How to Start Forex Trading in Nigeria & Make Money (Step-by-Step Guide)

How to Start Forex Trading in Nigeria & Make Money (Step-by-Step Guide)

Last Updated on October 15, 2022

Around the early 2000s, forex trading in Nigeria started to gain relevance, now it’s now one of the most popular ways to build wealth in Nigeria, which is one of the fastest-growing forex trading nations in the world. 

With the country doing an estimated daily trading volume of ₦300-450 million.

The Forex Market is the largest trading market in the world (larger than all the stock markets in the world combined together) and has an average turnover of US$6.5 trillion on a daily basis around the world.

Forex trading or Foreign exchange trading can offer a path to financial freedom for anyone willing to learn the skills and behaviours required to be a successful forex trader.

For those who are new or have a limited idea of what forex trading is, it is simply a way for investors to exchange several national currencies against one another and make money off the margins.

If you’re looking to trade forex in Nigeria, we will be talking about everything you need to know. So sit tight and come along.

See: Legit Forex Investment Companies in Nigeria

Is Forex Trading Legal in Nigeria?

Forex trading in Nigeria is unregulated so it isn’t illegal or banned in Nigeria. So it is very legal to trade Forex in Nigeria as long as your trading does not break Nigerian money-laundering laws. That’s why you need to use legit forex brokers in Nigeria and make sure you’re trading for yourself alone.

Is Forex Trading Profitable in Nigeria? How to Make Money from Forex Trading in Nigeria

Yes, forex trading in Nigeria has been profitable for a lot of people. However, these are forex traders that are very skilled, and knowledgeable about markets. While forex trading can be very lucrative, it is not a get-rich-quick scheme. Many people have made a lot of money from forex trading in Nigeria, and a lot more have also lost money.

But if you take the time to correctly learn the fundamentals of forex trading, you can become rich from trading because forex trading can be a profitable venture for anyone with the right level of skills and capital.

A lot of the people who lose money from forex trading in Nigeria do so because they either don’t learn the fundamentals well enough or they carry the wrong mindset with them. Some of them think they can make easy money trading forex with minimal investments. It doesn’t work that way. Not for investing anyway.

To profitably trade forex; you’ll need to invest time and focus on learning the required skills. Learn the basics. There are a ton of resources out there like Youtube, ebooks and even courses. Then you need to gain some experience by trading using a demo account (account with fake money) and develop your trading strategies. After you’re sure that these strategies work, you can go ahead and open a live account and start trading with your money. You also need a significant amount of capital to open positions where you don’t over-leverage.

CheckOut: Forex Trading Sessions in Nigeria Time

What is the Minimum Amount to Start?

To begin your forex trading journey will require at least $100. It is important to know that while some forex brokers might tell you you can start trading forex in Nigeria with a lesser amount. You want to have enough capital to trade which gives you just about enough leverage to reach your goals.

How to start Forex Trading in Nigeria & Everything you Need to Know

For beginners who want to go into forex trading, it is important that you have enough knowledge about forex and what it means to trade forex. So we will explain the important terms in forex trading so you can start building up your knowledge. It is important that you expose yourself to more Forex educational material so you can cut out beginner mistakes.

Some important forex trading vocabulary is:

Forex: Foreign Exchange

Forex trading: trading (Buying & Selling) currencies for profit-making.

Forex Market: This is an over-the-counter (OTC) market where forex traders place their trades on currencies, 24 hours a day, for 5 days a week from Monday through Friday. A lot of stakeholders like investors, institutions, banks, and retail traders are involved in the Forex Market. Trading activities are conducted through the “Interbank Market” which allows you to execute trades.

Currency Pairs:  This is a quotation of the exchange rate for two different currencies traded in the Forex market. When you place an order for a currency pair, the first listed currency or base currency is bought while the second listed currency in a currency pair or quote currency is sold.

Base currency: This currency always appears first in a currency pair, it is the currency that the trader is currently holding.

Quote currency: This is the second currency in a pair, it is the currency that the trader will purchase.

Bid/Ask Price: The Bid price is the price at which the broker is willing to buy the base currency while the asking (ask) price is the price that the broker will ask the trader in exchange for buying the quote currency of choice.

Spread: This is the difference between the bid price and the asking price, it’s usually charged by the broker as payment for rendering services. This difference is expressed in pips. Spreads can either be floating or variable spreads and they change with market conditions. Fixed spreads are determined by the broker.

Pip: this means ‘Percentage in Point’. It is the smallest measurable value of currency movements and the smallest increment that a price can move. One pip is equal to 1/100th of the base currency of the trader.

Demo Account: A demo account is a risk-free platform that mimics live trading conditions, without risking actual capital. It is used by traders to practice forex trading before putting in real capital in a live trading environment.

Forex Plan/Strategies: Trading plans or strategies are a vital tool for successful Forex traders. A trading plan or strategy is a set of rules or guidelines that represents the trading behaviour of the trader using them. Trading strategies help you ensure that as a trader you do not give in to emotion when trading, it helps you stay true to your trading goals and objectives. They also help traders manage risk effectively. Trading strategies are usually chosen based on the type of trading style the trader adopts and the trader’s personality. Some Forex trading strategies include; Scalping, Day Trading, Swing Trading, and Positional Trading.

To get started with Forex trading in Nigeria follow these steps:

  • Get a digital device with an internet connection. if you can get multiple devices, since you’ll be taking in a lot of information to make forex trades, and all of that information is easier to fit on multiple screens. Make sure your internet connection is strong.
  • Pick a reputable forex broker in Nigeria. Your forex broker is the company that will connect you to the Forex market. The Forex market is a decentralized market with relatively little regulation, so not all brokers come to you fully vetted. Do your research and use demo accounts first.
  • Open your Live Forex account. Once you pick the broker you like, follow that broker’s process to open the account. You will verify your identity and connect your bank account.
  • Fund your Account. You need money to make Forex trades so you can make more money! You can fund your forex account from your bank, a debit card or a credit card and sometimes even a check.
  • Install your trading platform. Many forex brokers have their own proprietary trading platforms. Some of them integrate with 3rd party providers. Either way, you’ll need to download the trading software for you to actually trade. This is the user interface you will use to make trades in the forex market.

This stepwise process can be easier said than done for some beginner forex traders, but definitely possible for a hardworking and willing forex trader.

Best Brokers & Apps for Forex Trading in Nigeria

Getting a legitimate forex broker or App in Nigeria that you can start trading with can be sometimes difficult. Atimes people know enough genuine forex brokers in Nigeria they can use, but atimes they dont know which one to pick. As they don’t have enough information to weigh the pros and the cons of each forex broker in Nigeria. But here’s a list of the best forex brokers and apps in Nigeria if you’re looking to go into forex trading in Nigeria today

1. FXTM

fxtm

One of the most popular forex brokers in Nigeria, FXTM or Forex time is quite known for its good customer support and diverse withdrawal options which is due to the fact that it has a local telephone and office line that customers can reach them on. FXTM  has over 19 deposit and withdrawal options for its Nigerian traders. You can start trading forex on FXTM for as little as $50. It also offers a demo account for beginner traders.

2. Octa FX

octa fx

Octa fx is now considered one of the best STP forex brokers. This forex broker aims to provide a cost-effective trading experience for both beginner and experienced forex traders. They claim to have over 1.5 million traders registered with them. Octa Forex also offers a trading account to Islamic traders looking to comply with sharia law.

3. Pepperstone

pepperstone forex

Pepperstone is one of the biggest forex brokers in the world by offering tech-based trading. That allows traders to embrace the challenge and opportunities available in the global market. this forex broker provides three top forex trading platforms available on desktop and mobile platforms to their traders. Pepperstone Minimum Deposit in Nigeria is $200

4. HotForex

hotforex

HotForex is one of the top forex brokers in Nigeria as they offer high leverage of 1:1000 than most other brokers who offer a maximum of 1;500. HotForex also offers a choice of trading accounts as well as bonus offers. With HotForex, a trader has a choice to choose between 5 trading accounts. 

5. AvaTrade

avatrade forex

Avatrade offers a range of currency pairs and CFDs to traders that use its platform. This broker is multi-regulated as well. Avatrade uses MetaTrader 4, MetaTrader 5 and AvaTradeGo as its trading platforms.

Avatrade doesn’t charge any commission fees but they’ve general trading and account cost that traders pay for using them.

If you’re using the AvaTradeGO app for android and iOS mobile, you will get access to AvaTrade’s exclusive risk management tool known as AvaProtect. 

6. IQ Option

iq option

IQ Option is a broker that offers instruments like stocks, forex, ETFs, Commodities, and Cryptocurrencies.

IQ Option offers CFDs on all the aforementioned instruments.IQ Option offers different deposit and withdrawal options to forex traders. The minimum amount that can be deposited at once on IQ Option is $10.

7. IC Markets

ic markets

This is a legit forex broker in Nigeria that offers a wide array of trading options to all types of forex traders in the market. 

Their technology is great and they are also backed by some of the world’s most reliable liquidity providers. IC Markets is a broker headquartered in Australia, and they offer some of the lowest spreads in the market as well as low brokerage fees.

They don’t charge deposit or withdrawal fees either. Their trading platforms include MT4, MT5 and cTrader.They are also great for Islamic traders too. IC Markets Minimum Deposit in Nigeria is $200.

How much do you need to start Trading Forex in Nigeria?

To begin your forex trading journey will require at least $100.

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