Education comes in the form of articles, video tutorials, books, blocks, etc. Aside from materials provided by brokers, you may use dozens of YouTube channels created by prominent trading experts.
Your first step will be the creation of a demo account. This is a piece of cake — all you need to do is to fill in a basic contact form on your brokerage site. With the login and password, which are emailed immediately, you may unlock the trading software in its simulation mode.
The system will imitate real market conditions, so you may practice at your own pace and develop the acumen necessary for lasting success.
It is never too late to become a trader. The currency exchange is the largest financial market in the world! There is space for everyone, and competition is not an issue.
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