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How To Start Forex Trading In Nigeria
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How To Start Forex Trading In Nigeria – The Ultimate Beginner’s Guide

Forex trading in Nigeria has gradually grown from what it used to be in the past few years. With a lot of brokers around and tutorials both online and offline, you are sure the oil mill can get to everyone.

Now, you can learn Forex trading on YouTube, Udemy and a lot of other websites.

However, I won’t advise you as a beginner to start with the online courses. Getting someone, even if it’s a family or friend who is already into the trade to give you an intro is very important.

I learnt from a Nigerian based Forex broker’s office, and it was a very awesome (though stressful on my side…Lol) experience.

We’d be seeing a brief beginner’s guide on how to start FOREX trading in Nigeria. What are the best brokers? How much can you use to begin? Is FOREX trading scam or legit?

Some of the words and phrases you should get familiar with as a Forex trader and more.

If you need more guide and other working ways of making money online, you can subscribe to our YouTube channel.

We’d be dropping them there as im dey hot!

What Is Forex Trading?

The word Forex Trading is probably not alien to us, and has a very simple definition.

Forex simply means Foreign Exchange, and Forex trading can be defined as trading on currencies.

It means monitoring different currencies to know when they change in values and benefit from these changes.

The currencies’ values are always in constant changes, and it will take a professional to know when the next changes will come up and benefit from them.

Is Forex Trading legal in Nigeria?

Perfectly legal! Yes, Forex trading is legal in Nigeria.

In fact, most banks and other big financial institutions trade Forex with the money you store with them.

When you deal on huge amounts of money, you make better profits with lesser efforts.

How Can You Learn Forex Trading In Nigeria?

As I have earlier said, you can learn it online or offline.

In my own case I learnt offline, and I paid some huge amount of money because I needed the most professional tutors.

PS: You can contact me for a PDF of my Forex trading notes.

Some of the best websites for learning Forex trading online are:

  • YouTube 

This has always been the best platform for free tutorials. There are tons of videos on Forex trading you can access, and the only things you need are your data and concentration.

  • TradingView

TradingView.com is one of the best websites for live monitoring of trades.

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You can sign up to access tons of market trend updates, trade analysis, worldwide market data and over 100,000 indicators.

There are lots of things you will benefit that are essential for a new trader, and you get most of them with their free plan.

  • BabyPips.com

If you have the patience, you can learn Forex trading on BabyPips.com.

The courses are up to 150, and you can learn most of them within a stretch of two months.

At least they’re free, and you won’t be burning your data on videos.

  • Bloomberg

Bloomberg will give you access to daily updates on the market so you can trade comfortably.

It is unarguably the best website for Forex news as well as provision of market trends.

  • DailyFX 

Powered by UK-based brokerage, IG, DailyFX is a free website for the provision of live market data for major currency pairs.

They provide regularly updated financial news.

  • FOREX.com

FOREX.com is a top UK forex broker and they offer a comprehensive library of educational content.

You can log on to their website to access the materials on any devices.

  • ForexFactory

ForexFactory is another amazing website for free updates on market trends.

You will, however, need to sign up to benefit and adjust your timezone as soon as you signup to get personalized experiences.

  • FXStreet

They provide information on news, market analysis and a range of forex charts are available including live charts, a forecast poll and rates table.

  • Investing.com

Investing.com is best for free trading tools ranging from news, market analysis, educational materials and real-time data.

  • Investopedia

Aside BabyPips, Investopedia is another interesting website for the learning of Forex even as a beginner.

You can start from YouTube and extend to the platform when you have mastered some of the basics.

  • Udemy

Udemy is one of the best websites for affordable courses on Forex trading.

Most of them are very affordable, and you can check the reviews before purchasing them to read what other customers have to say.

They are mainly video courses, and it is best for learning since most YouTube content creators won’t really go deep.

Advantages Of Forex Trading

There are so many advantages of Forex trading in Nigeria.

Some of them include:

  • Extra source of revenue

Forex is a ‘stressless’ extra source of revenue.

Don’t misunderstand the words in colons, you will actually need to work very hard, but at least making money with your brain protects you from the harmful working conditions on the sites and other places.

  • You don’t need to sell anything

Unlike mini-importation, affiliate marketing and some other ways of making money online, you do not need to sell anything in Forex trading.

This makes it perfect for people like us who don’t like the stress of persuading people to purchase our stuff.

  • No fees

You do not pay anything to your brokers to trade Forex on their platforms.

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They make their own money by what we call SPREADS.

  • You can start with any capital

In Forex trading, there are no fixed lot sizes and you can trade on any amount of money.

With as little as $30, you can start trading and with time you get more to invest.

  • The market runs over 24 hours

We all have different sleeping timetables and Forex probably knows something about that.

No matter the time, you can place trades and benefit from an active currency pair at the moment.

  • Leverage

You can leverage on the market to trade large amounts of money with your little capital.

For instance, a broker might offer 50-to-1 leverage. This means that a $100 dollar margin deposit would enable a trader to buy or sell $5,000 worth of currencies.

Subsequently, you can trade $25,000 on the broker with a $5000 account.

  • Demo Trading

If you don’t trust yourself well, you can start with a demo account.

I however never used, and don’t recommend it for anyone who wants to take FX trading serious.

This is because demo accounts are not your real money, and gains/losses are not real. You do not associate it with real emotions and are probably playing games.

You won’t understand what real trading is all about until you begin to trade on a real account.

Disadvantages Of Forex Trading

Anything that has pros of course has cons.

Some of the disadvantages of Forex trading include:

  • Risk of losing your whole capital

A little mistake in trading can cost you your whole investment.

All the other disadvantages revolve around loosing your money, and I won’t be discussing much on the other ones.

Words To Get Familiar With As A Forex Trader

Some of the words you need to be familiar with as a Forex trader include:

  • PIP

A pip stands for price interest point(s).

It is a unit increase or decrease in price levels.

  • Spread

The spread is the difference between the ask price and the bid price. It is the broker’s income relative to whatever volume you trade on.

  • Ask Price

Ask price is what you pay when buying.

  • Bid Price

Bid price is what you pay when selling.

  • Broker

A broker is a place where buyers and sellers go to buy and sell instruments, such as currencies.

  • Indicators

Indicators are usually used to forecast price changes on the currency market.

Currency Pairs

In Forex, there are two currency pairs to trade on:-

  • Major Currencies

These the most traded currencies.

They include:-

  • EUR/USD
  • GBP/USD
  • USD/JPY
  • USD/CHF
  • NZD/USD
  • CAD/USD

They are paired with the USD and have three PIPs spread.

  • Cross Currencies

A cross currency refers to a currency pair or transaction that does not involve the U.S. dollar.

They are also known as the minor currency pairs.

Some of them include:-

  • EUR/GBP
  • GBP/JPY
  • EUR/AUD
  • NZD/JPY
  • CHF/JPY
  • GBP/CAD

They are mostly paired with the euro, yen or British pound and not mostly traded.

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The cross currencies also have varied spread PIPs.

Steps To Beginning Forex Trading In Nigeria

To become a Forex trader, you don’t need to go for a 6 years medical course and eventually graduate with a First class.

In fact, a four weeks intensive training is enough for you to kick-start and you can then improve.

  • Acquire the knowledge

In Forex trading, you first learn, then you earn.

I have shared some of the best Forex tutorial sources you can access online, and you can also contact me for a PDF of my Forex trading notes.

In my case I had to go for an offline tutorial since the stuff was brand new to me.

  • Get your capital

After training, you can begin with as little as $25.

It is not the best idea though, but we all don’t have the same pockets.

Moreover, you can take that as your demo trading. When you are faily good, then you invest more money.

  • Get a broker

A broker is a place where buyers and sellers go to buy and sell instruments, such as currencies.

There are so many good brokers you can work with in Nigeria.

Some of them include:

  • Instaforex
  • Pepperstone
  • FXTM
  • IC Markets
  • HotForex
  • Hugosway
  • easyMarkets
  • Plus500
  • CMC Markets
  • OANDA

I can’t say that any is the best since I haven’t tried all.

Moreover, it is like saying that GT Bank is better than FCMB, when all function to keep your money for you.

  • Create a demo account to practice

After choosing a broker, then next is to start with a demo account.

For me, I don’t advise anyone to waste their time on this, but I have to add it since some people would still love to try it out.

Instead of demo trading, start with $25 and build a read career.

You can even grow it to $100 and invest more while still learning, and it helps you trade with real emotions.

  • Set up your live account and begin the trading

When you are done demo trading if you preferred that, then it’s time to set up a real account.

You can Google for the best brokers and make your own choice.

Most of them offer the same services, so we can be talking about the ones with the most user friendly platform and customer care services.

Also, a broker that pays to your Nigerian bank account will be a pro, or you can get a PayPal account that works perfectly in Nigeria.

Conclusion

Forex trading in Nigeria is gradually evolving, and to make money you need to study it very well.

Trading without learning is simply gambling, and you do not have any control over what happens.

Yes, you can get rich from Forex trading but don’t make that your major aim.

Trade slowly but consistently. My Forex tutor would always say that no good trader stays in bed beyond 6 o’clock, so you know we’re not here to play around.

Thanks a lot for reading along.

Don’t forget to drop your comments and share to your friends.

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Nigerian twin writer, photographer, FX trader and YouTuber. I focus on biographies, business and tech. You can connect with me on Facebook and Twitter @Chimaizuobi!